US growth driving Klarna

Sebastian Siemakowski, Klarna CEO and co-founder, has expanded in an interview with TechCrunch on his earlier tweet that the US has passed Germany as Klarna’s largest individual market. In Q4’22 Klarna’s gross merchandise value (the value of products purchased with Klarna) in the US grew 71 % and it has 34 million users. Credit loss rates in the US should be down 37 %.

The combination of fast growth (with lower credit losses) in its largest market and the cost-cutting including layoffs Klarna did in 2022 should lead to improved operational profitability. The unknown factor, until Klarna reports its full numbers for Q4 2022, is how it grew (and with what credit losses) in European markets year-over-year.

Klarna returning to full profitability would be a good thing for #sthlmtech.

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