In the first half of 2023, Swedish buy-now, pay-later startup Klarna lowered its losses by about 67% as it drastically cut expenditures in an effort to become profitable.
Overall net operating income for the business was 9.2 billion Swedish krona ($843.5 million), up 21% from the previous year. The company reported a net loss of 2.1 billion Swedish krona for the period, down 67% from 6.4 billion krona between January and June 2022, failing to produce a half-year profit.
However, Klarna noted that it achieved one month of profitability in the first half of the year, exceeding its own internal goal of achieving monthly profitability in the second half.
Sebastian Siemiatkowski, the CEO and creator of Klarna, applauded the company’s achievement of profitability, claiming that the results “clearly dispel the myths surrounding Klarna’s business model, demonstrating that it is very nimble and sustainable” and supporting a “strong consumer base.”
“Some predicted that Klarna would struggle in the challenging macroeconomic environment of high interest rates, but after guiding the business through the 2008 financial crisis, I knew we had a solid and resilient business model to carry us through. We accomplished what we set out to do despite the unstable circumstances,” Siemiatkowski
Source (CNBC)
