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Klarna Q3 losses double; forecasts profitability in 2023

Klarna Q3 losses double; forecasts profitability in 2023

BNPL giant Klarna is forecasting that it will hit profitability on a monthly basis next year despite a doubling of losses in the third quarter.

Klarna's third quarter losses climbed to $200 million from July to September, compared to $106 million in the comparable period last year.

The income statement makes for stark reading, coming after a year of painful restructring which has seen the firm's valuation slashed and the enforced sacking of 10% of staff.

Despite the numbers, CEO Sebastian Siemiatkowski maintains an upbeat tone, insisting the firm has made "huge progress" towards hitting profitability "which we expect to hit on a monthly basis in the second half of 2023".

Klarna has moved to diversify its business from one which relies solely on credit to the creation of new shopping channels linking customers to merchants. As a result, the firm's marketing revenue is its fastest growing earner, rising 163% YoY by creating over 500m leads for Klarna’s 450,000+ global retail partners.

Comments: (1)

A Finextra member
A Finextra member 19 December, 2022, 10:45Be the first to give this comment the thumbs up 0 likes

So Klarna are now becoming a marketing and advertising company.... I think this is an admission that the Pay-in-X model is not working?