You don't have javascript enabled.

Revolut shatters profit records with $545m in 2023

Revolut achieved a record $545 million profit in 2023, driven by a 95% revenue increase to $2.2 billion. The fintech’s diversified revenue streams and strategic initiatives, including new products and market expansions, have positioned it for continued growth and success.

  • Marina Mouka
  • July 3, 2024
  • 4 minutes

Revolut, a prominent player in the fintech industry, has announced a landmark achievement in its financial performance for 2023. The digital banking platform reported a record profit of $545 million, underscoring its significant impact on the financial services landscape.

Founded in 2015, Revolut has consistently disrupted the financial services sector with its innovative products and services, making this profit milestone a significant achievement in its relatively short history.

In 2023, Revolut’s total revenue soared to $2.2 billion, representing a 95% increase from 2022. This impressive growth was accompanied by a net profit of $428 million, resulting in a net profit margin of 19%.

These figures reflect the efficiency and scalability of Revolut’s business model. This level of profitability is particularly notable given the challenges faced by many fintech companies in maintaining profitability while expanding their customer base and service offerings.

Revenue streams and diversification

A key factor in Revolut’s success is its diversified revenue model. The company has strategically expanded its product offerings to ensure that no single product or geographic market dominates its revenue stream. This approach has mitigated risk and driven consistent growth across various segments. The primary revenue streams for Revolut include:

  • Subscriptions: Generating $303 million in 2023, this segment saw a 53% year-over-year increase. The success of Revolut’s subscription services, such as premium accounts, demonstrates the value customers place on enhanced features and exclusive benefits.
  • Foreign Exchange and Wealth Services: Contributing $491 million, this segment grew by 46% compared to the previous year. Revolut’s competitive exchange rates and comprehensive wealth management tools have attracted a broad customer base.
  • Cards and Interchange: With revenue of $605 million, this segment experienced a 59% increase. The rise in card usage and interchange fees reflects the growing trust and reliance on Revolut’s payment solutions.

Customer growth and strategic initiatives

Revolut’s customer base saw remarkable expansion in 2023, with the addition of 12 million new users, bringing the total to 38 million by the end of the year. Notably, 70% of these new customers joined through organic growth and referrals, highlighting the strong word-of-mouth appeal of Revolut’s offerings.

This growth was further supported by strategic investments in marketing and sales functions, particularly for Revolut Business, which onboarded 20,000 SMEs each month by year-end.

Revolut’s strategic initiatives have also played a crucial role in its success. Throughout 2023, Revolut continued to innovate and expand its product offerings. Notable introductions include IBAN solutions and personal loans, particularly targeting key European markets.

Additionally, Revolut is in the process of applying for a UK banking license, a move that could further solidify its position in the market and enable it to offer a broader range of financial services. The company’s strategic expansion plans also include entering new markets, such as Mexico, demonstrating its ambition to become a global financial powerhouse.

Looking ahead, CEO Nik Storonsky expressed optimism about Revolut’s growth prospects.

“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 $2.2bn in 2023 and a record profit before tax of $545m. With a net profit of $428m, 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 45 million 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.”

The company aims to surpass 50 million customers by the end of FY24 and plans to increase its workforce by 40%.