Klarna reports its first-quarter profit in four years.

In an impressive turn of fortunes, fintech company Klarna has just revealed its first quarterly profit in four years, marking an early step in the journey towards an upcoming Initial Public Offering (IPO). The Swedish major player in "buy now, pay later" showcased a quarterly profit of 90 million SEK during the third quarter, extending up to the end of September. This represents a striking improvement compared to the loss of 2.1 billion SEK recorded during the same period the previous year.

The losses in credit at fintech company Klarna nearly halved, dropping to 800 million SEK, and quarterly revenues saw an impressive 30% increase to 6 billion SEK. This remarkable improvement in the company's financial performance truly marks a successful turnaround for Klarna. The significant reduction in credit losses demonstrates Klarna's ability to manage and mitigate the risk of losses. By implementing effective strategies and enhancing its credit control, the company has succeeded in ensuring a more sustainable and stable financial foundation.

Recent news has also revealed that Klarna is in the process of establishing a British holding company, which the company itself describes as an "early step towards an upcoming IPO." This confirms the company's decision to take further steps toward a stock market listing. In a previous trading update in August, Klarna's CEO, Sebastian Siemiatkowski, announced that the company had met three criteria for being ready for a listing: establishing operations in the USA, achieving a sustainable business model, and significant growth potential.

With this strong turnaround and impressive financial results, it is evident that Klarna has recovered and is on the path to success. By offering flexible and innovative payment solutions, Klarna has become a popular and reliable partner for both consumers and businesses, expecting continued growth and success in the global market. This demonstrates the company's ability to attract and retain more customers while managing to increase its revenue. The significant improvement in quarterly results, including a reduction in credit losses and an increase in revenue, indicates a stronger financial position.

The last time Klarna reported an annual surplus was in 2018, and their latest self-valuation is $6.7 billion.

Källa:  Dagens Industri