SoFi’s Results Push Shares to 52 Week High

SoFi (NASDAQ:SOFI) saw its shares hit a new 52-week following quarterly results that topped analyst expectations. SoFi is a diversified Fintech that started life as an online lender – first targeting refinanced student loans – but has branched out into other financial verticals, including a nationally chartered bank.

Total revenue for the quarter increased by 37% versus the same quarter year prior, arriving at $498 million in comparison to $362.5 million in 2022.

While SoFi reported a net loss of $47.5 million or a diluted loss per share of $0.06, the loss was a significant improvement over the year prior pleasing analysts following the company.

Anthony Noto, CEO of SoFi, issued the following statement on the results:

“We delivered another quarter of record financial results and generated our ninth consecutive quarter of record adjusted net revenue, which was up 37% year-over-year. Record revenue at the company level was driven by record revenue in both our Technology Platform business segment and our Financial Services business segment coupled with continued strong Lending business segment revenue growth. We also generated our fourth consecutive quarter of record adjusted EBITDA of $77 million, representing a 43% incremental adjusted EBITDA margin and a 16% margin overall, as well as a 36% incremental GAAP net income margin.”

Noto said they booked a record number of “member additions” which helped with “cross buy adds.” Over 584,000 new members were added during the Q2, ending with over 6.2 million total members, up 44% year-over-year.

Total deposits grew by a whopping $2.7 billion, an increase of 26% during the second quarter to $12.7 billion. SoFi’s Checking and Savings has an APY of up to 4.40% as of July 31, 2023, with no minimum balance requirement nor balance limits.

Noto shared:

“As a result of this growth in high-quality deposits, we have benefited from a lower cost of funding for our loans. Our deposit funding also increases our flexibility to capture additional net interest margin (NIM) and optimize returns, a critical advantage in light of notable macro uncertainty. SoFi Bank, N.A. generated $63.1 million of GAAP net income at a 17% margin.”

Lending adjusted net revenues were $322.2 million for the second quarter of 2023, up 29% compared to the second quarter of 2022.

SoFi’s Technology Platform segment reported a record net revenue of $87.6 million for the second quarter of 2023, increasing by 4% year-over-year and 13% sequentially.

SoFi said it expects to generate $1.025 to $1.085 billion of adjusted net revenue in the second half of 2023, up 19% to 26% year-over-year, and $180 to $190 million of adjusted EBITDA. For the full year 2023, management expects adjusted net revenue of $1.974 to $2.034 billion, up from its prior guidance of $1.955 to $2.02 billion, and full-year adjusted EBITDA of $333 to $343 million, up from its prior guidance of $268 to $288 million, representing a 40-44% incremental adjusted EBITDA margin.

Shares traded at $11.45 at the market close after hitting $11.70 during intraday trading. SoFi’s market cap stands at about $10.8 billion.

SoFi became a public company in a successful SPAC deal during the SPAC boom.



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