Klarna Group Plc (NYSE:KLAR) shares are trading lower Thursday after the company reported mixed fourth-quarter financial results.

• Klarna stock is testing lower boundaries. What’s pressuring KLAR?

EPS Miss As GMV, U.S. Growth And Banking Users Surge

Klarna posted a loss of 12 cents per share, missing the consensus estimate of a 3 cent-loss. In addition, the company reported revenue of $1.08 billion, beating the consensus estimate of $1.07 billion.

Gross merchandise volume totaled $38.7 billion, up 32% year-over-year and above the top end of guidance.

The U.S. was the company's fastest-growing market, with revenue rising 58% year-over-year, and Klarna now serves 29 million consumers in the country.

Active consumers increased 28% year-over-year to 118 million, while merchants rose 42% to 966,000, including a record 115,000 added in the quarter.

Banking consumers grew 101% year-over-year to 15.8 million and generated $107 in revenue per user compared to $30 for the average consumer. Active Klarna Card users reached 4.2 million, up 1.9 million quarter-over-quarter. Fair Financing GMV increased 165% year-over-year.

Provisions for credit losses declined to 0.65% of GMV in the fourth quarter from 0.72% in the third quarter.

Stock Down Nearly 59% Year-Over-Year As Bearish Trend Persists

Over the past year, Klarna has seen a significant downturn, with its stock price decreasing by 58.64%. Currently, the stock is trading at $15.76, which is 29.3% below its 20-day simple moving average (SMA) of $22.55 and 49.6% below its 100-day SMA of $31.62. This positioning indicates a bearish trend, further supported by the stock’s proximity to its 52-week low of $17.74, reached recently on February 12.

The technical indicators for Klarna are also signaling caution. The Relative Strength Index (RSI) is at 28.28, indicating that the stock is in the oversold territory, which could suggest a potential rebound or further decline if investor sentiment remains negative. Additionally, the Moving Average Convergence Divergence (MACD) shows a bearish pattern, with the MACD line at -2.6999 below the signal line at -2.5299, and a histogram value of -17 cents.

Klarna Shares Fall Lower

KLAR Price Action: At the time of writing, Klarna shares are trading 17.52% lower at $15.63, according to data from Benzinga Pro.

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