Befreiender Jahresabschluss Zum Geschäftsjahr Vom 01.01.2021 Bis Zum 31.12.2021 - Revolut Ltd. Zweigniederlassung DeutschlandBerlin

Revolut Ltd. Zweigniederlassung Deutschland

Berlin

Befreiender Jahresabschluss zum Geschäftsjahr vom 01.01.2021 bis zum 31.12.2021

REVOLUT LTD

London/UK

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

Contents

Company Information

Strategic Report

Board of Directors

Directors’ Report

Independent Auditor’s Report to the Members of Revolut Ltd

Financial Statements

Notes to the consolidated financial statements

Company Information

Company name	Revolut Ltd
Directors	Martin Gilbert (Chairman)
Nikolay Storonsky (CEO & Co-Founder)
Vlad Yatsenko (CTO & Co-Founder)
Michael Sherwood (Non-Executive Director and Chair, Remuneration Committee)
Caroline Britton (Non-Executive Director and Chair, Audit Committee)
lan Wilson (Non-Executive Director)
John Sievwright (Appointed Non-Executive Director and Chair, Risk & Compliance Committee on 01/08/2021)
Company Secretary	Thomas Bruce Hambrett
Registered number	08804411
Registered office	7 Westferry Circus
Canary Wharf
London
E14 4HD
Independent auditors	BDO LLP
55 Baker Street
London
W1U 7EU

Strategic Report

2021 Highlights

• $800m raised in Series E funding round

• 5m new retail customers added

• 75% increase in number of users paying subscriptions

• Reached £7.4bn in customer liabilities

• 50% increase in weekly active users

• Our customers donated £6.5m through Revolut’s Donations platform

• £636m in Revenue

• £26m in Net Profit

Chairman’s statement

In 2021 we made considerable progress in meeting our ambitious goals, notably, hitting our first full year of profitability. This is an important milestone for Revolut and proves the strength and success of the business model that we've been building over the last seven years.

We continued to focus relentlessly on improving our offering to customers through innovative new products, excellent service and highly competitive pricing, with particularly strong growth in the UK, Ireland, the European Economic Area (EEA) and the US.

Financial performance

When profitability often plays second fiddle to growth for FinTechs, we showed that a company as young as Revolut can continue to accelerate its growth while also being profitable. Our Revenue increased nearly threefold, resulting in £59.1 million profit from operations for 2021. Such strong financial performance and profitability demonstrates Revolut efficiently moving from the ‘start-up’ that is only focused on growth, to the ‘scale-up’ looking to grow profitably.

In July 2021, we raised $800 million in Series E funding, valuing the business at $33 billion. We were also pleased to gain the confidence of a number of new major investors. The Series E funding demonstrates investors’ confidence that we can deliver a best-in-class digital banking experience for customers around the world. The investment strengthens our ability to continue to build products that exceed customers’ everyday financial needs and expectations, continuing to drive fast growth, particularly in the US and international markets.

Board and governance

We further strengthened the Board in August 2021 with the appointment of John Sievwright as a Non-Executive Director and Chair of the Board Risk & Compliance Committee.

John brings a wealth of experience in both Executive and Non-Executive roles within the financial services sector. He joined us following a 20 year career with Merrill Lynch holding global leadership positions, latterly Chief Operating Officer - International.

John has been a Director of Burford Capital (a leading global finance and asset management firm) since May 2020 and serves on its Audit and Compensation Committees, having previously been a senior independent director and Chairman of the Audit and Risk Committee at ICAP plc (later NEX Group), an inter-broker dealer focused on electronic financial markets and post-trade business for financial institutions.

We welcome John’s deep knowledge, passion and experience of the financial services industry. We continue to develop our approach to governance across the organisation. Our Board and committee structures continue to mature, supported by our Global Corporate Governance Framework. The Board is committed to ensuring that Revolut continues to develop and embed governance best practice across all of its legal entities.

Outlook

As we emerged from the global pandemic, and life returned to normal - or at least to the new normal - we were all closely watching to see how society had changed for good.

