Sezzle Inc (SEZL) 2024 Q2 法說會逐字稿

Good day and welcome to the Sezzle Inc. second quarter financial results conference call.

美好的一天，歡迎參加 Sezzle Inc. 第二季財務業績電話會議。

(Operator Instructions) Please note this event is being recorded.

（操作員說明）請注意此事件正在被記錄。

I would now like to turn the conference over to Charlie Youakim.

我現在想把會議交給查理尤金 (Charlie Youakim)。

Please go ahead.

請繼續。

Thank you.

謝謝。

Good afternoon, everyone, and welcome to Sezzle's 2024 second quarter earnings call.

大家下午好，歡迎參加 Sezzle 2024 年第二季財報電話會議。

My name is Charlie Youakim, I'm the CEO and Executive Chairman of Sezzle.

我叫 Charlie Youakim，是 Sezzle 的執行長兼執行主席。

I'm joined today by our Chief Financial Officer, Karen Hartje; and our Head of Corp Dev and IR, Lee Brading.

今天我們的財務長 Karen Hartje 也加入了我的行列。以及我們的公司開發和 IR 主管 Lee Brading。

In conjunction with this conference call, we filed our earnings announcement with the SEC and have posted it along with our earnings presentation on our Investor website on sezzle.com. If you have not already done so, please go to the Investor Relations section of our website.

結合本次電話會議，我們向 SEC 提交了收益公告，並將其與我們的收益演示一起發佈在我們的投資者網站 sezzle.com 上。如果您還沒有這樣做，請造訪我們網站的投資者關係部分。

There you will find the press release and earnings presentation under quarterly earnings within the financial section.

您可以在財務部分的季度收益下找到新聞稿和收益演示。

Now that we have all the administrative duties out of the way, let's get started.

現在我們已經完成了所有的管理職責，讓我們開始吧。

We're extremely excited to share our Q2 results and our updated guidance with you.

我們非常高興與您分享我們第二季的結果和更新的指導。

Please flip ahead to slide 3.

請向前翻至幻燈片 3。

Slide 3 provides an overview of how our actions are translating into positive results.

投影片 3 概述了我們的行動如何轉化為正面的結果。

As you can see, Q2 revenue rose 60.2% year on year, driven by strong growth in consumer purchase frequency and subscriber growth.

正如您所看到的，在消費者購買頻率和訂戶成長強勁成長的推動下，第二季營收年增 60.2%。

Our growth is outpacing the buy-now-pay-later industry as reported by third-party research companies such as Adobe Analytics.

根據 Adob​​e Analytics 等第三方研究公司的報告，我們的成長速度超過了先買後付費產業。

Net income for the quarter came in at $29.7 million, yes, $29.7 million for the quarter.

該季度的淨利潤為 2970 萬美元，是的，該季度為 2970 萬美元。

But before anyone gets too excited, it includes a one-time discrete income tax benefit of $16.8 million for the release of the valuation allowance previously recorded against our deferred tax assets.

但在大家興奮之前，它包括 1680 萬美元的一次性離散所得稅優惠，用於釋放先前根據我們的遞延稅資產記錄的估值津貼。

This is effectively recognizing a deferred tax asset and pulling its impact forward.

這有效地確認了遞延稅資產並推動其影響力向前發展。

What that means for next year is that we'll be recognizing taxes at their full effect.

這意味著明年我們將充分認識稅收。

So adjusted net income for the quarter of $13.1 million, which is a number that we are still very proud of.

因此，該季度調整後的淨利潤為 1310 萬美元，這是一個我們仍然感到非常自豪的數字。

As a result, we are raising our fiscal 2024 guidance across the board.

因此，我們全面上調 2024 財年指引。

And because of the one-time items, we are now providing adjusted net income and adjusted net income per diluted share guidance of $40 million and $6.75, respectively.

由於這些一次性項目，我們現在提供的調整後淨利潤和調整後每股攤薄淨利潤指引分別為 4,000 萬美元和 6.75 美元。

But don't worry about the term adjusted.

但不用擔心術語調整。

We aren't adjusting out real costs like stock-based comp and interest.

我們不會調整股票補償和利息等實際成本。

We're just removing a few one-time items that can make it more difficult for investors to understand our performance.

我們只是刪除了一些一次性項目，這些項目可能會讓投資人更難了解我們的業績。

We will walk through all the guidance and a more detailed explanation of the one-time items at the end of the presentation.

我們將在演示結束時逐步介紹所有指導，並對一次性項目進行更詳細的解釋。

Our total subscriber count increased by 91,000 during the quarter to 462,000, and our consumer engagement continues to grow as evidenced by the top 10% of consumers transacting an average of 70 times per year.

本季我們的總訂閱人數增加了 91,000 人，達到 462,000 人，前 10% 的消費者平均每年交易 70 次，證明我們的消費者參與度持續成長。

This number stood at 53 times at the end of Q1.

截至第一季末，這一數字為 53 次。

We continue to strongly exceed the Rule of 40, no matter how one slices the equation.

