Revolut, the digital banking and financial technology company, has reported a 33% revenue growth in 2022 despite the challenges of the crypto winter.
The company attributes its growth to its diversified revenue streams and the increasing adoption of digital payments.
Audit controversy and board response
Recently, Revolut has been embroiled in controversy after a former employee accused the company of operating a toxic workplace culture.
Additionally, there have been concerns about the company’s financial reporting practices. An audit was conducted by Big Four accounting firm Deloitte, which found that the company’s financial statements for 2020 were accurate and in compliance with international accounting standards.
Revolut’s long-delayed accounts showed the startup achieved its first full-year of profit in 2021, but BDO cast some doubt on the numbers. Specifically, it said in the accounts that it was unable to verify three-quarters of the revenue Revolut had reported — equal to $765 million — and warned that some information may be “materially misstated.”
Revolut’s board of directors responded to the audit findings by stating that they would be taking steps to improve the company’s financial reporting practices and address any issues related to the workplace culture.
The board also expressed their commitment to transparency and accountability.
Diversified revenue streams
Revolut has a range of revenue streams, including transaction fees, subscription fees for premium services, and income from lending and investing.
The company has also expanded its product offerings, with the launch of Revolut Business and Revolut Junior, which cater to small businesses and families, respectively.
Increasing adoption of digital payments
The COVID-19 pandemic has accelerated the shift towards digital payments, and Revolut has benefited from this trend.
The company’s app allows users to send and receive money, make purchases, and manage their finances all in one place.
Revolut has also added support for cryptocurrencies, allowing users to buy, sell, and hold Bitcoin, Ethereum, and other digital assets.
Commitment to transparency and accountability
In response to the audit controversy, Revolut’s board of directors has committed to improving the company’s financial reporting practices and ensuring transparency and accountability.
The company has also announced that it will be conducting an independent review of its workplace culture.
Final Thoughts
Despite the challenges of the crypto winter and the audit controversy, Revolut has reported impressive revenue growth in 2022.
The company’s diversified revenue streams, expanding product offerings, and increasing adoption of digital payments have all contributed to its success.
Revolut’s commitment to transparency and accountability will be crucial in maintaining its reputation and ensuring long-term growth.
