SoFi Technologies Stock Jumps 20% on Q2 Beat
SoFi Technologies (NASDAQ:SOFI) shares jumped more than 20% intra-day today following the digital lender's second-quarter results, which surpassed expectations.
The company reported a loss per share of $0.06, which was slightly better than the Street estimate of a loss per share of $0.07. Furthermore, its adjusted revenue witnessed a 37% year-over-year increase, amounting to $488.8 million, beating the Street estimate of $475.9 million.
Looking ahead, SoFi expects to generate adjusted net revenue of $1.025 billion to $1.085 billion in the second half of 2023, representing a year-over-year growth of 19% to 26%. Additionally, it foresees $180-190 million of adjusted EBITDA during the same period.
For the full year 2023, SoFi has raised its outlook, expecting adjusted net revenue to be in the range of $1.974 billion to $2.034 billion, up from the prior guidance of $1.955 billion to $2.02 billion.
| Symbol | Price | %chg |
|---|---|---|
| V.BA | 18855 | 0.57 |
| MA.BA | 16830 | 1.19 |
| AXP.BA | 19855 | 0.37 |
| BFIN.JK | 1015 | -0.99 |
SoFi Reports Q1 Beat, Raises Full Year EBITDA Guidance
SoFi Technologies (NASDAQ:SOFI) raised its EBITDA guidance for the full fiscal year following a Q1 beat. In the first quarter of fiscal 2024, SoFi reported earnings per share (EPS) of $0.02, beating the consensus estimate of $0.01. The company achieved a significant revenue increase, posting $644.99 million, which notably surpassed the expected $555.09 million.
The adjusted EBITDA for the quarter was $144.4 million, marking a 91% increase year-over-year and surpassing expectations by more than $22 million. Additionally, membership numbers grew to 8.13 million, exceeding the projected 8.02 million.
Looking ahead to the second quarter, SoFi expects adjusted net revenue to be in the range of $555 million to $565 million, which is below the analyst forecast of $589.9 million. The adjusted EBITDA for the quarter is anticipated to be between $115 million and $125 million, compared to expectations of $136.3 million.
For the entire fiscal year, SoFi has upgraded its adjusted EBITDA forecast to a range of $590 million to $600 million, up from the previously anticipated range of $580 million to $590 million and surpassing the consensus estimate of $586.3 million. The company also adjusted its net revenue forecast to range from $2.39 billion to $2.43 billion, outperforming the estimated $2.38 billion.
Mizuho Still Bullish on SoFi Technologies
Mizuho analysts remain optimistic about SoFi Technologies (NASDAQ:SOFI), reiterating their Buy rating and a price target of $12 for the stock. The analysts highlighted the potential positive impact of SoFi's recent $750 million convertible note offering and a $600 million equity exchange, which initially raised concerns about stock dilution among investors.
According to Mizuho, the benefits of these financial maneuvers could eventually sway investor sentiment positively. They anticipate that the equity exchange could enhance the company's tangible book value per share by about 10% and significantly strengthen its capital ratios by more than 200 basis points, all without substantially diluting earnings per share.
Moreover, the analysts pointed out that the convertible note offering could reduce the company's annual interest expenses by over $60 million, effectively offsetting the estimated $90 million in capped call costs within approximately a year and a half.
Mizuho Still Bullish on SoFi Technologies
Mizuho analysts remain optimistic about SoFi Technologies (NASDAQ:SOFI), reiterating their Buy rating and a price target of $12 for the stock. The analysts highlighted the potential positive impact of SoFi's recent $750 million convertible note offering and a $600 million equity exchange, which initially raised concerns about stock dilution among investors.
According to Mizuho, the benefits of these financial maneuvers could eventually sway investor sentiment positively. They anticipate that the equity exchange could enhance the company's tangible book value per share by about 10% and significantly strengthen its capital ratios by more than 200 basis points, all without substantially diluting earnings per share.
Moreover, the analysts pointed out that the convertible note offering could reduce the company's annual interest expenses by over $60 million, effectively offsetting the estimated $90 million in capped call costs within approximately a year and a half.
SoFi Technologies Slashed to Underweight at Morgan Stanley
Morgan Stanley analysts adjusted their rating for SoFi Technologies (NASDAQ:SOFI), downgrading it from Equalweight to Underweight and lowering the price target from $7.00 to $6.50.
The analysts explained the downgrade by pointing to concerns over slowing revenue growth and the risks associated with achieving the 2026 EPS targets. Three months ago, they shifted from an Underweight rating due to a more balanced risk-reward scenario as SoFi's stock price had aligned with the previous price target. Additionally, SoFi had announced capital relief measures, including a new $2 billion forward flow agreement and other loan sales.
However, since then, SoFi's shares have risen over 20%, and the current price-to-tangible book value (P/TBV) of approximately 2.4x seems to the analysts to incorporate an overly optimistic view of SoFi's path to profitability by 2026. This optimism comes amidst a deteriorating revenue growth outlook for 2024. The analysts also see more downside risks than upside potentials in the medium-term outlook, which would require a significant reacceleration in revenue growth to over 25%.
SoFi Technologies Stock Soars 22% on Q4 Beat
SoFi Technologies (NASDAQ:SOFI) shares jumped more than 22% intra-day today after the company released its fourth-quarter earnings, reporting an EPS of $0.02, which exceeded the analyst expectation of $0.00. The company's revenue for the quarter was $594.2 million, surpassing the consensus estimate of $571.83 million.
Looking ahead to the first quarter of 2024, SoFi Technologies projects revenue to be between $550 and $560 million, which is below the consensus estimate of $580.1 million. Management anticipates generating adjusted net revenue in the range of $550 to $560 million, adjusted EBITDA between $110 and $120 million, and a GAAP net income of $10 to $20 million. This guidance is based on an expected 20% adjusted EBITDA margin.
For the entire year of 2024, the company expects its Tech Platform and Financial Services segments to grow by at least 50%. The lending revenue is projected to reach 92% to 95% of the levels seen in 2023. Additionally, expenses below the EBITDA line are anticipated to remain flat compared to the 2023 results, excluding the reported goodwill impairment expense. By the end of 2024, SoFi Technologies aims for an adjusted EBITDA margin of around 30%, which translates to an annual range of $580 to $590 million.
SoFi Technologies Reports Q3 Beat & Raises Outlook
SoFi Technologies (NASDAQ:SOFI) released its quarterly earnings that surpassed the predictions of Wall Street analysts. Additionally, the company raised its yearly guidance.
In the third quarter, SoFi disclosed a loss per share of $0.03, compared to the predicted loss of $0.08 per share by analysts. The revenue for the quarter stood at $537 million, marking a 27% rise year-over-year and beating the anticipated $511.13 million. The company also celebrated its highest-ever adjusted EBITDA, which amounted to $98 million, a surge of 121% compared to the previous year.
SoFi's CEO, Anthony Noto, mentioned the company's consistent growth, highlighting that they achieved their tenth straight quarter with record adjusted net revenue, totaling $531 million.
Furthermore, SoFi observed a record increase in new members, adding 717,000. This brought a 47% growth spurt, taking the total number of members to over 6.9 million. The company also reported a record addition of over 1 million new products.
