Now with Affirm, what can we learn from the Swedish giant’s first half of the year?
How profitable Is it a buy now, pay later (BNPL) market? New data and recent earnings from Klarna and Affirm make it clear that building a global business in the fintech space is far from cheap.
The two companies, Affirm American and Klarna Swedish, are among the most important players in the BNPL market today. Both recently reported financial results.
Today we look at Clarnan’s earnings for the second calendar quarter of 2022 and the first half of the same year and ask ourselves what we can glean from each set of data. (And, listen, this is a bit trite. If you want to trust our calculations and skip the currency conversions, go to the “Why is BNPL losing so much money?” section.)
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Remember that Klarna recently dropped as much as $6.7 billion in its last funding round. Before the opening bell today, according to Yahoo Finance, Affirm was valued at $6.74 billion. The fact that the two companies have the same valuation in the interim means that we have a stronger basis for comparing them than we can. First we will talk about their results individually and then against each other and their collective value.
