By SoFi Technologies Inc., a financial-technology company, experienced a significant surge in its shares by 7% during Monday’s pre-market trading following impressive third-quarter results and an optimistic outlook.
Strong Financial Performance
In the third quarter, SoFi reported a net loss of $266.7 million, or 29 cents per share, compared to a loss of $84.4 million, or 9 cents per share, in the same period last year. However, analysts had predicted a loss of 8 cents per share, according to FactSet.
Excluding non-cash impairment charges, the company stated that it would have recorded a loss of 3 cents per share, reinforcing its confidence in achieving positive GAAP net income in the fourth quarter of 2023.
SoFi also demonstrated robust earnings before interest, taxes, depreciation, and amortization (EBITDA), reaching $98 million for the quarter. This represents substantial growth from the $44 million recorded in the year-earlier quarter and exceeded the FactSet consensus of $65 million.
Impressive Revenue Growth
SoFi’s revenue showed remarkable growth, increasing to $537 million from $424 million year-over-year. Analysts had estimated revenue of $518 million.
The company experienced a surge in personal-loan originations, reaching $3.9 billion, marking a 38% increase compared to the previous year. Home-loan originations also rose significantly by 64% to $355.7 million. SoFi attributed this increase to the integration of Wyndham Capital Mortgage, as well as improved fulfillment capacity resulting from an acquisition made at the beginning of the second quarter.
Student-loan originations saw exceptional growth, climbing to $919.3 million, a substantial 101% increase from the previous year.
Positive Outlook
For the full year, SoFi’s adjusted net revenue is projected to range between $2.045 billion and $2.065 billion, exceeding the previous forecast of $1.974 billion to $2.034 billion. The FactSet consensus was estimated at $2.026 billion.
Additionally, the company now expects full-year adjusted EBITDA to be between $386 million and $396 million, up from the initial forecast of $333 million to $343 million. Analysts had anticipated $344 million.
This strong financial performance and positive outlook reflect SoFi’s success in the financial-technology industry and position it for continued growth in the future.
Comments