SoFi Technologies GAAP EPS of -$0.15 beats by $0.01, revenue of $279.88M beats by $0.41M

• SoFi Technologies press release (NASDAQ:SOFI): Q4 GAAP EPS of -$0.15 beats by $0.01.
• Revenue of $279.88M (+53.8% Y/Y) beats by $0.41M.
• Record 523,000 Quarterly New Member Adds Up 39% Sequentially Record 906,000 Quarterly New Product Adds Up 51% Sequentially.
• Expects Q1 adjusted net revenue of $280M-$285M vs. $303.6M consensus.

Comments

[leo773]

Dumb question - I believe for 2022, SoFi was saying $193 EBITDA ($447 with bank charter). Any reason why their 2022 EBITDA guide was lower on both numbers (even though they have charter)?

[CRS_RBL]

@leo773 Great question, I would like to hear that answer as well.

Their Jan 2021 investor presentation shows base case 22E adjusted EBITDA of 254mm, 447mm with bank charter. Even if they would argue the bank charter took longer than expected and will take time to integrate, I'm still concerned they have come down from their base case a year ago, considering their growth in the last year.

[leo773]

@CRS_RBL Only thing I can think of is lack of student loans, and only getting the charter started in Q2...But yeah.

[Travel Money]

@leo773 They provide some color on the call and press release around the bank charter and the transition required. It sounds like there is some work to be done before loan origination can occur at their new bank . If I understand correctly they should start to see the cost of capital benefits from the new bank ramp up in June

From the call

"SoFi has begun to transfer SoFi Money products to SoFi Bank, and intends to continue to transfer its Lending, SoFi Money and SoFi Credit Card products to SoFi Bank over time."

They later state in the outlook

"For note, management expects the incremental net interest income revenue from SoFi Bank to only contribute nominally to first quarter 2022 results, and prior to fully originating loans in SoFi Bank, which is currently expected in May 2022. When SoFi began operating SoFi Bank in February, it did not contribute any existing SoFi loans to SoFi Bank and initially capitalized SoFi Bank entirely with cash. Operations are still in transition to allow loan originations to occur from SoFi Bank. That transition is not expected to be fully complete until the end of May 2022."

[leo773]

Looking great - The government needs to let the student loan moratorium end already. Let people be responsible for their own debts. There are lots of jobs out there

[stephenmcmahon83]

@leo773 I’ve been saying for a while now......if Biden wants to tackle the inflation and unfilled jobs problem, end the moratorium on student loan repayments.

[Let The Led Out]

@stephenmcmahon83 look at Exxon, archer Daniel midland and Maersk stock price and you’ll see why there is inflation. Has nothing to do with student loans. Corporations are making a killing off of “inflation”.

[Oramokoma]

@leo773 There are not the type of jobs we need. Who wants to go to office 8am-5pm for a meager salary? I want to make a lot of money sitting at home, like they paid in jobless benefits. I am searching for jobs that pay a decent salary while I can do whatever I want at home

[67bmer]

I wish I knew they had a stadium deal before I bought the stock!!! How many young companies with their names on stadiums have exploded higher???

[FY2F2]

@67bmer

Even Mr. Winkle knew about the stadium deal!!

[James_B]

Nice quarter. Top line growth and member/product additions is paramount to the success of $SOFI. They seem to be executing well. Really wish the student loan moratorium would be lifted, $SOFI will have a flood of refinancing at that time... of course, Biden is on thin ice looking at his approval rating, which is well deserved imo. Delaying the student loan moratorium would help fight inflation, but give another reason for people to disown democrats in the midterms... so in my mind, it's no guarantee that moratorium is ended in May.

[JackCr]

@James_B Student Refis + Bank Charter = ?

[James_B]

@JackCr 📈📈📈

[Nana Kwaku]

I'm looking at the report and these numbers are insane.

- SOFI's adjusted EBITDA in 2022 is projected to be 6x higher than 2021.

-1.57B in adjusted net revenue

All in all the team's execution is strong.

[Winnertakesall]

Still burning cash... why anyone invest in companies like this is beyond me.

[Glasshalffull]

@Winnertakesall It's called investing - by both the company, and the shareholders. Yes, eventually will want to see them cash flow positive. It took Amazon (and most start-ups) a while to do that as well.

[Rleaton]

@Winnertakesall because by the time it’s not burning cash it’s much much more expensive

[DrewMcVay]

@Winnertakesall Exactly. Never heard of a financial company that lost money and continued to exist.

[cobalt01]

SOFI how about you try to buy UpStart now, and dominate bank lending.

[Kenny Crabstance]

@cobalt01 how about upstart buy sofi

[Fooly Finance]

Future 25 bagger. Buy and hold.

[Rafaelbraganca]

@Fooly Finance Just 25X? Lol 😄

[Fooly Finance]

@Rafaelbraganca Well from this depressed level more like 30x.

[Let The Led Out]

Great work, can’t wait too see this company grows into 5 years from now. Could be special, I pulled the trigger a little too early so couldn’t add until I saw the earnings report. But this and the rotation back into growth (yeah it’s happening) should boost this back maybe to high teens this year.

[Bnuts Alpha]

Incredible sequential growth of subs and products = future revenue. Long

[Adambombfx]

SWEET !!!!

SOFI LONG on 11,000 Shares !

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[JackCr]

@Adambombfx Average cost?

[Adambombfx]

@JackCr

5,000 @ $13.79
5,000 @ $12.11
1,000 @ $8.85

11,000 Shares Avg cost basis $12.57 per share

[snappygranny]

All in all, a very positive result. Long SOFI and holding!

[Norseman111]

stay long my friends

[Jack Bandit]

Grow baby, GROW!!!

[cobalt01]

new product ads over new customers is a great sign of things to come. Let's hope the Superbowl and playoff shows at SOFI stadium give us a great boost to customers for next earnings. long $SOFI

[mjs504]

Hopefully management says some good things on the call. AH action is up so far

[PauloCostaSilva]

Love it. More than 500k quarterly new members !! Long and strong.

[patton21]

Great job SoFi!

[Nana Kwaku]

Looks good to me. I look forward to webcast.