Revolut expects another year of profits for 2022
Neobank Revolut remains profitable, CEO Nik Storonsky told Axios on the sidelines of the Web Summit conference in Rio de Janeiro last week.
Driving the news: Privately run Revolut released its 2021 results in March, which showed the buy-now-pay-later enterprise had posted a profit.
- "For 2022, we are also profitable," said Storonsky.
- His comments come as U.K.-based fintech Starling posted profits last year. U.S.-based Varo has also been inching toward black ink.
Context: Storonsky says the company is on track to double its 2022 revenue this year. Revolut is also benefiting in part from higher interest rates, boosting its interest income.
Of note: Revolut's U.S. expansion — considered a major potential boost — still remains a small part of the company's overall growth.
- The company's U.S. user base is now about 1 million, up from about half a million last year, he says. (Revolut has over 28 million users overall.) Storonsky acknowledges that the U.S. market has been a different beast compared with its European base.
- Revolut gathered millions of users in the European market thanks to its cross-border chops. In the U.S., where fewer travel abroad, it's looking to focus more on credit, though Revolut is still seeking to get its U.S. banking license first.
- The process of getting that license, Storonsky says, has slowed as recent regional bank failures have pushed U.S. regulators toward a more conservative approach.