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Revolut Soars with Record Profit in 2023
Revolut, a UK challenger bank, reported strong financial performance in its 2023 annual report. The company’s revenue grew 95% year-over-year, reaching $2.2 billion in 2023 from $1.1 billion in 2022. Revolut also achieved its third consecutive year of profitability, with a record pre-tax profit of $545 million and a net profit of $428 million, resulting in a 19% net profit margin.
Diversified Business Model Drives Sustainable Growth
Revolut’s CEO, Nik Storonsky, attributed the company’s success to its diversified business model and growing customer base. Revenue came from various sources, with no single product or region contributing more than 30% of the total in 2023. All three core revenue streams saw significant growth: subscriptions increased by 53% to $303 million, foreign exchange and wealth services rose by 46% to $491 million, and cards and interchange revenue climbed by 59% to $605 million.
The company’s customer base also expanded significantly in 2023, adding 12 million new customers to reach a total of 38 million by year-end. Revolut’s app was the most downloaded finance app in Europe, and the company credits word-of-mouth marketing (70% of new customers joined organically or through referrals) and new product introductions (like IBAN solutions and personal loans) for its user base growth.
Looking ahead, Storonsky is confident about continued growth. Revolut plans to:
- Maintain its pursuit of a UK banking license.
- Enter new markets, including Mexico where it recently received a banking license.
- Increase its global workforce by 40% to reach 11,500 employees by the end of 2024.
- Surpass 50 million customers by the end of the fiscal year, a target they believe achievable after reaching 45 million in June.
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