Profitability and Revenue Growth
Klarna, the leading online payment solution, has announced its return to profitability following a significant increase in revenue. In the third quarter of 2023, Klarna recorded a revenue of SEK 6 billion ($555 million), marking a 30% upswing compared to the same period last year. This positive growth has resulted in a SEK 0.1 billion ($9.1 million) profit, the first since 2019.
Sebastian Siemiatkowski, the CEO of Klarna, expressed his satisfaction with the company’s performance. He stated, “With a profitable quarter and continuous double-digit growth, we have achieved exactly what we set out to do. This fantastic success sets us up for the busiest shopping period where our AI-powered products will help consumers make their money go further, find the best deals, and get inspired.”
Growth in the US Market
Klarna’s bold bet on the US market is paying off. The third quarter of 2023 marked its fourth consecutive quarter of gross profit in the US. This ongoing growth in the US has contributed to the improvement in Klarna’s bottom line. Additionally, credit losses have seen a significant decline of 46% year-on-year.
Klarna has also announced new partnerships to further expand its reach. The company’s partnership with Airbnb will be rolled out for consumers in seven new countries, offering a seamless payment experience. Additionally, Klarna’s partnerships with European fashion retailer Zalando and design retailer YOOX continue to flourish.
Sebastian Siemiatkowski, Klarna’s long-term CEO and founder, had previously expressed the goal of returning to profitability by the end of 2023. With the recent revenue growth, profitability, and strategic partnerships, Klarna is well-positioned for continued success in the future.