Klarna’s profitability streak has continued into the third quarter of this year, after filing for an initial public offering in the US earlier this month.
The Swedish buy now, pay later fintech today posted a net profit of SEK 216 million (€18.7m) for the third quarter of this year, a year-on-year increase of 57%. This continues Klarna’s move into the black after reporting an adjusted operating profit of 673m SEK (€57.2m) for the first six months of 2024.
“We’re back in familiar territory: profit and growth, just like the old days,” said CEO Sebastian Siemiatkowski in a statement. Klarna last reported annual profitability in 2018 and last year posted $1bn in annual loss.
In the US, Klarna’s revenue has increased by a third, thanks to partnerships with major brands such as Expedia and Uber.
Since its founding in 2005, Klarna has expanded its offering beyond buy now, pay later to also include a smart shopping assistant, a checkout solution and banking products, including a personal account for deposits and cashback rewards.
In the process, the company has raised $4.2bn in funding from investors including Sequoia Capital, Atomico, Mubadala, SoftBank, Northzone and BlackRock. Last month, Klarna shareholder Chrysalis Investments increased the value of its stake to give the fintech an implied valuation of around $14.6bn.
It’s currently readying plans to go public in the US after it “confidentially submitted” a draft registration statement to the US Securities and Exchange Commission two weeks ago.
Read the orginal article: https://sifted.eu/articles/klarna-q3-profitable-news/
