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A comment on The layoffs at Klarna. Parent comment

Re:The layoffs at Klarna by lumost on Sunday August 14, 2022 @04:56PM (#32462865)
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.

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Re:The layoffs at Klarna by Montaque on Monday August 15, 2022 @12:54AM (#32466034)
No. GAAP and IFRS have very strict definitions of Revenue. Transaction volume falls under the agency principle. Its not the Co's revenue.
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Re:The layoffs at Klarna by yobbo on Monday August 15, 2022 @02:55AM (#32466629)
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%.

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Re:The layoffs at Klarna by peyton on Sunday August 14, 2022 @07:56PM (#32464332)
Dunno about Sweden but lots of compensation stuff triggers financial reporting requirements for obvious reasons.
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