Sezzle Inc. (NASDAQ:SEZL), a company specializing in business services, disclosed board member alterations in a recent SEC filing. On July 18, 2024, Michael Cutter and Paul Alan Lahiff resigned from the board with immediate effect, citing commitments elsewhere. Their departure was not due to disagreements with the company's operations, policies, or practices.
Subsequently, Sezzle appointed Stephen F. East and Kyle M. Brehm to its board on the same day. Both appointees will serve as non-employee directors until the next Annual Meeting of Stockholders. The company confirmed that East and Brehm meet NASDAQ’s independence and financial expertise requirements.
Stephen F. East, 60, comes with significant industry experience, currently serving on the board of Toll Brothers (NYSE:TOL), Inc. and Viven Education, LLC. His previous tenure includes a role as a senior consumer analyst at Wells Fargo (NYSE:WFC) Bank, N.A. East holds a Bachelor of Sciences in Finance and an MBA, and is a Chartered Financial Analyst. His board compensation includes an annual retainer of $60,000 and additional $30,000 for chairing each committee, along with 500 restricted stock units valued at approximately $42,165, vesting over 3.7 years.
Kyle M. Brehm, 40, is a tax attorney and officer at Fredrikson & Byron P.A. His background includes a directorship at PricewaterhouseCoopers LLP and a board membership at eQuality-Pathways to Potential. Brehm has a BA, a Juris Doctor degree, and an MBA. His compensation mirrors East's, with the exception of a $15,000 retainer for committee memberships, and the same restricted stock units grant.
Both East and Brehm have entered into the company’s standard form of directors’ indemnification agreement. This filing, based on a press release statement, provides investors with the latest governance changes at Sezzle Inc.
In other recent news, Sezzle, a buy-now-pay-later service provider, has been recognized for its strong growth and transition into profitability. B. Riley initiated coverage on Sezzle with a Buy rating, citing the company's promising trajectory within the rapidly expanding sector. The firm also set a price target of $113.00, based on a 16 times multiple on its 2025 earnings per share estimate.
Sezzle's financial performance has been noteworthy, achieving net income profitability for the full year of 2023 and maintaining this profitability into the first quarter of 2024. The company's robust incremental sales have been fueled by its 0% APR point-of-sale financing, benefitting both retailers and customers.
Sezzle's growth potential is underscored by B. Riley, highlighting its ability for high growth at a low marginal cost leading to significant margin expansion. The firm anticipates Sezzle to continue its expansion by adding more retail partners and growing its consumer subscription services. There's also potential for Sezzle to partner with a fintech bank to offer additional banking services. These are some of the recent developments surrounding Sezzle.
InvestingPro Insights
As Sezzle Inc. (NASDAQ:SEZL) navigates through its board member changes, investors may find InvestingPro's data and tips valuable for assessing the company's financial health and stock performance. Sezzle's market capitalization stands at a solid $472.44 million, reflecting its position in the business services sector. The company's revenue has shown impressive growth, with a 29.45% increase in the last twelve months as of Q1 2024 and an even higher quarterly growth rate of 35.49% for Q1 2024. This growth trajectory is complemented by a robust gross profit margin of 48.4%, indicating efficient management and a strong market position.
InvestingPro Tips suggest that Sezzle is expected to see net income growth this year, with analysts predicting profitability. Additionally, the company's P/E ratio is relatively low at 13.47 when adjusted for the last twelve months as of Q1 2024, compared to its near-term earnings growth. This could signal an attractive valuation for investors seeking growth at a reasonable price. Moreover, Sezzle's strong return over the last three months, with a price total return of 69.35%, is indicative of the stock's positive momentum.
For investors interested in more detailed analysis and additional InvestingPro Tips, including insights on Sezzle's high earnings multiple and price volatility, visit https://www.investing.com/pro/SEZL. There are 11 more tips available, which could provide further clarity on investment decisions. For those considering a subscription, use coupon code PRONEWS24 for up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking a wealth of financial data and expert insights.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.