Am I right in saying that despite not turning a profit as a business at the moment, they are now profitable on individual current accounts?
Do we have a source for this? Or is this all assumptions?
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I doubt they’re near profitable yet. Give them a year and they’ll have a regular income from overdrafts, ISAs, savings and other bits and bobs. They have a big old salary bill to cover but economies of scale there. I think Google took years, Amazon took years. No rush!
They did a good open office about this back in October. Haven’t seen anything more recently about it though.
I’ve put the timestamp for when they break down their costs and revenue per customer if you want to take a look (or as close as I seem to be able to get).
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Monzo have said they have positive customer unit economics (ie: they make a little bit of money for every customer they get) back in October:
This image is from the October Open Office.
However:
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The move to integrated Savings Pots with other providers may have caused the amount of “Deposit Interest” revenue to go down.
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I suspect the cost of Customer Operations has decreased.
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I imagine Monzo have additional revenue from increased personal loans.
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That’s correct, that’s been the case since last fall or so. It’s why fresh focus was put on Growth at the beginning of the year. Some of the stuff around that, you’ve already seen - referral bonuses etc. Some stuff will become more clear over the next quarter (more aggressive advertising - not aggressive in tone obviously! but just much more of it happening 
).
Essentially, even if our customer unit economics don’t improve (which they will and already are doing), this put us at a point where we could become profitable as a company simply by growth alone.
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My question would be: is variable contribution per customer x customer aquision rate > rate of growth in fixed costs
If that’s a yes then happy days!
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