SoFi Technologies (NASDAQ: SOFI) shares surged over 20% on Monday, marking its most significant increase since July. The upswing came after the company posted fiscal fourth-quarter 2023 results, which beat analysts’ expectations.
Adjusted revenue saw a year-on-year surge of 34%, reaching $594.25 million and surpassing the consensus estimate of $571.70 million. The adjusted EPS stood at $0.02, outperforming the consensus of $0.00.
SoFi, in the quarter, welcomed 585,000 new members, which increased its total membership to over 7.5 million, marking a 44% Y/Y growth.
In addition, SoFi introduced 695,000 new products during the quarter, bringing the total to over 11.1 million products, which is a 41% increase year over year.
Within the Financial Services segment, the total number of products climbed by 45% Y/Y, reaching 9.5 million.
SoFi Money, which includes Checking and Savings, and cash management accounts, experienced a 54% Y/Y increase, amounting to 3.4 million products.
Adjusted EBITDA witnessed a 159% Y/Y growth, amounting to $181 million, representing a 74% incremental EBITDA margin.
Total deposits saw a 19% Y/Y increase, amounting to $18.6 billion at the end of the quarter, with over 90% of SoFi Money deposits (including Checking and Savings and cash management accounts) originating from direct deposit members.
SoFi’s Outlook for Q1 and Full Year
SoFi Technologies (NASDAQ: SOFI) anticipates an adjusted net revenue of $550 million – $560 million for the first quarter, compared to the consensus of $573.87 million. It also projects an adjusted EBITDA of $110 million – $120 million, with a margin of 20%.
In 2024, SoFi forecasts a minimum of 50% growth in the combined Tech Platform and Financial Services segments. It also predicts that lending revenue will constitute 92% to 95% of the levels seen in 2023.
By the end of the year, it expects an adjusted EBITDA margin of around 30%, corresponding to a range of $580 million – $590 million for the year. It also projects a GAAP EPS of $0.07 – $0.08, surpassing the consensus of $0.06.
Looking ahead to the period beyond 2024, SoFi projects a CAGR of 20% – 25% for 2023 through 2026. This implies a compound growth of 50% for Financial Services revenue, mid-20% for Technology Platform revenue, and mid-teens for Lending segment revenue.
The revenue is expected to generate an EPS of $0.55 – $0.80 in 2026. Beyond 2026, SoFi anticipates an EPS growth of 20% – 25%.
SoFi (NASDAQ: SOFI) Stock Reaction
SOFI stock climbed 20.21% on Monday. The traders had exchanged hands with 284,669,085 (284.66 million) shares compared to the average daily trading volume of 46.16 million.
