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Klarna Beats Q3 Forecasts in First Post-IPO Report, Swings to Loss as U.S. Growth Accelerates

Management guides to higher Q4 volume on U.S. traction from new products.

Overview

  • Revenue reached $903 million versus $882 million expected, up 26% year over year in the company’s first earnings since its NYSE debut.
  • Klarna posted a net loss of $95 million, reversing from $12 million in net income a year earlier.
  • Gross merchandise volume rose 25% to $32.7 billion, led by a 43% surge in the United States.
  • Klarna Card surpassed four million customers and accounted for 15% of October transactions, while fair financing more than tripled GMV and doubled users with only about one-fifth merchant penetration.
  • Fourth-quarter guidance calls for GMV of $37.5 billion to $38.5 billion, revenue of $1.065 billion to $1.08 billion, and transaction margin dollars of $390 million to $400 million.