Revolut publishes delayed accounts for 2022, reveals higher revenue but also $32.2m in losses
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Revolut, a leading UK-based fintech firm, recently published its delayed accounts for 2022 after missing the original deadline by three months. The report revealed that the company’s revenue had gone up by 45%, but it also recorded a pretax loss of $32.2 million (£25.4 million).
Revolut’s 2022 report finally out
The London-based fintech startup has reported interesting results for 2022. In terms of revenue, it thrived with a 45% increase which took its earnings to $1.2 billion (£922.5 million), However, its pretax losses have exceeded $32 million.
In the year before, Revolut’s restated profit was only £39.8 million. As for 2023, the company expects to see revenue hit $2 billion, with a higher net profit margin. In other words, Revolut seems to be progressing well over time, judging by past reports and the firm’s own projections for the future.
However, the release of the 2022 accounts marks the second consecutive year that Revolut was unable to publish its financial report in time. Even though the company is over three months late, the auditors at BDO have signed off on the statement, seemingly finding no fault with it and resolving an earlier issue tied to the completeness of the company’s revenue data for 2021.
Revolut frustrated with the inability to get a banking license
Concerns regarding the delay of 2021 accounts — which were only published in March 2023 — were one part of why Revolut could not secure a UK banking license. At the time of their release, the UK’s fifth-largest accounting company, BDO LLP, stated that it was not able to fully verify nearly £500 million in revenue. The company added that there is an unacceptably high risk of an undetected material misstatement.
As it turned out, the configuration of Revolut’s internal IT systems was faulty, and the challenger bank responded to these concerns, noting that they relate to revenues, instead of the firm’s balance sheet. However, it seems that PRA was not convinced, which is why it likely won’t allow Revolut’s banking license application based on the assessment of the firm’s financial position.
Reports have also revealed that this development also resulted in dissatisfaction among the challenger bank’s executives, who were frustrated with the audit qualification, as well as with the media coverage that heavily focused on the matter. Because of this, they reportedly also reached out to Schillings for legal advice on how to influence how the issue was reported.
With the new audit confirming the reports, Revolut said that its financial statements are giving a true and fair view of the company’s financial dealings. However, it did not say anything about possibly changing the auditors, despite the fact that it was exploring alternatives to BDO.