Klarna, a Swedish company that helps people buy now and pay later, continues to lose money. In 2022, the company lost $1 billion, which is 47% more than the $680 million it lost in 2021.
Klarna has told investors that it will be profitable in 2023. Q4 numbers show steady growth in gross merchandise volume (GMV) and a 19% revenue increase.
Klarna hasn’t made a profit in a full year since 2018. Since then, a costly policy of growth through expansion has led to losses that keep getting worse as the economy as a whole gets worse. The company had to go through a year of painful restructuring, during which its value dropped and 10% of its employees were fired.
Klarna’s longtime goal of breaking into the US market is finally paying off, with the US becoming its top income source. In Q4, the operating loss went down and GMV went up by 19%, both of which show an uptick. With credit loss rates going down, H222’s operating results improved by 35% compared to the first half of the year, which was a big change.
CEO Sebastian Siemiatkowski says this about the growth of the company in the US:
“We’re thrilled at the growth and momentum we’ve achieved in the US, and are confident in our path towards profitability.”