There has been a huge evolution in consumer behaviours including in the new world of hybrid or remote work and the accelerated trend away from cash to contactless and online payments, and more recently with the rising cost of living and customers’ efforts to make their money work harder. Many people are keenly watching the FinTech sector to see which companies have adapted.

It's difficult to think of a company as well-positioned for success as we are. Revolut's adaptability, ambition, innovation, and pace of product roll-out means that we are prepared to do amazing things.

Chief Executive Officer’s review

2021 was a pivotal point in Revolut’s journey - a year marked by three key themes: our business model proving its profitability through revenue growth, expanding our product range and continued global expansion.

Landmark achievements in profitability, product and expansion in 2021 saw our transition from a high-growth FinTech to an established leader in the new era of banking.

But before anything else, I need to acknowledge and thank our people - our dream team - that enable Revolut to achieve its goals. We would not be where we are today without the talent, experience and intellect of our hard-working team. Our rapid growth, expansion and rate of innovation means that every Revoluter rises to new challenges every day. I and the executive team thank them for their incredible contribution.

Profitability

On the first theme, I am delighted to report that we were profitable for the full year of 2021 (net profit 2021: £26.3 million). This is a key metric for fast-growth start-ups in the FinTech and banking sectors, and shows that our business model works and is resilient.

Our revenue nearly tripled, from £220 million in 2020 to over £636 million in 2021 and our Gross Margin improved from 33% in 2020 to nearly 70% in 2021. This strong revenue growth came from across all business lines including Payments, Revolut Business and Wealth & Trading, proving our diversified model, and was a significant factor in us becoming profitable.

Our profitability in 2021 was despite the economy suffering a significant prolonged shock from global lockdowns, continued travel bans and COVID-19 effects. But at the same time, the accelerated shift to digital services and remote working boosted our number of customers and the amount that they used our app.

Expanding our product range

Secondly, we have continued to grow our product portfolio with another strong year of innovative product launches.

We entered the travel vertical with Stays, enabling customers to benefit from up to 10% cashback on bookings at over 750,000 hotels and locations. We provided greater choice in how and when people are paid with On-Demand Pay, which allows customers to withdraw up to half of their earned salary up to a month before their scheduled payday.

Revolut’s Wealth & Trading platform, where customers can securely trade equities and crypto assets, has continued to grow too. In response to customer demand, we strengthened considerably our crypto offering. Customers saw a significant rise in the number of tokens available to buy or sell. At the start of 2021, 10 tokens were available. This increased to 60 cryptocurrencies by the end of the year. Customers can view real-time price charts and market data to show current rates and historical performance, and can set price alerts at their chosen thresholds. As we expand our crypto offering, this is increasingly within a robust regulatory framework, which we welcome.

The number of Revolut Business customers continued to grow with businesses from family-owned SMEs to technology decacorns. In 2021 we launched multiple new services for businesses, including enabling online card payments acceptance for businesses through our acquiring product. We also enabled WooCommerce and Prestashop plugins to accept payments from these eCommerce sites and acquired Nobly, an ePOS business, to expand services to the hospitality sector.

Global expansion

And thirdly, in our quest to become a global financial super app, we have continued to grow our international footprint - with more presence and customers in the countries we're already in, and new countries too.

We also increased both deposit and electronic money (e-money) balances and transaction sizes. We have seen rapid growth in customer engagement and satisfaction, with higher monthly and daily active users. As our customers’ trust and confidence in Revolut continues to grow, they are weaving us even more into the fabric of their financial lives.

Despite the FinTech sector taking a knock in recent months with funding down rounds and some job cuts, Revolut continues to grow and to hire. Our Series E funding in July 2021 is a significant capital investment that positions us well to withstand financial headwinds.

We rolled out banking services to 18 European countries in 2021 and closed the year with almost two million customers signed up to Revolut Bank UAB, more than ten times the number the previous year.

We expanded our footprint in the US where our app meets the needs of the modern US consumer with a low cost US/Mexico remittance corridor and...