SoFi Stock Soars First Quarterly Profit

SoFi's earnings and revenue outlooks beat estimates, with shares jumping 19%. CEO Noto highlights non-lending segments and membership growth.

SoFi Technologies Inc. (SOFI) had a stellar performance in the fourth quarter, with shares soaring over 19% in intraday trading on Monday. The California-based online bank and personal finance lender reported its first quarterly profit, with net income of $47.9 million and revenue reaching a record $594.25 million, a 34% increase from the prior-year quarter. Both figures exceeded expectations, and the company's CEO, Anthony Noto, highlighted that 40% of adjusted net revenue came from non-lending segments.

Lending also saw significant growth for SoFi, with personal, student, and home loan origination volumes increasing by 31%, 95%, and 193% respectively from the previous year. The company added 585,000 new members in the fourth quarter, bringing the total membership to 7.54 million, a 44% increase from 2022. Total deposits grew by $2.9 billion, finishing the year at $18.6 billion, with more than 90% of SoFi Money deposits coming from direct deposit members.

Looking ahead, SoFi anticipates full-year earnings per share of between 7 cents and 8 cents, with revenue expected to range from $550 million to $560 million, both of which exceed analysts' estimates. The strong performance has driven SoFi shares up by 19.4% to $9.09 per share as of about 1:45 p.m. ET on Monday, marking a 36% increase over the past year. This impressive growth reflects the company's robust sales and membership expansion, positioning SoFi as a leader in the online banking and personal finance sector.