New Report Shows Klarna And Affirm’s Impressive Performance In Q3


Two leading buy now, pay later companies, Klarna and Affirm, have reported exceptional results for the third quarter of this year. The quarterly earnings report revealed significant growth and improvement for both companies, signaling a strong comeback for the buy now, pay later sector.

Key Takeaway:

Klarna and Affirm, two prominent buy now, pay later companies, have reported strong financial performance for the third quarter of this year. Affirm’s revenue grew by 37% year over year, while Klarna’s revenue increased by 30%. Both companies also experienced a reduction in delinquency rates, indicating improved financial stability. This success highlights the growing popularity and viability of the buy now, pay later sector.

Affirm’s Impressive Q1 Performance

Affirm reported a remarkable 37% year-over-year increase in revenue for the fiscal first quarter, reaching $497 million. Gross merchandise volume also saw substantial growth, rising 28% to $5.6 billion during the same period. This positive performance resulted in a significant boost to Affirm’s stock, with shares reaching as high as $27.16 on November 9. Although there was a slight dip in stock price on November 10, trading just above $22, the overall results demonstrate Affirm’s strong position in the market.

Klarna’s Strong Revenue Growth

Klarna also experienced impressive growth in the third quarter, with revenue amounting to 6 billion Krona ($549.9 million), marking a 30% increase compared to the previous year. Moreover, the company reported an operating result of 130 million Krona ($11.9 million), a significant improvement from the 2.12 billion Krona ($192.6 million) loss reported the previous year. Klarna’s positive results indicate efficient operations and a reduction in delinquencies, showcasing the company’s continuous efforts to enhance its financial performance.

With both Klarna and Affirm reporting lower delinquency rates, it is evident that the buy now, pay later industry as a whole is experiencing positive growth and reduced financial risks. This news is highly promising for both companies and the overall market, emphasizing the increasing popularity and stability of the buy now, pay later model.

These positive developments in the buy now, pay later industry complement other noteworthy achievements in the fintech sector. Companies such as Dave, Flywire, Payoneer, and Robinhood also disclosed positive financial results for the third quarter, further highlighting the industry’s overall growth and resilience.

Additionally, some fintech companies are focusing on empowering children and teenagers to build credit effectively. Step, for example, recently launched Step Black, a rewards card targeting the Gen Z demographic. This innovative card is designed to help young individuals build credit without incurring debt and has already garnered a waitlist of over 100,000 people. The Step Black card also offers attractive features such as no minimum credit limit, $500 in annual perks, and up to 8x cash back.

The strong performance of Klarna, Affirm, and other fintech companies underscores the continued growth and innovation within the industry. As the buy now, pay later model gains popularity and fintech companies cater to a wider range of customers, there are promising opportunities for further advancements and success.

Leave a Reply

Your email address will not be published. Required fields are marked *

Recent Stories

6 Amazing Gaming Laptop 2016 For 2023

12 Best Gaming Laptop I5 For 2023

7 Amazing Mini Gaming Laptop For 2023

9 Best Gaming Laptop 2080 For 2023

7 Best Legion Gaming Laptop For 2023

12 Amazing 144Hz Freesync Gaming Monitor For 2023

12 Best Benq Gaming Monitor Curved For 2023

6 Amazing ASUS Gaming Monitor 1440P For 2023