NASDAQ$SOFI

SoFi Technologies Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

SoFi exceeded financial expectations, delivering record adjusted quarterly net revenue and its fourth consecutive quarter of positive adjusted EBITDA.

SoFi Technologies reported strong second-quarter results, exceeding financial expectations with record adjusted quarterly net revenue and the fourth consecutive quarter of positive adjusted EBITDA. The company saw significant growth in members and total products, driven by expansion in the Financial Services segment and increased its Galileo account base to nearly 79 million.

  • Total year-over-year member growth accelerated for the 8th consecutive quarter to 2.6 million.
  • Total products reached 3.7 million, up 123% year-over-year.
  • Record quarterly net revenue was up 101% year-over-year, and adjusted net revenue was up 74% year-over-year.
  • The company successfully completed its business combination and public listing on Nasdaq.

Headline financials

Total Revenue

$231M

Previous: $21.2M+992.6%
EPS (adj)

-$0.48

Previous: -$1.68+71.4%
Total Members

2.6M

Previous: 1.2M+116.7%
Tech Platform Accounts

79.0M

Previous: 36.0M+119.4%
Free Cash Flow

-$165M

No prior period
Net Income

-$165M

Previous: $7.81M-2217.2%
Operating Income

-$167M

No prior period
Gross Profit

$171M

Previous: $115M+48.5%
Cash & Equivalents

$462M

No prior period
Total Assets

$7.65B

No prior period
Stock-Based Comp

$52.2M

Previous: $43.2M+20.6%

Revenue & EPS history

SoFi · Revenue · Quarterly

$231M

Q2 2021+992.6%vs Q2 2020
Beat estimate in 8 of 10 quarters(80%)
ActualEstimate

Revenue by segment

SoFi · $229M total across 3 segments · Q2 2021

  • Lending
    $166M+73.4%
  • Technology Platform
    $45.3M+138.2%
  • Financial Services
    $17M+601.8%

Forward guidance

Management expects continued strong growth in the third quarter of 2021, with expected adjusted net revenue of $245 million to $255 million and expected adjusted EBITDA of $(7) million to $3 million. Management reiterates its full-year 2021 guidance of adjusted net revenue of $980 million and adjusted EBITDA of $27 million.

Tailwinds

  • Continued strong growth expected in Q3 2021.
  • Adjusted net revenue expected to be $245M-$255M in Q3 2021.
  • Adjusted EBITDA expected to be $(7)M-$3M in Q3 2021.
  • Full-year 2021 adjusted net revenue guidance reiterated at $980M.
  • Full-year 2021 adjusted EBITDA guidance reiterated at $27M.

Headwinds

  • Lowered expectations for second-half student loan refinancing revenue by $40 million.
  • Extension of the CARES Act moratorium on student loan payments impacts revenue.
  • Reduced Technology Platform revenue estimate by $12 million due to the minority stake in Apex being bought back.
  • Adjusted EBITDA is expected to be negative for Q3 2021.
  • Student loan growth remains depressed relative to pre-COVID levels.

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 Q2 2021

Historical avgQ2 2021

+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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