GAAP Net Revenue: $615 million in Q4, up 35% year-over-year; $2.1 billion for full year, up 35%.
Adjusted EBITDA: Record $181 million in Q4, a 159% increase year-over-year; $431.7 million for full year, up 201%.
GAAP Net Income: Positive $48 million in Q4; EPS of $0.02.
Member Growth: Nearly 585,000 new members in Q4; total members up 44% year-over-year to over 7.5 million.
Product Growth: Nearly 695,000 new products in Q4; total products up 41% year-over-year to over 11.1 million.
Deposits and Book Value: Total deposits grew by $2.9 billion to $18.6 billion; Tangible book value up 11% year-over-year.
2024 Guidance: Management anticipates $550 to $560 million of adjusted net revenue in Q1 2024, with $110 to $120 million of adjusted EBITDA.
On January 29, 2024, SoFi Technologies Inc (NASDAQ:SOFI) released its 8-K filing, announcing its financial results for the fourth quarter and fiscal year ended December 31, 2023. The company, known for its comprehensive suite of financial services, including lending, personal finance, and investment products, delivered a strong performance with significant year-over-year growth in revenue and profitability.
SoFi’s fourth quarter GAAP net revenue reached $615 million, marking a 35% increase compared to the same period in the previous year. The company’s adjusted net revenue also saw a substantial rise, reaching $594 million, a 34% year-over-year growth. This growth was driven by record revenue across all three of SoFi’s business segments, with a notable 40% of adjusted net revenue generated by non-Lending segments (Technology Platform and Financial Services segments).
The company’s adjusted EBITDA for the quarter was a record $181 million, representing a 159% increase from the prior year’s quarter and achieving a 30% target margin. SoFi also reported a positive GAAP net income of $48 million for the quarter, translating to earnings per share (EPS) of $0.02, a significant improvement from the net loss reported in the fourth quarter of the previous year.
SoFi’s member base grew to over 7.5 million, a 44% increase year-over-year, with nearly 585,000 new members added in the fourth quarter alone. The company’s total products also saw robust growth, with nearly 695,000 new product additions in the quarter, bringing the total to over 11.1 million, a 41% increase from the previous year.
SoFi’s financial achievements are particularly noteworthy in the context of the credit services industry, where customer growth and engagement are critical for sustaining revenue and profitability. The company’s ability to attract new members and cross-sell products is indicative of its strong market position and the appeal of its integrated financial services platform.
From a financial perspective, SoFi’s net interest income for the fourth quarter was $389.6 million, an 87% increase year-over-year, driven by higher loan balances and net interest margin expansion. The company’s net interest margin reached a record 6.02%, reflecting its ability to capitalize on strong demand for its lending products.
SoFi’s CEO, Anthony Noto, highlighted the company’s growth and operational efficiency, stating:
“Continued growth of over 40% in both total members and products, along with improving operating efficiency, reflects the benefits of our broad product suite and unique Financial Services Productivity Loop (FSPL) strategy.”
Looking ahead, management provided guidance for the first quarter of 2024, expecting adjusted net revenue between $550 to $560 million, adjusted EBITDA between $110 to $120 million, and GAAP net income between $10 to $20 million. For the full year 2024, the company anticipates the combined growth of the Tech Platform and Financial Services segments to be at least 50%, with lending revenue at 92% to 95% of 2023 levels.
SoFi’s strong performance in Q4 and the fiscal year 2023, along with its positive outlook for 2024, demonstrate the company’s successful execution of its growth strategy and its resilience in a challenging economic environment.
Explore the complete 8-K earnings release (here) from SoFi Technologies Inc for further details.
This article first appeared on GuruFocus.
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