Klarna has reported an increase in revenues and profits as its US expansion continues to supercharge growth for the payments provider.
Revenues and profits are up at global payments provider Klarna as its US business continues to “grow and grow”.
During the first quarter, revenue was up 29% year on year to reach 6.4bn Swedish krona (SEK) (£478.6m), compared with revenue growth of 12% in the first quarter last year.
The buy now, pay later company credited its growth to a bolstered presence in the US as it continues to onboard further major retailers to the platform.
Klarna posted an adjusted operating income of 229m SEK (£17.1m), marking a “significant turnaround” from its previous loss of 498m SEK (£37.2m) during the same period last year.
Gross profit was also up 22% year on year to 3bn SEK (£224.3m).
With an eye to the US market, revenues were up 38% year on year and gross profit surged 97% during the period.
Klarna said its product innovation continues to “enhance the user experience and operational efficiency”, following the launch of the Klarna card in the US as well as its AI assistant, now engaging with 4 million consumers across the globe.
Klarna said that 90% of its employees have now integrated artificial intelligence into their workflow in some form, resulting in an 11% drop in operating costs.
It also hailed new strategic partnerships with the likes of Uber, Expedia and Hotels.com during the period as it continues to expand.
Klarna chief executive and co-founder Sebastian Siemiatkowski said: “Klarna continues its acceleration with 29% revenue growth year on year; coupled with the power of AI to lower operating expenses, we have once again delivered a profitable quarter with a substantial SEK 727m improvement in adjusted operating income.
“With several new products set to launch in the coming months, we’re preparing for a truly exciting year ahead.”
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