Revolut, the British fintech company, has finally released its annual financial results for the year ended 31 December 2021. The results are impressive, showing a significant increase in revenue and a move into profit.

Revolut has seen its revenue increase by an astonishing 190% to £636m. The majority of the growth comes from the foreign exchange and wealth segment, which includes cryptocurrencies, and accounts for 55% of the revenue. The company’s profit for the year stands at £26m, an impressive turnaround from last year’s loss of £221m.

In terms of revenue by location, the UK contributed 31%, EU accounted for 68%, and the rest of the world added up to 1%. It’s clear that Revolut’s popularity is mainly focused on the European market, where the company has seen significant growth.

However, the auditors, BDO, had a significant problem with the company’s control environment, leading to the qualification of the audit report. This issue is likely the reason for the late filing of the accounts, as companies don’t want qualified opinions. BDO found that it was unable to verify £477m of revenue, which is a staggering 75% of the company’s total revenue. This leaves a lot of trust placed in Revolut’s reported figures.

Despite this issue, Revolut has managed to make a profit of £40m before tax, a significant turnaround from the previous year’s loss. Staff salaries remain a significant part of the cost base, with the company increasing its employees from 2,158 to 4,655 on average across 2021. Interestingly, the total cost of those people only increased from £186m to £204m, suggesting that the company hired more lower-level employees on smaller salaries.

While the majority of Revolut’s revenue comes from crypto and the qualified audit report clouds the waters, the company’s turnaround is seriously impressive. Revolut’s growth and profit highlight the success of its business model, which has continued to gain popularity among customers. Revolut deserves credit for what it has achieved, and its success shows that what they are doing isn’t easy.