Financial technology giant Revolut reported its first-ever annual profit in 2021 as subscriptions to paid packages and overall usage of its apps soared, according to financial accounts released Wednesday.
The company’s annual turnover was £636.2m ($767.1m), triple the previous year’s level, and its profit before tax was £59.1m. In 2020, Revolut posted his £205m pre-tax loss.
Mikko Salovaara, Revolut’s chief financial officer, told CNBC that the result is a result of Revolut’s diversified business and careful cost control.
“The worst possible scenario is if Revolut becomes unsustainable or needs external funding,” said Salovaara. “The reality is that we don’t need any outside funding. We continue to invest in our business to provide products that people can trust.”
In 2022, Revolut provided an update on the deal, which it expects to see revenue increase by more than 30% to £850m. As a privately held company, we don’t need to share quarterly reports frequently.
Revolut’s announcement is rare positive news in a fintech market that has been plagued by mass layoffs and drastic valuation cuts as investors revalue the space amid worsening macroeconomic conditions.
Klarna, a Swedish buy-now-pay-late fintech, saw its valuation plummet 85% last year to $6.7 billion. On Tuesday, the company posted its record $1 billion loss in its 2022 fiscal year.
Asked about Revolut’s valuation on Wednesday, Salovaara said he couldn’t say anything about the company’s value because it hasn’t raised money since 2021, but said, “Investors don’t continue to be happy with our performance. I can’t believe it,” he said. .”
However, Revolut was late to open an account with the UK companies house, Companies House, in time to meet the December 31st deadline. They were finally approved by Revolut’s auditor, BDO, last month.
Revolute Reportedly faced with concerns UK regulator over robustness of internal financial controls. unacceptably high,” he said.
With no physical branches, the company offers digital banking, money transfers, cryptocurrency and stock trading in one app.it conflicts with something like wiseMonzou, Starling.
Founded in 2015 by former Lehman Brothers trader Nikolai Stronsky and software developer Vlad Yatsenko, Revolut has grown rapidly to become one of Europe’s largest fintech unicorns with a $33 billion valuation. I was.
Revolut is aggressively expanding into international markets, especially the US, where it currently has over 500,000 clients. The company has also started operations in Brazil, Mexico and India. In November, Revolut announced he had 25 million users worldwide.
But closer to home, the company’s growth plans have suffered some setbacks. For the past two years, Revolut has been working towards a UK banking license to generate more income from its lending activities.
The process has been protracted and the wait is believed to be related to Revolut’s delay in announcing the results. Revolut has also faced criticism for its positive work culture, reportedly because of it. Resignation of Key Regulatory and Compliance Executives.
Revolut hopes to obtain a UK banking license “soon”, Salovaara said. Asked when the company would finally get a license, he suggested it would likely happen before the end of the year.