Klarna's stock plummets 20% in pre-market after forecast cut
Translated from Swedish, summarized and contextualized by DistantNews.
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- Klarna's revenue increased by 27% to $1.042 billion in the second quarter, with growth in gross profit and Gross Merchandise Volume (GMV).
- The company lowered its future GMV forecast to $149-151 billion from $155 billion, citing currency effects and a more cautious outlook for Germany.
- Klarna's stock fell 20% in pre-market trading, adding to a roughly 50% decline since its listing, as several top executives depart.
Klarna's stock plummeted 20% in pre-market trading following the release of its second-quarter financial report. Despite a 27% revenue increase to $1.042 billion, bolstered gross profit, and growth in Gross Merchandise Volume (GMV), the company's future outlook has been tempered.
Klarna announced it is lowering its GMV forecast for the year to between $149 billion and $151 billion, down from a previous projection of $155 billion. The company attributes this adjustment to currency fluctuations and a more conservative assessment of business volumes in Germany. This news comes as Klarna's stock has already seen a significant decline of approximately 50% since its initial listing.
Adding to the challenges, several key executives are leaving the company. Both Chief Financial Officer Niclas Neglén and Chief Marketing Officer David Sandström have departed. The company stated that over 120 million consumers now use Klarna, highlighting its user base despite the recent financial and executive shifts.
Over 120 million consumers use Klarna.
DistantNews Editorial
Originally published by Svenska Dagbladet in Swedish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.
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