SoFi Technologies: Upward Trajectory After Financial Results

SoFi Technologies, Inc. (NASDAQ: SOFI) experienced a positive uptrend in its stock performance on Monday, as depicted on the US stock charts. The stock exhibited a robust increase of 20.21%, concluding the preceding session at $9.16. The surge is associated with the company unveiling its latest offering and disclosing its financial results before the market commenced trading.

SoFi Technologies (SOFI) disclosed impressive profits, sharing its financial results for the fourth quarter and fiscal year ending on December 31, 2023. The company sustained its streak of record-breaking financial achievements for the eleventh consecutive quarter, achieving unprecedented adjusted net revenue of $594 million.

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SOFI witnessed a substantial increase in new member additions, with nearly 585,000, leading to a 44% growth in total period end members, surpassing 7.5 million. Notably, new product additions amounted to nearly 695,000, contributing to a 41% growth, resulting in over 11 million total products at period end.

The company’s record revenue at the organizational level was propelled by remarkable performance in all three business segments. The Technology Platform and Financial Services segments, which are non-Lending, made a historic contribution, accounting for 40% of the adjusted net revenue.

On a consolidated level, SOFI observed a sequential and year-over-year expansion of net interest margin to 6.02%. Additionally, the company achieved a record adjusted EBITDA of $181 million, reflecting a remarkable 159% year-over-year growth and a 74% incremental adjusted EBITDA margin.

All three segments were profitable on a contribution basis, resulting in a 30% adjusted EBITDA margin, aligning with its long-term target. During the quarter, SOFI produced favorable GAAP net earnings amounting to $48 million, resulting in an earnings per share (EPS) of $0.02.

Throughout the quarter and the entire 2023, the tangible book value witnessed increments of $204 million and $334 million, respectively. In a separate press release, SoFi Technologies also announced that users of SoFi Invest can now engage in the investment of distinct money market funds, mutual funds, and alternative investment funds.

On the SoFi Invest platform, SoFi will initially provide more than 6,000 distinct mutual funds with a wide range of assets, including pre-IPO businesses, real estate, and private credit. The company plans to gradually extend access to alternative investments, mutual funds, and money market funds to all SoFi Invest members in the coming days.

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