無論人們如何看待這個等式，我們都將繼續遠遠超越 40 法則。

Last quarter, we also discussed another measure in the script of 20-60-20, which equates to 20%-plus revenue growth, 60%-plus percent gross margin, and 20%-plus percent net income margin.

上個季度，我們也討論了「20-60-20」腳本中的另一項指標，即營收成長 20% 以上、毛利率 60% 以上、淨利潤率 20% 以上。

We came very close to achieving each of these metrics in Q2, but fell just short of the gross margin line.

我們在第二季非常接近實現這些指標，但略低於毛利率線。

Nonetheless, great results for the quarter.

儘管如此，本季的業績還是不錯的。

I guess one could say that we created our own rule of 100.

我想有人可以說我們創造了自己的 100 法則。

As a company, we continue to push forward with the focus on our guiding principles, as shown on slide 4.

作為一家公司，我們繼續以我們的指導原則為重點，不斷向前推進，如幻燈片 4 所示。

It's obvious from the outside that we are positively affecting profitability as we continue to report higher net income each quarter and increase forward guidance.

從外部來看，隨著我們繼續報告每個季度更高的淨利潤並增加前瞻性指引，我們正在對盈利能力產生積極影響。

However, I don't think people outside of Sezzle truly appreciate the laser focus on improving bottom-line results.

然而，我認為 Sezzle 以外的人並不真正欣賞專注於提高底線結果。

It is woven into every decision that we make from revenue generating activities to cost saving initiatives.

它融入我們從創收活動到節省成本措施的每項決策中。

A key part of the formula for increasing profitability is increasing the lifetime value of our consumers.

提高獲利能力的關鍵部分是提高消費者的終身價值。

The launch of our Premium and Anywhere subscription product is a great example of us finding a way to increase the lifetime value of our consumers with products they truly love.

我們的 Premium 和 Anywhere 訂閱產品的推出是一個很好的例子，表明我們找到了一種方法，透過消費者真正喜愛的產品來增加他們的終生價值。

We continue to have an eye on new product offerings our consumers' needs and wants and enhancing those that we already provide them, all with the goal of improving retention, frequency, and satisfaction.

我們繼續專注於滿足消費者需求和願望的新產品，並增強我們已經提供的產品，所有這些都是為了提高保留率、頻率和滿意度。

We believe we have numerous opportunities to continue to enhance the consumer experience with Sezzle, and thus continue to drive top- and bottom-line results.

我們相信，我們有很多機會繼續透過 Sezzle 增強消費者體驗，從而繼續推動營收和利潤的成長。

A key part of enhancing lifetime value is providing products that consumers need, which we believe will lead us to acquiring more new users.

提高終身價值的關鍵部分是提供消費者所需的產品，我們相信這將使我們獲得更多新用戶。

I'm happy to say that we are seeing green shoots in this area.

我很高興地說，我們正在這一領域看到萌芽。

You will see later in the presentation that we are experiencing sequential quarterly growth in active users, and that starting in Q3, we should report year-over-year growth in active users.

您將在稍後的演示中看到，我們的活躍用戶數量逐季度連續增長，從第三季度開始，我們應該報告活躍用戶數量的同比增長。

From a stakeholder perspective, driving profit and bottom-line results are important, but we also recognize that we must be good stewards.

從利害關係人的角度來看，推動利潤和底線結果很重要，但我們也意​​識到我們必須成為好管家。

We are a public benefit corporation and are proud to be the only buy-now-pay-later company that is a certified B Corp. We just felt as being good stewards for the next generation that comes after us.

我們是一家公益公司，並很自豪能夠成為唯一一家獲得共益企業認證的先買後付公司。

As shown on slide 5, we have 462,000 subscribers.

如投影片 5 所示，我們有 462,000 位訂閱者。

The growth of 91,000 subscribers this quarter outpaced the last quarter's growth of 64,000.

本季訂戶數量增加 91,000 名，超過上季的 64,000 名。

The increase was driven by a few different initiatives that are paying off.

這一增長是由一些正在取得成效的不同舉措所推動的。

First, our efforts in attracting first-time users to Sezzle are starting to pay off, meaning more consumers are coming into the top of the funnel.

首先，我們吸引首次用戶使用 Sezzle 的努力開始得到回報，這意味著更多的消費者正在進入通路的頂端。

Second, we have expanded the pool of current users that are available to join.

其次，我們擴大了可加入的目前使用者池。

And third, driven by our strong LTVs, we have increased ad spending for consumer science.

第三，在我們強大的生命週期價值的推動下，我們增加了消費者科學的廣告支出。

We are monitoring these efforts closely for the trade-off between profitability and credit losses.

我們正在密切關注這些努力，以在盈利能力和信用損失之間進行權衡。

We expect and to date have seen that the path we have chosen is the right one.

我們期望並且迄今為止已經看到我們選擇的道路是正確的。

While we expect to see an increase in our provision for credit losses potentially to mid-2% in the second half of the year, we believe it will be more than offset by enhanced margins, growth, and ultimately higher profitability through more lifetime value creation.

