SoFi Q4 2023 Earnings Report
Key Takeaways
SoFi Technologies, Inc. reported strong Q4 2023 results, with a 35% increase in GAAP net revenue year-over-year to $615 million and positive GAAP net income of $48 million. The company added nearly 585,000 new members and 695,000 new products during the quarter. Adjusted EBITDA reached a record $181 million, representing a 159% year-over-year growth.
GAAP Net Revenue was up 35% year-over-year, reaching $615 million.
Adjusted EBITDA increased 159% year-over-year to a record $181 million.
The company achieved positive GAAP Net Income of $48 million, with an EPS of $0.02.
Total members increased by 44% year-over-year to over 7.5 million.
SoFi
SoFi
SoFi Revenue by Segment
Forward Guidance
Management expects to generate $550 to $560 million of adjusted net revenue in the first quarter of 2024, $110 to $120 million of adjusted EBITDA and GAAP net income of $10 to $20 million. For the full year 2024, management expects Tech Platform and Financial Services segments combined to grow at least 50% and lending revenue to be 92% to 95% of 2023 levels, and expenses under the EBITDA line to be flat when compared to 2023 results, excluding the reported goodwill impairment expense.
Positive Outlook
- Adjusted EBITDA margin of approximately 30% by year-end.
- Full-year GAAP net income in the range of $95 to $105 million, or GAAP EPS of $0.07 to $0.08.
- Growth in tangible book value of $300 to $500 million for the year.
- At least 2.3 million new members during the full year 2024, which represents 30% growth.
- Revenue from our Tech Platform and Financial Services segments, combined, will be approximately equal to revenue from our Lending segment for the year.
Challenges Ahead
- Lending revenue to be 92% to 95% of 2023 levels.
- Management has not reconciled forward-looking non-GAAP measures to their most directly comparable GAAP measures of total net revenue, net income and gross margin.
- 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 as well as certain legal or advisory costs, tax costs or other costs that may arise.
- Management is unable to assess the probable significance of the unavailable information, which could materially impact the amount of the future directly comparable GAAP measures.
- The guidance anticipates a 20% adjusted EBITDA margin.
Revenue & Expenses
Visualization of income flow from segment revenue to net income