Axios Pro Exclusive Content

Klarna posts quarterly profit ahead of potential IPO

headshot
May 31, 2024
Illustration of an iPhone displaying the time "$$:$$" and an alarm snooze button.

Illustration: Allie Carl/Axios

Klarna posted its second profit in the last three quarters, as the buy now, pay later giant preps for a potential U.S. listing later this year.

Why it matters: A Klarna IPO would be the largest fintech listing in years and could trigger offerings from other companies in the sector.

By the numbers: In its Q1 2024 results, Klarna reported revenue increased 29% year over year to SEK6.4 billion (~$609 million).

  • Adjusted operating income for the period was SEK229 million (~$21.8m), compared with a loss of SEK498 million (~$47m) in the year-prior quarter.
  • Its growth was particularly strong in the U.S., where revenues increased 38% YoY and gross profit grew 97% over the same period.

Between the lines: Klarna attributed some of that financial success to its adoption of AI, which it says has helped to reduce operating expenses by 11%.

  • The company says nearly 90% of all employees now use generative AI in their daily work.

State of play: In February, Bloomberg reported Klarna was meeting with investment banks to work toward a $20 billion U.S. listing that could happen as soon as the third quarter.

  • But it's hardly alone: USDC issuer Circle Internet Financial, blockchain startup Figure Technologies, and digital brokerage Apex Fintech Solutions have all confidentially filed for an IPO in the last six months.
Go deeper