Klarna

By Dominic Chopping STOCKHOLM--Sweden's Klarna Bank AB said Wednesday it will switch focus from growth to profitability after its first-half net loss ...

Klarna added that it has revisited its 2022 plans and will implement a number of prudent and preemptive measures to meet these challenges. Gross merchandise volume--the total value of merchandise sold through Klarna--rose to SEK396 billion in the first half from SEK328 billion in the same period last year, as the company saw growth in all markets globally, with the U.S. The company said the U.S. Klarna said that credit losses are in line with expectations at 0.7% of gross merchandise volume. The company said that while it is still seeing strong growth across the business, in view of developments in the broader macroeconomic environment it is now time to consolidate and capitalize on the foundations it has established. the main drivers, it added.

Klarna told investors today it will 'lend a little less sometimes, especially to new consumers' as the economic environment worsens.

All of these have marked the beginning of a very tumultuous year.' 'We needed to take immediate and pre-emptive action, which I think was misunderstood at the time, but now sadly we have seen many other companies follow suit. 'That is never easy and not a decision taken lightly. [Stocks & shares IsaStocks & shares IsaEasy investingCapital at risk. Similarly we've said we will tighten our approach to credit losses - these are an investment in growth, and we will lend a little less sometimes, especially to new consumers, supporting them to make the right decisions for them and for Klarna in changing economic circumstances. In response to losses, the firm slashed 10 per cent of its workforce – or 'Klarnauts' – in May alone and its boss told investors today that Klarna will 'lend a little less sometimes, especially to new consumers' as the economic environment worsens. Sebastian Siemiatkowski, chief executive and co-founder of Klarna, said: 'When we set our business plans for 2022 in the autumn of last year, it was a very different world than the one we are in today. Klarna posted an operating loss of to 6.17billion Swedish crowns (£497million) for the first half, compared to 1.76billion crowns in the same period last year, as total credit losses rose to 2.85billion crowns from 1.85billion crowns. Buy now, pay later giant Klarna saw losses more than treble in the first half of 2022 as it faced soaring costs and mounting credit losses. Klarna, which has been considering floating on the London Stock Exchange, told investors it has revisited its 2022 plans and will implement measures to meet the challenges presented by a worsening economic outlook and more risk-adverse investor environment. Losses at Klarna more than treble to nearly £500m as the buy now, pay later giant says it will 'lend a little less' in face of worsening economic outlook - Klarna's operating costs and credit losses ballooned in the first half of 2022

The buy now, pay later giant attributed its widened losses to market expansion coupled with increased credit losses as new customers signed up.

“When we set our business plans for 2022 in the autumn of last year, it was a very different world than the one we are in today.” The company said it had built a user base of 30m in the latter, and transaction volumes had more than doubled from last year. “Now, understandably, they want to see profitability.” [massive valuation drop](https://sifted.eu/articles/klarna-fintech-valuation-timeline/) from $46bn to $6.7bn, as it [tapped investors for $800m](https://sifted.eu/articles/klarna-valuation-fall-tech/) in fresh funding. The company reported operating losses before tax that swelled to to SEK6.2bn ($580m) in the six months to July, more than tripling from SEK1.8bn ($168m) in the same period a year earlier. [Klarna losses more than triple following valuation crunch](https://sifted.eu/articles/klarna-2022-losses-triple-valuation-drop/)

Swedish payments company Klarna said on Wednesday its half-yearly operating loss more than tripled weighed down by an increase in employee costs, ...

"We have had a few years now where growth has been really heavily prioritised by investors," Chief Executive Sebastian Siemiatkowski said in a statement. Register now for FREE unlimited access to Reuters.com

Losses at Klarna more than treble to nearly £500m as the buy now, pay later giant says it will 'lend a little less' in face of worsening economic outlook.

‘We needed to take immediate and pre-emptive action, which I think was misunderstood at the time, but now sadly we have seen many other companies follow suit. All of these have marked the beginning of a very tumultuous year.’ ‘That is never easy and not a decision taken lightly. Similarly we’ve said we will tighten our approach to credit losses – these are an investment in growth, and we will lend a little less sometimes, especially to new consumers, supporting them to make the right decisions for them and for Klarna in changing economic circumstances. In response to losses, the firm slashed 10 per cent of its workforce – or ‘Klarnauts’ – in May alone and its boss told investors today that Klarna will ‘lend a little less sometimes, especially to new consumers’ as the economic environment worsens. Losses at Klarna more than treble to nearly £500m as the buy now, pay later giant says it will ‘lend a little less’ in face of worsening economic outlook

Buy now, pay later firm will issue smaller loans to some customers to return to profitability.

