Particle.news
Download on the App Store

Klarna Beats Q3 Revenue Targets on U.S. Surge, Posts Net Loss After IPO

The fintech guided to more than $1 billion in fourth-quarter revenue, pointing to rising transaction margins.

Overview

  • Revenue reached $903 million, topping the $882 million consensus and rising 26% year over year, in the company’s first report since its NYSE debut.
  • Gross merchandise volume grew to $32.7 billion, with U.S. GMV up 43% and U.S. revenue up 51%, outpacing other regions.
  • Klarna reported a $95 million net loss versus a $12 million profit a year ago, citing a profit timing lag as it scales longer-term “fair financing” loans.
  • Credit provisions increased to 0.72% of GMV with $235 million set aside, and Klarna struck a two-year agreement with Elliott to sell up to $6.5 billion of fixed-term loans.
  • Outlook calls for Q4 revenue of $1.065–$1.08 billion, GMV of $37.5–$38.5 billion, and transaction margin dollars of $390–$400 million, as shares fell as much as about 10% in early trading.