SoFi Q3 2023 Earnings Report
Key Takeaways
SoFi Technologies Inc. reported record GAAP net revenue of $537 million, up 27% year-over-year, and adjusted net revenue of $531 million, also up 27% year-over-year. The company added over 717,000 new members and achieved record adjusted EBITDA of $98 million, representing a 121% increase year-over-year. Excluding a goodwill impairment, the EPS loss was $0.03, reinforcing confidence in achieving positive GAAP net income in Q4 2023.
Record GAAP net revenue of $537 million, a 27% increase year-over-year.
Adjusted EBITDA reached a record $98 million, up 121% year-over-year.
New member additions exceeded 717,000, bringing the total member count to over 6.9 million, a 47% increase year-over-year.
Total deposits grew by $2.9 billion, a 23% increase during the quarter, reaching $15.7 billion.
SoFi
SoFi
SoFi Revenue by Segment
Forward Guidance
For the full year 2023, management expects adjusted net revenue of $2.045 to $2.065 billion, up from its prior guidance of $1.974 to $2.034 billion, and full-year adjusted EBITDA of $386 to $396 million, up from its prior guidance of $333 to $343 million.
Positive Outlook
- Adjusted net revenue is expected to be between $2.045 to $2.065 billion.
- Adjusted EBITDA is projected to be between $386 to $396 million.
- Incremental adjusted EBITDA margin of 48% is anticipated.
- Adjusted EBITDA margin is expected to range from 18.9% to 19.2%.
- Company moves toward expected GAAP net income profitability in the fourth quarter.
Challenges Ahead
- Depreciation and amortization expenses are expected to increase in the mid-to-high single digit percentage range in Q4 relative to Q3.
- Share-based compensation expenses are expected to increase in the mid-to-high single digit percentage range in Q4 relative to Q3.
- Management has not reconciled forward-looking non-GAAP measures to their most directly comparable GAAP measures.
- The company cannot predict with reasonable certainty 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.