Klarna sinks after Q1 guidance for revenue and gross merchandise value comes in short of estimates

Buy now, pay later, issue guidance that Wall Street likes even later.

Shares of Klarna are tumbling in early trading after the fintech payments company’s Q1 outlook came in below analysts’ projections.

Management sees Q1 revenues between $900 million and $980 million, the midpoint of which is below Wall Street’s call for $965.1 million. The company’s range for gross merchandise value in the current quarter of $32 billion to $33 billion is fully below the consensus estimate for $33.37 billion.

(Gross merchandise value is the dollar figure associated with all purchases made via Klarna’s different modes of payment.)

This disappointing outlook outweighed a solid set of Q4 top-line results. Revenues of $1.08 billion came in $10 million above expectations, gross merchandise volume beat estimates at $38.7 billion (consensus: $38.06 billion), and active consumers of 118 million were nearly a full million above what Wall Street had penciled in.

The stock is poised to open at an all-time low.