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Revolut auditor unable to verify three-quarters of 2021 revenue

Revolut BDO
Image credit: Veja via Shutterstock

Revolut auditor BDO has said it was unable to independently verify three-quarters of the fintech company’s revenue, warning that some information may be “materially misstated”.

The London-based fintech unicorn posted its overdue financial results for 2021 on Wednesday, showing it had achieved ful-year profitability for the first time.

The report stated the company made £26.3m in profit in 2021 on revenues of £636m.

However, accounting firm BDO, which conducted the audit for Revolut, said it was unable to verify the “completeness or occurrence” of three-quarters (£477m) of the company’s reported revenue.

It said its “verification procedures are not able to provide sufficient appropriate assurance” over several of Revolut’s key revenue streams, including subscriptions, cards delivery, and foreign exchange and wealth activities.

In a statement, BDO added: “IT systems weren’t designed in such a way that would allow for IT or business process controls to be effectively tested throughout the year.”

BDO declined to comment further.

A spokesperson from Revolut told Reuters that its revenue was “not in question” and that any concerns from the auditor were “remedied in 2021”.

Revolut CFO Mikko Salovaara added: “There is not any doubt over the completeness of the balance sheet, which, in turn, logically means that total revenue is also correct.”

Robert Collings, a chartered accountant and head of finance at Packfleet, said the revenue discrepancy is “almost certainly the reason why these accounts were filed so late.”

Writing on Twitter, Collings added that “qualified audit reports are uncommon”.

Founded in 2015, Revolut provides debit cards, virtual cards and crypto products. It is pushing to become an all-in-one financial ‘super app’. The majority – 55% – of its 2021 revenues came from cryptocurrency fees during a boom for the market.

Revolut is pursuing a full UK banking licence, which would enable it to provide lending services. After an application process that has lasted more than two years, Revolut is reportedly nearing approval from UK regulators.