Revolut, a UK-based digital bank, has reported its first full-year profit. Revolut has published its Annual Report, which tracks operations for the year ending December 2021.
According to the report, Revolut generated £636 million in revenue during 2021, delivering £26.3 million to the bottom line. The Fintech notes that revenue tripled during 2021 from 2020, when it was reported at £220 million.
Gross Margin improved from 33% in 2020 to 70% in 2021.
Looking forward, Revolut states that in 2022 revenue rose by more than 30% to £850 million or over USD $ 1 billion.
Customer deposit balances totaled £7.4 billion as of December 2021 versus £4.6 billion the year prior.
Revolut CEO and co-founder Nik Storonsky issued the following statement on the report:
“We have achieved our first full year of profit and shown that we can accelerate customer growth, at scale, and grow revenue across all of our product lines. In 2021 we were granted a full banking license from the European Central Bank (ECB) and welcomed millions of new customers. We also launched several new products and saw more activity from our customer base.”
Chairman of the Board Martin Gilbert added:
“2021 marked a significant milestone for the company, as it was the first year in which we became profitable. This strong financial performance shows Revolut has efficiently moved from the ‘start-up’ business that is only focused on growth, to the ‘scale-up’ looking to grow profitably.”
Revolut Chief Financial Officer Mikko Salovaara commented on operations during 2022, sharing that they are pleased with the company’s performance during the year – due to their “diversified business model.”
Salovaara added that Revolut added more than 9 million customers during 2022 – a 54% increase versus the previous year. In total, Revolut reports 27 million retail customers including over 6 million customers in the UK.
The company said that the full banking license, received in 2021 – issued by the ECB, allowed it to roll out banking services in 12 new countries with the bank now offering bank services to 30 different European countries. Revolut expects to expand into new markets, including Mexico, India, Brazil, and New Zealand. In February 2022, Revolut was granted an Australian Credit License by the Australian Securities and Investments Commission (ASIC) to offer credit and personal lending products to the Australian Market.
Revolut holds authorizations to provide crypto services from the UK FCA and the Cyprus Securities – which incorporates EEA countries.
Revolut states that it is in the advanced stages of its application to the PRA for a UK banking license. Revolut currently offers services to UK customers under its e-money license.
In September 2021, Revolut’s US broker-dealer license application was approved, with a stock trading platform launching in January 2022.
Revolut raised $800 million in Series E funding in the summer of 2021, valuing the business at $33 billion.
Revolut is a Fintech built on the premise that users do not want multiple financial services to manage and review. They prefer a single location where their entire financial existence can be handled – a financial Super App – that is also ubiquitous.
Gilbert stated in the report that it is “difficult to think of a company as well-positioned for success as we are.”