$33 billion fintech giant Revolut reports first-ever annual profit

Financial exertion elephantine Revolut reported its first-ever yearly nett successful 2021, according to fiscal accounts released Wednesday, arsenic subscriptions to its paid packages and wide usage of its app grew sharply.

The institution reported revenues of £636.2 cardinal ($767.1 million) for the year, 3 times what it made the erstwhile year, and swung to a pre-tax nett of £59.1 million. In 2020, Revolut recorded a pre-tax nonaccomplishment of £205 million.

Revolut's announcement is simply a uncommon affirmative portion of quality successful a fintech marketplace that has been plagued by wide layoffs and immense valuation cuts arsenic investors reassess the abstraction amid worsening macroeconomic conditions.

Klarna, the Swedish bargain now, wage aboriginal fintech, saw its valuation plunge 85% to $6.7 cardinal past year. On Tuesday, the steadfast posted a record $1 cardinal loss successful its 2022 fiscal year.

For 2022, Revolut gave a trading update saying it expects revenues to person grown much than 30% to £850 million, citing a diversified concern model. As a privately held firm, it is not required to stock predominant quarterly reports.

However, Revolut was precocious to producing its accounts to the U.K. institution register, Companies House, successful clip for a Dec. 31 deadline. They were yet signed disconnected by BDO, Revolut's auditors, past month.

Revolut reportedly faced concerns from U.K. regulators implicit the robustness of its interior fiscal controls. In September, BDO's audit of Revolut's 2021 accounts was deemed "inadequate" by the Financial Reporting Council, which said that "the hazard of an undetected worldly misstatement was unacceptably high."

The company, which has nary carnal branches, offers integer banking, wealth transfers, and cryptocurrency and banal trading done a azygous app. It competes with the likes of Wise, Monzo and Starling.

Founded successful 2015 by erstwhile Lehman Brothers trader Nikolay Storonsky and bundle developer Vlad Yatsenko, Revolut has rapidly grown to go 1 of Europe's largest fintech unicorns, with a valuation of $33 billion.

Revolut has been pushing hard into overseas markets, successful peculiar the U.S., wherever it presently has implicit 500,000 clients. The steadfast has besides opened operations successful Brazil, Mexico and India. In November, Revolut announced it has 25 cardinal users worldwide.

Closer to home, though, the company's maturation plans person been dealt immoderate setbacks. Revolut has been pursuing a banking licence successful the U.K. for the past 2 years, successful an effort to root much of its income from lending activity.

That process has been a drawn retired one, and it is believed the hold is successful transportation with the delays to the work of Revolut's results. Revolut has besides faced criticisms implicit an assertive moving culture, which has reportedly led to departures of cardinal regulatory and compliance executives.