Fintech company Revolut made its first full-year profit in 2021 and registered a 33% revenue jump last year, its finance chief said today.
Revenues at the company increased to more than £850m in 2022 on the back of payments, subscriptions and business accounts, said chief financial officer Mikko Salovaara, despite a downturn in crypto, which is a key part of the group's business.
"We have built a strong momentum," the 31-year-old executive said in an interview at Revolut's headquarters in London.
The company has just signed off on the 2021 annual accounts after months of delays as it replaced its internal accounting systems after the Financial Reporting Council (FRC), a UK body responsible for regulating auditors, found Revolut's audit "inadequate."
"Our accounting systems needed replacement," Salovaara said. "We were held to the highest possible accounting standards."
Revolut will retain accounting firm BDO for the 2022 audit, it said.
Revenues from its crypto business shrank in 2022 as the crypto-downturn hit the firm. The crypto business accounted for about 5-10% of the total income last year, Salovaara said.
The company swung to a profit of £26m in 2021 helped by boom in cryptocurrencies trading, its accounts show.
Chief executive officer Nikolay Storonsky has previously said the firm was profitable in 2021. In 2020, it made a loss of £223m, according to Revolut's accounts.
Salovaara declined to say whether the company will be profitable in 2022.
"We have achieved our first full year of profit and shown that we can accelerate customer growth, at scale, and grow revenue across all of our product lines," the CEO said.
"In 2021 we were granted a full banking licence from the European Central Bank and welcomed millions of new customers. We also launched several new products and saw more activity from our customer base," he added.
The fintech company expects to publish its 2022 accounts by June, but it might take longer.
During the year the fintech launched its Pay Later service in Ireland and Poland.
It follows the decision of the company to set up an Irish branch of its European business, Revolut Bank UAB, and begin migrating customers here to it.
The move should enable Irish-based users to send and receive money more easily, because until now they have had a Lithuanian IBAN for their accounts.
Revolut was valued at around $33 billion in the last funding round in 2021, making it then Britain's most valuable start-up. Since its 2015 debut, it has raised about $1.7 billion from SoftBank and others.
Salovaara, who joined Revolut in 2021 from investment firm 3G Capital, said that the company does not plan to fundraise soon.
"We are self-sustained," he said. The firm will "eventually be a public listed business, but it's not a priority."
Publication of the accounts might pave the way for a UK banking license which Revolut applied for two years ago.
"We are at the very final stage of the process," the CFO said adding that the relationships with the UK regulators have been "reasonable".
Revolut is likely to opt for an "authorisation with restriction", a person close to the matter told Reuters in January. This imposes certain limits on the business.
Revolut's total staff costs increased by 9% in 2021, the filings show. The number of employees doubled in 2022 to more than 6,000, the company said.
It aims to expand internationally, including in India where it acquired a foreign-exchange firm Arvog Forex, as well as in Brasil and Mexico. It will launch in New Zealand in the coming weeks.
