FinTech: Klarna Pivots To An Operating Profit Of SEK 130M In Q3 Of 2023, Versus A Loss Of SEK 2B In Q322
“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.” – Sebastian Siemiatkowski, CEO of Klarna
Klarna, the AI-powered global payments network and shopping assistant, has announced its Q3 2023 financial results, showcasing a significant net profit.
The company reported an operating profit in Q3 of SEK 130 million, a sharp improvement from the previous year operating loss of SEK 2 billion, demonstrating the company’s preparedness for the upcoming Q4 investments.
Credit losses as a percentage of GMV decreased by 56%, underlining Klarna’s commitment to making sound lending decisions while achieving a 30% revenue growth.
Furthermore, Q3 marked the fourth consecutive quarter of gross profit in the US, emphasizing the company’s success in one of the world’s largest consumer markets.
Klarna’s partnerships have expanded, with a 22% YoY increase in GMV to SEK 243 billion, reflecting growing consumer demand for fair and sustainable payment options. Collaborations with companies like Zalando and YOOX have brought Klarna’s sustainable payment products to more consumers in Europe and the US. The company’s global partnership with Airbnb is also progressing, offering cost-spreading options to travelers in multiple countries.
CEO Sebastian Siemiatkowski expressed the company’s satisfaction with achieving a profitable quarter and continuous double-digit growth, setting the stage for the upcoming busy shopping season. The company’s growth has accelerated, and it plans to build on this momentum in Q4 with additional investments to benefit both consumers and merchants.
The company’s innovation in AI has resulted in features like the Shopping Lens, which helps users find desired items at the best deals. Shoppable video content and the ability to pay for gift cards from leading brands through Klarna’s platform have enhanced the shopping experience.
Additionally, Klarna is committed to eco-conscious products, including a shopping dashboard to monitor CO₂ emissions and engage with conscious brands, promoting environmentally responsible choices.
Related Story: Klarna Unveils AI Image Recognition Tool For Shopping
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