Revolut’s first-ever annual profit report follows the fintech giant’s January decision to pause the launch of RevCoin.
UK and Lithuanian neobank and fintech platform Revolut recently reported first-ever annual profit due to increased user engagement. The London-based fintech giant has revealed that in 2021 he made a net profit of £59.1m. Additionally, the company revealed that overall usage of the app also increased significantly in 2021.
Revolut had revenue of £636.2m ($766.9m) in 2021. The UK neobank added that in 2022 he expects revenues to increase by more than 30% to £850m. However, as a privately held company, the company is also under no obligation to share frequent quarterly reports.
Revolut Chief Financial Officer Mikko Salovaara touched on the company’s latest achievements in a media session. Revolut’s performance is due to its diversified fintech business and careful cost control, Salovaara added.
“The worst possible scenario is that Revolut is not sustainable or needs external funding. We will provide products that can
Revolut posted a pre-tax loss of £205m.
Revolut’s first-ever annual profit reported welcomes relief to troubled Fintech space
Revolut’s first-ever annual profit announcement is a welcome development for a fintech market plagued by declining valuations. As the industry continues to be constrained by macroeconomic constraints, investors are looking for safer alternatives.
The fintech industry is also seeing a significant contraction amid rapid inflation and declining valuations weighing heavily on it. Last July, Swedish buy-now-pay-later (BNPL) fintech Klarna experienced a massive 85% valuation drop. At the time, Klarna plummeted to a relatively low $6.7 billion and was still reeling from its global layoff plans in May. The company recently posted a record loss of $1 billion in fiscal 2022 due to a deteriorating business environment. The last time Klarna achieved a full-year profit was in his 2018.
In light of Klarna’s development and Revolut’s opposite situation, Salovaara believes investors are happy with Revolut’s performance. However, the fintech’s CFO was unable to estimate Revolut’s current value considering it last raised cash in 2021.
Revolut, which barely missed the year-end deadline to create an account in the UK company register, Faced with UK regulatory concernsRegulators questioned the robustness of the company’s internal financial controls, and Revolut’s auditors pressed for better internal controls.
RevCoin Launch Pending
Revolut has paused the launch of its own digital currency, RevCoin, according to a January report. The fintech giant has postponed the issuance of its coin to determine the full aftermath of the FTX crash.
“We are researching market conditions and assessing the best time to launch RevCoin in the coming months.”
Revolut plans to launch RevCoin again this year, but has not disclosed a specific date. Instead, the spokesperson said time specificity would depend on the neobank investigation.
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