Klarna Q3 2023 results They are the latest in a growing list of evidence that the Swedish fintech giant is evolving from a loss-making unicorn to a durable company ready for the public markets.
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It wasn’t long ago that Klarna’s valuation dropped by around 85%. At the time, the revaluation made its promotion look a bit misleading, calling the company’s value into question.
How quickly things change. While Klarna’s numbers looked like those of a standard unicorn at the end of 2022 (replete with unappetizing losses), the company managed to post stronger results as the year progressed, somewhat masked by its full-year metrics.
That avalanche of good news continued this year, with the company reporting improved credit results and even a profitable month. And it seems that after laying off staff and working to control costs, the good news train continues to move at the company.
Today we delve into Klarna’s third quarter results focusing on its return to profitability. If you’re interested in BNPL as a category, e-commerce, or even just fintech in general, you need to understand Klarna’s performance. Work!
A story that gets better
In the third quarter, Klarna reported revenue of 6 billion crowns ($549.9 million), up about 30% from 4.6 billion crowns ($421.6 million) in the third quarter of 2022. The company also reported an operating result of 130 million crowns ($11.9 million). ), a huge improvement on the 2.12 billion crowns ($192.6 million) loss A year ago. (All currency conversions use current SEK-USD values.)
How did the company increase revenue? and Become profitable in just one year? Various efforts culminated in the improved figures we see above:
