Stockholm, Sweden. 30 May 2024

First Quarter
Results 2024
247
SEK 3.0 bn

SEK 17% bn
GMV1 |

Q124 YoY

Gross profit | 22% Q124 YoY“6.4SEK 229 m
SEK 29% bnRevenue |Q124 YoY

Adj. operating income2 Q124

The information is presented for Klarna Holding AB (publ), if not otherwise stated. 

Klarna continues its acceleration with 29% revenue growthyear on year. Coupled with the power of AI to lower operating
expenses, we have once again delivered a profitable quarter  with a substantial SEK 727m improvement in adjustedoperating income. With several new products set to launch  in the coming months, we’re preparing for a truly exciting
year ahead.

”

Sebastian Siemiatkowski, CEO and Co-Founder of Klarna
1 Total monetary value of payment products and services sold through the Klarna network over a given period of time.

2 Adjusted operating income (loss) is defined as IFRS operating result excluding restructuring costs, share-based payments and related payroll taxes, depreciation and amortization of intangible and tangible assets, and other income (expense). A reconciliation of adjusted operating income (loss) to operating result can be found on p6 of this report.

Financial summary (Klarna Holding AB)

Q1 2024

Amounts in SEKm
Gross merchandise volume

Q1 2023

Q1 2024

YoY

210,696

247,17617%

Transaction and service revenue

4,079

5,373

32%

Interest income from operating activities

871

992

14%

Total revenue

4,949

6,364

29%

Processing and servicing(1,339)(1,394)4%Consumer credit losses(748)(1,191)

59%

Funding costs

(429)

(817)

90%

Transaction costs(2,516)(3,401)35%

Gross profit

2,433

2,96322%

Technology and product development
Sales and marketing

(734)

(835)

14%

(694)

(615)

(11%)

Customer service and operations
General and administrative (G&A)
Depreciation, amortization and impairments

Operating expenses

(658)
(948)
(581)

(594)
(805)
(376)

(10%)
(15%)
(35%)

(3,615)(3,225)(11%)

Operating income (loss)(1,182)

(263)

(78%)

- Depreciation and amortization

414

376

(9%)

- Share based payments

10463(39%)- Restructuring and other

166

52

(69%)

Adjusted operating income (loss)

(498)

229

n.m

Other income (expense)
Income tax
Net income (loss)

30

19(36%)

(98)

(80)

(1,250)

(323)

74%

2.35%

0.36%

2.57%

0.48%

23 bps49%

47%-2.6p.p

Key ratios
Revenue take rate

Consumer credit loss rate
Gross margin

2(18%)

13 bpsAccelerated Sustainable
Revenue & Profit Growth We’re excited to report a 29% increase in total
revenue, a substantial acceleration from the 13%
growth in the same quarter the previous year. This
surge is driven by our expanding presence in theUS, where we continue to onboard major retailers.
As the preferred choice for consumers' everyday
spending, commerce thrives on the Klarna network. 

In the US, Klarna’s biggest market by revenue, Q124
revenues increased by 38% YoY, while gross profit
saw an impressive rise of 97% over the same period.
This continued performance has contributed to a
22% improvement in gross profit at a group level.

AI’s positive
impact on thebottom line
While revenues grew, we drove an 11% reductionin our operating expenses. Klarna is leaning into
the AI revolution. Efficiencies are visible acrossKlarna, with 90% of employees now leveraging AIfor their daily work. This internal AI revolution isfurther propelled by Kiki, Klarna’s bespokeinternal AI assistant, which has adeptly
responded to over 250,000 inquiries. 

Klarna achieved an adjusted operating  
income of SEK 229m, compared to  a loss of SEK -498m in Q123, an  
improvement of SEK 727m as we  continue to focus on operating  
leverage improvements for long- term sustainable profitability.

3

Klarna enters partnerships
with even more of theworld's biggest brands

Q124 saw a continued expansion of our verticalfootprint, allowing our consumers to use ourplatform for more of their everyday spending needs. 

customers are new to Klarna, and we're seeing
customers using our services to purchase bothRides and Eats, demonstrating the successful
integration and appeal of our payment solutions.
Similarly, our partnership with Expedia.com andHotels.com have expanded our footprint in thetravel sector, introducing flexible payment options
to a broader audience.

Key partnerships include our collaboration with Uberand Uber Eats in the US, Germany, and Sweden,
which has enhanced customer convenience andengagement significantly. In the US, 12% ofQ124 product innovations
that develop Klarna as aneveryday spending partner

Our product innovation efforts continue to enhance theKlarna user experience and operational efficiency

AI marketing: Klarna cut its Q124 sales and marketing  
spend by 11%, while increasing marketing activity.
AI accounted for 37% of the savings, about USD
10m annually.  
Press release

Sign in with Klarna: Simplifies online shopping by
allowing consumers to quickly log in and choose
the personal data they share.   
Press release

Klarna Plus: A subscription service that has
attracted 70,000 sign-ups, offering waived fees,double rewards, and exclusive deals.   
Press release

Klarna Card in the US: Offering flexible payments,
cashback rewards, and no hidden fees.   
Press release

AI Assistant: Engaging with 4 million consumers,
reducing repeat inquiries by 25%, and delivering
annualized savings of USD 40m. 
 
Press release4

Sustainability
Commitments
Our environmental initiatives have been recognizedwith the 'most Disruptive Global Climate Action
Initiative' award at the CSR Excellence Awards
2023. We also announced the expansion of theClimate Transformation Fund to USD 7m, incollaboration with Milkywire supporting over 45
organizations by 2024. Furthermore, we doubled
our internal carbon tax to USD 200 per ton for directemissions, enabling further investment in innovative
carbon removal projects and sustainable practices
without relying on traditional carbon offsets.

Significant events after this period

On 19 April 2024, Klarna Holding AB issued USD 100m of Tier 2 notes in a private placement.

5

Presentation of the income statement
As a Swedish banking group, Klarna presents our financial statements3 in line with Swedish Financial Supervisory
Authority regulations (FFFS 2008:25)4 and the Annual Accounts Act for Credit Institutions and Securities Companies(ÅRKL, 1995:1559), which prescribes a specific format for income statement presentation for credit institutions
and securities companies. 

In our financial summary, Klarna presents an income statement view designed to enhance understanding of Klarna's
underlying business performance. Unlike traditional banks, the majority of our revenue is derived from transaction andservice revenue linked to the volume of transactions or advertising services we facilitate, rather than from intereston balances.

Therefore, Klarna uses several specific measures of financial performance that we believe are important as they reflect
underlying business activity. This includes revenue, gross profit and adjusted operating income (loss).

The information in the reconciliation presented below is for Klarna Holding AB (publ).

Reconciliation of Revenue to Total net operating incomeAmounts in SEKm

Q1 2023

Q2 2023

Q3 2023

Q4 2023

Q1 2024

Revenue

4,949

5,509

5,993

7,053

6,364

Commission expenses
Net result from financial transactions

(222)
(112)

(226)
(144)

(253)
99(302)6(308)(62)

Interest expenses

(481)

(577)

(768)

(1,034)(1,024)

Interest income from liquidity assets

225

234

306

374

361

Total net operating income

4,359

4,796

5,377

6,097

5,331

Revenue is defined as Total net operating income in accordance with IFRS excluding; commission expense, interest
expense, net result from financial transactions and interest on liquidity assets not related directly to the core business.
Interest on liquidity assets that are not directly related to the core business stems from loans to credit institutions andother interest income. Klarna believes Revenue is the best indicator of how much value we are sustainably generatingfrom our business and that this approach is in-line with our peers.

Reconciliation of Total net operating income to Gross profit

Amounts in SEKm

Q1 2023

Q2 2023

Q3 2023

Q4 2023

Q1 2024

Total net operating income

4,359

4,796

5,377

6,097

5,331

Processing and servicing(1,339)(1,374)(1,423)(1,565)(1,394)

Consumer credit losses

(748)

(929)

(780)

(1,308)(1,191)

(12)

(12)

(11)

(10)

(8)

(180)

(162)

(191)

(239)

(231)

Net result from financial transactions*32(44)

202

105

22

Gross profit

2,433

2,709

3,174

3,367

2,963

IncludingExcludingInterest expenses*
Commission expenses** of which are not directly related to revenue-generating activities.

Gross profit is defined as Total net operating income in accordance with IFRS, including costs related to processing andservicing, within general administrative expenses5, and consumer credit losses within credit losses, net5. Excludinginterest expenses, commission expenses, currency gains and losses, and fair revaluation of securities, of which are notdirectly related to revenue-generating activities. Klarna believes gross profit is the best indicator of the core profitabilityof the company's business activities before the deduction of operating expenses.
3 Found on page 8 of this report  
4 In addition to International Financial Reporting Standards (IFRS)

5 In accordance with IFRS and as included on Klarna Holding AB's income statement

6

Reconciliation of Gross profit to Operating result

Amounts in SEKm

3Q1 2023

Q2 202Q3 2023

Q4 2023

Q1 2024

Gross profit

2,4332,709

3,174

3,367

2,963

Operating expenses(3,615)(3,43879)(3,225)

Other income (expense)

30

Operating result(1,152)8)(3,244)(45)

201775)130((4,(105191,408)(243)

Operating result, in accordance with IFRS, is calculated from gross profit after deducting operating expenses and otherincome (loss).

Reconciliation of Operating result to Adjusted operating income (loss)

Amounts in SEKm

3

Q1 2023

Q2 202Q3 2023

Operating result(1,152)

(775)

130

(1,40Restructuring and other

(166)

(213)

197

(482)

(52)

Share-based payments

(104)

(135)

(102)

(121)

(63)

(414)

(436)

(443)

(405)

(376)

30

(45)

201

105

1955

277

(503)

229

*Depreciation and amortization

Other income (expense)

Adjusted operating income (loss)

8)

(49

Q4 2023

Q1 20248)(243)* Certain costs associated with depreciation, amortization, and impairment of intangible and tangible assets in the income statement are categorizedunder restructuring costs in the table above, reflecting their associated nature.

Adjusted operating income (loss) excludes items that are generally not a function of the company's underlying
operating performance and therefore we view it as an important metric to understand core profitability.  

Adjusted operating income (loss) now replaces the previous term, adjusted operating result. Adjusted operating
income (loss) is defined as operating result, in accordance with IFRS, before restructuring costs, share based
payments and related payroll taxes, depreciation and amortization, and other income (expense). Other income

Adjusted operating income (loss). Other
Adjusted operating income (loss), better(expense) was previously included within Operating income (loss) andincome (loss) is now excluded from Operating income (loss) andreflecting income and expenses unrelated toKlarna's core operations.

7Amounts in SEKM

Unlike the balance sheet, which shows a snapshot of assets and liabilities as at each period end, the credit losses  in the income statement reflect provisions for future losses and realized losses associated with all lending activities
during the period.

8

Loans to the public represents only the amount of outstanding loans receivable, as at each period end, and is net ofallowance for future credit losses. This balance is only partially comparable to credit losses on the income statement
as the income statement reports all activity during the period, while the balance sheet is a snapshot of lending
outstanding as at the period end date.

9

As a bank, cash flows from operating activities primarily represent the net flows of money coming in and going out from thebank’s consumer lending and retail deposit activities. It’s not a reflection of the bank’s net operating result for the period. 
In addition to the SEK 38.8bn in cash and cash equivalents held at year-end, Klarna also maintains an additional liquidity
portfolio of SEK 10.4bn.

10