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Dec 31, 2023
SoFi Q4 2023 Earnings Report
Reported record financial results, generated eleventh consecutive quarter of record adjusted net revenue, and achieved GAAP profitability.
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
Revenue by Segment
Lending Revenue
CapyFin.comTechnology Platform Revenue
CapyFin.comFinancial Services Revenue
CapyFin.com 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