Klarna continues to be a European success story. The Swedish ecommerce payment provider saw its revenue grow by almost 40 percent to hit 2.2 billion Swedish kronor, or 233 million euros. Meanwhile, profits also increased by 39 percent and are now worth 75 million Swedish kronor, which corresponds with 8 million euros.
The financial results of Klarna in 2014 can be found on Allabolag.se, where you can also see how the company’s revenues and profits have improved over the years. In two years, Klarna’s net sales increased by 86 percent, while its profit increased by a whopping 214 percent.
These are nice numbers for a company that’s ten years old. The profit margin may be thin, but it’s due to the company’s international expansion, which devours money. In September last year Klarna announced its plans to expand to the United States, while it launched in the UK in June of that year. And at the beginning of 2014, Klarna bought its German rival and local market leader Sofort.
Klarna hired more than 480 new people last year and moved its headquarters to central Stockholm. Today, the company has over 1,200 employees in several countries.
Growth guarantee for new merchants
Yesterday, it announced the launch of a growth guarantee for new Klarna Checkout merchants in Sweden. If merchants find that Klarna Checkout doesn’t increase their sales (in terms of higher conversion or average order value), they are entitled to claim the guarantee. “This means that you can rip the contract and collect compensation for the transaction fees for the transactions that have been made via Klarna Checkout.”