Revolut’s Revenue Exceeded One Billion Euros in 2022, but Profit Significantly Decreased

After becoming profitable for the first time since its founding in 2015 in 2021, the British fintech company Revolut reported today a revenue increase in 2022 to over one billion euros, but also a significantly lower net profit than in 2021.

Specifically, the revenue of this London-based company increased to 1.08 billion euros, a 45 percent rise compared to 748 million euros in 2021, while net profit slid from nearly 30 million euros in 2021 to just seven million euros.

The company did not comment on the decline in net profit in its statement, but emphasized that the revenue increase has brought Revolut ‘into a position of sustainable profitability, with the company recording a 27 million euros adjusted EBITDA margin.’ This is also a decline compared to the first profitable year of 2021, in which Revolut generated as much as 115 million euros in adjusted EBITDA.

However, the company increased its gross profit during 2022 – from 507 million euros in 2021 to 740 million euros in 2022. The amount of 252 million euros will be reinvested in future global growth.

Unlike in 2021 when Revolut primarily profited from the boom of the cryptocurrency market, which was traded through the Revolut app, during 2022 there was a bear market in cryptocurrencies and a significant decline in investment activities among small investors in crypto. On the other hand, interest rates rose in the US and Europe, thus Revolut achieved record revenues from interest on assets and deposits. Revenues from cards and currency conversions as well as subscriptions also grew last year.

They Do Not Plan to Slow Down

Nik Storonsky, CEO of Revolut, stated that they are working on submitting an application for a banking license in the United Kingdom, which is ongoing, and that they are introducing the Revolut app to new markets. He rated the past year as ‘brilliant’ for Revolut.

– We have strengthened our financial position, increased our user base, introduced more new products, expanded into new markets, and enhanced our risk, compliance, and management infrastructure. We recently surpassed 35 million users globally, who together conduct more than half a billion transactions monthly, as well as launched Revolut 10, a redesign and overhaul of the app. These are significant achievements, but we do not plan to slow down. Our goal is to be ten times better, exceed 350 million users, and much more than that – added Storonsky.

Last year, Revolut also doubled its workforce worldwide, from three thousand to as many as six thousand, and according to their expectations, in 2023 Revolut could reach revenues of 1.9 billion euros and a double-digit net profit margin.

Revolut’s Chairman Martin Gilbert added that despite the challenging macroeconomic and geopolitical situation, 2022 was an excellent year for Revolut.

– We invested significant resources in our products, technology, risk, compliance, and management, while maintaining strict expense discipline. This strategy paid off as users utilized our products more than ever before, with a 71 percent increase in deposits and a 55 percent increase in the number of users – emphasized Gilbert.

In Croatia, Revolut currently has 350 thousand users, making it one of the top 20 markets.