Sezzle's Q4 2024: Contradictions in Product Strategy, Subscription Growth, and Merchant Attraction

These are the key contradictions discussed in Sezzle's latest 2024Q4 earnings call, specifically including: Product Strategy and On-Demand Product, Funnel and Mid-Market Merchant Signings, Subscription Growth and Strategy, and Merchant Attraction and Product Offerings:



Revenue Growth and WebBank Partnership:
- Sezzle reported a 100% year-over-year increase in revenue for Q4 2024.
- Revenue growth was driven by the partnership with WebBank, which unified the fee structure and allowed for the launching of the On-Demand product.

On-Demand Product and MODS Growth:
- The On-Demand product saw significant growth, with 707,000 MODS at the quarter end, a 130% year-on-year increase.
- This growth was supported by strong activation rates and the product's appeal to enterprise merchants by lowering their costs and creating a lower barrier to entry for consumers.

Improved Product Marketplace and User Engagement:
- Sezzle's product marketplace experienced month-over-month growth rates of 39% in orders placed on the platform during 2024.
- Enhanced shopping features, including couponing, were introduced to drive customer engagement and increase retention.

Enhanced Underwriting and Risk Management:
- The provision for credit losses was between 2.5% to 3% of GMV for 2025, driven by improved underwriting models and increased approval rates.
- The company's ability to separate performing and non-performing customers through advanced machine learning models lowered risk and improved operational efficiency.