From CNBC: 2024-08-27 11:50:55

“Buy-now, pay-later” firm Klarna aims to return to profit by summer 2023. Klarna swung from a loss to a profit in the first half of the year, making an adjusted operating profit of 673 million Swedish krona. Revenue grew 27% to 13.3 billion krona while net income showed a 333 million krona loss. Klarna CEO Sebastian Siemiatkowski highlighted strong revenue growth in the U.S., with sales up 38%.

Klarna achieved its adjusted operating profit through sustainable growth and leveraging AI to lower costs. The company has been at the forefront of using AI to improve productivity and reduce operating expenses. Klarna’s average revenue per employee increased 73% year-over-year to 7 million Swedish krona. It aims to position itself as a primary banking provider through initiatives like launching a checking account-like product called Klarna balance.

Klarna has not yet set a fixed timeline for its much-anticipated IPO but is expected to list in the U.S. The company is diversifying beyond buy now, pay later with products like Klarna balance. Earlier this year, Klarna offloaded its proprietary checkout technology business to focus on its core services. CEO Siemiatkowski expressed openness to going public in 2023, emphasizing the importance of becoming a public company in the future.

Read more: Buy now, pay later firm Klarna swings to first-half profit ahead of IPO