Swedish buy-now-pay-later company Klarna has reported a profitable start to 2024, driven by a significant reduction in costs and a 29% increase in revenue year-on-year to €55 million. The company attributes its improved financial performance to the implementation of artificial intelligence (AI) technologies, which have slashed image production costs by $1.5 million and reduced the image development timeline from six weeks to seven days. Klarna's marketing chief, David Sandström, highlighted that AI tools like Midjourney and DALL-E have enabled the company to create thousands of on-trend images quickly and efficiently. Additionally, Klarna's gross merchandise volume (GMV) increased by 17%, and its adjusted EBIT surged by 146%, with a margin of 3.6%. The company's take rate also improved to 2.57%. However, the company's US expansion has led to an increase in consumer credit losses, which rose to 0.48%. Despite these challenges, Klarna's overall financial health appears robust, with a 22% rise in gross profit and an 11% reduction in operating expenses attributed to AI-driven efficiencies.
Interview with Klarna CMO in WSJ: "Back then we set up the vision to become the most advanced marketing organization there is. What that means to me is that we become brutally efficient, both in the resources we use but more importantly, in the results that we can create."
Klarna has started to use AI for ideation, image creation and translation efforts to create more personalized campaigns for consumers across the 45 markets that it operates in currently. https://t.co/EJAzfYK1cT
By @WSJ: Klarna #Marketing Chief Says AI Is Helping It Become ‘Brutally Efficient’ https://t.co/KmJOOftvXV re: @Klarna Just how a Swedish #fintech player is spending less, moving faster & using #GenAI tools like DALL-E for #martech #automation. A genuine conversation.… https://t.co/m6IJuEY8cU
Klarna says it reduced Operating Expenses by 11% - driven by AI. I have *thoughts* Klarna saw a 29% increase in revenues YoY driven by its US expansion while reducing operational expenses (Opex) by 11%, which was attributed to its investments in AI. The company said 90% of…
Swedish buy-now-pay-later company Klarna says artificial intelligence is helping to lower its marketing and sales costs by making tasks such as creating images and translating copy more efficient https://t.co/vmMXXxro0g https://t.co/vmMXXxro0g
Klarna CEO faces backlash for saying AI let marketing team 'half the size it was last year' do more work, saving millions https://t.co/tHsoZst3GM
US expansion pushes up credit losses at Klarna https://t.co/o6jUQzAOrI
Klarna CMO David Sandström Says Generative AI Enables The Buy Now, Pay Later Company’s Marketing Arm To Quickly Create Thousands Of On-Trend Images, Power More Campaigns, And Revolutionize Its Business. https://t.co/X7Lg1j8Xmd
Klarna Q1 2024 📦 GMV +17% Revenue +29% Gross profit +22% *marg. 47% (49) Adj. EBIT +146% *marg. 3.6% (-10) Take rate 2.57% (2.35) Consumer credit loss 0.48% (0.36) https://t.co/iF3GREUxyC
Klarna reports profitable start to the year as listing rumours mount. Revenue increased 29% year-on-year to €55m — and things are looking particularly rosy in the US. https://t.co/ujB7S02lQD
Buy-now-pay-later firm Klarna swings into quarterly profit after slashing costs https://t.co/Bp8wO8SHdm
"Using tools such as Midjourney and DALL-E saved the company $1.5m on image production costs in the first quarter, while slashing its image development timeline to seven days from six weeks." ◾️ Klarna Marketing Chief Says AI Is Helping It Become ‘Brutally Efficient’ @WSJ