Nik Storonsky, founder and chief executive officer, Revolut

London-based FinTech Revolut has reported an almost 5x growth in its revenue at £58.2 million in 2018 as against £12.8 million in the previous year.

The company attributes its revenue growth to developments made in its core product offerings, customer growth as well as market expansion. It has also forecast a 3x growth in its topline this year as compared to that of 2018 on the back of new product launches.

The company, which was started in 2015 as a digital alternative to the big banks, claims to have acquired 800,000 new users in August and September 2019.

The Ribbit Capital-backed company further said that its cost of sales increased at the rate of 247% with net losses pegged at £32.8 million. The company’s principal direct costs, however, continued to stem from card scheme costs, acquiring costs and user acquisition costs. Given the exceeding revenue growth, Revolut’s gross margin has improved. The gross margin forecast for 2019 has been set at 40-50% as compared to less than 10% in H2 2018.

Nik Storonsky, CEO, Revolut said “The end of 2018 feels like a long time ago, but these figures are an important stepping stone in our sustained growth as a business. The leap forward in revenue, and customer numbers, since the beginning of 2019, shows that the reason we started this business continues to be vindicated.”

“…2019 is set to be another year delivering record growth, but our work is not done and we are determined to reach all those who need us. This means maintaining our ambitious growth and expansion plans, which are now fuelled by substantial improvements to our profitability, and the key appointments we’ve been making,” he added.

The company, which has raised around $340 million since its inception, has made key hirings in the past few months with the appointment of Richard Davies as Chief Operating Officer and David MacLean as Chief Financial Officer, among others.

Revolut has recorded an average of 3.7 million monthly active users and 1.1 million daily active users with transaction value shooting up to $85 billion since its 2015 launch. Customers opting for its Premium and Metal subscription packages have increased 550% since January 2018.

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by Megha Bhattacharya
Market Analyst at IBS Intelligence
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