Klarna Revenue Jumps 27% Amid IPO Preparations

Klarna saw revenues climb in the first half of 2024 amid preparations to go public.

The Swedish buy now, pay later (BNPL) provider released half-year earnings Tuesday (Aug. 27) showing revenues increasing 27%, while adjusted profits increased to $66 million, compared to an adjusted loss of $45 million in the same period in 2023.

“Klarna’s massive global network continues to expand rapidly, with millions of new consumers joining and 68,000 new merchant partners,” Klarna CEO Sebastian Siemiatkowski said in a press release Tuesday. “As our merchant partners grow, so do we, evidenced by 38% year-over-year growth in U.S. revenues. By focusing on sustainable, profitable growth and leveraging AI to lower costs, we achieved adjusted operating income of [$66 million] as we build the commerce network of the next generation.”

The company also noted in the release that it has seen continued success in the U.S. — its largest market — with the second quarter of this year marking its seventh quarter in a row of profitability, with gross profits up 93% during the half year.

“With more and more U.S. consumers and merchants choosing Klarna, revenue grew by 38%,” the release said. “Klarna is now the partner of choice for 1 in 4 of the top 100 U.S. merchants. After just five years, Klarna has successfully recouped its investment in the U.S. market, showcasing the scalability of the Klarna network.”

Klarna plans to go public next year and reportedly tapped Goldman Sachs to help with its initial public offering (IPO).

Reports earlier this month said the company held discussions with investors for a share sale before the IPO, with Klarna seeking a valuation of around $20 billion when it goes public.

Meanwhile, there is fertile ground for companies like Klarna to “connect everything from saving to lending to budgeting to rewards … with platforms and apps at the center of it all.”

The PYMNTS Intelligence report “Super App Shift: How Consumers Want to Save, Shop and Spend in the Connected Economy” found that 41% of consumers reported they would increase their banking activities if granted access to a super app.