Revolut announces record $545m profit for 2023
UK challenger Revolut has published its annual financial report for the year ending 31 December 2023, in which the company reveals it delivered record profits and revenue growth.
The fintech’s revenue surged by 95% over the year, from $1.1 billion in 2022 to $2.2 billion in 2023. It also secured a record profit before tax of $545 million, with a net profit of $428 million, achieving a net profit margin of 19% and marking the company’s third profitable year in a row.
According to Revolut’s CEO Nik Storonsky, the firm’s “exceptional financial performance” was fuelled by its “diversified business model” and expanding customer base.
The company claims that revenue diversification continued to “drive sustainable growth” over the year, with “no single product stream or country accounting for more than 30% of total revenue in 2023”.
Revolut saw significant growth across its three core revenue streams: subscriptions increased by 53% to $303 million, foreign exchange and wealth services rose by 46% to $491 million, and cards and interchange revenue climbed by 59% to $605 million.
In addition, the firm reports it added 12 million new customers last year, bringing its total to 38 million by December’s end. Revolut’s app also holds the top spot as the most downloaded in the finance category across Europe.
The company attributes its success to “word of mouth”, noting that 70% of new retail customers join organically or through referrals. Additionally, the introduction of new products, such as IBAN solutions and personal loans across key European markets, has helped boost its user base.
Going forward, Storonsky states the firm is “poised for exponential growth in 2024 and beyond”, with the company remaining committed to “our ongoing UK banking licence application in addition to bringing the Revolut app to new markets and customers around the world”.
Revolut intends to commence operations in Mexico after receiving a banking licence from Mexico’s National Banking and Securities Commission (CNBV) in April. The company also aims to expand its global workforce by 40%, looking to raise its total headcount to about 11,500 by the close of 2024.
Furthermore, the company has set its sights on surpassing 50 million customers by the end of FY24, which it says is realistic after reaching 45 million in June.