$33 billion fintech giant Revolut reports first-ever annual profit

cnbc.com:

Financial technology giant Revolut reported its first-ever annual profit in 2021, according to financial accounts released Wednesday, as subscriptions to its paid packages and overall usage of its app grew sharply.

The company reported revenues of £636.2 million ($767.1 million) for the year, three times what it made the previous year, and swung to a pre-tax profit of £59.1 million. In 2020, Revolut recorded a pre-tax loss of £205 million.

Mikko Salovaara, Revolut's chief financial officer, told CNBC the results were the product of Revolut's diversified business and diligent cost control.

«The worst possible scenario would be if Revolut wasn't sustainable or if it were to require external funding,» Salovaara said. «The reality is we don't require external funding. We continue to invest in our business providing products people can rely on.»

For 2022, Revolut gave a trading update saying it expects revenues to have grown more than 30% to £850 million. As a privately held firm, it is not required to share frequent quarterly reports.

Revolut's announcement is a rare positive piece of news in a fintech market that has been plagued by mass layoffs and huge valuation cuts as investors reassess the space amid worsening macroeconomic conditions.

Klarna, the Swedish buy now, pay later fintech, saw its valuation plunge 85% to $6.7 billion last year. On Tuesday, the firm posted a record $1 billion loss in its 2022 fiscal year.

Asked about Revolut's valuation Wednesday, Salovaara said he couldn't say how much the firm was worth since it hasn't raised cash since 2021, but he'd be «hard pressed to believe investors wouldn't continue to be pleased with our performance.»

However, Revolut was late to producing its accounts to the U.K.