SoFi Reports Earnings Early, Shares Decline In Choppy Trading

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SoFi Technologies (NASDAQ: SOFI) released its Q1 earnings early today as the release was supposed to hit the wires after market close. The results are a bit of a mixed bag and shares in SoFi are moving lower continuing a decline that started in 2022. Trading in SoFi shares was halted briefly due to the surprise early release.

SoFi is a multifaceted Fintech that started as an online lender and now is more of a digital bank or Robinhood competitor.

According to the company report, Q1 total GAAP net revenue was $330.3 million an increase of 69% from the corresponding prior-year period total of $196.0 million.

Q1 adjusted net revenue of $321.7 million was up 49% from the same prior-year period total of $216.0 million.

SoFi recorded a GAAP net loss of $110.4 million for the first quarter of 2022, which compares positively to the prior-year period’s net loss of $177.6 million.  Adjusted Q1 EBITDA arrived at $8.7 million an increase of 89% sequentially.

SoFi said that it achieved its third-highest member growth in the first quarter of 2022. New member additions of 408,036 brought total members to 3.9 million by quarter-end, up nearly 1.6 million, or 70%, from the end of 2021’s first quarter.

Anthony Noto, CEO of SoFi, commented:

“We delivered another quarter of great results, with record adjusted net revenue up 49% year-over-year, a seventh consecutive quarter of positive adjusted EBITDA and continued robust growth in members, products and cross-buy. These strong results, which we achieved despite volatile markets and the changing political, fiscal and economic landscape, demonstrate how our strategy of building a full suite of differentiated products and services has created a uniquely diversified business that can not only endure, but outperform across market cycles. Because of the depth and breadth of our offerings, we were able to make swift and critical adjustments in priorities and spend as conditions evolved quickly, to capitalize on growth opportunities and exceed our performance targets. Strength across all three of our business segments — Lending, Technology Platform and Financial Services — drove our record first quarter adjusted net revenue of $322 million, and adjusted EBITDA of nearly $9 million.”

While earnings were in line with expectations guidance was a bit soft. SoFi expects adjusted Q2 net revenue of $330 million to $340 million, up 39% to 43% year-over-year, and expected adjusted EBITDA of $5 million to $15 million.

Full-year numbers are anticipated at adjusted net revenue of $1.505 billion to $1.510 billion and full-year adjusted EBITDA of $100 million to $105 million

SoFi will host a live audio webcast beginning at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) today to reviea quarterly earnings. The webcast is open to the public and available here.