Klarna has continued its profitability streak this year, after reporting a profitable Q1 in May.
The Swedish buy now, pay later (BNPL) fintech today released its financial results for H1 2024, reporting a 27% year-on-year revenue increase, reaching 13.27bn SEK (€1.13bn).
Klarna’s adjusted operating profit was 673m SEK (€57.2m) in the first half of the year. The BNPL giant made a loss of 456m SEK (€40m) in the same time period in 2023.
CEO Sebastian Siemiatkowski also trumpeted the fintech’s US performance, saying US revenues grew by 38% compared to H1 last year. The Stockholm-based fintech is reportedly close to picking Goldman Sachs to lead the fintech’s initial public offering, which is expected to take place in New York next year. In an interview with Bloomberg in May, Siemiatkowski said his company is "definitely ready" to IPO, and strongly hinted that it might do so in the US.
AI and profitability
Siemiatkowski credited Klarna’s use of artificial intelligence for fuelling its path to profitability. The company made heavy cuts across its workforce amid a gruelling 2022 but has since worked to fill those gaps by deploying AI tools, particularly in its customer service division.
Klarna claims that using the technology has increased the average revenue per employee by 73% over the last 12 months, rising from SEK 4.0m (€350k) to SEK 7m (€610k).
“By focusing on sustainable, profitable growth and leveraging AI to lower costs, we achieved adjusted operating income of SEK 673m as we build the commerce network of the next generation,” says Siemiatkowski.
Ahead of the listing, the company has also been busy rolling out new products. Earlier this month, Klarna launched new banking products, including a personal account for deposits and cashback rewards, in the US and Europe.
