Sezzle Outpaces Growth Compared to SoFi
Sezzle (NASDAQ: SEZL) reported a 52% year-over-year revenue growth in Q2 2023, significantly outpacing SoFi’s (NASDAQ: SOFI) 43% growth. Over the past five years, Sezzle achieved a compound annual growth rate (CAGR) of 50%, contrasting with SoFi’s 39% CAGR. As of Q2, Sezzle reached 854,000 active subscribers, a 76% increase from the previous year, while SoFi’s subscriber growth stands at 35% year-over-year.
While Sezzle primarily generates revenue through its buy now, pay later (BNPL) platform, SoFi offers a broader array of financial services, including bank accounts, loans, and investment opportunities. Sezzle’s current price-to-earnings (P/E) ratio is 26, compared to SoFi’s nearly 39, making Sezzle’s valuation more attractive for growth-focused investors. Both companies face regulatory scrutiny, particularly in the BNPL space, with states like New York recently passing laws capping interest rates at 16%.
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