Klarna Group FY Conference Summary Company Overview - **Company**: Klarna Group - **Industry**: Fintech, specifically focusing on Buy Now, Pay Later (BNPL) services - **Conference Date**: November 19, 2025 Key Points Company Performance - Klarna has approximately **114 million consumers**, a **37% year-over-year** increase [5] - The company supports **850,000 merchants**, growing **38% year-over-year**, with a record **35,000 new merchants** added [5] - The average transaction value is around **$104**, with an average loan duration of **40 days** [10] - In Sweden, Klarna has achieved **80% population penetration**, with **18% year-over-year growth** in transaction volume [11] Business Model and Differentiation - Klarna's business model is not limited to BNPL; it includes various payment options such as **Paying in Full** and **Fair Financing**, which has seen a **244% growth** in the U.S. [5][6] - The company aims to be an **everyday spending partner**, allowing consumers to use Klarna across multiple verticals and average order values [6] - Klarna's strategy includes becoming a default option for Payment Service Providers (PSPs), which is critical for growth [18] Consumer Health and Economic Impact - Klarna reports a **healthy consumer base** across all markets, with no significant weakness noted in lower-income demographics [12][16] - The company processed about **$100 billion** in volume last year, growing at **20%**, driven by the shift towards digital payments [14] Fair Financing and Credit Loss Provisions - The acceleration of Fair Financing has led to increased provisions for credit losses, which were anticipated [33][36] - Interest income from Fair Financing grew **48%**, while volume increased **139%** [34] - The company expects a **transaction margin uplift** in the fourth quarter as prior cohort volumes begin to recognize revenue [34] Strategic Partnerships and Growth Opportunities - Klarna has signed partnerships with major PSPs like **Stripe**, **Chase Payment Solutions**, and **Worldpay**, which are expected to come online in 2026 [20] - The company has also expanded its merchant base significantly, with **235,000 new merchants** added in the last year [19] Technology and Operational Efficiency - Klarna is leveraging **AI** to enhance customer service and operational efficiency, managing workloads equivalent to **850 employees** through AI tools [45] - The company maintains a focus on **cost discipline**, with revenue growth outpacing operational expense growth [49] Future Outlook - Klarna aims for **25%-30% annual growth** in the medium term, supported by its strategic initiatives and market positioning [56] - The company has about **$14 billion** in deposits, which serves as a cost-efficient funding source [50] Additional Insights - The Klarna Card is positioned as a flexible payment option, allowing users to choose between debit and credit, enhancing user engagement [22][23] - The shopping app has seen significant growth, accounting for **30%-40% of volume**, providing opportunities for affiliate revenue [53] This summary encapsulates the key insights from Klarna's FY conference, highlighting its performance, strategic direction, and market positioning within the fintech industry.

Company Overview - Ovanti (ASX:OVT) is a microcap fintech player in the Buy Now Pay Later (BNPL) sector, currently trading as a penny stock with a market cap of $37 million and nearly 5 billion shares outstanding, priced at 0.8 cents per share [1][3]. SPAC Listing Plans - Ovanti has revived its plans to list on the Nasdaq after nearly 12 months, indicating ongoing discussions with multiple Special Purpose Acquisition Company (SPAC) operators [1]. - The company’s delayed engagement with SPACs raises questions, as SPACs are known for being accessible to companies seeking public listings [5]. Market Context - The BNPL sector has gained renewed attention in the U.S., highlighted by the recent IPO of Klarna, which was the largest IPO of 2025 despite a week-over-week decline of 8% [6]. - Ovanti's partnership with U.S.-based BNPL player Shift4, which is listed on the NYSE, adds legitimacy to its operations, although this has not significantly impacted its stock price [4]. Trading Activity - On a recent trading day, Ovanti experienced low trading volumes, with only $90,000 worth of trades recorded before 1 PM AEST [3]. - The company has seen a 100% increase in one-year returns, but daily trading activity remains subdued [3].

Financial Data and Key Metrics Changes - In 2024, net income increased more than tenfold compared to 2023, with total revenue reaching $271 million, a 70% increase from 2024 [11][23] - Adjusted net income for Q4 was $26.5 million, and for the year it was $66.2 million, each up approximately ten times compared to the prior year's period [24] - The company achieved a revenue growth rate of over 100% year over year in Q4, meeting the rule of 40 and the rule of 100 on revenue growth alone [13][23] Business Line Data and Key Metrics Changes - The launch of the On Demand product contributed significantly to user engagement, with 707,000 Monthly On Demand and Subscriber Users (MODS) at the quarter end, representing a 130% year-on-year increase [14][19] - The product marketplace saw orders grow at an average rate of 39% month over month during 2024 [16] - The company maintained strong subscriber numbers while focusing on introducing new users to the On Demand product, which has better activation rates due to its lower barrier to entry [43][44] Market Data and Key Metrics Changes - The BNPL (Buy Now Pay Later) industry is projected to continue growing at double-digit annual rates for the next five to ten years [7] - The company has integrated directly with over 20,000 merchants, allowing consumers to shop at 598,000 different merchants during the year [21] Company Strategy and Development Direction - The company aims to enhance the shopper experience and launch new products that consumers want and need, with a near-term focus on maximizing the On Demand launch [12] - The strategy includes leveraging the On Demand product to create a bridge to subscription services, similar to how Uber introduces its subscription product [46] - The company is focused on improving its underwriting models to allow for increased approval rates while managing credit risk effectively [27][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to continue gaining market share despite competition from larger peers, emphasizing the importance of executing at a high level [5][6] - The company anticipates double-digit revenue growth for 2025, with pre-tax net income expected to rise at least 55% compared to 2024 [12][34] - Management highlighted the importance of responsible repayment and the unique value proposition of their SezzleUp product for building credit history [9][8] Other Important Information - The company has a cash balance of $98.3 million and $39 million of unused borrowing capacity available at year-end [33] - The company plans to provide adjusted numbers for 2025 to remove non-recurring items and has increased its EPS guidance for 2025 to $13.25 [34] Q&A Session Summary Question: What were the biggest drivers of the year-over-year revenue growth acceleration from Q3 to Q4? - Management identified the partnership with WebBank and the launch of the On Demand product as the primary drivers of revenue growth, leading to increased gross margin and bottom line [36][37] Question: How did seasonality impact the revenue growth? - Management noted that the holiday season contributed to the year-over-year growth, but emphasized that the On Demand product allowed for more consistent shopping activity throughout the quarter [40][41] Question: How did the Anywhere and Premium products perform in Q4? - Management indicated that subscriber numbers were maintained, but the focus was on introducing new users to the On Demand product due to its better activation rates [43][44] Question: What is the monetization potential of the couponing feature? - Management confirmed that there are monetization channels for couponing, but they are currently focused on using it for customer attraction and retention [61][66] Question: What are the plans for capital allocation with increased cash generation? - Management stated that being a profitable company creates options for buybacks, dividends, and M&A, and they will evaluate these options as they continue to generate cash [62][63]