Klarna Beats Q1 Estimates with $1B Revenue, Up 44% YoY; Active Users Jump 21%

Klarna reported first-quarter revenue of $1 billion, exceeding analyst estimates of $945 million and representing 44% year-over-year growth. The Swedish buy now, pay later provider posted operating income of $17 million compared with a loss of $90 million in the same period a year earlier, while adjusted operating profit reached $68 million from $3 million. Active users increased 21% to 119 million as gross merchandise volume rose 33% to $33.7 billion. Shares climbed more than 12% in US premarket trading.

However, Klarna's second-quarter guidance came in below market expectations, forecasting revenue between $960 million and $1 billion versus analyst expectations of $1.07 billion, and gross merchandise volume of $35.5 billion to $36.5 billion against expectations of $38.1 billion. CEO Sebastian Siemiatkowski told Reuters the company is prioritizing profitability and operational discipline after focusing more aggressively on growth previously.