UK fintech giant Revolut has released its annual accounts, revealing a substantial 45% increase in revenue for 2022 and 26 million across 35 countries. Costs also surged as the workforce doubled to 6,000 last year. Thus, Revolut swung to a £25 million loss in 2022. Currently, about 8,000 are employed. The company also revealed a 78% pay bump for its highest-paid director, Nik Storonsky, its co-founder and CEO, to £17.8 million.
Financial Performance and Customer Growth
Revolut‘s revenue reached a record high of £923 million pounds ($1.1 billion) in 2022, a notable rise from the previous year. Despite this impressive revenue growth, the company’s net profit experienced a downturn, falling to 6 million pounds from 26 million pounds in 2021. This decrease in profit is attributed to increased investments in product development, global expansion, and a significant expansion of the company’s workforce.
The company reported a substantial increase in its customer base, growing by almost 10 million or 60% to reach a total of 26.2 million customers in 2022. This customer growth underlines Revolut’s expanding influence in the fintech market and its appeal to a broadening user base.
Revolut, known as the UK’s most valuable start-up with a valuation of around $33 billion in 2021, has been navigating the regulatory landscape with a focus on adhering to compliance requirements. The company disclosed that it received permission to delay its annual accounts filing for the second consecutive year.
Nik Storonsky’s UK Commitment
Nik Storonsky, CEO of Revolut, emphasized the company’s commitment to obtaining a UK banking license in the annual report. This move is seen as a strategic step to enhance Revolut’s offerings and regulatory standing in the UK. Despite applying for the license early in 2021, the company is still awaiting approval, illustrating the often complex and prolonged process of regulatory compliance in the banking sector.
Storonsky was probably the highest-paid FinTech CEO in Europe in 2022. While Storonsky’s salary held steady at £100,000, he was given almost £17.7m worth of shares, compared with £10m a year earlier.
Storonsky criticized UK regulators over the lengthy licensing process and called them “extremely bureaucratic.” He also said Revolut might end up considering floating the company in the US instead of the UK, in what would be a big blow to the London Stock Exchange.
Our Opinion
Revolut‘s latest financial report reflects both the successes and challenges faced by leading fintech companies. While achieving record revenue, the company continues to invest heavily in expansion and product innovation. As Revolut awaits its UK banking license, its ongoing growth and regulatory journey will be key areas of interest in the evolving fintech landscape.
Share Information
If you have any information about or experience with Revolut, please let us know via our whistleblowing system, Whistle42.
