NASDAQ$SOFI

SoFi Technologies Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported record GAAP and adjusted revenue, along with substantial member and product growth.

SoFi Technologies reported record GAAP revenue of $286 million and adjusted revenue of $280 million for Q4 2021, representing year-over-year growth of 67% and 54%, respectively. The company achieved a positive adjusted EBITDA of $5 million for the sixth consecutive quarter and added a record 523,000 new members and 906,000 new products during the quarter.

  • Total GAAP net revenue reached $285.6 million, up 67% year-over-year.
  • Adjusted net revenue was $279.9 million, a 54% increase year-over-year.
  • Added a record 523,000 new members, a 39% increase sequentially.
  • Added a record 906,000 new products, a 51% increase sequentially.

Headline financials

Total Revenue

$280M

Previous: $43.2M+548.5%
EPS (adj)

-$0.15

Previous: -$1.92+92.2%
Total Members

3.5M

Previous: 1.9M+87.0%
Tech Platform Accounts

99.7M

Previous: 59.7M+66.8%
Net Income

-$111M

Previous: -$82.6M-34.4%
Gross Profit

$281M

Previous: $171M+63.8%
Cash & Equivalents

$495M

Previous: $873M-43.3%
Total Assets

$9.18B

Previous: $8.56B+7.2%
Stock-Based Comp

$76.7M

Previous: $30.1M+155.0%

Revenue & EPS history

SoFi · Revenue · Quarterly

$280M

Q4 2021+548.5%vs Q4 2020
Beat estimate in 8 of 10 quarters(80%)
ActualEstimate

Revenue by segment

SoFi · $289M total across 3 segments · Q4 2021

  • Lending
    $214M+43.5%
  • Technology Platform
    $53.3M+42.2%
  • Financial Services
    $22M+442.0%

Forward guidance

For Q1 2022, SoFi expects adjusted net revenue of $280 to $285 million and adjusted EBITDA of $0 to $5 million. For full year 2022, the company expects adjusted net revenue to grow 55% year-over-year to $1.57 billion and adjusted EBITDA of $180 million.

Tailwinds

  • Federal student loan payment moratorium expiring as contemplated on May 1, 2022.
  • Student loan refinance origination volume normalizes to pre-Covid levels partway through the second quarter, and remains at those levels from that point through the remainder of 2022.
  • SoFi Bank will begin contributing to SoFi’s results more meaningfully in the second quarter of 2022.
  • Technisys revenue growth will be 20% to 25% for full-year 2022, and will begin contributing to SoFi's results following the close of the transaction.
  • The core SoFi business (excluding the impact of Technisys) to deliver incremental adjusted EBITDA margins of 30% in 2022.

Headwinds

  • The negative impact of the unexpected extension of the federal student loan payment moratorium to May 1, 2022.
  • Loan origination levels for the entire quarter will remain consistent with those of the first three quarters of 2021.
  • 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.
  • Management expects Technisys to contribute a minimal amount to adjusted EBITDA in 2022, primarily because 2021 was a year of significant investment for Technisys.
  • Management currently forecasts Stock-Based Compensation expense of $80 to $85 million for the first quarter of 2022 and $340 million for the full year.

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 Q4 2021

Historical avgQ4 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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