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Klarna Swings to Profit Despite Market Headwinds
18 Aug
Summary
- Klarna reported a $9 million profit in the second quarter, surpassing expectations.
- Revenue climbed 27% to $1.04 billion, exceeding analyst forecasts.
- Full-year GMV forecast was reduced due to a cautious outlook on German market.
The Swedish "buy now, pay later" company Klarna announced a net profit of $9 million for the second quarter, a welcome development compared to a $53 million loss in the same period last year. This positive financial result exceeded analyst predictions, which had anticipated a net loss. The company's adjusted operating income also saw a substantial increase, rising to $91 million from $29 million a year prior.
Klarna's second-quarter revenue demonstrated robust growth, increasing by 27% to reach $1.04 billion, surpassing the $993.8 million expected by analysts. Gross merchandise volume, a key indicator of sales activity, rose by 18% to $36.6 billion. Notably, the U.S. market contributed significantly to this expansion, with GMV in the region growing by 27%.
Despite these positive quarterly results, Klarna has adjusted its full-year gross merchandise volume outlook. The company now projects a GMV between $149 billion and $151 billion, a reduction from the previously anticipated figure of over $155 billion. This revision is attributed to a more conservative assessment of volumes primarily in Germany, which represents Klarna's largest market by volume.
