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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 w
by lumost 4y ago
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.
- junofan 4y agoDunno about Sweden but lots of compensation stuff triggers financial reporting requirements for obvious reasons.
- Montaque 4y agoNo. GAAP and IFRS have very strict definitions of Revenue. Transaction volume falls under the agency principle. Its not the Co's revenue.
- yobbo 4y agoThat'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%.