Klarna, the AI-powered global payments network and shopping assistant, has kicked off 2024 with impressive financial results, showcasing substantial growth and profitability in its Q1 report.
CEO Sebastian Siemiatkowski shared his enthusiasm: “Klarna continues its acceleration with 29% revenue growth year on year. The power of AI to lower operating expenses has led to a SEK 727 million improvement in adjusted operating income. With several new products set to launch in the coming months, we’re preparing for a truly exciting year ahead.”
AI: A Game Changer for Klarna
Klarna reported an adjusted operating income of SEK 229 million, a remarkable turnaround from a SEK 498 million loss in the same period last year. Revenue soared by 29% year-over-year, reaching SEK 6.4 billion. The integration of AI into daily workflows by 90% of Klarna employees led to an 11% reduction in operating expenses. The AI Assistant, launched in January, has engaged over 4 million customers and is projected to save USD 40 million annually.
Strong Performance in the US
Klarna’s US revenue grew by 38% year-over-year, with gross profit rising an impressive 97% over the same period. This contributed to a 22% improvement in gross profit at the group level, underscoring Klarna’s strong performance in the competitive US market.
New Partnerships and Product Innovations
Klarna’s Gross Merchandise Volume (GMV) grew by 17% year-over-year, significantly outpacing the 2% growth in global e-commerce for the same quarter. The company expanded its partnerships with major brands, including Uber, Uber Eats, Expedia.com, and Hotels.com, across multiple new markets.
Revolutionizing Payments with New Products
Klarna is setting new standards for flexible payment options. The new Klarna Card in the US is poised to revolutionize card purchases, offering increased flexibility and better financial management through its app. Klarna Plus, a subscription service offering premium features, has already attracted 70,000 sign-ups. Additionally, the “Sign in with Klarna” feature, launched across 23 countries, streamlines online shopping by allowing consumers to quickly log in and control the personal data they share, enhancing the checkout experience.
