Klarna Card Users Hit 6.5 Million But Stock Plunges on Lower Outlook
Klarna is getting consumers to use it for more than pay-in-four, but the second quarter also showed what happens to transaction growth when discretionary spending slows in a major market. By the numbers, released on Tuesday (Aug. 18), gross merchandise volume rose 18% year over year to $36.6 billion, while revenue increased 27% to $1.04 […] The post Klarna Card Users Hit 6.5 Million But Stock…
Klarna's user base for its card service grew to 6.5 million active users across 16 countries, more than doubling in the past nine months. The earnings call highlighted where Klarna is expanding transactions and revenue beyond its online checkout business. Klarna Card enables in-store purchases with pay in full and financing options.
The company's CEO, Sebastian Siemiatkowski, explained that the card serves as a vehicle to bring debit and financing opportunities to physical purchases. Klarna Card reached 6.5 million active users in 16 countries, up from 1.3 million a year ago. Germany's consumer discretionary spending weakened towards the end of Q2 and continued into Q3, leading Klarna to lower its full-year GMV outlook to $149 billion to $151 billion from more than $155 billion.
Revenue is also forecasted to decrease to $4.08 billion to $4.16 billion, down from over $4.34 billion. The CFO and CMO will step down early next year.
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