By Sweden’s Klarna, the buy-now-pay-later payments specialist, announced that it turned a net profit of 90 million kronor ($8.3 million) in the third quarter. This marks a significant improvement from the loss of SEK2.13 billion recorded during the same period last year. The company attributes this positive result to a strong uptick in growth and a decrease in credit losses.
Signifying its commitment to continued momentum, Klarna’s Co-Founder and Chief Executive, Sebastian Siemiatkowski, stated, “Our growth has accelerated in 3Q, and we will build on this momentum in 4Q with further investments to drive value to our consumers and merchants.”
During the third quarter, Klarna reported a 30% increase in revenue, reaching SEK6 billion. Meanwhile, credit losses decreased by 46% to SEK800 million, which represents only 0.33% of the company’s gross merchandise volume. Klarna attributes this improvement to enhancements in the accuracy and precision of its models.
Klarna’s gross merchandise volume, which reflects the total value of merchandise sold through its platform, rose by 22% to SEK243 billion.
The company also highlighted the ongoing global roll-out of its partnership with Airbnb, available in seven countries to date. Klarna aims to expand the partnership and make it available to Airbnb customers across three continents by early 2024.
In the United States, Klarna witnessed its fourth consecutive quarter of gross profit in Q3. This growth was largely driven by increasing demand from consumers and retailers for Klarna’s AI-driven payment and shopping services.
Klarna boasts a substantial user base of over 150 million active users worldwide and works with over 500,000 retailer partners.
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