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Jun 30, 2024

SoFi Q2 2024 Earnings Report

Reported a strong second quarter with record revenue and third consecutive quarter of GAAP profitability.

Key Takeaways

SoFi Technologies reported strong Q2 2024 results, including a 20% increase in total net revenue to $598.6 million and a net income of $17.4 million, marking its third consecutive quarter of GAAP profitability. The Financial Services and Tech Platform segments drove growth, and management raised its full-year 2024 guidance.

Total net revenue increased by 20% year-over-year to $598.6 million.

Achieved net income of $17.4 million, marking the third consecutive quarter of GAAP profitability.

Financial Services and Tech Platform segments grew revenue by a combined 46% year-over-year.

Total members reached nearly 8.8 million, up 41% year-over-year.

Total Revenue
$597M
Previous year: $489M
+22.1%
EPS
$0.01
Previous year: -$0.06
-116.7%
Total Members
8.8M
Previous year: 6.2M
+41.9%
Technology Platform Accounts
158.49M
Previous year: 129.4M
+22.5%
Cash and Equivalents
$2.73B
Previous year: $3.02B
-9.4%
Total Assets
$32.6B
Previous year: $25.6B
+27.7%

SoFi

SoFi

SoFi Revenue by Segment

Forward Guidance

For Q3 2024, SoFi expects adjusted net revenue of $625 to $645 million, adjusted EBITDA of $160 to $165 million, net income of $40 to $45 million and $0.04 of EPS. For full year 2024, SoFi now expects adjusted net revenue of $2.425 to $2.465 billion, adjusted EBITDA of $605 to $615 million, GAAP net income of $175 to $185 million, and GAAP EPS of $0.09 to $0.10.

Positive Outlook

  • Adjusted net revenue of $625 to $645 million expected for Q3 2024.
  • Adjusted EBITDA of $160 to $165 million expected for Q3 2024.
  • Net income of $40 to $45 million expected for Q3 2024.
  • EPS of $0.04 expected for Q3 2024.
  • Full year adjusted net revenue expected to grow 17 to 19%.

Challenges Ahead

  • Guidance assumes lending revenue will be at least 95% of 2023 levels.
  • Tech Platform revenue to grow mid-to-high teens percentage year-over-year, versus prior guidance of 20% growth.
  • Management has not reconciled forward-looking non-GAAP measures to their most directly comparable GAAP measures.
  • The company cannot predict with reasonable certainty and without unreasonable efforts the ultimate outcome of certain GAAP components of such reconciliations due to market-related assumptions that are not within our control
  • Certain legal or advisory costs, tax costs or other costs may arise.