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Sep 30, 2024
SoFi Q3 2024 Earnings Report
SoFi's Q3 2024 financial results, demonstrating strong growth and profitability, were reported.
Key Takeaways
SoFi Technologies reported a strong Q3 2024 with record adjusted net revenue of $689.4 million, a 30% increase year-over-year. The company achieved GAAP net income of $60.7 million, marking its fourth consecutive quarter of profitability. Member growth and product innovation were key drivers, with Financial Services and Tech Platform segments contributing significantly to revenue growth.
Total net revenue reached $697.1 million, up 30% year-over-year.
Net income was $60.7 million, a significant improvement from the prior year's loss.
Adjusted EBITDA increased 90% year-over-year to $186.2 million.
Total members grew by 35% year-over-year, reaching nearly 9.4 million.
SoFi
SoFi
SoFi Revenue by Segment
Revenue by Segment
Lending Revenue
CapyFin.comTechnology Platform Revenue
CapyFin.comFinancial Services Revenue
CapyFin.com Forward Guidance
For the full year 2024, SoFi expects to deliver adjusted net revenue of $2.535 to $2.550 billion, adjusted EBITDA of $640 to $645 million, and GAAP net income of $204 to $206 million, with at least 2.3 million new members.
Positive Outlook
- Adjusted net revenue of $2.535 to $2.550 billion, implying 22 to 23% annual growth.
- Lending adjusted net revenue will be at least 100% of 2023 levels.
- Financial Services segment revenue to grow more than 80% year-over-year.
- Tech Platform revenue to grow low-to-high teens percentage year-over-year.
- Adjusted EBITDA of $640 to $645 million, representing a 25% adjusted EBITDA margin.
Challenges Ahead
- Management has not reconciled forward-looking non-GAAP measures to their most directly comparable GAAP measures.
- Inability to predict with reasonable certainty the ultimate outcome of certain GAAP components of such reconciliations due to market-related assumptions.
- Uncertainty regarding legal or advisory costs, tax costs, or other costs that may arise.
- Potential impact on business from changing market and economic conditions, including economic downturns, fluctuating inflation and interest rates, and volatility from global events.
- Challenges in achieving and maintaining profitability, operating efficiencies, and continued growth across segments.
Revenue & Expenses
Visualization of income flow from segment revenue to net income