SoFi Technologies Earnings: SOFI stock jumps 7% on EPS beat
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UNLOCK OFFER- SoFi beat Wall Street consensus with its Q4 earnings.
- SOFI stock shot up 8% in Monday's premarket.
- SoFi shows demonstrated ability to continue adding customers.
- NASDAQ futures are down 1.2% due to risk-off sentiment ahead of central bank announcements.
SoFi (SOFI) bested Wall Street consensus once more on Monday as the neobank released fourth quarter results ahead of the open. SoFi showed that it continues to grow its membership and total product count, delivering GAAP earnings per share (EPS) of $-0.05. This was 4 cents better than consensus. Revenue was also ahead of forecasts at $443.4 million. That was $17.5 million ahead of consensus at up 58% YoY.
SOFI stock rose 8.4% to $6.44 in Monday's premarket.
SoFi stock news: Growth is steady for SoFi
SoFi's net loss was two-thirds smaller than the same quarter one year prior, and shareholders took this to mean that SoFi is on track to become profitable in the near future. SoFi concurred by stating it was their goal to achieve GAAP profitability by the fourth quarter of 2023.
Management gained 480,000 new users in Q4, and SoFi's entire platform now has a total of 5.2 million customers. Total products in use also rose to 7.9 million, up about 700,000 from the third quarter. Most of those users are in the financial services segment, but lending products also continued to grow at a steady pace.
Source: SoFi
SoFi's lending products segment rose 24% YoY to 1.3 million products in use. This growth was a result of heavy demand for personal loans, and SoFi originated almost $2.5 billion in personal loans in the fourth quarter. Meanwhile, student loan originations fell over 70% YoY in US Dollar terms. Technology platform accounts grew by 31% YoY.
Source: SoFi
For the full year, CEO Anthony Noto said that adjusted net revenue would come in between $1.925 billion and $2 billion, which would mean more than 25% growth compared with 2022.
“As a result of this growth in high quality deposits, we are benefiting from a lower cost of funding for our loans," said Anthony Noto. "Our deposit funding also increases our flexibility to capture additional net interest margin and optimize returns, a critical advantage in light of notable macroeconomic uncertainty."
SoFi stock forecast
SOFI stock has already made it through the $6.50 resistance zone. That level was hard to break for bulls between July and November of last year. Now it is on to the $8.40 resistance level. That price level pushed bulls lower back in August of 2022. Before the stock can move much higher though, expect a period of consolidation to ensue around the current price action in the mid-$6s. That way the Relative Strength Index (RSI), which is already overbought, will be better equipped for another rally higher.
SOFI daily chart
- SoFi beat Wall Street consensus with its Q4 earnings.
- SOFI stock shot up 8% in Monday's premarket.
- SoFi shows demonstrated ability to continue adding customers.
- NASDAQ futures are down 1.2% due to risk-off sentiment ahead of central bank announcements.
SoFi (SOFI) bested Wall Street consensus once more on Monday as the neobank released fourth quarter results ahead of the open. SoFi showed that it continues to grow its membership and total product count, delivering GAAP earnings per share (EPS) of $-0.05. This was 4 cents better than consensus. Revenue was also ahead of forecasts at $443.4 million. That was $17.5 million ahead of consensus at up 58% YoY.
SOFI stock rose 8.4% to $6.44 in Monday's premarket.
SoFi stock news: Growth is steady for SoFi
SoFi's net loss was two-thirds smaller than the same quarter one year prior, and shareholders took this to mean that SoFi is on track to become profitable in the near future. SoFi concurred by stating it was their goal to achieve GAAP profitability by the fourth quarter of 2023.
Management gained 480,000 new users in Q4, and SoFi's entire platform now has a total of 5.2 million customers. Total products in use also rose to 7.9 million, up about 700,000 from the third quarter. Most of those users are in the financial services segment, but lending products also continued to grow at a steady pace.
Source: SoFi
SoFi's lending products segment rose 24% YoY to 1.3 million products in use. This growth was a result of heavy demand for personal loans, and SoFi originated almost $2.5 billion in personal loans in the fourth quarter. Meanwhile, student loan originations fell over 70% YoY in US Dollar terms. Technology platform accounts grew by 31% YoY.
Source: SoFi
For the full year, CEO Anthony Noto said that adjusted net revenue would come in between $1.925 billion and $2 billion, which would mean more than 25% growth compared with 2022.
“As a result of this growth in high quality deposits, we are benefiting from a lower cost of funding for our loans," said Anthony Noto. "Our deposit funding also increases our flexibility to capture additional net interest margin and optimize returns, a critical advantage in light of notable macroeconomic uncertainty."
SoFi stock forecast
SOFI stock has already made it through the $6.50 resistance zone. That level was hard to break for bulls between July and November of last year. Now it is on to the $8.40 resistance level. That price level pushed bulls lower back in August of 2022. Before the stock can move much higher though, expect a period of consolidation to ensue around the current price action in the mid-$6s. That way the Relative Strength Index (RSI), which is already overbought, will be better equipped for another rally higher.
SOFI daily chart
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