Klarna swings back to a profit, plans Airbnb partnership rollout
The long-term CEO and founder of Klarna Sebastian Siemiatkowski said at the end of last year the firm would return to profitability by the end of 2023
Klarna is back to profitability following a 30 per cent upswing in revenue to SEK 6bn ($555m) in the third quarter of 2023 compared with the same period in 2022.
In the three months to 30 September, Klarna recorded a SEK 0.1bn ($9.1m) profit, its first since 2019. In the same period last year, Klarna reported a SEK 2bn ($180m) loss, when quarterly losses had doubled from 2021.
"With a profitable quarter and continuous double digit growth, we have achieved exactly what we set out to do,” Sebastian Siemiatkowski," CEO of Klarna said.
“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,” he added.
Part of the improvement in Klarna’s bottom line appears to come from ongoing growth in its bold bet on the US with the third quarter of 2023 marking its fourth consecutive quarter of gross profit in the US, the company said.
Credit losses also appear to be improving with a 46 per cent year-on-year decline.
Klarna also revealed its partnership with Airbnb is set to be rolled out for consumers in seven new countries while its partnerships with European fashion retailer Zalando and design retailer YOOX have continued apace.
The long-term CEO and founder of Klarna Sebastian Siemiatkowski said at the end of last year the firm would return to profitability by the end of 2023.