NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES
London, November 25th, 2024 - Klarna, the AI-powered global payments network and shopping assistant, today reported its financial results for the first nine months of 2024, achieving net income of SEK 216 million in Q3, up 57% YoY. This marks the second profitable quarter, as the company looks ahead to a strong holiday season driven by strategic launches alongside the rapid adoption of new digital banking products.
Sebastian Siemiatkowski, CEO of Klarna, said, "We're back in familiar territory: profit and growth, just like the old days. With our exciting new collaborations with Worldpay, Apple Pay, Google Pay and Adyen, we're closer than ever to making Klarna available at every checkout. We're gearing up for a strong holiday season, and our AI-powered products will help consumers save time, money and reduce financial worry."
Strategic partnerships set to accelerate growth
Klarna has made significant progress in becoming a ubiquitous global payment option. Klarna is set to become a default option via Worldpay and has expanded its partnership with Adyen, bringing Klarna to hundreds of thousands more merchant checkouts and 450,000 retail terminals in-store. Another milestone is Klarna's launch with Apple Pay in the U.S. and UK and soon Canada alongside the launch of Klarna on Google Pay in the US in 2025. These partnerships position Klarna to capture a larger share of the $450 billion payments revenue opportunity, driving future growth.
More brands are choosing Klarna as their global payments partner; recent launches include Zoom and Lenovo who brought flexible payments to 15 markets simultaneously, thanks to Klarna's truly global footprint. This momentum in global expansion highlights how more partners are choosing Klarna as their unified growth partner, driving increases in average order value, conversion rates, and sales across the board.
Rapid adoption of next gen digital banking products
Klarna balance, a newly launched product tapping into retail banks' core business: everyday spending and saving, has attracted 1.6 million users in just three months. Klarna cashback has driven nearly $5 million in rewards, putting money back into customers' Klarna balance accounts. The cashback offers have also boosted merchant sales by up to 30%, supporting GMV growth and affiliate partnerships.
Strong Performance and Continued Growth
Net income reached SEK 216 million in Q3 2024, a 57% improvement as Klarna continues to compound growth and enhance efficiencies through AI innovation. Net income (loss) for the first nine months of 2024 was SEK (116) million, a 94% improvement compared to the same period last year. Revenue increased by 23% in the first nine months, driven by a 16% growth in Gross merchandise volume (GMV) and an increased revenue take-rate. The US market remains a key growth driver, with revenue up 33%, supported by major merchant partnerships with brands like Fashion Nova, Expedia, and Uber.
This press release is not intended for release, publication or distribution, in whole or in part, directly or indirectly, in any jurisdiction in which such release, publication or distribution would be unlawful. This press release is also not an offer of any securities for sale in the United States, and no securities may be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made only by means of a prospectus that may be obtained from the issuer and that will contain detailed information about Klarna.
press@klarna.com
