The Revolut app exceeds 100 million pounds of adjusted EBITDA and 26.3 million pounds of profit in its first full year of profitability. In addition, its revenues nearly tripled: from £220 million in 2020 to £636 million in 2021. See all the details.
Revolut app revenues increase: the Annual Report
The latest news about the Revolut app reveals that its gross margin has improved from 33% in 2020 to 70% for 2021. Not only that, revenues increased by more than 30% to over 850 million pounds in 2022.
Specifically, Revolut today released its Annual Report for the year ending 31 December 2021. Growth in active retail customers and increased revenues across all major product lines led to solid results for the global financial super app in its first full year of profit.
Revenues tripled to £636 million in 2021 from products such as Payments, Revolut Business, and Foreign Exchange and Wealth, demonstrating the company’s diversified model.
A contributing factor was Revolut’s achievement of an adjusted EBITDA of £100.3 million and the achievement of £26.3 million in net income (£59.1 million operating profit) for the full year 2021.
Due to a higher share of revenue from higher-margin products and tight cost control, Revolut’s gross margin increased by 33% in 2020 to 70 % for 2021.
Meanwhile, operating expenses increased by only 37%, demonstrating strong operating leverage.
Revolut’s strong financial performance in 2021 was also partly due to a more than 50% increase in weekly active retail customers. Combined with an increase in average spending per user, which grew by 10%, it indicates a deeper integration of Revolut into customers’ financial lives.
Statements regarding the current condition of the Revolut app
The company also reported a 75% increase in the number of customers with paid plans, indicating customers’ desire to access more of Revolut’s features, thus contributing significantly to revenue growth.
Customer deposit balances also grew significantly year-on-year, totaling 7.4 billion pounds as of December 2021 (2020: 4.6 billion pounds); a 58% increase.
Nik Storonsky, Chief Executive Officer, commented on this:
“We achieved our first full year of profit and demonstrated that we can accelerate customer base growth, at scale, and increase revenue across all of our product lines. In 2021 we were granted a full banking license by the European Central Bank and welcomed millions of new customers. We have also launched several new products and witnessed increased activity from our customer base.”
Martin Gilbert, Chairman of Revolut, adds:
“2021 marked a significant milestone for the company as it was the first year we became profitable. This strong financial performance shows that Revolut has efficiently moved from a ‘start-up’ business focused only on growth, to a ‘scale-up’ business looking to grow profitably.”
As for 2022, Chief Financial Officer, Mikko Salovaara states:
“We are pleased with the performance we have seen since the end of 2021. Revenue has grown substantially over fiscal 2021, with particularly strong growth in payments, as we have welcomed millions of new customers and more people have chosen to return to travel. Total revenues in 2022 increased by more than 30% to over £850m and our strong overall financial performance last year is a testament to our diversified business model.”
All the steps forward for Revolut: employees, customers, and services
During 2022, Revolut continued to focus on growth and intensified marketing and sales efforts for the Retail and Business ecosystems. Hence, their investment saw a real return, with an acceleration of customer growth in 2022, as it recorded more than 9 million new customers during last year, an increase of 54%.
Today, Revolut has more than 27 million retail customers, more than double the number of customers in early 2021, as well as surpassing 6 million customers in the United Kingdom.
Revolut’s number of employees doubled in 2022 to more than 6,000, showing the company’s resilience and growth amid the broader labor market downturn.
It received over 300,000 applications in 2022, amounting to dozens for every single open position, with Revolut’s launch of its internship and graduate program, “Rev-celerator,” receiving over 3,000 applications so far.
Following the granting of a full European banking license in 2021 (by the European Central Bank and supervised by the Bank of Lithuania), Revolut implemented banking services in 12 more new countries in 2022, bringing the total number of European countries served by Revolut Bank to 30.
Looking ahead to 2023, Revolut plans to launch several key new products, and the app will be launched in new markets including New Zealand, Brazil, Mexico, and India.