NASDAQ$SOFI

SoFi Technologies Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

SoFi's Q1 2024 was marked by strong revenue growth, GAAP profitability, and increased member base.

SoFi Technologies reported a strong start to 2024 with significant momentum in revenue growth and diversification towards Financial Services and Tech Platform segments. The company achieved GAAP net income of $88 million and adjusted net revenue of $581 million, representing 26% year-over-year growth. Management raised FY24 guidance based on the strong Q1 performance.

  • Total net revenue increased by 37% year-over-year to $645 million.
  • Achieved net income of $88 million, marking the second consecutive quarter of GAAP profitability.
  • Adjusted net revenue grew 26% year-over-year to $581 million.
  • Total deposits grew by a record of $3.0 billion, up 16% during the first quarter to $21.6 billion at quarter-end.

Headline financials

Total Revenue

$645M

Previous: $472M+36.6%
EPS

$0.02

Previous: -$0.05+140.0%
Total Members

8.1M

Previous: 5.7M+42.7%
Tech Platform Accounts

151.0M

Previous: 126.3M+19.6%
Free Cash Flow

$88M

Previous: -$34.4M+355.8%
Net Income

$88M

Previous: -$34.4M+355.8%
Operating Income

-$49.9M

Previous: -$102M+50.9%
Gross Profit

$545M

Previous: $388M+40.4%
Stock-Based Comp

$55.1M

Previous: $64.2M-14.2%

Revenue & EPS history

SoFi · Revenue · Quarterly

$645M

Q1 2024+36.6%vs Q1 2023
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

SoFi · $557M total across 3 segments · Q3 2023

  • Lending
    $349M+15.7%
  • Financial Services
    $118M+141.6%
  • Technology Platform
    $89.9M+6.1%

Forward guidance

SoFi provided guidance for full year 2024, expecting adjusted net revenue of $2.39 to $2.43 billion and adjusted EBITDA of $590 to $600 million. They also expect GAAP net income of $165 to $175 million and GAAP EPS of $0.08 to $0.09.

Tailwinds

  • Adjusted net revenue of $2.39 to $2.43 billion
  • Adjusted EBITDA of $590 to $600 million
  • GAAP net income of $165 to $175 million
  • GAAP EPS of $0.08 to $0.09
  • Growth in tangible book value of approximately $800 million to $1 billion

Headwinds

  • Lending revenue will be 92% to 95% of 2023 levels
  • Tech Platform will grow approximately 20% year over year
  • Management has not reconciled forward-looking non-GAAP measures to their most directly comparable GAAP measures
  • The company cannot predict with reasonable certainty and without unreasonable efforts the ultimate outcome of certain GAAP components of such reconciliations
  • Management is unable to assess the probable significance of the unavailable information, which could materially impact the amount of the future directly comparable GAAP measures

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+0.3%

Avg return

Earnings day

-2.3%

Avg return

5 days after

-4.2%

Avg return

30 days after

54%

13 / 24 earnings

Positive

+29.4%

Q2 2022

Best reaction

-21.3%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.4%-11.8%-0.7%
Q4 2025-2.1%-14.8%-27.1%
Q3 2025+3.7%-1.1%-5.0%
Q1 2025+0.5%-3.8%-0.2%
Q4 2024-10.3%-11.9%-19.3%
Q3 2024+0.3%-1.3%+44.1%
Q2 2024+2.9%-9.3%+9.5%
Q1 2024-13.9%-11.6%-13.0%
Q4 2023+10.2%+3.4%+16.3%
Q3 2023+9.9%+16.6%+7.0%
Q2 2023+8.4%-0.5%-8.5%
Q1 2023-21.3%-17.2%+11.4%
Q4 2022+16.7%+25.6%+8.4%
Q3 2022-5.9%-4.8%-12.9%
Q2 2022+29.4%+25.2%-8.0%
Q1 2022-8.0%+13.1%+2.3%
Q4 2021+1.1%-12.7%-17.5%
Q4 2019+1.1%-12.7%-17.5%
Q3 2020-4.8%-10.5%-33.4%
Q3 2021+3.7%+3.5%-32.2%
Q2 2020-8.3%-6.3%+3.1%
Q2 2021-11.3%-18.6%-9.5%
Q1 2021+7.5%+7.3%+14.0%
Q4 2020-1.7%-1.0%-11.5%
Q1 2020

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