Revolut announced that 2020 adjusted revenues, that grew 57% to £261 million. However, operating losses in 2020 have doubled.
Revolut CEO Nik Storonsky explains that the company decided to shift its focus during Covid-19 to more profitable markets like crypto and stock trading.
Revolut also finds itself in the early stages of another fundraising round. This one could value the company at $20bn (€16.8m) or more. Still, Revolut is not about to pursue a stock market listing.
Revolut generated revenues of £261 million ($361 million) in 2020. This means Revolut made 34% more compared to the £166 million revenue it made a year earlier.
At the end of 2020, Revolut had 14.5 million personal customers and 500,000 companies that used Revolut Business.
However, the operating losses (which also consist of crypto revaluation income but not from share-based payments) of £122 million mean a sharp increase from the £98.4 million loss in 2019.
“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,” he added.
CFO Mikko Salovaara told the Financial Times that he expects the company to remain profitable. “We continue to expect to be profitable, (but) the rates in terms of growth and profitability are difficult to forecast,” Salovaara told the FT.
Revolut is about to enter the loans market as it is seeking banking licenses in the U.S. and U.K.
About 36% of Revolut’s 2020 revenues have been received from card and interchange income. The annual report also stated that foreign exchange income accounted for 31% and paid subscriptions made up 29%.
“In 2020, 88.4% of the company’s (non-adjusted) revenue was related to its activities in the U.K. The European Economic Area without the U.K. represented 10.2% of revenue. The U.S., Japan, Australia and other markets were nearly negligible,” TechCrunch reported.
Revolut managed to raise a considerable amount of funding in 2020. This meant a $500 million Series D round that was extended to $580 million in total.