Klarna Reports Q3 Profit of SEK 216 Million

Hey FinTech Fanatic!

Swedish FinTech giant Klarna is showing strong financial recovery, reporting a dramatically reduced pretax loss of just 2 million kronor ($180,000) in the first nine months of 2023 - a significant improvement from last year's 1.77 billion kronor loss.

The Buy Now, Pay Later (BNPL) leader has also seen its revenue climb 23% to 20.3 billion kronor, with Q3 2024 net income reaching SEK 216 million, up 57% year-over-year.

The company's valuation journey tells an interesting story of the FinTech market's evolution. While currently estimated at $14.6 billion - up from $6.7 billion in 2022 - it's still far from its peak $45.6 billion valuation during the 2021 FinTech boom.

Sebastian Siemiatkowski , CEO of Klarna, reflects on their progress: "We're back in familiar territory: profit and growth, just like the old days. With our exciting new collaborations with Worldpay, Apple Pay, Google Pay and Adyen, we're closer than ever to making Klarna available at every checkout."

As Klarna confidentially filed for its US IPO, it's making strategic moves to strengthen its market position. The company is set to become a default option via Worldpay and has expanded its Adyen partnership, bringing Klarna to hundreds of thousands more merchant checkouts and 450,000 retail terminals in-store.

Its new digital banking product, Klarna balance, has shown remarkable traction with 1.6 million users in just three months. Their cashback program has already delivered nearly $5 million in rewards to customers' accounts, while boosting merchant sales by up to 30%.

Read more global FinTech industry updates below?? and I'll be back tomorrow!

Cheers,

Marcel

POST OF THE DAY

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???? Klarna's Q3 results are out, and it's another strong quarter with profit and growth: SEK 216 Million Profit in Q3 202, 4.57% increase year-on-year in revenue, GMV is up 16%. Click here to learn more

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