Core Insights - Klarna faces profitability pressure due to a significant increase in loan loss provisions ahead of its IPO, with provisions rising 64% year-over-year to $174 million [1] - Despite the increase in provisions, Klarna maintains a low credit loss rate of 1%, which is less than 1% of total transaction volume [1] - The company reported a pre-tax loss of $53 million, widening from a loss of $18 million in the same period last year [1] Financial Performance - Klarna's quarterly revenue grew by 25% year-over-year to $823 million, with adjusted operating profit slightly increasing by $1 million to $29 million [1] - The implementation of AI technology has led to a 46% year-over-year increase in revenue per employee, surpassing $1 million [2] - Klarna has streamlined 40% of its workforce over the past two years as part of its AI efficiency strategy [2] Market Position and Future Plans - Klarna has 111 million active users globally, a 31% increase year-over-year, and partners with 790,000 merchants [2] - The company is considering restarting its IPO plans as early as September, having submitted a confidential listing application to the SEC in March [2] - Klarna has reached an agreement to securitize some new BNPL loans in the U.S. to optimize its capital structure ahead of the IPO [2]