2022 review and budget forecast for 2023

Revolut app has published its annual report for the year 2022, along with its budget forecasts for the current year 2023, at the end. 

Has the company been able to reach the desired goal of 2 billion dollars in revenue and a double-digit net profit margin?

Revolut app and the review of the year 2022 with the budget forecast for this closing year

Revolut has today published its annual report for the year ended 31 December 2022, adding its budget forecasts for the current year 2023, in anticipation of its closure.

Regarding 2022, the financial super app has focused on a diversified revenue model, with the growth of its payment products, subscriptions, and currency exchange, as well as an increase in interest income.

And in fact, total revenues have grown to over $1.1 billion in 2022, despite the general bear market in the crypto sector. This figure represents a 45% increase compared to 2021. 

Indeed, specifically, Revolut has seen a 105% increase in revenue from cards and interchange compared to the previous year, for a total of $369 million. Revenue from subscriptions, on the other hand, has increased by +48% compared to 2021, for a total of $190 million. 

Even the active interests on its assets have grown in 2022, reaching 100 million dollars. 

Another significant growth reported in 2022 concerns the number of customers, which reached almost 10 million, increasing annual deposits by 71%, thus demonstrating to be regular users of the app. 

For Revolut’s activities in 2023, the company has announced that it has invested in the future growth of the app, directing its profits of 259 million dollars into various activities. 

And indeed, 145 million dollars went to the “Sales and Marketing” department, over 78 million dollars went to the “new products and global expansion” department and the remaining amount went to the “Customer Experience” sector. 

Revolut app: the review of the year 2023 and the final goals

For this ongoing 2023, but not yet closed, Revolut has described the different operations that have been carried out and its final objectives. 

And indeed, the growth set by the financial company seems to have been confirmed by the first quarters of 2023. Revolut’s goal is to close the year by reaching $2 billion in revenue and recording a double-digit net profit margin.

Revolut now has over 35 million customers, over 8,000 employees and is the most downloaded app in the Finance category in nine countries and among the top three in 15 countries, in Europe

Nik Storonsky, Chief Executive Officer of Revolut, commented on the review of the year 2022, which also included updated data:  

“2022 has been another great year for Revolut, where we have differentiated ourselves from our competitors. We have strengthened our financial position, expanded our customer base, launched numerous new products, opened new markets, and strengthened our risk, compliance, and governance infrastructure. Looking ahead, our goal is continuous growth in all our markets. We remain committed to progressing our banking license application in the UK, as well as bringing the Revolut app to new markets and customers worldwide.”

Recently we have surpassed 35 million customers globally, who together make over half a billion transactions per month, in addition to launching Revolut 10, our most significant app design and layout revision ever made. These are great results, but we are not slowing down, we aim to multiply this result by 10, towards 350 million customers and beyond.”

The latest updates on Premium and Metal plans with partner subscriptions

Last month, Revolut updated the plans for Premium and Metal cards, including new partner subscriptions such as Financial Times, Tinder, Deliveroo, and other lifestyle apps.

Subscribed users to these Revolut plans will have access to all different categories, at no additional cost. For this new type of service, a value of €650 and €1750 per year has been estimated for Premium and Metal plan users respectively. 

These partnerships therefore add extra value for this type of Revolut customers, bringing the company’s ultimate goal of becoming the preferred global app for everything related to money closer.

The suspension for crypto purchases in the United Kingdom

While talking about current and future growth, just a few days ago, Revolut had to announce a temporary suspension for crypto purchases for business customers in the United Kingdom.

This is a decision made in response to the new rules of the Financial Conduct Authority (FCA) of the United Kingdom, which will be effective from January 8, 2024. That’s why the suspension announced by Revolut will instead be effective from January 3, 2024. 

This break is necessary in relation to the regulation in the country, which seems to be undergoing an update. In fact, FCA is introducing stricter requirements for crypto investments.