SoFi Q4 2021 Earnings Report
Key Takeaways
SoFi Technologies reported record GAAP revenue of $286 million and adjusted revenue of $280 million for Q4 2021, representing year-over-year growth of 67% and 54%, respectively. The company achieved a positive adjusted EBITDA of $5 million for the sixth consecutive quarter and added a record 523,000 new members and 906,000 new products during the quarter.
Total GAAP net revenue reached $285.6 million, up 67% year-over-year.
Adjusted net revenue was $279.9 million, a 54% increase year-over-year.
Added a record 523,000 new members, a 39% increase sequentially.
Added a record 906,000 new products, a 51% increase sequentially.
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SoFi Revenue by Segment
Forward Guidance
For Q1 2022, SoFi expects adjusted net revenue of $280 to $285 million and adjusted EBITDA of $0 to $5 million. For full year 2022, the company expects adjusted net revenue to grow 55% year-over-year to $1.57 billion and adjusted EBITDA of $180 million.
Positive Outlook
- Federal student loan payment moratorium expiring as contemplated on May 1, 2022.
- Student loan refinance origination volume normalizes to pre-Covid levels partway through the second quarter, and remains at those levels from that point through the remainder of 2022.
- SoFi Bank will begin contributing to SoFi’s results more meaningfully in the second quarter of 2022.
- Technisys revenue growth will be 20% to 25% for full-year 2022, and will begin contributing to SoFi's results following the close of the transaction.
- The core SoFi business (excluding the impact of Technisys) to deliver incremental adjusted EBITDA margins of 30% in 2022.
Challenges Ahead
- The negative impact of the unexpected extension of the federal student loan payment moratorium to May 1, 2022.
- Loan origination levels for the entire quarter will remain consistent with those of the first three quarters of 2021.
- Operations are still in transition to allow loan originations to occur from SoFi Bank. That transition is not expected to be fully complete until the end of May 2022.
- Management expects Technisys to contribute a minimal amount to adjusted EBITDA in 2022, primarily because 2021 was a year of significant investment for Technisys.
- Management currently forecasts Stock-Based Compensation expense of $80 to $85 million for the first quarter of 2022 and $340 million for the full year.