雖然我們預計下半年信貸損失準備金可能會增加至 2% 左右，但我們相信，利潤率的提高、增長以及通過更多終身價值創造最終提高盈利能力將足以抵消這一影響。

The year-on-year increase in our second quarter provision is an active example of that.

我們第二季撥備的年成長就是一個正面的例子。

We know that we have higher margin products now, which allows us to open up our products to more and more consumers.

我們知道我們現在擁有更高利潤的產品，這使我們能夠向越來越多的消費者開放我們的產品。

That trade-off is paying off.

這種權衡正在得到回報。

The amount of engagement and the positive feedback from consumers has been overwhelming.

消費者的參與度和正面回饋是巨大的。

Our incredible NPS scores rose once again, and consumers are using our payment method in new locations where only debit or credit cards dominated in the past.

我們令人難以置信的 NPS 分數再次上升，消費者在過去僅藉記卡或信用卡占主導地位的新地點使用我們的支付方式。

Once thought of as an apparel-only product, Sezzle's [payment] for payment method is moving into the mainstream and becoming top of wallet for more and more users.

Sezzle 曾經被認為是一種僅限服裝的產品，但如今，Sezzle 的支付方式正在進入主流，並成為越來越多用戶的首選。

In the ever evolving landscape of consumer finance, more and more, the data suggesting that buy-now-pay-later is simply a modern application of credit and a popular one at that.

在不斷發展的消費金融領域，越來越多的數據表明，先買後付只是信貸的一種現代應用，而且是一種流行的應用。

On slide 6, we wanted to update you all on what we're seeing from payments streaks as we're very happy with the results.

在投影片 6 上，我們希望向大家介紹我們從連續付款中看到的最新情況，因為我們對結果非常滿意。

Not only are we seeing enhanced engagement through this gamification, but we are seeing rank-order repayment results, which allows us to use the information gleaned through streaks as another layer of user segmentation.

我們不僅看到透過這種遊戲化提高了參與度，而且還看到了排名順序還款結果，這使我們能夠使用透過條紋收集的資訊作為用戶細分的另一層。

And the Plus in all of this is that it aligns with rewarding good behavior and educating newer credit users on the importance of proper repayments.

所有這一切的優點在於，它與獎勵良好行為和教育新信貸用戶正確還款的重要性相一致。

We think all of this aligns with our mission of financially empowering the next generation.

我們認為所有這些都符合我們為下一代提供經濟支持的使命。

And I'm sure you figure it all out by now, but a good deal of our efforts are focused on profitability and increasing consumer lifetime values.

我相信您現在已經明白了，但我們大部分的努力都集中在獲利能力和提高消費者終身價值上。

From a high level, slide 7 shows how we have done that over time.

從較高的層面來看，投影片 7 展示了我們隨著時間的推移是如何做到這一點的。

We continue to evolve and adapt and add value for our stakeholders.

我們不斷發展、適應並為利害關係人增加價值。

From our original merchant direct integration product in 2017 to credit reporting in 2021 to subscriptions in 2021 -- sorry, 2022 and 2023.

從 2017 年我們最初的商家直接整合產品到 2021 年的信用報告，再到 2021 年的訂閱——抱歉，是 2022 年和 2023 年。

At each stage, we enhanced the consumers' experience and have increased consumer lifetime value in the process.

在每個階段，我們都增強了消費者的體驗，並在過程中增加了消費者的終身價值。

More recently, we've launched other initiatives such as our product marketplace and payment streaks, which we expect to add to the consumer experience and thus increase consumer lifetime values.

最近，我們推出了其他舉措，例如我們的產品市場和連續付款，我們希望這些舉措能夠增強消費者體驗，從而提高消費者的終身價值。

As we look forward, the bank partnership is the next significant leg in our journey to expand our relationship with the consumer.

展望未來，銀行合作關係是我們擴大與消費者關係的下一個重要環節。

We are excited about the progress we have made with our future bank partner and expect to complete the process and go live with them in the fourth quarter.

我們對與未來的銀行合作夥伴的進展感到興奮，並期望完成流程並在第四季度與他們一起上線。

We have not yet shared the monetary future benefits of the banking relationship or included anything related to it as part of our forward guidance, as forces outside of our control can impact the timing.

我們尚未分享銀行關係的貨幣未來收益，也沒有將與之相關的任何內容作為我們前瞻性指引的一部分，因為我們無法控制的力量可能會影響時機。

We prefer to have the bird in hand before we include it in our guidance.

在將其納入我們的指導之前，我們更願意先擁有這隻鳥。

I won't go into a lot of detail as we have discussed the benefits of the partnership on past calls, but let me remind you of a couple of points.

我不會透露太多細節，因為我們已經在過去的電話中討論了合作夥伴關係的好處，但讓我提醒您幾點。

Initially, the bank partnership will allow us to unify our product construct across the United States versus the state-by-state approach we have today.

最初，銀行合作夥伴關係將使我們能夠統一美國各地的產品結構，而不是我們今天採用的逐州方法。

As you might imagine, state laws are not consistent from state to state, with restrictions on fees such as late fees varying widely.

正如您可能想像的那樣，各州的法律並不一致，對滯納金等費用的限制差異很大。

Our current state-by-state setup makes running our business a bit more complicated and also limits our profitability.

