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Another Year, Another Revenue Record For Deloitte in 2022

Posted on by Going Concern News Desk
Deloitte "if you just follow, you'll never lead" sheep billboard

This morning turned out to be a pretty big Big 4 news day. First, we had EY’s top brass approving splitting its auditing and consulting businesses (no surprise here). Then we had Deloitte announcing its global revenue for 2022—and it’s a record amount (no surprise here either).

The Green Dot pulled in $59.3 billion in revenue for the financial year ending May 31, an 18.1% increase over 2021’s haul of $50.2 billion. This puts a decent-sized buffer between Deloitte—the biggest accounting firm in the world in terms of revenue—and second place PwC. In an interview with the Financial Times in July, PwC Global CEO Bob Mortiz said the firm’s global revenue for its most recent fiscal year would be close to $50 billion, up from $45.1 billion in 2021.

Let’s take a look at Deloitte’s 2022 by the numbers:

  • $30.7 billion: The amount of revenue brought in by the Americas region, the largest of the three covered by Deloitte and a 22.1% increase over last year. The Europe, Middle East, and Africa region was next with $18.8 billion, followed by Asia Pacific with $10 billion.
  • $25.8 billion: The amount of revenue brought in by consulting, the most of any of Deloitte’s businesses, followed by audit and assurance with $11.4 billion, tax and legal with $9.9 billion, risk advisory with $7 billion, and financial advisory with $5.3 billion.
  • $16.1 billion: The amount of revenue for financial services, the most of any industry served by Deloitte, followed by consumer with $11.9 billion; government and public services with $10 billion; energy, resources, and industrials with $8.6 billion; technology, media, and telecom with $7.5 billion; and life sciences and health care with $5.3 billion.
  • 411,951: Number of Green Dotters around the world at the close of FY 2022.
  • 156,430: Number of new Deloitters hired worldwide in 2022.
  • 55%: Percentage of male employees; 45% of employees are women.
  • 25%: Percentage of female employees who are partners, principals, and managing directors. Deloitte set a goal of 30% by 2025.

The next contestant in the annual Big 4 dick-measuring contest will either be PwC or EY—both firms officially announce their revenue results in September. During a global all-hands employee call in July, EY Global CEO Carmine Di Sibio told his troops that the firm brought in $45.4 billion during its most recent fiscal year that ended on June 30. That’s a 13.6% increase over last year’s $39.95 billion.

KPMG will announce its 2022 global revenue in December.

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This morning we linked to a Reuters report about the horse race between Deloitte and PwC for the biggest of the Big 4. It reports virtually nothing new that we haven’t discussed here already including Deloitte jumping P. Dubs last year by a whopping $9 million (thanks mostly to keeping their consulting business in house), the hiring sprees, the acquisitions, and oh! the audit business sucks:

With audit revenues leveling off in developed markets, the firms have been making a push in growing countries such as China and India and plowing ahead with investments in consulting, where business is growing after a recessionary slump.[…] The big four are expected to report their fiscal 2011 revenues in coming weeks and any significant growth will likely once again be in the consulting area, said Jonathan Hamilton, managing editor of Accounting News Report. “The audit business, while certainly the staple of all these firms, is a slow-growth business,” Hamilton added.

In other words, the consulting advisory business is hot and audit is not. And what causes some people to fly off the handle is how the firms have sold everyone on the idea that they can still miraculously be the bastion of good business principles ethics. Well, maybe not everyone:

More worries loom from stepped-up regulatory scrutiny. As consulting revenues grow, complaints are surfacing again that firms will be tempted to go easy on audit clients for the sake of winning or keeping a consulting job — a charge the audit firms deny.

Last week, European Union lawmakers approved a report that calls for barring auditors from providing audit and non-audit services to the same client. The report is nonbinding but could shape a draft law in the works.

PwC and Deloitte both said there was no conflict of interest in the consulting services they provide. Much of their consulting is done for companies they do not audit and they follow regulators’ standards and companies’ own restrictions on the kind of consulting they do for audit clients.

The report doesn’t mention many things that have cropped up (some recent, some not so much) including the nearly 500 reprimands Deloitte had in 2009, the rash of insider trading, or PwC’s incestuous Satyam scandal but talking points are also used to address those issues. These firms didn’t get to where they are without figuring out how to play the media game.

One thing is for sure – the firms are going to depend on their consulting/advisory businesses for growth until someone banishes audit firms from offering any other services at all. And God knows what that will take.

In close race for No 1, Deloitte, PwC grow apace [Reuters]

3 thoughts on “Another Year, Another Revenue Record For Deloitte in 2022”

  1. Deloitte mgmt: wE nEeD to cUt cOsTs…FiRe PeoPle. Lol folks this is what they did during the pandemic in 2020 and then they had record revenues. So how good were their projections if they can’t even project their future cash flows properly?

    2. I find it extremely unlikely that 25% of female employees are PPDs.

      “ 25%: Percentage of female employees who are partners, principals, and managing directors. ”

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