SoFi Technologies Inc. (NASDAQ:SOFI) shares reversed gains after the company announced results for the first fiscal quarter of 2024 Monday.
Adjusted revenue increased 26% year over year to $580.648 million, beating the consensus of $555.997 million. Adjusted EPS of $0.02 beat the $0.01 consensus.
SoFi added 622,000 new members during the quarter, bringing total members to more than 8.1 million (+44% year-over-year).
SoFi also added more than 989,000 new products during the quarter, for a total of more than 11.8 million products (+38% year-over-year) at the end of the quarter.
In the financial services segment, total revenue increased 42% year-on-year to 10.1 million.
SoFi Money (including checking, savings and cash management accounts) grew 61% year-over-year to 3.9 million products.
SoFi Relay grew 64% year-over-year to 3.6 million products, and SoFi Invest grew 1% year-over-year to 2.2 million products. After adjusting to exclude accounts from its now-shuttered digital assets business, total revenue increased 24% year over year.
Adjusted EBITDA increased 91% year-over-year to $144.39 million, representing an incremental EBITDA margin of 57%.
Total deposits increased 16% year over year to $21.6 billion at the end of the quarter, with more than 90% of SoFi Money deposits (including checking, savings accounts and cash management) from direct deposit members.
Outlook: SoFi forecast second-quarter adjusted net revenue of $555 million to $565 million (vs. consensus of $580.73 million) and adjusted EBITDA of $115 million to $125 million.
For the full year 2024, SoFi reiterated that the technological platform and financial services segments combined will grow at least 50%, and lending revenue will be 92-95% of 2023 levels.
It projects an adjusted EBITDA margin of around 25% by the end of the year (down from 30% previously), which equates to a range of $590 million to $600 million ( $580 million to $590 million previously) for the year. It expects GAAP EPS of $0.08 to $0.09 (previously $0.07 to $0.08) (vs. consensus of $0.08).
SoFi Technologies stock has gained 44% over the past 12 months. Investors can gain exposure to the stock via VanEck Social Sentiment ETF (NYSE: BUZZ) and Schwab Strategic Trust Schwab Crypto Thematic ETF (NYSE:STCE).
Price action: SOFI shares are down 10% at $7.08 at last check Monday.
Photo via Shutterstock
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