我們目前的各州設置使我們的業務運作變得更加複雜，也限制了我們的獲利能力。

Once we're live with the bank partnership, we unify the product construct on a national level.

一旦我們與銀行建立合作夥伴關係，我們就會在全國範圍內統一產品結構。

The partnership will also allow us to launch products that we believe will be a key to future user acquisition and consumer lifetime value expansion.

此次合作也將使我們能夠推出我們認為對未來用戶獲取和消費者終身價值擴張至關重要的產品。

Out of the gate, we expect to launch on-demand, which will allow consumers to use everywhere even if they don't have a subscription with us.

我們預計將推出點播服務，讓消費者即使沒有訂閱我們的服務，也可以在任何地方使用。

We believe this product can help us in a couple of ways.

我們相信該產品可以在幾個方面為我們提供幫助。

First, not everyone wants to be a subscriber, and with on-demand, the consumer can pay a one-time transaction fee at the point of sale to users with merchants we are integrated with.

首先，並不是每個人都想成為訂閱者，透過按需，消費者可以在銷售點向與我們整合的商家的用戶支付一次性交易費。

Second, we believe will help us become more competitive in winning enterprise merchants.

其次，我們相信這將有助於我們在贏得企業商家方面變得更有競爭力。

Just to reiterate, we are very excited to be adding more arrows to the quiver.

重申一下，我們非常高興能夠在箭袋中添加更多箭頭。

In addition to closely tracking financial metrics, we are equally rabid about non-financial metrics, with a small sample shown on slide 8.

除了密切追蹤財務指標外，我們同樣熱衷於非財務指標，幻燈片 8 中顯示了一個小樣本。

There's nothing but green on the screen except for active consumers, which we expect to be green next quarter.

除了活躍的消費者之外，螢幕上除了綠色之外什麼都沒有，我們預計下個季度將是綠色的。

The improvements in frequency, unique merchants, and number of transactions are all tied to the growth in subscriptions as shoppers want to use Sezzle everywhere and as a regular part of their daily lives.

頻率、獨特商家和交易數量的改善都與訂閱量的成長有關，因為購物者希望在任何地方使用 Sezzle 並將其作為日常生活的一部分。

It's both exciting and rewarding to see.

看到這既令人興奮又有益。

We have also added slide 9 to show the quarter-over-quarter momentum.

我們還添加了幻燈片 9 以顯示季度環比的勢頭。

We believe the quarter-over-quarter results reflect the strong momentum that we are seeing in the business and why we are confident that we will continue to grow our active consumer accounts.

我們相信，季度環比業績反映了我們在業務中看到的強勁勢頭，以及我們對繼續增加活躍消費者帳戶充滿信心的原因。

And with that, I'm happy to turn the call over to our CFO, Karen Hartje, who will go over our quarterly financial results in a greater detail.

至此，我很高興將電話轉給我們的財務長 Karen Hartje，她將更詳細地討論我們的季度財務表現。

Karen?

凱倫？

Thank you, Charlie, and hello to all.

謝謝你，查理，大家好。

On to slide 10, I'm excited to dive a little deeper into the results that Charlie provided earlier.

在幻燈片 10 上，我很高興能夠更深入地了解 Charlie 之前提供的結果。

Total revenue increased 60.2% year over year due to a 39% increase in UMS and 288% increase in subscription revenue as Sezzle Anywhere was launched in June 2023, end of the second quarter of 2023.

由於 UMS 成長 39%，以及 Sezzle Anywhere 於 2023 年第二季末推出，訂閱營收成長 288%，總營收年增 60.2%。

Net income came in at $29.7 million for the quarter compared to $1.1 million in the previous year.

該季度淨利潤為 2,970 萬美元，而去年同期為 110 萬美元。

As noted by Charlie at the start of the call, we recorded a discrete tax benefit of $16.8 million in the quarter related to our deferred tax valuation allowance.

正如 Charlie 在電話會議開始時指出的那樣，我們在本季度記錄了與遞延稅估值津貼相關的 1,680 萬美元的離散稅收優惠。

In the second quarter, we determined that our deferred tax assets are more likely than not to be realized due to the company's profitable trajectory and thus putting us in a taxable income position in the current and likely future years.

在第二季度，我們確定，由於公司的獲利軌跡，我們的遞延稅資產更有可能實現，從而使我們在當前和未來幾年處於應稅收入狀態。

To remove the discrete nature of the adjustment on net income, we have provided adjusted net income as a more reflective run rate of the company's results.

為了消除淨利潤調整的離散性，我們提供了調整後的淨利潤作為更能反映公司業績的運作率。

Adjusted net income was $13.1 million compared to a loss of $0.2 million in the prior year.

調整後淨利為 1,310 萬美元，而上一年虧損 20 萬美元。

The improvement was driven by across-the-board performance with unit economics as total revenue less transaction related costs grew to 57.6% of total revenue compared to 53.7% in the prior year and leveraging our non-transaction related operating expenses as they declined to 32.9% of total revenue compared to 54.2% in the prior year.

