British Fintech company Revolut has published its annual financial report for the year ending 31 December 2023, in which it recorded significant profit and revenue growth, amid the increasingly macro-economic environment.
The Fintech revenue surged by 95% over the year, posting a better-than-expected profit before tax of 545 million, with a net profit of $428 million, achieving a net profit margin of 19%.
Revolut has maintained net profitability for three years, with the growth driven by a diversified revenue model and an expansion into new markets enhancing customer engagement.
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The CEO Nik Storonsky, disclosed that the firm’s financial performance was fuelled by its diversified business model and expanding customer base.
In his words,
“This year we took our biggest steps yet on our mission to deliver the best product and the best customer experience at great value to customers, everywhere. Our customer base is expanding at impressive rates and our diversified business model continues to fuel exceptional financial performance, delivering revenues of over $2.2bn in 2023.
“Every day, our products create value for new customer segments and new global markets. We remain committed to our ongoing UK banking license application in addition to bringing the Revolut app to new markets and customers around the world. Even as we reached 45 million global retail customers six months into 2024, Revolut remains poised for exponential growth in 2024 and beyond, continuing to define the financial services landscape and we have known it”.
The company claims that no single product stream or country accounted for more than 30% of the total revenue in 2023.
Key revenue streams include:
- Cards & Interchange: $605 million (£ 486 million), up 59% from $379 million (£306 Million).
- FX & Wealth: $491 million (£396 million), up 46% from 334 million (£270 million).
- Subscriptions: $303 million (£244 million), up 53% from $196 million (£159 million).
Customer Growth And Engagement
Revolut added nearly 12 million new customers globally in 2023, the highest year-on-year increase in the company’s history, bringing the total to 38 million. Approximately, 70% of these customers joined organically. The company has also made substantial investments in marketing and sales functions, particularly for Revolut Business, which onboarded 20,000 SMEs each month by the end of the year.
Monthly transaction volumes increased by 58%, reaching close to $870 billion (€700 billion), with 590 million transactions recorded in December 2023 alone, up 73%. The number of customers opting for paid subscriptions grew by 41%.
Market Expansion And Product Development
Revolt expanded its global footprint to 38 countries, including new markets in Brazil and New Zealand. The Fintech company also continued to develop local features across key European markets, which include;
- Credit Products: Launched personal loans in France, Germany, and Spain, as well as credit cards in Ireland and Spain.
- IBAN Services: Expanded local IBAN offerings in France, Ireland, Spain, and the Netherlands.
- Savings & Funds: Introduced Money Market funds across 22 countries in the EEA, with balances reaching nearly $1.9 billion (£1.5 billion).
Looking ahead, Revolut aims to surpass 50 million customers by the end of FY24. The company has launched several new products in the first six months of 2024, which has continued to generate significant revenue. Notably, the Financial Times reports that the company is targeting exceeding $40 billion in a share that would cement its status as Europe’s most valuable startup.