Re:The layoffs at Klarna
by treis on Sunday August 14, 2022 @01:44PM
(#32461250)
1-3% of the transaction volume.
That percentage is the 1.4 billion Klarna takes as revenue. The margins of that can be very high.
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> That percentage is the 1.4 billion Klarna takes as revenue.
Implying that transaction volume is on the order of $200 billion? No.
For perspective, Amazon's 2018 revenue is $230 billion.
Are we sure that that's true? As a private company klarna can choose any metric they so desire as revenue...
Re:The layoffs at Klarna
by christophilus on Sunday August 14, 2022 @03:51PM
(#32462332)
What? Isn’t revenue kind of … revenue? What else can it be?
To my knowledge, there isn't any reason klarna can't describe their transaction volume as revenue. Then declare their margin 3%.
As a private tech company I would assume that they are using the broadest possible definition of revenue.
No. GAAP and IFRS have very strict definitions of Revenue. Transaction volume falls under the agency principle. Its not the Co's revenue.
That's not what a klarna transaction is.
Klarna pays the vendor immediately (with its credit line), and the user enters into a sort of debt contract with klarna.
Klarna's revenue is what it receives from the user.
It's a great business model when the interest rate is 0%.