After 20 years at the helm, Klarna’s CEO Sebastian Siemiatkowski is about to face his biggest test yet
Sebastian Siemiatkowski, CEO of Klarna, speaking at a fintech event in London on Monday, April 4, 2022.
Chris Ratcliffe | Bloomberg via Getty Images
LONDON — After 20 years in the role as Klarna’s CEO, Sebastian Siemiatkowski is about to face his toughest test yet as the financial technology firm prepares for its blockbuster debut in New York.
Siemiatkowski, 43, co-founded Klarna in 2005 with fellow Swedish entrepreneurs Niklas Adalberth and Victor Jacobsson with the aim of taking on traditional banks and credit card firms with a more user-friendly online payments experience.
Today, Klarna is synonymous with “buy now, pay later” — a method of payment that allows people to buy things and either defer payment until the end of the month or pay off their purchases over a series of equal, interest-free monthly installments.
But while Siemiatkowski has grown Klarna into a fintech powerhouse, his entrepreneurial journey hasn’t been without its challenges — from facing rising competition from rivals such as PayPal, Affirm and Block‘s Afterpay, to an 85% valuation plunge.
Nevertheless, Siemiatkowski hasn’t taken those challenges lying down and the outspoken co-founder isn’t shy to challenge criticisms in the run up to an IPO that could value it at $15 billion.
‘Crazy enough’
In October 2024, CNBC met with Siamiatkowski during a visit the Swedish entrepreneur made to London. For a businessman who’s faced a rollercoaster ride of ups and downs over his two-year CEO tenure, Klarna’s chief has a calm air to him.
“Independently of all the cycles and everything we’ve gone through with the company, at any point in time I ask myself, do I still think that Klarna can become the next Google in size, that we can become a hundreds of billions dollar market company, or a trillion dollars,” Siemiatkowski told CNBC. “I still am crazy enough to think that’s achievable.”
Once a pandemic-era darling valued at $46 billion in a SoftBank-led funding round, Klarna saw its valuation plummet 85% in 2022 to $6.7 billion as rising inflation and interest rates dented investor sentiment on high-growth technology firms.
But the firm has attempted to rebuild that eroded value in the years that have followed.
Klarna makes money predominantly from fees it charges merchants for providing its payment services, in addition to income from interest-bearing financing plans and advertising revenue.
Financials disclosed in its IPO filing show that Klarna reported revenue of $2.8 billion last year, up 24% year-over-year, and a net profit of $21 million — up from a net loss of $244 million in 2023.
Bullish on AI
After the launch of OpenAI’s generative AI ChatGPT in November 2022, Siemiatkowski quickly pivoted Klarna’s focus to embracing the technology, and especially in a way that could slash costs and enhance the firm’s profitability.
However, Siemiatkowski’s strategy and his comments on AI have also attracted controversy.
Klarna imposed a freeze on hiring in 2023 as it looked to tighten costs. The following year, the company said that its AI chatbot was doing the work of 700 full-time customer service jobs.
Klarna’s CEO then said in August that his company was able to reduce its overall workforce to 3,800 from 5,000 thanks in part to its application of AI in areas such as marketing and customer service.
“By simply not hiring … the company is kind of becoming smaller and smaller,” he told Reuters news agency, adding that jobs were disappearing due to attrition rather than layoffs.
Asked by CNBC about his views on AI and the upset they have caused, Siemiatkowski suggested he was “done apologizing,” echoing comments from Mark Zuckerberg about the Meta CEO’s “20-year mistake” of taking responsibility for issues for which he believed his company wasn’t to blame.
Doubling down, Siemiatkowski added that AI “already today can do a lot of the jobs that people do — but I don’t want to be one of the tech leaders that stands on a stage and says, ‘Don’t worry about it, there’s going to be new jobs,’ because I don’t know what those new jobs are.”
“I just want to be transparent and honest with what I think is happening, and I’d rather be open about that, because I know what these people, the tech leaders are saying when they’re not on public stages, and they’re not saying the exact same things,” he told CNBC in October.
An outspoken CEO
Siemiatkowski is no stranger to defending his company in response to criticisms, especially when challenged over Klarna’s business model of offering short-term financing for all kinds of things from clothing to online takeout.
Last week, Klarna announced a tie-up with DoorDash to offer its flexible payment options on the U.S. food delivery app. However, the move was met with backlash from internet users, who said it risks saddling struggling consumers with more debt.
