Why Klarna Stock Triumphed on Thursday
Key Points
Its first-quarter results reflected the increasing popularity of BNPL solutions.
Those figures also crushed the consensus analyst estimates.
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One of the bellwether stocks in the buy now pay later (BNPL) space, Klarna Group (NYSE: KLAR) published its latest set of quarterly results early Thursday morning. These clearly impressed Mr. Market, as the company's shares closed the day more than 20% higher.
A powerful start to the year
Klarna trounced analyst estimates for its first quarter and delivered top-line growth well into the double digits. Revenue soared 44% higher year over year to slightly more than $1 billion, on gross merchandise volume (GMV) that rose 33% to nearly $34 billion.
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On the bottom line, Klarna flipped to a net profit of $1 million under generally accepted accounting principles (GAAP), from the year-ago loss of $99 million. However, since the portion of the bottom line attributable to shareholders was negative, this resulted in a loss per share of $0.01.
Regardless, both headline items came in well above the consensus analyst estimates. Pundits tracking Klarna stock were modeling $944 million for revenue, and a net loss of $0.20 per share.
In its earnings release, Klarna quoted co-founder and CEO Sebastian Siemiatkowski as saying that during the quarter "we executed well across all the business, driving every line of our [profit and loss statement] and compounding growth across our global network."
A go-to option for consumers
Klarna reiterated its full-year 2026 guidance. The company anticipates GMV of more than $155 billion, filtering down into revenue above $4.3 billion. Non-GAAP (adjusted) operating profit should land north of $299.5 million.
BNPL remains a hot area of consumer finance, especially as inflation becomes a greater concern for many shoppers. Klarna provides a handy, convenient solution that obviously resonates with many people at the checkout counter, and it should continue to be a leader in this type of commerce.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Klarna Group. The Motley Fool has a disclosure policy.
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