Revolut achieved its first full-year profit in 2021, amounting to £26m, with revenues generated from payments, subscriptions and business accounts.
Although the crypto downturn impacted Revolut’s crypto business, which accounts for approximately 5-10% of the total income, it remained resilient. The company’s internal accounting systems were also replaced after the Financial Reporting Council found its audit “inadequate.”
Revolut, valued at approximately $33bn (€37bn), is self-sustaining and does not intend to fundraise anytime soon. The company aims to secure a UK banking license it applied for two years ago, and the publication of its 2021 annual accounts may pave the way for it.
Revolut’s total staff costs increased by 9% in 2021, while the number of employees doubled to over 6,000.
The company is set to expand internationally, including its launch in New Zealand in the coming weeks, and plans to enter markets in India, Brazil and Mexico. Revolut’s 2022 accounts are expected to be published by June.
“We have built a strong momentum,” says Mikko Salovaara. “We were held to the highest possible accounting standards. We are at the very final stage of the [UK banking license] process. Eventually, we will be a public listed business, but it’s not a priority.”
Revolut will retain BDO as its accounting firm for its 2022 audit.
In an interview at Revolut’s headquarters in London, Salovaara stated that Revolut does not disclose whether the company will be profitable in 2022.
Revolut aims to be the world’s first truly global financial super-app, and it has made significant progress in this regard, with its services already available in over 35 countries. Revolut also plans to expand its presence in the United States, where it already has more than one million customers.
Revolut has been rapidly growing since its launch in 2015, having raised about $1.7bn from investors such as SoftBank and others.
However, the company’s growth has not come without challenges. In 2020, Revolut made a loss of £223m, according to the company’s accounts. The company’s audit, which was found “inadequate” by the Financial Reporting Council, led to the replacement of Revolut’s internal accounting systems.
Revolut’s CFO is optimistic about the company’s future, saying that the firm is self-sustained and eventually will be a public listed business, but it’s not a priority.
With its impressive revenue growth and profitability, Revolut is well-positioned to continue its expansion in the global financial market.