One X user posted a meme showing personal finance pundit Dave Ramsey with the caption, “what do you mean you have $11k in ‘doordash debt’.”
Siemiatkowski took to X to defend the move, saying that Klarna “offers many payment methods” including the ability to pay in full instantly or defer payment until the end of the month in addition to monthly installments.
“DoorDash offers many products beyond food!” Klarna’s boss said on X in response to the criticisms. “I know we are most famous for pay in 4. But you can use a credit card at DoorDash as well.”
In 2022, the outspoken entrepreneur stressed his company was “superior” to credit cards and “extremely recession-proof” after the firm laid off 10% of its workforce.
As Klarna approaches its stock market debut, investors will likely be scrutinizing his track record and whether he’s still the right person to lead the company longer term.
Lena Hackelöer, CEO of Stockholm-based fintech startup Brite Payments, is someone who’s worked under Siemiatkowski’s leadership, having worked for the company for seven years between 2010 and 2017 in various marketing functions.
She expressed admiration for the Klarna co-founder — and pushed back on suggestions that leadership mismanaged the business during the pandemic era.
“I never thought that they had mismanaged, which is somehow how it was reported,” Hackelöer told CNBC in a November interview. “I think that they were just very much focusing on growth — because that was the direction that investors were giving.”
Rollercoaster ride
Siemiatkowski admits the journey of building Klarna hasn’t always been rosy.
Asked about the biggest challenge he’s ever faced as CEO, Siemiatkowski said that, for him, laying off 10% of Klarna’s workforce in 2022 was the toughest thing he’s ever had to do.
“That was very difficult because I didn’t predict that investor sentiment would shift that fast and people would go from valuing companies like ours so high and then to something so low,” he said.
“That’s obviously very difficult because, then you realize like, ‘OK, s—, I’m going to have to make a change. It’s not going to be sustainable to continue, and I need to protect the consumers, who are stakeholders in the company, the employees, the investors — I need to [do] what’s right for all of my constituents,” Siemiatkowski continued.
Klarna is synonymous with the “buy now, pay later” trend of making a purchase and deferring payment until the end of the month or paying over interest-free monthly installments.
Nikolas Kokovlis | Nurphoto | Getty Images
“But unfortunately, it’s going to affect the smaller group, which happened to be about 10% of our employees.”
Like other tech firms, Klarna grew significantly over the Covid-19 pandemic. In 2020, the firm grew its gross merchandise volume or the total value of all sales processed through its platform, by 46% year-over-year, to $53 billion.
I think anyone who is a little bit sane, that’s not something you take light hearted, right? It’s a tough decision. It makes you cry. I’ve cried.
Sebastian Siemiatkowski
CEO, Klarna
The company also onboarded hundreds of new employees to capitalize and expand on the opportunity it saw from government lockdowns’ impact on consumer behavior and the broader acceleration of e-commerce adoption at that time.
“I think anyone who is a little bit sane, that’s not something you take lighthearted, right?” Klarna’s CEO said, referring to the layoffs. “It’s a tough decision. It makes you cry. I’ve cried.”
However, Siemiatkowski stood by his decision to lay off workers: “I felt like I had an obligation to my constituents, everyone, all of these stakeholders, the company, and I think it was a necessary decision at that point in time.”
The road to IPO
Now, Klarna’s CEO faces his biggest test yet — taking the business he co-founded two decades ago public.
“IPOs are risky for companies as share prices can fluctuate quickly,” Nalin Patel, director of EMEA private capital research at PitchBook, told CNBC via email. “They can be costly and lengthy to arrange with investment banks too.”
Klarna earlier this month filed its prospectus to list on the New York Stock Exchange. The company hasn’t yet set a date for when it will go public, nor has it priced shares.
If it succeeds, the outcome could catapult the net worth of Siemiatkowski and other shareholders including Sequoia Capital, Silver Lake, Mubadala Investment Company, and the Canada Pension Plan Investment Board.
Sequoia is Klarna’s single-largest shareholder with a 22% stake. Siemiatkowski is the second-largest, owning 7% of the business.
A positive IPO outcome would also lift the value of Klarna employees’ stakes, and potentially boost morale after a turbulent few years for the company.
