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Jun 30, 2021
SoFi Q2 2021 Earnings Report
SoFi exceeded financial expectations, delivering record adjusted quarterly net revenue and its fourth consecutive quarter of positive adjusted EBITDA.
Key Takeaways
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.
SoFi
SoFi
SoFi Revenue by Segment
Revenue by Segment
Lending Revenue
CapyFin.comTechnology Platform Revenue
CapyFin.comFinancial Services Revenue
CapyFin.com 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.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income