Klarna, the Swedish buy-now, pay-later giant, is on a mission to cut losses and expand into Europe. They made great strides in the first half of this year, but profits are still elusive.

As of Thursday, clarity report The operating loss for the first six months of the year was about $185 million, down 67% from the same period last year. The last time it achieved a half-year profit was in the second half of 2018, the company said. wealth.

While the sequential profitability target for the first six months was still missing, Klarna did turn a profit in the second quarter, hitting the milestone ahead of schedule and beating internal targets. Their Q2 revenue also grew a strong 17% year-over-year.

Klarna CEO Sebastian Siemiatkowski had Announce In November, the company planned to start reporting quarterly profits this summer. Although they are slightly short of this goal, Simiatkowski still has reason to celebrate.

“Today’s results clearly disprove misconceptions about Klarna’s business model and demonstrate that it is incredibly agile and sustainable as we support a healthy consumer base to make informed financial decisions,” he said. in a statement.

The fintech giant said in May that it expects gained profit Calculated on a monthly basis for the second half of 2023.

Klarna’s Profit Hopes and European Prosperity

Apps such as Klarna allow consumers to make purchases and pay for them in interest-free installments.

The company has been profitable since its inception in 2005 until it began investing in the growth of its U.S. business in 2018.

The U.S. consumer has particularly boosted Klarna’s business during the COVID-19 pandemic, placing it among the U.S. consumers. BNPL Top App domestic.

In 2021, the company was valued at $45.6 billion at its peak, but economic volatility and a rout in tech stocks wiped 85% off its value just a year later.

Like other fintech companies, Klarna has been battered by soaring costs, rising interest rates and weak global consumer spending.

But Klarna weathered the storm with cost-cutting measures, including layoffs 10% of the workforce last year.

It also employs artificial intelligence to help improve business efficiency and provide customers with tailored buying recommendations.

In recent months, the Swedish company has begun to see growth outside the United States, which remains its largest market.

Last week, Klarna said it was “doubling down” on its European presence after a 26% rise in the UK and 14% across all continental regions.

the company told wealth More credit opportunities, fewer competitors and new partnerships have helped it gain traction and achieve “phenomenal growth” in the European market.

Klarna plans IPO when “market conditions” improve, Siemiatkowski says Tell FT in an interview on thursday.

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