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Dec 31, 2021
SoFi Q4 2021 Earnings Report
Reported record GAAP and adjusted revenue, along with substantial member and product growth.
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.
SoFi
SoFi
SoFi Revenue by Segment
Revenue by Segment
Lending Revenue
CapyFin.comTechnology Platform Revenue
CapyFin.comFinancial Services Revenue
CapyFin.com 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.