By By Dominic Chopping
Revenue Growth & Cost Reductions Lead to Improved Figures
Sweden’s Klarna announced a narrowed net loss for the full year, driven by revenue growth and decreased costs and credit losses. The buy-now-pay-later payments specialist reported a net loss of 2.54 billion kronor ($246.4 million) for the 12 months ending Dec. 31, an improvement from the loss of SEK10.44 billion in the prior year.
Strategic Investment in Growth
Co-Founder and Chief Executive Sebastian Siemiatkowski highlighted the company’s strategic decision to invest in growth during the peak shopping season of Q4. While aiming for long-term profitability, Klarna will continue to invest in growth wisely and prioritize cost-effectiveness to achieve annual profitability.
Key Financial Highlights
- Revenue grew by 22% to SEK23.5 billion
- Credit losses decreased by 32% to SEK3.77 billion
- Gross merchandise volume rose by 17% to SEK980.9 billion
Expansion in the U.S. Market
Klarna’s largest market by revenue is now the U.S., which contributed SEK1.4 billion in gross profit. The company marked 2023 as the first full year of gross profit in the U.S. since entering the market in 2015.
Global Reach and Retailer Partnerships
With approximately 150 million active users worldwide and over 550,000 retailer partners, Klarna continues to solidify its position as a leading player in the buy-now-pay-later space.
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