Klarna is on track to return to profit before the end of 2023, as the company’s first quarter results show the fintech has halved its losses.
The Swedish Buy Now, Pay Later (BNPL) firm announced that its net losses shrank to SKr1.3 billion in the first quarter and credit losses similarly decreased by over a third. Klarna’s revenues increased to SKr4.9 billion, by 13%.
The firm expects to return to profit in August or September this year. Chief executive at Klarna, Sebastian Siemiatkowski commented: “We are on track to achieve profitability this year.”
During 2022, Klarna’s valuation plummeted from $46 billion to $6.7 billion during the fintech softening, spurring a major company restructure. In February 2023, Klarna reported a $1 billion loss for 2022. However, the fintech’s break into the US market marked a upward trajectory for the company.
The BNPL firm recently unveiled a AI-powered personal shopping tool for its consumers and partnered up with Airbnb to offer flexible payment options for guests in US and Canada.