Klarna Shares Dip on Revised Guidance
Klarna's shares have taken a hit after the company revised its guidance for revenue and transaction income over the coming year.
Shares in buy now, pay later giant Klarna have taken a dive after the company reduced its guidance for revenue and transaction income over the coming year.
The stock dipped on the New York Stock Exchange after Klarna revised its forecasts for full-year revenue and gross merchandise volume (GMV).
Revised Guidance
| Revised | Previous | |
|---|---|---|
| Full-year revenue | $4.08 billion - $4.16 billion | More than $4.34 billion |
| Gross merchandise volume (GMV) | $149 billion - $151 billion | More than $155 billion |
Klarna attributed the decline in expected income to roughly $600 million in currency translation, and a more measured view of primarily German volumes, the firm's largest market by volume.
Second-Quarter Results
Klarna's second-quarter results were stronger than expected, with the company recording net income of $9 million, compared to a $53 million loss a year earlier. Revenue rose 27 per cent to $1.04 billion, while GMV increased 18 per cent to $36.6 billion and US GMV rose 27 per cent.
Leadership Changes
Klarna also revealed the upcoming departure of chief financial officer Niclas Neglén and chief marketing officer David Sandström. The firm is looking for a new finance chief to be based in New York as the firm vies for a US banking licence. The US remains Klarna's fastest growing market, and assumptions about growth in the region remain unchanged.
Source: Finextra