The company has 114 million active consumers, with 27 million new active users in the prior three months. However, while Klarna is attracting more customers, the company’s average revenue per user fell about 10%.
Klarna’s actual loan losses improved slightly year over year, underscoring that consumers are still paying on time.
Sales of Klarna’s new Fair Financing loan product, which allows users to pay over several months with interest, surged 244% from last year. But that rapid growth comes with some short-term accounting effects which make the company’s reported $95 million loss look worse on paper than it really is, according to Siemiatkowski. He said that Klarna has to set aside money immediately for those potential loan losses, but only about 30% of the income from those loans shows up in the same period. The revenue comes later.