What was changed
Klarna, the buy-now-pay-later pioneer, posted a full-year operating loss of SEK 10.5 billion (about $1 billion) in 2022, up from SEK 6.6 billion in 2021, as its valuation was slashed, per CNBC/Reuters.
CEO Sebastian Siemiatkowski responded with deep cost cuts, tighter credit underwriting and heavy use of AI. The official FY2023 release shows credit losses down 29%, sales and marketing costs down 31%, revenue up 22% to SEK 23.5 billion, and net loss improved 76% to SEK 2.5 billion, with the US posting its first full year of gross profit.
In 2024 the turn completed: revenue rose 24% to $2.81 billion and net profit was $21 million versus a $244 million loss in 2023 — the first full-year profit since 2018 — as Klarna filed for a US IPO, per The Guardian.
What it achieved
2024 revenue rose 24% to $2.81B with net profit of $21M vs a $244M loss in 2023; GMV hit $105B; first full-year profit since 2018.
Why it worked
Cutting credit losses 29% fixed the unit economics of BNPL.
Sales and marketing down 31% showed growth could continue on less spend.
AI-driven automation cut support costs without hurting merchant growth.
Exiting weak markets concentrated resources on the US and Europe.
What can be applied
When a boom-era cost base is too big, the path back is cost and credit discipline plus technology that scales support — not just new products.
Aftermath
Klarna filed publicly for a US listing in March 2025 with the turnaround as its core story, and GMV crossed $105 billion in 2024.
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