Sezzle Beat on Revenue and Raised Guidance. Its Stock Lost a Third of Its Value in a Day.
The quarter set records and the outlook went up for a third time this year. The market erased about $2 billion of value anyway.
Overview
Buy now, pay later (BNPL) company Sezzle (NASDAQ: SEZL) closed at $178.53 on Thursday. By Friday's close, the stock was at $118.02 -- a one-day decline of 33.89% that wiped out about $2 billion of market value. The whole company was worth about $6 billion at Thursday's close and just under $4 billion a day later.
The report that triggered it, released Thursday evening, didn't look like that kind of news. Second-quarter revenue rose 51.7% year over year to $149.7 million -- a record, and ahead of analysts' estimates. Net income came in at $40.8 million, up 47.7%, and earnings per diluted share reached $1.17, from $0.78 a year earlier.
Details
Active subscribers surged 76.4% to 854,000, the largest year-over-year gain in the company's history. And management raised its full-year guidance for the third time this year.
Source
Originally published at www.fool.com.