這項改善是由單位經濟效益的全面業績推動的，總收入減去交易相關成本佔總收入的比例從上一年的53.7% 增至57.6%，並利用我們的非交易相關營運費用下降至32.9 %佔總收入的 %，而前一年為 54.2%。

Those results are further reflected in our second quarter adjusted EBITDA margin of 32.9% compared to only 18.3% in the prior year.

這些結果進一步反映在我們第二季調整後 EBITDA 利潤率為 32.9%，而去年同期僅為 18.3%。

On slide 11, you can see the second quarter revenue growth of 60% year over year is outpacing our UMS growth of 38.9%.

在投影片 11 上，您可以看到第二季營收年增 60%，超過了 UMS 38.9% 的成長。

Other than UMS, most of the growth is attributable to subscription, particularly Sezzle Anywhere.

除了 UMS 之外，大部分成長都歸功於訂閱，尤其是 Sezzle Anywhere。

At the end of the second quarter of 2024, we had 462,000 subscribers compared to only 168,000 in the previous year.

截至 2024 年第二季末，我們擁有 462,000 名訂閱者，而前一年僅為 168,000 名。

We didn't launch Anywhere until June of 2023, thus a lot of UMS and subscriber growth occured subsequently.

我們直到 2023 年 6 月才推出 Anywhere，因此隨後出現了大量 UMS 和用戶成長。

We are also happy to point out, the total revenue as a percentage of UMS reached an all-time quarterly high of 10.5% in the second quarter.

我們也很高興地指出，第二季總營收佔UMS的百分比達到10.5%，創下歷史季度新高。

We have bundled all of our transaction-related costs onto to slide 12.

我們已將所有與交易相關的成本捆綁到投影片 12 中。

First, let's look at transaction expense, which is primarily payment processing costs.

首先，我們來看看交易費用，這主要是支付處理成本。

That's declined to 2% of UMS.

該比例已下降至 UMS 的 2%。

We believe we can maintain this level in the low-2s.

我們相信我們可以將這一水平維持在低 2 的水平。

Next, we've seen a significant improvement in our net interest expense as we entered into a new credit facility in April, which lowered our borrowing costs by 475 bps annually and lowered our required borrowing level by $20 million from $80 million to $60 million.

接下來，隨著我們在4 月簽訂新的信貸安排，我們的淨利息支出顯著改善，這使我們的借貸成本每年降低475 個基點，並將我們所需的借貸水準從8,000 萬美元降低到6000 萬美元，降低了2000 萬美元。

The last component of transaction-related costs is the provision for credit losses.

交易相關成本的最後一個組成部分是信用損失準備金。

As anticipated, it is written as a percentage of AUM as the first quarter is typically the lowest point due to the tax refund season.

正如預期的那樣，它以佔資產管理規模的百分比表示，因為由於退稅季節，第一季通常是最低點。

As the year progresses, it tends to rise, especially during the holiday season quarter four.

隨著時間的推移，它往往會上升，尤其是在第四季度的假期期間。

For 2024, we expect a similar trend to occur and wouldn't be surprised to see it reach the mid-2s.

對於 2024 年，我們預計會出現類似的趨勢，看到它達到 2 左右也不會感到驚訝。

As Charlie discussed earlier, we are seeing an increase in subscribers and more consumers coming into the top of the funnel and as such, are closely monitoring as we expect the increase in revenue and unit economics to more than offset a higher move in the provision for credit losses.

正如查理之前討論的那樣，我們看到訂戶數量增加，更多消費者進入漏斗頂部，因此我們正在密切關注，因為我們預計收入和單位經濟效益的增加將足以抵消撥備金的增加。

Our second-quarter results are a great example of this.

我們第二季的業績就是一個很好的例子。

Despite our provision for credit losses rising to 1.9% of UMS from 1.1% in the prior year and 1% in the previous quarter, our total revenue less transaction-related costs as a percentage of revenue shown on slide 13 increased 390 basis points year over year and 230 basis points quarter over quarter.

儘管我們的信貸損失撥備從去年同期的1.1% 和上一季的1% 上升至UMS 的1.9%，但我們的總收入減去交易相關成本佔收入的百分比（幻燈片13 所示）同比增長了390 個基點年增 230 個基點，較上季成長 230 個基點。

As you will see later in our presentation, our second quarter unit economic results were well above our previous guidance of 50%, and therefore, we are increasing our fiscal 2024 guidance to 55%.

正如您稍後將在我們的演示中看到的，我們第二季度的單位經濟表現遠高於先前 50% 的指導，因此，我們將 2024 財年指導提高至 55%。

Turning to slide 14, it quickly becomes evident that the combination of holding down non-transaction-related operating costs while improving unit profitability is a strong combination for bottom-line performance.

轉向投影片 14，我們很快就會發現，降低非交易相關營運成本和提高單位獲利能力的組合對於獲利績效來說是一個強有力的組合。

For the remainder of 2024, we do expect to see some pickup in non-transaction-related operating costs, but not at the expense of bottom-line profitability.

