Vlad Yatsenko & Nik Storonsky (L/R)/Revolut
Revolut reports a loss with delayed 2022 accounts...just in time for Christmas
CEO Nik Storonsky says he wants to "10x" Revolut's current 35 million customer base
Tis the season to publish your delayed 2022 accounts, that is if you're Europe's most valuable startup Revolut.
The neobanking-challenger-come-financial-super-app has reported revenue increasing to $1.1bn (£923m) in 2022, up 45 per cent from $786m (£638m) in 2021.
Despite the revenue surge, the business saw administrative costs rise more quickly to $848m (£667m) meaning that before tax the company swung to a loss of £25m, a shift away from the profitability of $33.3m (£40m) in 2021.
However, when tax is applied the issue becomes less clear. Revolut had a £13m tax bill in 2021 but reported a tax credit of £31.2m. This, its annual report states, largely comes from £42m of deferred tax for 2022 on "carryforward losses and share-based compensation".
Adding this in brings Revolut back to a £5.8m profit for the year after tax.
“2022 was another great year for Revolut, one where we broke away from the pack of our competitors," Revolut's CEO Nik Storonsky said.
"We strengthened our financial position, grew our customer base, launched multiple new products, expanded into new markets, and bolstered our risk, compliance and governance infrastructure," he added.
Storonsky says the company will continue on its plan to win a UK banking licence in 2024, bringing its UK customers in line with.
"We recently surpassed 35m customers globally, who together make over half a billion transactions a month, as well as launched Revolut 10, our most significant overhaul of the design and layout of the app yet. These are great achievements, but we’re not slowing down, we aim to '10x' this, pushing towards 350m customers and beyond.”
Revolut also revealed it is on track to hit $2bn (£1.7bn) in annual revenue for 2023 with its net profit margin improving to a "double digit" level.
Despite a push for profitability in recent years, which is ostensibly working, the company has continued to hire globally and now has over 8,000 employees
“In spite of the challenging macroeconomic and geopolitical landscape, 2022 was an excellent year for Revolut. We made significant investments in our products, technology, risk, compliance and governance while exercising strict cost discipline," Revolut's Chairman Martin Gilbert said.
"This strategy paid off as customers used our products more than ever before, with a 71 per cent increase in deposits and a 55 per cent increase in customers on paid plans," he added.
This article has been updated. 21.12.23.