Revolut’s customer base reached 14.5 million retail customers and 500,000 Revolut Business customers at the end of 2020, contributing to 57% year-over-year adjusted revenue growth to £ 261 million. “Although COVID-19 has reduced payment volumes from March onwards, this was more than offset by the growth in the number of paid plans, customer investments and Revolut Business,” notes the financial app. Adjusted sales in the second half of the year were 41% higher than in the first half.
Gross profit increased 215% from £ 39 million in 2019 to £ 123 million in 2020. Gross profit improved by 24 percentage points, from 25% in 2019 to 49% in 2020. Both values have showed a strong quarter-over-quarter improvement with gross profit up from £ 16 million in the first quarter to £ 51 million in the fourth quarter and a gross margin up from 29% in the first quarter to 61% in the fourth quarter, bringing the company to achieve adjusted operating profit in November and December 2020.
This combination of revenue growth and gross margin improvement reduced quarterly adjusted operating losses by 90%, from £ 55m in Q1 2020 to £ 6m in Q4 2020, reflecting strengthening core businesses. Full year adjusted operating losses increased to £ 122 million (2019: £ 98 million).
Premium and Metal paid plan subscribers increased 51%, outpacing overall customer growth. The percentage of new customers signing up for paid subscriptions has grown from 11% to 14%. As the customer base increased and daily usage increased, customer balances increased 96% to £ 4.6 billion at the end of the year (2019, £ 2.4 billion) with average deposits increasing by more than 30%. As marketing budgets have been restored for 2021/22, key metrics are expected to further improve as the company enters a new phase of product growth and development.
“We started 2021 with a more resilient and productive business that will allow us to grow rapidly,” remarks Revolut founder and CEO Nikolay Storonsky.