在 2024 年剩餘時間內，我們預期非交易相關營運成本將會回升，但不會以犧牲獲利能力為代價。

We joke internally that it is amazing what making money will allow us to do such as investing in more brand awareness and customer acquisition.

我們在內部開玩笑說，賺錢能讓我們做一些事情，例如投資更多的品牌知名度和客戶獲取，這是令人驚訝的。

The good thing is that we are finding ourselves in a position where we can make investments in the business that we might not have made in the past, particularly in marketing.

好消息是，我們發現自己可以對過去可能沒有進行過的業務進行投資，特別是在行銷方面。

Speaking of bottom-line performance, turn to Slide 15, where we lay out the reconciliation between net income and adjusted net income.

說到底線業績，請參閱投影片 15，我們在其中列出了淨利潤與調整後淨利潤之間的調節表。

In past quarters, we've had minor adjustments, but with the size of the release of the valuation allowance, it became necessary.

在過去的幾個季度中，我們進行了微小的調整，但隨著估值準備金釋放的規模的擴大，這是必要的。

For the first time, our adjusted net income margin exceeded 20%.

我們的調整後淨利率首次超過 20%。

We realize many investors also like to refer to EBITDA.

我們發現許多投資者也喜歡提及 EBITDA。

So slide 16 provides a comparison of our net income metrics to adjusted EBITDA, where adjusted EBITDA margin reached 32.9%.

因此，投影片 16 提供了我們的淨利潤指標與調整後 EBITDA 的比較，其中調整後 EBITDA 利潤率達到 32.9%。

As discussed in our last quarterly conference call, we improved our liquidity position and solidified our capacity for further growth with a new $150 million credit facility that was closed in April.

正如我們在上一季電話會議中討論的那樣，我們透過 4 月關閉的 1.5 億美元新信貸安排改善了流動性狀況，並鞏固了進一步增長的能力。

Slide 17 shows some key balance sheet metrics, and you'll see in the fine print and the footnotes that as of quarter end, we had $35.3 million of availability on our line of credit.

投影片 17 顯示了一些關鍵的資產負債表指標，您將在細則和腳註中看到，截至季度末，我們的信用額度可用金額為 3530 萬美元。

I would also like to note that during the quarter, we repurchased shares in the open market, representing approximately $10.6 million, leaving $7.1 million left in our repurchase plans.

我還想指出的是，本季我們在公開市場回購了約 1,060 萬美元的股票，回購計畫還剩 710 萬美元。

The $7.1 million was fully executed as of July 9, 2024.

截至 2024 年 7 月 9 日，這 710 萬美元已全部執行。

I'm sure by now everybody has looked ahead to the outlook, slide 18.

我確信現在每個人都已經展望了前景，幻燈片 18。

Let me provide a few highlights before turning the call over to Q&A.

在將電話轉入問答環節之前，讓我先介紹一些重點。

We are excited to be increasing our guidance for total revenue, margin, net income, and net income per share.

我們很高興能夠提高對總收入、利潤率、淨利潤和每股淨利潤的指導。

As discussed earlier, for the first time, we are providing guidance on adjusted net income.

如前所述，我們首次提供調整後淨利的指導。

But due to the dynamic of the discrete tax items, we are also providing guidance for a mid-single-digit tax rate for the remainder of fiscal 2024.

但由於離散稅項的動態變化，我們也為 2024 財年剩餘時間的中個位數稅率提供指引。

Without diving into all the details, I think our guidance speaks for itself.

在不深入探討所有細節的情況下，我認為我們的指導是不言而喻的。

We've shown a lot of positive momentum in the business and we expect it to continue, which leads me to the bottom of slide 18, valuation.

我們在業務中表現出了很多積極的勢頭，我們預計這種勢頭會持續下去，這讓我看到了第 18 張幻燈片的底部，即估值。

We get it.

我們明白了。

Right now, we are a small-cap, but so is the rest of the Russell 2000.

目前，我們是一隻小型股，但羅素 2000 指數的其餘部分也是如此。

You might sense that we aren't happy with our valuation, considering our growth and profitability as we continue to trade at less than half the valuation compared with popular market indices.

考慮到我們的成長和獲利能力，您可能會感覺到我們對我們的估值不滿意，因為我們的交易價格仍然低於流行市場指數的一半。

As of today, since December of 2023, we have completed $20 million in stock repurchases and we will continue to evaluate capital return options for shareholders, including but not limited to special dividends, incremental share repurchases or a combination of both.

截至今天，自 2023 年 12 月以來，我們已經完成了 2,000 萬美元的股票回購，我們將繼續評估股東的資本回報方案，包括但不限於特別股利、增量股票回購或兩者的組合。

With that, I would like to turn the call over to the operator as we are happy to take your questions.

因此，我想將電話轉給接線員，因為我們很樂意回答您的問題。

Operator, will you please open the lines for Q&A?

接線員，請打開問答線好嗎？

(Operator Instructions) Mike Grondahl, FNBO Northland.

（操作員說明）Mike Grondahl，FNBO Northland。

Hey, Charlie, and team.

嘿，查理和團隊。

Congratulations on a very strong quarter.

