Revolut’s financial results for 2020 have been published.
During the year, the company increased revenues by 57% compared to the previous year, thanks to a 45% increase in the number of customers, while gross profit tripled.
In total, revenues were 261 million GBP, equivalent to 362 million USD, generated by 14.5 million customers. Gross profit was 123 million GBP.
The gross margin almost doubled to 49% with a peak of 61% in Q4.
Furthermore, in Q1 2021 revenues further increased by over 130% compared to the same period last year, with gross profit up over 300%. There are now more than 15.5 million users.
In 2020, in addition to the 14.5 million retail customers, there were also 500,000 business customers, up 127% in 2019, thanks to the diversification of the offering and an increased interest in digital financial management.
COVID-19 actually reduced payment volumes last year, from March onwards, but this reduction was more than offset by growth in pay-as-you-go plans, investments, and Revolut Business. In fact, adjusted sales in the second half of the year were 41% higher than in the first half.
Gross profit and margin also showed strong improvement over the course of the quarters, with the second half of the year outperforming the first.
Finally, operating losses fell from £55 million in Q1 2020 to just £6 million in Q4, although the final annual figure was £122 million higher than in 2019 due to higher administrative costs and investment in growth.
Subscribers to the Premium and Metal paid plans increased by 51%, and customer balances increased by 96%, with average deposits up more than 30%.
Revolut to grow in 2020
Revolut founder and CEO Nikolay Storonsky said:
“As the extraordinary circumstances of 2020 drove the trend towards digital financial management we continued to innovate for customers to make their financial lives easier and accelerate daily use. We launched 24 new retail and business products, expanded into the US, Japan and Australia and launched banking services in Lithuania, all while significantly improving our profitability,” founder and CEO Nikolay Storonsky said in a statement. “We began 2021 with a more resilient and productive business that will enhance our trajectory towards rapid growth.”
Revolut Chairman Martin Gilbert added:
“Revolut entered its next phase of growth in 2020 as we broadened our global footprint, strengthened our capital base, enhanced governance and bolstered executive management. These developments continue to provide a strong platform from which to launch new products to serve our rapidly growing customer base”.