Klarna Reports Revenue Growth but Lowers Full-Year Outlook

Klarna reported a 27% increase in revenues for the three months ending in June, supported by a 54% expansion of its merchant network to 1.2 million partners. Gross merchandise volumes rose 18% year-on-year, while revenues from paying subscribers surged 600% following the introduction of new membership plans.

The company's financing arm saw an 82% jump in gross merchandise volumes, a growth spurt attributed to new partnerships with Bolt and Southwest Airlines.

Despite these quarterly gains, the firm downgraded its full-year outlook for both revenues and gross merchandise volumes. Management cited currency movements and a stagnant German market as the primary drivers for the lowered guidance, stating that their assumptions include Germany staying soft through the second half of the year. This outlook follows a period of volatility for the company, with its share price on the New York Stock Exchange falling approximately 20% since its initial public offering last year.