“It’s a balance between finding a fair value for existing investors looking to cash out and new investors seeking a stake in Klarna at a fair price. Overvaluing the company could lead to its valuation falling in the future. While undervaluing it may mean money has been left on the table for those exiting,” Patel said.
Max Levchin, co-founder of PayPal and chief executive officer of financial technology company Affirm, arrives at the Sun Valley Resort for the annual Allen & Company Sun Valley Conference, in Sun Valley, Idaho.
Drew Angerer | Getty Images
Affirm shares rose 15% in extended trading on Thursday after the provider of buy now, pay later loans reported better-than-expected earnings and revenue for the fiscal fourth quarter.
Here’s how the company did versus LSEG consensus estimates:
- EPS: 20 cents vs. 11 cents estimated
- Revenue: $876 million vs. $837 million estimated
Revenue climbed 33% in the period from $659 million in the same quarter a year earlier. Gross merchandise volume rose 43% to $10.4 billion from $7.2 billion a year ago.
Affirm reported net income of $69.2 million, or 20 cents a share, after recording a loss a year earlier of $45.1 million, or 14 cents a share.
“This consistent execution led Affirm to achieve operating income profitability in FQ4’25 – right on the schedule we committed to a year ago,” the company said in its shareholder letter.
For the first quarter, Affirm said revenue will be between $855 million and $885 million, while gross merchandise volume will be $10.1 billion to 10.4 billion.
Shares of Affirm were up 31% this year before the after-hours pop, topping the Nasdaq’s 12% gain.
Affirm, which went public in 2021, faces growing competition in e-commerce. It has partnerships with Amazon and Shopify, but Walmart recently shifted to competitor Klarna, which is expected to go public in the near future. Last year, Affirm announced a deal with Apple.
Elon Musk reacts during a press event with U.S. President Donald Trump (not pictured), at the White House in Washington, D.C., U.S., May 30, 2025.
Nathan Howard | Reuters
Elon Musk’s fervent promotion of Tesla‘s self-driving technology isn’t doing much to win over prospective buyers.
According to a new survey, more U.S. consumers say that Tesla’s FSD, or Full Self-Driving (Supervised) systems, would push them away from the brand rather than drawing them to it.
The Electric Vehicle Intelligence Report for August, published by political consulting firm Slingshot Strategies, polled 8,000 Americans. Only 14% of those surveyed said FSD would make them more likely to buy a Tesla, while 35% said the technology would make them less likely to purchase one.
The remaining 51% said the availability of FSD would make no difference to them in terms of their car buying decisions. Nearly half of consumers surveyed by Slingshot said they think FSD technology should be illegal.
For Tesla, the troubling results land in the middle of a sales slump resulting from an aging lineup of electric vehicles and increased competition from rivals. There’s also reputational damage in response to Musk, his incendiary political rhetoric, work with the Trump administration and support of Germany’s far-right AfD party.
Sales of Tesla cars in Europe plunged 40% in July from a year earlier, the seventh consecutive month of declines.
In the robotaxi market, Tesla is lagging Alphabet-owned Waymo, and Baidu’s Apollo Go. It’s now in the early stages of testing a ride-hailing service in Austin, Texas, and in the San Francisco Bay Area, with hopes to reach more cities this year. Cars in Austin have human supervisors on board, while those in San Francisco have drivers at the wheel.
Musk, the world’s richest person, has said the future of Tesla hangs on its ability to deliver autonomous vehicles and related services. He recently said a new variant of the Model Y, which launched in China, won’t “start production in the U.S. until the end of next year,” and “might not ever, given the advent of self-driving in America.”
For now, Tesla still relies on EV sales for the vast majority of its revenue, though Musk has touted FSD as one of the company’s big advantages over competitors.
Last month, executives suggested that Tesla has a market education problem when it comes to driving adoption of FSD.
“The vast majority of people don’t know it exists,” Musk said on the company’s second-quarter earnings call. “And it’s still like half of Tesla owners who could use it, haven’t tried it even once.”
Musk said he would start telling customers about FSD when they bring their cars in for service, and would begin reaching out to drivers, sending them videos of how it works.
Tesla CFO Vaibhav Taneja said on the July earnings call that people who subscribe to the premium FSD option get something like a “personal chauffeur” for about $3.33 a day.
