Revolut (REVOLUT) Q4 2023 earnings summary

Executive summary

• Achieved record revenue of £1.80bn in 2023, up 95% year-over-year, with net profit of £344m and profit before tax of £438m.

• Retail customer base grew 45% to 38.0m, with 11.8m new customers, and monthly transactions rose 73% to 590m.

• Expanded into Brazil and New Zealand, launched Revolut 10 app update, and introduced new products including Ultra plan and money market funds.

• Headcount increased 38% to 8,152, with significant investment in people, risk, and compliance functions.

Financial highlights

• Revenue nearly doubled to £1.80bn from £0.92bn year-over-year; net profit margin reached 19%.

• Gross profit margin improved to 76% from 70% in 2022; adjusted EBITDA was £493m.

• Total customer balances rose 38% to £18.2bn; off-balance sheet deposits reached £3.1bn.

• Loan-to-customer-deposit ratio remained low at 3.5%, reflecting a conservative credit approach.

• Administrative expenses (excl. sales, advertising, marketing) were £610m, with an overhead ratio of 44%.

Outlook and guidance

• Positive and optimistic about continued growth and profitability, with focus on expanding customer reach and product innovation.

• Encouraging start to 2024, with retail customers reaching 45m as of June 2024.

• Ongoing investment in new markets, product launches, and technology to support future expansion.