恭喜本季業績非常強勁。

My first question, subscriptions growing 91,000 sequentially to 462,000.

我的第一個問題，訂閱量連續成長 91,000 至 462,000。

Charlie, you mentioned, hey, you had some initiatives for first-time users, you're trying to expand the pool of current users and some ad spending.

查理，你提到，嘿，你為首次用戶採取了一些舉措，你正在嘗試擴大當前用戶群和一些廣告支出。

I don't know, just a few more details on each one of those might be helpful and kind of your outlook for subscriptions.

我不知道，只是每一項的更多詳細資訊可能會有所幫助，並且對您的訂閱前景有所幫助。

Yeah, we're not providing any guidance on subscriptions, Mike.

是的，我們不提供任何有關訂閱的指導，麥克。

And then to the quarter-over-quarter result, we are putting a little bit more emphasis into marketing channels.

然後對於季度環比結果，我們更加重視行銷管道。

Our view is as we get stronger and stronger as a business financially, it just makes sense to keep on pushing the pedal on that side.

我們的觀點是，隨著我們的企業在財務上變得越來越強大，繼續推動這一方面的發展才是有意義的。

But we're not -- I wouldn't say there we're like overly aggressive bird, jerky about it.

但我們不是——我不會說我們就像一隻過於咄咄逼人、生澀的小鳥。

We've kind of like to have like a steady push or acceleration as we do that.

當我們這樣做時，我們有點喜歡穩定的推動或加速。

So I think that's helped a bit.

所以我認為這有點幫助。

But in terms of quarter over quarter and where this goes from here, it's just hard for us to tell because if you look at our total active users and the ratio between total subscribers to that number, at some point, you think there's got to be some sort of limiting function, right?

但就季度環比以及未來的走向而言，我們很難判斷，因為如果你看看我們的活躍用戶總數以及總訂閱者與該數字之間的比率，在某些時候，你會認為一定有某種限制功能，對嗎？

And we don't know the answer to where that might be.

我們不知道答案可能在哪裡。

So we keep on trying to grow and keep on accelerating.

因此，我們繼續努力成長並繼續加速。

And accelerating both groups, growing the active users, which is like the -- [the key point is] view that like a mini TAM or an intermediate TAM for the subscriber count.

並加速這兩個群體的發展，增加活躍用戶，這就像——[關鍵點是]對於訂閱者數量而言，就像迷你 TAM 或中間 TAM 一樣。

So I think that's where we're focused on both, because we see at some point -- we think at some point there'll be some sort of limiting function between the two.

所以我認為這就是我們專注於兩者的地方，因為我們在某個時刻看到——我們認為在某個時刻兩者之間會存在某種限制功能。

Does that make sense?

這樣有道理嗎？

Yeah, directionally.

是的，有方向性。

And then just Premium and Anywhere, the average is like $15 a month per subscriber, correct?

然後只有 Premium 和 Anywhere，平均每個訂戶每月 15 美元，對嗎？

That's correct.

這是正確的。

That didn't change?

那沒有改變嗎？

Yeah, that's the same.

是的，那是一樣的。

Got it.

知道了。

And then any new merchants to call out just on your merchant relationships that are now live in the last quarter or two?

然後，有沒有新的商家可以在過去一、兩個季度建立的商家關係中提及？

No, we would have announced something publicly if we had a significant merchant.

不，如果我們有一位重要的商人，我們就會公開宣布一些事情。

I will say that our team is growing the pipeline.

我想說的是，我們的團隊正在擴大管道。

That's one thing we're watching closely.

這是我們正在密切關注的一件事。

And as we mentioned in the call here, some of the launches that we have in the pipeline are actually tied in some ways to the bank partners.

正如我們在電話會議中提到的，我們正在醞釀的一些產品實際上在某種程度上與銀行合作夥伴聯繫在一起。

This bank partnership helps us launch more merchants through our on-demand product.

這種銀行合作夥伴關係幫助我們透過我們的按需產品推出更多商家。

Those are generally some merchants that have lower margins.

這些通常是一些利潤較低的商家。

They're looking for our product where more of the fees are passed on the consumer.

他們正在尋找我們的產品，並將更多費用轉嫁給消費者。

So we have some of that kind of tied behind that launch of our product as well.

因此，我們的產品發布背後也有一些類似的因素。

Got it.

知道了。

Your revenue as a percent of UMS was 10.5%, higher than where we modeled, and it looked like almost a record for you, guys.

你們的收入佔 UMS 的百分比為 10.5%，高於我們建模的水平，這看起來幾乎是你們的記錄，夥計們。

How should we think about that number going forward?

我們該如何看待這個數字？

Is that sort of a nice tailwind pushing that higher?

這是一種推動股價上漲的良好順風嗎？

You're getting more efficient.

你的效率越來越高了。

You also have more subscriptions.

您還有更多訂閱。

How do you feel about that number?

您對這個數字有何感想？

Of course, I love it, and I want to keep on moving it north personally.

當然，我喜歡它，我想親自繼續向北移動。

But as a company, I think subscription helps us with that.

