Key Takeaways
- SoFi reported its first quarterly profit Monday, as its lending and non-lending segments gained.
- SoFi added 585,000 members in the fourth quarter for a total of 7.54 million, a 44% jump from 2022.
- SoFi’s full-year earnings and revenue outlooks were above estimates.
SoFi Technologies Inc. (SOFI) shares jumped over 19% in intraday trading Monday after the online bank and personal finance lender posted its first quarterly profit Monday as sales and membership soared for the fourth quarter.
The California-based bank reported fourth-quarter net income of $47.9 million, or 2 cents per share. Revenue jumped 34% from the prior-year quarter to a record $594.25 million. Both results exceeded forecasts.
Chief Executive Officer (CEO) Anthony Noto pointed out that 40% of adjusted net revenue was generated by non-lending segments (Technology Platform and Financial Services segments). Lending also rose for SoFi, with personal, student, and home loan origination volumes up 31%, 95%, and 193% from a year ago, respectively.
Noto said that SoFi added 585,000 new members, an 8.4% increase from the third quarter. That brought total membership at the end of the year to 7.54 million, a 44% gain from 2022. He noted that total deposits grew by $2.9 billion, or 19%, in the quarter, finishing the year at $18.6 billion. Noto added that more than 90% of SoFi Money deposits, including checking and savings and cash management accounts, were from direct deposit members.
The company anticipates full-year earnings per share of between 7 cents and 8 cents, with revenue of $550 million to $560 million. Those were above analysts’ estimates as well.
SoFi shares were up 19.4% to $9.09 per share as of about 1:45 p.m. ET Monday, and have climbed about 36% over the past year.
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