We needed to take immediate and pre-emptive action, which I think was misunderstood at the time, but now sadly we have seen many other companies follow suit.” The company’s co-founder and chief executive, Sebastian Siemiatkowski, said its investors were now pushing for a return to profit. That compared with a 1.8bn-kronor loss last year.

Klarna reported a pre-tax loss of nearly 6.2 billion Swedish krona in the first half of 2022, up from 1.8 billion krona in the same period a year ago.

In May, the company slashed about 10% of its global workforce in a swift round of job cuts. The company, which allows users to spread the cost of purchases over interest-free installments, saw a jump in operating expenses and defaults. Klarna said it plans to tighten its approach to lending, particularly with new customers, to factor in the worsening cost-of-living situation. The company's ballooning losses highlight the price of its rapid expansion after the onset of the Covid-19 pandemic. In the U.K., meanwhile, the firm acquired PriceRunner, a price comparison site, in April. Stateside, the Consumer Financial Protection Bureau opened a market-monitoring probe into BNPL companies. Meanwhile, consumer-oriented services are [losing their appeal among investors](https://www.cnbc.com/2022/06/30/heres-whats-hot-and-whats-not-in-fintech-right-now.html) while so-called "business-to-business" fintechs attract the limelight. The company subsequently raised raised funds at a $6.7 billion valuation — an Meanwhile, proposals are afoot to bring the BNPL market under regulatory supervision. market which is expensive," Simon Taylor, head of strategy at fintech startup Sardine.ai, told CNBC. Credit losses, meanwhile, rose more than 50% to 2.9 billion Swedish krona. Klarna's pre-tax loss soared more than threefold year-on-year to nearly 6.2 billion krona.

The once-bright Swedish buy-now-pay-later (BNPL) platform Klarna clocked substantial losses in its interim earnings report published on Tuesday August 30.

The US and the UK are the main drivers of volume growth, clocking in a user repayment level of 99%. However, the vast majority of negative cash flows came off the balance sheet in the first quarter; a positive sign that cost-cutting procedures are making an impact. Net losses of 6.2mln kronor (£500,000) increased from 1.4mln kronor in the previous year.

Swedish fintech giant Klarna recently reported an increase in its operating loss as it looks to remain profitable for investors.

Sebastian Siemiatkowski, Klarna CEO, made an effort to downplay the impact of the company’s drop in valuation. Headquartered in Stockholm Sweden, Klarna boasts a global consumer base of 150 million consumers. However, the company’s total operating expenses before credit losses also surged from 6.26 billion crowns to 10.81 billion crowns. In addition, Klarna also raised $800 million of funds at a $6.7 billion valuation in July. Last month’s fundraising valuation represents a staggering 85% drawdown from the company’s hefty $46 billion valuation in 2021. By comparison, the buy-now-pay-later solution provider registered a much smaller loss of 1.76 billion crowns in the year-ago period.

Expansion expenses combined with the integration of new acquisitions and widening credit losses added up to a messy first half for buy now, pay later giant ...

and the U.S. Aside from further growth in the U.S. Revenues increased 24% year on year to 9.1 billion kroner ($916,000), driven by growth in markets including the U.S., where Klarna has built up 30 million users, a fifth of its user base worldwide were the main drivers of volume growth as Klarna worked to significantly strengthen its position in those markets. Last year, credit losses were 1.85 billion kroner and 0.56% of GMV. Expenses related to U.S.

The once-bright Swedish buy-now-pay-later (BNPL) platform Klarna clocked substantial losses in its interim earnings report published on Tuesday August 30.

The US and the UK are the main drivers of volume growth, clocking in a user repayment level of 99%. However, the vast majority of negative cash flows came off the balance sheet in the first quarter; a positive sign that cost-cutting procedures are making an impact. Net losses of 6.2mln kronor (£500,000) increased from 1.4mln kronor in the previous year.

The two companies, Affirm American and Klarna Swedish, are among the most valuable players in the BNPL market today. Both recently reported financial results.

Klarna CEO Sebastian Siemiatkowski tells CNN's Alison Kosik how the company is responding to a slashed valuation and why Apple entering the market is ...

The Swedish company, led by boss Sebastian Siemiatkowski (pictured with wife Nina), reported a mammoth loss of £502m for the first half of 2022.