NASDAQ$SOFI

SoFi Technologies Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

SoFi's Q3 2024 financial results, demonstrating strong growth and profitability, were reported.

SoFi Technologies reported a strong Q3 2024 with record adjusted net revenue of $689.4 million, a 30% increase year-over-year. The company achieved GAAP net income of $60.7 million, marking its fourth consecutive quarter of profitability. Member growth and product innovation were key drivers, with Financial Services and Tech Platform segments contributing significantly to revenue growth.

  • Total net revenue reached $697.1 million, up 30% year-over-year.
  • Net income was $60.7 million, a significant improvement from the prior year's loss.
  • Adjusted EBITDA increased 90% year-over-year to $186.2 million.
  • Total members grew by 35% year-over-year, reaching nearly 9.4 million.

Headline financials

Total Revenue

$697M

Previous: $537M+29.8%
EPS

$0.05

Previous: -$0.03+266.7%
Total Members

9.4M

Previous: 6.9M+35.8%
Total Products

13.7M

No prior period
Tech Platform Accounts

160.2M

Previous: 136.7M+17.1%
Fee-Based Revenue

$272M

No prior period
Free Cash Flow

$60.7M

Previous: -$267M+122.8%
Net Income

$60.7M

Previous: -$267M+122.8%
Operating Income

-$211M

Previous: -$393M+46.3%
Gross Profit

$573M

Previous: $439M+30.6%
Stock-Based Comp

$63.6M

Previous: $62M+2.6%

Revenue & EPS history

SoFi · Revenue · Quarterly

$697M

Q3 2024+29.8%vs Q3 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

For the full year 2024, SoFi expects to deliver adjusted net revenue of $2.535 to $2.550 billion, adjusted EBITDA of $640 to $645 million, and GAAP net income of $204 to $206 million, with at least 2.3 million new members.

Tailwinds

  • Adjusted net revenue of $2.535 to $2.550 billion, implying 22 to 23% annual growth.
  • Lending adjusted net revenue will be at least 100% of 2023 levels.
  • Financial Services segment revenue to grow more than 80% year-over-year.
  • Tech Platform revenue to grow low-to-high teens percentage year-over-year.
  • Adjusted EBITDA of $640 to $645 million, representing a 25% adjusted EBITDA margin.

Headwinds

  • Management has not reconciled forward-looking non-GAAP measures to their most directly comparable GAAP measures.
  • Inability to predict with reasonable certainty the ultimate outcome of certain GAAP components of such reconciliations due to market-related assumptions.
  • Uncertainty regarding legal or advisory costs, tax costs, or other costs that may arise.
  • Potential impact on business from changing market and economic conditions, including economic downturns, fluctuating inflation and interest rates, and volatility from global events.
  • Challenges in achieving and maintaining profitability, operating efficiencies, and continued growth across segments.

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 Q3 2024

Historical avgQ3 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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