Revolut has released its Annual Report for the year ending 31 December 2023.
Nik Storonsky, CEO of Revolut, said:
“This year, we took our biggest steps yet on our mission to deliver the best product and the best customer experience at great value to customers, everywhere. Our customer base is expanding at impressive rates, and our diversified business model continues to fuel exceptional financial performance, delivering revenues of over $2.2bn in 2023 and a record profit before tax of $545m. With a net profit of $428m, 2023 was our third profitable year in a row.”
As noted in the update:
“Every day, our products create value for new customer segments and new global markets. We remain committed to our ongoing UK banking licence application in addition to bringing the Revolut app to new markets and customers around the world. Even as we reached 45 million global retail customers six months into 2024, Revolut remains poised for exponential growth in 2024 and beyond, continuing to redefine the financial services landscape as we’ve known it.”
Revolut delivered record profits and revenue growth, “while navigating an increasingly complex geopolitical, macro-economic, and regulatory environment.”
Group revenue increased by 95% “from $1.1bn (£0.92bn) in 2022 to $2.2bn (£1.80bn).”
Revolut has now been net profitable for three years in a row:
- Profit before tax was $545m (£438m), and net profit grew to $428m (£344m), up from $7m (£6m) in 2022
- Net profit margin for the year was 19%, reflecting the inherent efficiency and scalability of Revolut’s business model, improved partner unit costs, and continued growth of high-margin revenue streams.
- Accelerated growth driven by diversified revenue model, expansion into new markets and deepening customer engagement
Revolut’s revenue diversification continued “to drive sustainable growth with no single product stream or country accounting for more than 30% of total revenue in 2023.”
Over the year, Revolut added almost 12m new customers globally, “the highest YoY increase in the company’s history, bringing the total to 38m in 2023.
70% of new retail customers joined organically or were referred by someone they know.”
Word of mouth growth “complemented by further investment into marketing and sales functions, including for Revolut Business which was onboarding 20,000 SMEs (small and medium enterprises) each month by the end of the year.”
This growth was consistent “across all revenue streams of Revolut’s diversified business model,” with more customers engaging in more its products:
- Cards & Interchange: $605m (£486m), up 59% from $379m (£306m);
- FX & Wealth: $491m (£395m), up 46% from $334m (£270m);
- Subscriptions: $303m (£244m), up 53% from $196m (£159m);
- Total customer balances increased from $16.4bn (£13.2bn) to $22.7bn (£18.2bn).
Due to expanded treasury capabilities, higher customer deposits, alongside the tailwind of “increases in central bank rates, and acceleration in the credit portfolio, interest income grew to $621m (£500m) in 2023 compared to $102m (£83m) in 2022.”
Customer usage accelerated with transaction volume “increasing by 58%, reaching close to $870bn (£700bn). Monthly transactions as of Dec 2023 totalled 590m, up 73%.”
An increasing number of customers have “adopted Revolut’s services through paid subscriptions, with 41% growth in customers opting for a paid plan.”
As of June 2024, Revolut is the “most downloaded app in the Finance category in Europe, ranking first in 17 countries.”
The company expanded into new markets, “including Brazil and New Zealand, bringing its global footprint to 38 countries.”
With a focus on core banking services in Europe, Revolut doubled down “on reinvestment to support future growth, including product development and expansion into new markets.”
Revolut also developed new local features across key European markets:
- IBAN: The company expanded local IBAN offerings for retail customers in France, Ireland, Spain and Netherlands.
- Credit: Personal loans were launched in France, Germany, Spain as well as credit cards in Ireland and Spain.
- Savings & Funds: Money Market Funds was launched across 22 countries in the EEA with balances reaching nearly $1.9bn (£1.5bn) since launch.
