Revolut Reports its First Full-Year Profit in 2021

03/01/2023 06:29 • Metaverse Matters • 89 views

It is reported that Mikko Salovara, chief financial officer of Revolut, a digital bank, said that the company achieved its first full-year profit in 2021, and its revenue increased by 33% last year. Salovara said that although cryptocurrency was a key part of the company’s business, its revenue increased to more than 850 million pounds (US $1.03 billion) in 2022 with the support of payment, subscription and commercial accounts. As the downturn in the encryption market hit the company, its encryption business revenue shrank in 2022. Salovaara said that the encryption business accounted for 5% to 10% of the total revenue last year.

Revenues of digital bank Revolut increased by 33% to more than 1.03 billion US dollars in 2022

Analysis based on this information:

Revolut, a digital bank, announced its first full-year profit in 2021, as per Mikko Salovara, the chief financial officer of the company. Despite the company’s strong focus on cryptocurrency as a key part of its business, its revenue increased by 33% in the past year to more than 850 million pounds ($1.03 billion), supported by payment, subscription, and commercial accounts. Although Revolut’s encryption business revenue saw a decline in 2022, Salovaara reported that it only accounted for a small portion of the company’s total revenue, ranging between 5% to 10%.

From this news, it becomes apparent that Revolut’s decision to expand its revenue-generating services beyond cryptocurrency has proven to be successful. The COVID-19 pandemic has accelerated the adoption of digital payment services worldwide, which could have led to the company’s revenue growth. Revolut, being a digital bank that handles cryptocurrency, was vulnerable to the downturns in the crypto market; however, it was able to diversify its sources of income and reduce its reliance on cryptocurrency.

Moreover, the fact that Revolut declared a full year of profit indicates that the company is moving towards financial stability. This is a significant achievement, given that new fintech startups often run at a loss for several years before breaking even. This new development may be due to Revolut’s global expansion, which has seen the firm moving into new markets such as India, Japan, and the United States. With a presence in over 35 countries, Revolut has expanded its products and services for its customers, including banking, savings, insurance, and stock trading, among others.

In conclusion, Revolut’s announcement of its first annual profit is crucial news, signaling the maturity of the digital bank’s business model. By transitioning from exclusive reliance on cryptocurrency, the company has generated more revenue and is better insulated against market downturns. The announcement of these positive results also enhances Revolut’s reputation, attracts new investors, and strengthens the loyalty of existing customers.

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Revolut Reports its First Full-Year Profit in 2021

Revenues of digital bank Revolut increased by 33% to more than 1.03 billion US dollars in 2022

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