Revolut registers record profits of €503M in 2023, group revenues increased by 95%

London-based Revolut, a fintech company, has published its financial performance for the fiscal year 2023, showcasing a solid surge in revenue and profitability.

Here are the 9 key takeaways:

Record profits and revenue growth

The company witnessed a staggering 95 per cent year-over-year increase in group revenues, soaring from €1.1B (£0.92B) in 2022 to €2.1B (£1.8B).

According to the report, Revolut’s profitability reached soared high, with a record profit before tax of €503M (£438M).

The company’s net profit margin of 19 per cent reflects the inherent efficiency and scalability of its business model, improved partner unit costs, and the continued growth of high-margin revenue streams.

Customer acquisition and engagement

Revolut‘s success in 2023 was fueled by its ability to attract and retain customers on a global scale.

During the year, the company added 12M new customers, bringing its total customer base to 38M by the end of 2023.

In the Netherlands, Revolut’s growth was particularly noteworthy, with the company gaining over 250,000 new customers, representing a 69 per cent year-over-year increase.

Revolut Business also got carried by its strongest momentum ever with a YoY growth of 81 per cent.

As per the report, 70 per cent of new retail customers joined organically or were referred by someone they know.

Word-of-mouth growth was complemented by further investment into marketing and sales functions, including for Revolut Business which was onboarding 20,000 SMEs (small and medium enterprises) each month by the end of the year.

Deposited more than €500M

Dutch businesses and customers using Revolut as a primary bank account have deposited more than €500M in their accounts as of December 31st, 2023 (+60 per cent in 2023 vs 2022).

Growth across diversified revenue streams

The company’s revenue streams experienced significant growth across the board, with Cards & Interchange generating €559M (£486M), up 59 per cent from the previous year.

The FX & Wealth segment also saw a 46 per cent increase, reaching €454M (£395M), while Subscriptions grew by 53 per cent to €280M (£244M).

Customer balances and growth sky rockets

In 2023, Revolut’s total customer balances increased from €15.2B (£13.2B) to €21B (£18.2B ). 

This growth was attributed to expanded treasury capabilities, higher customer deposits, increases in central bank rates, and acceleration in the credit portfolio.

As a result, interest income grew to €575M (£500M) in 2023, compared to €97M (£83M) in 2022.

The report says that customer usage also saw significant acceleration, with transaction volume increasing by 58 per cent and reaching close to €804B (£700B).

The monthly transactions as of December 2023 totalled 590M, which is a 73 per cent increase. 

Additionally, there has been a 41 per cent growth in customers opting for a paid plan.

As of June 2024, Revolut is the most downloaded app in the Finance category in Europe, ranking first in 17 countries, showcasing its increasing popularity and adoption.

Investing in talent and future growth

Revolut allocated €277M (£241M) towards advertising and marketing efforts to supplement its organic growth.

The company also scaled its B2B sales team to over 900 employees by the end of 2023, positioning itself to better serve the needs of larger enterprises.

Revolut’s total headcount increased by 38 per cent year-over-year, reaching 8,152 employees, reflecting the company’s commitment to attracting and retaining top talent.

Expanding global footprint

In its pursuit of continuous innovation and growth, Revolut expanded its global footprint by entering new markets, including Brazil and New Zealand, bringing its total presence to 38 countries.

Revolut also invested in product development, introducing new local features across key European markets. These include the launch of Dutch IBANs, personal loans in France, Germany, and Spain, as well as credit cards in Ireland and Spain.

Additionally, the company introduced Money Market Funds across 22 countries in the European Economic Area (EEA), with balances reaching nearly €1.7B (£1.5B) since its launch.

Outlook for 2024 and beyond

As of June 2024, Revolut has reached 45M customers globally, representing an increase of 7M in the first 6 months of the year.

Also, the report says the company is on track to surpass 50M customers by the end of FY24.

In the Netherlands, the retail customer base increased by 22 per cent in the first 6 months, compared to a similar period of 2023, and holds the 1M target in sight.

The deposits held by retail and business customers have increased by 54 per cent since the beginning of the year, says the report.

Launched new offerings

In addition to launching its existing suite of products in more markets, Revolut has introduced several innovative offerings in the first six months of 2024.

These include eSIMs, allowing customers to purchase phone data packages through the 

Revolut app, RevPoints, a loyalty program enabling customers to earn points on everyday spending, and Revolut Robo-Advisor, a semi-automated tool that uses algorithms to manage investment portfolios.

Furthermore, Revolut announced plans to move its global headquarters to the YY building in Canary Wharf, facilitating the future growth of its UK and global operations.

What CEO has to say?

Nik Storonsky, CEO of Revolut says, “This year, we took our biggest steps yet on our mission to deliver the best product and the best customer experience at great value to customers, everywhere. Our customer base is expanding at impressive rates, and our diversified business model continues to fuel exceptional financial performance, delivering revenues of over €2.1bn in 2023 and a record profit before tax of €503M. With a net profit of €395M, 2023 was our third profitable year in a row.”

“Every day, our products create value for new customer segments and new global markets. We remain committed to our ongoing UK banking licence application in addition to bringing the Revolut app to new markets and customers around the world. Even as we reached 45M global retail customers six months into 2024, Revolut remains poised for exponential growth in 2024 and beyond, continuing to redefine the financial services landscape as we’ve known it,” he adds.