Digital bank Revolut has shared some important financial updates.
Revolut reveals that its revenue has reportedly “increased to $1.1bn (£923m) in 2022, up 45% from $786m (£638m) in 2021.” Revolut added almost 10m customers last year “with a 71% increase in deposits and 55% increase in customers on paid plans.”
The business further claims that it “reinvested $265m (£215m) of gross profits for future growth, doubling its headcount and increasing spend on new product launches and global expansion.”
Revolut says that it now “expects to hit $2bn (£1.7bn) in revenue and a double digit net profit margin for 2023.”
As noted in the announcement, Revolut released its Annual Report for the year ending 31 December 2022.
Nik Storonsky, Chief Executive Officer, commented:
“2022 was another great year for Revolut, one where we broke away from the pack of our competitors. We strengthened our financial position, grew our customer base, launched multiple new products, expanded into new markets, and bolstered our risk, compliance and governance infrastructure.”
Martin Gilbert, Chairman, remarked:
“In spite of the challenging macroeconomic and geopolitical landscape, 2022 was an excellent year for Revolut. We made significant investments in our products, technology, risk, compliance and governance, while exercising strict cost discipline.”
Highlights for the twelve months ending 31 December 2022
- Accelerated growth through revenue diversification
- Revolut continued to prove the strength of its diversified revenue model with further growth in its Payments, Subscriptions, and Foreign Exchange products as well as increased interest income.
- Group revenue grew to over $1.1bn (£923m) in 2022, up 45% from $786m (£638m) in 2021, despite the market-wide drop in retail investing activity in crypto and equity markets in 2022, which Revolut’s Wealth unit had benefited from in 2021;
Revolut added a “record” number of customers last year, welcoming almost 10m new users.
2022’s financial results demonstrated Revolut’s commitment to “building a sustainable business that balances fast growth and profitability.”
Throughout the year Revolut continued “to build momentum with quarterly revenue increasing more than 20% QoQ and reaching a 80% gross profit margin level in Q4. This boost in revenue put Revolut in “a position of sustainable profitability, with the company recording $28m (£23m) Adjusted EBITDA for 2022 as well as $7m (£6m) in Net Profit; 2023 and Outlook.”
So far in 2023, Revolut Retail launched products “including Joint Accounts, Tap To Pay, Experiences, Car Insurance and others.”
Revolut now has “over 35m customers, over 8,000 employees and is the most downloaded app in the Finance category in nine countries, and in the top three in 15 countries, in Europe.”
Revolut’s auditor BDO, confirmed the “matter [relating to the FY21 accounts qualification] has been resolved, and therefore they have been able to obtain sufficient appropriate audit evidence in respect of the relevant balances included in the financial statements as at and for the year ended 31 December 2022.”
Their opinion is only “modified because of the possible effect of this matter on the comparability of the current year’s figures for revenue and related balances and the prior year figures.”
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