The version of FSD Supervised that Tesla sells today is available to owners for $99 per month or an up-front purchase. The system gives users a limited set of self-driving capabilities on residential and city streets.
On Thursday, Tesla sent out a promotion offering 0% APR financing for customers ordering a new Model 3 by Sept. 1, as long as they add FSD Supervised to their order, or transfer it from their previously owned Tesla.
‘Holding AV manufacturers responsible’
Musk has said in posts on X that FSD can “can operate in all conditions,” will “save lives” and will be a “life-changing product” for many people. He’s also shared user-generated videos showing Tesla owners using FSD without their hands on the wheel.
However, in owners manuals, Tesla lists many conditions in which FSD Supervised may not be reliable, and warns users to keep their hands on the steering wheel at all times, and be ready to take over steering or braking.
Among the subset of survey respondents actively looking to buy a fully electric vehicle, only 20% said they were more likely to buy a Tesla because of FSD, while 33% said they were less likely. Evan Roth Smith, Slingshot’s head of research, said a lack of clarity and honesty in the company’s marketing could be a factor.
Most consumers polled by the firm want clear and strong regulations in the U.S. governing autonomous vehicles, whether they’re fully or partially automated.
“There is strong support for holding AV manufacturers responsible for accidents and requiring stricter regulatory and advertising guardrails around features such as FSD,” the Slingshot report said.
Smith said the data shows that beyond its FSD woes, Tesla has “the worst reputation of any EV maker in the U.S.”
“The drop in the company’s brand reputation this year is remarkable,” he said, adding that recent product liability lawsuits and verdicts may be playing a role.
In early August, a jury found Tesla partially liable for a fatal crash where the driver was relying on its autopilot systems. Tesla, which plans to appeal the decision, must pay around $243 million in damages to victims and a survivor.
In the past two months, the number of consumers who view Tesla cars as unsafe has increased to 36% from 34%, the Slingshot report found, while those viewing Tesla as very safe fell to 13% from 17%.
Honda, Toyota and Chevrolet were seen as safest among the greatest number of respondents.
Tesla didn’t respond to a request for comment. Slingshot said it sent the survey results to the company but also didn’t hear back from the automaker.
Tesla may find that owners in other markets embrace its brand, and FSD, with greater enthusiasm. The company just started offering FSD Supervised in Australia this week.
Read Slingshot’s full Electric Vehicle Intelligence Report for August 2025 here.
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A Dell Technologies sign is seen in Round Rock, Texas, on June 2, 2023.
Brandon Bell | Getty Images
Despite beating on its top and bottom lines, shares of Dell Technologies fell more than 5% Thursday in extended trading after giving third-quarter earnings per share guidance that below Wall Street’s expectations.
Here’s how the systems integrator did versus LSEG consensus estimates:
- EPS: $2.32, adjusted vs. $2.30 estimated
- Revenue: $29.78 billion vs. $29.17 billion estimated
Dell raised its full year outlook for revenue to be $107 billion at its midpoint and diluted earnings per share to $9.55 at the midpoint, topping Wall Street estimates of $104.6 billion and $9.38 per share.
However, Dell’s guidance for third-quarter earnings per share of $2.45 came in short versus LSEG’s mark of $2.55, despite Dell’s guide for $27 billion in third-quarter revenue topping estimates of $26.1 billion.
Dell said that part of the reason its profit forecast is concentrated in the fourth quarter is due to seasonality, particularly in its storage business.
For the second quarter, overall revenue rose 19% on an annual basis. That was driven by the company’s Servers and Networking revenue, including AI servers, which came in at $12.9 billion, which was up 69% on an annual basis.
Dell is one of Nvidia’s key customers. Dell buys chips from the AI leader and builds computers around them, which it sells to end-users such as CoreWeave, a cloud service. Dell said it shipped $10 billion in AI servers in its past two quarters.
Dell said that it now plans to ship $20 billion of artificial intelligence servers in its fiscal 2026, double what it sold last year.
However, the company’s storage revenue declined 3% to $3.86 billion and missed a StreetAccount estimate of $4.1 billion in sales.
Revenue in the company’s client solutions group, which includes PC sales to enterprises, rose 1% on an annual basis to $12.5 billion. While it used to be Dell’s largest business group, in recent quarters it has grown much slowly than the company’s data center business.
Dell said it spent $1.3 billion on share repurchases and dividends during the quarter.
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