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Mar 31, 2023

SoFi Q1 2023 Earnings Report

SoFi's first quarter of 2023 was marked by record GAAP and adjusted net revenue, along with substantial growth in members and products.

Key Takeaways

SoFi Technologies reported record GAAP net revenue of $472 million, a 43% increase year-over-year, and adjusted net revenue of $460 million, also up 43%. The company added over 433,000 new members, bringing the total to nearly 5.7 million, and nearly 660,000 new products, reaching almost 8.6 million total products. Adjusted EBITDA reached a record $76 million, up 772% year-over-year. Management raised full-year 2023 guidance.

GAAP net revenue increased by 43% to $472 million.

Adjusted net revenue also increased by 43% to $460 million.

Adjusted EBITDA increased 772% year-over-year to $76 million.

Total members increased by 46% year-over-year, reaching nearly 5.7 million.

Total Revenue
$460M
Previous year: $322M
+43.0%
EPS
-$0.05
Previous year: -$0.14
-64.3%
Total Members
5.7M
Previous year: 3.9M
+46.2%
Technology Platform Accounts
126.33M
Previous year: 109.7M
+15.2%
Gross Profit
$464M
Previous year: $317M
+46.1%
Cash and Equivalents
$2.49B
Previous year: $1.33B
+87.7%
Total Assets
$22.5B
Previous year: $12.2B
+83.3%

SoFi

SoFi

SoFi Revenue by Segment

Forward Guidance

Management expects to generate $470 to $480 million of adjusted net revenue in the second quarter of 2023, up 32% to 35% year-over-year, and $50 to $60 million of adjusted EBITDA. For the full year 2023, management expects adjusted net revenue of $1.955 to $2.02 billion, up from its prior guidance of $1.925 to $2.0 billion, and full-year adjusted EBITDA of $268 to $288 million, up from its prior guidance of $260 to $280 million, representing a 30% incremental adjusted EBITDA margin. Management expects to reach quarterly GAAP net income profitability by the fourth quarter of 2023, with GAAP net income incremental margins for the full year of 20%.

Positive Outlook

  • Adjusted net revenue in the second quarter of 2023 is expected to be $470 to $480 million, up 32% to 35% year-over-year.
  • Adjusted EBITDA in the second quarter of 2023 is expected to be $50 to $60 million.
  • Full year 2023 adjusted net revenue is expected to be $1.955 to $2.02 billion.
  • Full year adjusted EBITDA is expected to be $268 to $288 million.
  • The company expects to reach quarterly GAAP net income profitability by the fourth quarter of 2023.