SoFi delivers its first-ever GAAP profit
In Q4, SoFi experienced a 35% YoY increase in adjusted (non-GAAP) revenue, reaching $594 million and resulting in adjusted earnings of $0.04 per share.
The company achieved its first-ever positive consolidated GAAP net income of $48 million or $0.02 per share, surpassing analysts' expectations of a break-even quarter with lower revenue of $571.7 million.
A closer look at SoFi's results reveals the addition of nearly 585,000 new members, bringing the total to over 7.5 million, a 44% YoY increase. Additionally, the company witnessed deposit growth of $2.9 billion in the quarter, totaling $18.6 billion at the end of 2023.
SoFi CEO Anthony Noto attributed the lower cost of funding for loans to the growth in high-quality deposits. He highlighted record revenue across all three business segments, emphasizing a remarkable 40% contribution of adjusted net revenue from non-lending segments (Technology Platform and Financial Services).
What’s next for SoFi investors?
Looking forward to 2024, SoFi has guided for an adjusted EBITDA margin of 30% by the end of the year, with a projected range of $580 million to $590 million.
This projection is based on the assumption that revenue from its Technology Platform and Financial Services segments collectively contributes approximately half of its overall revenue. SoFi has also indicated an expected full-year GAAP net income ranging from $95 million to $105 million, equivalent to $0.07 to $0.08 per share.
Taking a broader perspective beyond 2024, SoFi's management anticipates a compound annual revenue growth of 20% to 25% for the period from 2023 through 2026. This forecast assumes no significant changes to the current macroeconomic environment and no major new business launches or acquisitions.
Overall, SoFi's performance exceeded expectations, and the company is optimistic about its future outlook. As a result, shares of this prominent fintech stock are responding positively to the news.
Is it advisable to invest $1,000 in SoFi Technologies at the present moment?
Before deciding to invest in SoFi Technologies, it's worth noting that The Motley Fool Stock Advisor analyst team has recently identified what they consider to be the top 10 stocks for investors to buy at the moment, and SoFi Technologies did not make that list.
The 10 selected stocks are believed to have the potential for substantial returns in the coming years.
To illustrate the impact of such recommendations, consider the case of Nvidia, which was included in a similar list on April 15, 2005. If you had invested $1,000 at the time of that recommendation, your investment would now be valued at $373,923.
The Stock Advisor service offers investors a straightforward plan for success, featuring guidance on constructing a portfolio, regular updates from analysts, and two new stock picks each month. Since 2002, the Stock Advisor service has outperformed the S&P 500, delivering returns more than four times higher*.
Read more such news on techinsighttoday
Thank you so much for reading.