Revolut earned $71 million in 2021, marking its first annual profit in history?
After four shortfalls to deliver 2021 accounts, Revolut has finally presented its overdue and long-awaited earnings report. However, the expectation has paid off, as the company reported an operating profit for the first time in its history, which reached a level of 59.1 million pounds ($71 million).
Revolut finally publishes its 2022 report and shows solid earnings
According to the 2021 Annual Economic Report published on Wednesday, fintech the giant reported revenue of £636.2m, beating its previous 2020 results by three times that. Net profit after tax was £26.3m.
Along with the 2021 report, the company also published a trading update for the previous year which forecast revenue growth of more than 30% to £850m. In comparison, in 2020 the company reported a pre-tax loss of £205 million.
“Our revenue nearly tripled, from £220m in 2020 to over £636m in 2021, and our gross margin improved from 33% in 2020 to almost 70% in 2021. This strong revenue growth came from all business areas, including Payments, Revolut Business and Wealth & Trading, which proves our diversified model, and was an important factor in our becoming profitable,” commented Nikolay Storonsky, CEO and co-founder of Revolut, in the financial report.
The company credits the improved performance to an increasing number of subscriptions to its paid packages and a significant jump in the number of active users of the mobile app. In 2021, the number of users using paid options increased by 75% and the number of active weekly users by 50%.
Neobank is increasing its share of the US market, which now has more than 500,000 users, and is opening to India, Mexico and Brazil. In November last year, the company announced that its customer base exceeded 25 million.
Fifth time’s a charm?
Revolut had promised to publish its 2021 report by December 31, 2022. However, a few days before this deadline, the company backtracked and announced that the report would not be available until 2023. The fintech giant thus postponed the publication of its report four times. Granted, as a private rather than a publicly traded company, there are no obligations to publish regular reports. However, such long delays have raised many questions from customers and existing investors.
Mikko Salovaara, responsible for the company’s finances, noted in the report that Revolut is currently in compliance with International Financial Reporting Standards (IFRS). At the same time, the company wants to share its results with the market more quickly and at more regular intervals.
“Finally, for the first time, the group has produced financial information in accordance with International Financial Reporting Standards (IFRS). This is in line with the ambitions of the group, which allows for more transparency and the opportunity to compare the group’s results with its peers,” Mikko Salovaara, CFO in Revolut, added.
Revolut’s Delayed Crypto Push
In January 2023, Financial news reported that the London-headquartered challenger bank delayed the launch of its initial cryptocurrency called RevCoin. According to sources familiar with the matter, the collapse of the FTX cryptocurrency exchange is believed to be the primary reason for the delay.
Revolut had originally planned to launch its cryptocurrency late last year, but the neobank has since changed its plans. The extended period of low cryptocurrency prices often referred to as the “crypto winter”, combined with the turmoil caused by the failure of prominent digital asset exchanges, made it an inauspicious time for Revolut to introduce new cryptocurrency offerings.
Revolut’s latest report makes no mention of RevCoin. It only emphasizes that the company has increased the number available cryptocurrencies from 10 to 60 in 2021.
A month ago, the global fintech reported the launch of a cryptocurrency betting service for customers in the European Economic Area (EEA) and the UK. At this point, the product has only been made available to a select group of users, but the full launch was expected to take place in the coming weeks. Customers can generate additional income by staking popular cryptocurrencies, but the feature will still be evaluated in a “soft test” phase.
After four shortfalls to deliver 2021 accounts, Revolut has finally presented its overdue and long-awaited earnings report. However, the expectation has paid off, as the company reported an operating profit for the first time in its history, which reached a level of 59.1 million pounds ($71 million).
Revolut finally publishes its 2022 report and shows solid earnings
According to the 2021 Annual Economic Report published on Wednesday, fintech the giant reported revenue of £636.2m, beating its previous 2020 results by three times that. Net profit after tax was £26.3 million.
Along with the 2021 report, the company also published a trading update for the previous year which forecast revenue growth of more than 30% to £850m. In comparison, in 2020 the company reported a pre-tax loss of £205 million.
“Our revenue nearly tripled, from £220m in 2020 to over £636m in 2021, and our gross margin improved from 33% in 2020 to almost 70% in 2021. This strong revenue growth came from all business areas, including Payments, Revolut Business and Wealth & Trading, which proves our diversified model, and was an important factor in our becoming profitable,” commented Nikolay Storonsky, CEO and co-founder of Revolut, in the financial report.
The company credits the improved performance to an increasing number of subscriptions to its paid packages and a significant jump in the number of active users of the mobile app. In 2021, the number of users using paid options increased by 75% and the number of active weekly users by 50%.
Neobank is increasing its share of the US market, which now has more than 500,000 users, and is opening to India, Mexico and Brazil. In November last year, the company announced that its customer base exceeded 25 million.
Fifth time’s a charm?
Revolut had promised to publish its 2021 report by December 31, 2022. However, a few days before this deadline, the company backtracked and announced that the report would not be available until 2023. The fintech giant thus postponed the publication of its report four times. Granted, as a private rather than a publicly traded company, there are no obligations to publish regular reports. However, such long delays have raised many questions from customers and existing investors.
Mikko Salovaara, responsible for the company’s finances, noted in the report that Revolut is currently in compliance with International Financial Reporting Standards (IFRS). At the same time, the company wants to share its results with the market more quickly and at more regular intervals.
“Finally, for the first time, the group has produced financial information in accordance with International Financial Reporting Standards (IFRS). This is in line with the ambitions of the group, which opens up more transparency and the opportunity to compare the group’s results with its peers.” Mikko Salovaara, CFO of Revolut, added.
Revolut’s Delayed Crypto Push
In January 2023, Financial news reported that the London-headquartered challenger bank delayed the launch of its initial cryptocurrency called RevCoin. According to sources familiar with the matter, the collapse of the FTX cryptocurrency exchange is believed to be the primary reason for the delay.
Revolut had originally planned to launch its cryptocurrency late last year, but the neobank has since changed its plans. The extended period of low cryptocurrency prices often referred to as the “crypto winter”, combined with the turmoil caused by the failure of prominent digital asset exchanges, made it an inauspicious time for Revolut to introduce new cryptocurrency offerings.
Revolut’s latest report makes no mention of RevCoin. It only emphasizes that the company has increased the number available cryptocurrencies from 10 to 60 in 2021.
A month ago, the global fintech reported the launch of a cryptocurrency betting service for customers in the European Economic Area (EEA) and the UK. At this point, the product has only been made available to a select group of users, but the full launch was expected to take place in the coming weeks. Customers can generate additional income by staking popular cryptocurrencies, but the feature will still be evaluated in a “soft test” phase.
