Record Profits Bolster Revolut’s Position
The company achieved a remarkable 95% increase in group revenue, reaching $2.2 billion, and recorded a net profit margin of 19%. CEO Nik Storonsky highlighted the impressive growth in their customer base and the strong performance of their diversified business model.
Tiger Global Takes Charge
Tech investment powerhouse Tiger Global Management is set to lead a significant $500 million (€458.52 million) share deal at Revolut. This secondary offering will allow current employees to sell some of their shares, rather than the company issuing new ones. Morgan Stanley is also expected to participate in this deal, while SoftBank, a key player in Revolut’s 2021 funding round, will not be involved.
Employee Participation
Revolut, with its workforce of around 10,000, includes stock options as part of employee compensation packages. The exact number of employees eligible to sell their shares in this secondary offering has not been disclosed. CEO Nik Storonsky is expected to sell tens, if not hundreds, of millions worth of stock, further contributing to the deal’s significance.
Impact on Revolut’s Standing
The successful execution of this secondary share sale could significantly enhance Revolut’s reputation as Britain’s top fintech. It will also aid the company in recovering from last year’s regulatory challenges, including an investigation by the National Crime Agency into suspicious account activities. The anticipated deal, reported by Sky News, is expected to take place later this year.
Continued Expansion and Growth
Revolut’s earnings report showcased an extraordinary year, with net profits of $428 million marking its third consecutive profitable year. Storonsky emphasized the company’s commitment to expanding its customer base and entering new markets. With 45 million global retail customers and 12 million new users in 2023 alone, Revolut is poised for continued growth and success in the fintech industry.
SOURCE: Ref Image from Reuters
Whether writing about complex technical topics or breaking news stories, my writing is always clear, concise, and engaging. My dedication to my craft and passion for storytelling have earned me a reputation as a highly respected article writer.