但作為一家公司，我認為訂閱可以幫助我們做到這一點。

But then we also have new products launching and so, again, that's hard to project going forward where that might go.

但我們也推出了新產品，因此，再次很難預測未來的發展方向。

But our goal is really to keep on increasing top line, which helps us get higher gross margins.

但我們的目標實際上是繼續增加收入，這有助於我們獲得更高的毛利率。

We've mentioned we have a goal of 60%-plus gross margins as a company, and getting that top line definitely helps with that.

我們已經提到過，作為一家公司，我們的毛利率目標是 60% 以上，實現這一目標肯定會有所幫助。

I think somewhere in this range going forward is probably a good place to start, but we do monitor that number.

我認為未來這個範圍內的某個地方可能是一個很好的起點，但我們確實監控這個數字。

No doubt about it.

毫無疑問。

But as we introduce new products, that's going to be the big question mark, what those new products might do to that.

但當我們推出新產品時，這些新產品可能會對此產生什麼作用，這將是一個很大的問號。

Got it.

知道了。

And then a last one for me.

然後是我的最後一個。

Adjusted net income, $13.1 million in 2Q.

第二季調整後淨利為 1,310 萬美元。

I think for that slide, $9.4 million in 1Q, so $22.5. Your $40 million of adjusted net income guidance would kind of apply $18.5 million in the back half of the year, if I'm thinking about it right.

我認為對於這張投影片，第一季為 940 萬美元，即 22.5 美元。如果我沒記錯的話，你們 4000 萬美元的調整後淨利潤指導將在今年下半年適用 1850 萬美元。

Is there something seasonally there we should be cognizant of or just kind of the step down there?

是否有一些季節性因素是我們應該認識到的，或者只是一種向下的步驟？

I think some of that is seasonal because fourth quarter comes along.

我認為其中一些是季節性的，因為第四季度即將到來。

It's definitely a higher-volume quarter for us, but it's also a quarter.

對我們來說，這絕對是一個銷量較高的季度，但也是一個季度。

I mean, this is why the buy-now-pay-later product I think is such a fantastic product with consumers.

我的意思是，這就是為什麼我認為「先買後付」產品對消費者來說是一個非常棒的產品。

In that quarter, we try our best to make sure that consumers don't overspend, which on the flipside, I think credit cards love it when consumers overspend build up balances and they start to revolve.

在該季度，我們盡力確保消費者不會超支，另一方面，我認為當消費者超支累積餘額並開始循環時，信用卡會喜歡它。

We don't want consumers to overspend in that quarter because if they overspend, what we tend to find is that leads to higher default and then higher default leads to loss consumers, because with our product, once they are in a default situation, they can't transact with us again.

我們不希望消費者在該季度超支，因為如果他們超支，我們往往會發現這會導致更高的違約率，然後更高的違約率會導致消費者流失，因為使用我們的產品，一旦他們處於違約情況，他們就會無法再與我們進行交易。

So we play a lot of defense, tend to have higher loss rates in the fourth quarter.

所以我們打了很多防守，第四節的丟球率往往會更高。

And so I think that's probably the biggest variable going forward.

所以我認為這可能是未來最大的變數。

And we don't want to misguide anyone with the variability that can happen in the fourth quarter, and that's really more about what we're guiding towards.

我們不想用第四季度可能發生的變化來誤導任何人，這實際上更多的是我們的指導方向。

Got it.

知道了。

Well, hey, congratulations again.

嗯，嘿，再次恭喜你。

Thank you.

謝謝。

Thanks, Mike.

謝謝，麥克。

This concludes our question-and-answer session.

我們的問答環節到此結束。

I would like to turn the conference back over to Charlie Youakim for any closing remarks.

我想將會議轉回查理尤金 (Charlie Youakim) 發表閉幕詞。

Thank you.

謝謝。

Thank you, operator.

謝謝你，接線生。

In closing, I'd, again, like to thank the Sezzle team.

最後，我要再次感謝 Sezzle 團隊。

I know on the outside, I think we look like a calm duck above water.

我知道從外表上看，我們看起來就像水面上平靜的鴨子。

But I can guarantee that below the surface, this team's legs are moving extremely fast.

但我可以保證，在表面之下，這支球隊的步伐非常快。

And I think the work has been incredible through the past quarter and more than just the past quarter.

我認為過去一個季度的工作令人難以置信，而且不僅僅是過去一個季度。

And also for your frequent listeners to the conference calls and to those in Sezzle that all know that I love Charlie Munger, here's another Charlie Munger quote that's appropriate for the real Sezzle investors, i.e., the long-term holders.

對於經常參加電話會議的聽眾以及 Sezzle 中那些都知道我喜歡查理·芒格的人來說，這是查理·芒格的另一句話，它適合真正的 Sezzle 投資者，即長期持有者。

The big money is not in the buying and selling, but in the waiting.

大錢不在於買賣，而在於等待。

Thank you, all, and have a great rest of your day.

謝謝大家，祝您今天休息愉快。

The conference has now concluded.

會議現已結束。

Thank you for attending today's presentation.

感謝您參加今天的演講。

You may now disconnect.

您現在可以斷開連線。