Record GAAP and Adjusted Net Revenue for Third
Quarter 2023
GAAP Net Revenue of $537 Million Up 27%; $531
Million Adjusted Net Revenue Up 27% Year-over-Year
Record Adjusted EBITDA of $98 Million Up 121%
Year-over-Year
GAAP EPS Loss of $0.29; EPS Loss Excluding the
Impact of Goodwill Impairment of $0.03
New Member Adds of Over 717,000; Quarter-End
Total Members Up 47% Year-over-Year to Over 6.9 Million
New Product Adds of Nearly 1,047,000;
Quarter-End Total Products Up 45% Year-over-Year to Over 10.4
Million
Total Deposit Growth of $2.9 Billion, Up 23%
During the Third Quarter to $15.7 Billion
$68 Million Growth in Tangible Book Value, $171
Million on a Trailing 12 Month Basis
Management Raises Full-Year 2023 Guidance
SoFi Technologies, Inc. (NASDAQ: SOFI), a member-centric,
one-stop shop for digital financial services that helps members
borrow, save, spend, invest and protect their money, reported
financial results today for its third quarter ended September 30,
2023.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20231030099822/en/
Note: For additional information on our
company metrics, including the definitions of "Members", "Total
Products" and "Technology Platform Total Accounts", see Table 6 in
the “Financial Tables” herein. (1) The company includes SoFi
accounts on the Galileo platform-as-a-service in its total
Technology Platform accounts metric to better align with the
presentation of Technology Platform segment revenue. (2) In 2023,
Technology Platform total accounts reflects the previously
disclosed migration by one of our clients of the majority of its
processing volumes to a pure processor. These accounts remained
open for administrative purposes through the end of 2022, and were
included in our total accounts in such period. (Photo: Business
Wire)
“We delivered another quarter of record financial results and
generated our tenth consecutive quarter of record adjusted net
revenue of $531 million. We saw record new member adds of 717,000
and accelerating growth of 47% for total ending members of over 6.9
million, along with record new product adds of over 1 million, also
with accelerating growth of 45% to over 10 million total products.
Record revenue at the company level was driven by record revenue
across all three of our business segments, with 67% of adjusted net
revenue growth coming from our non-Lending segments (Technology
Platform and Financial Services segments). On a consolidated level,
we saw sequential and year-over-year expansion in our net interest
margin to 5.99% and record sequential deposit growth of $2.9
billion. We also generated record adjusted EBITDA of $98 million,
representing a 48% incremental adjusted EBITDA margin and a 18%
margin overall, with all three business segments profitable as the
Financial Services segment posted positive contribution profit for
the first time. Excluding the impact of a non-cash impairment of
goodwill assets, we would have had a net loss of $19.5 million and
an EPS loss of $0.03, which reinforces our confidence in achieving
positive GAAP net income in the fourth quarter of 2023. Finally, we
generated $68 million in tangible book value growth in the quarter
and $171 million on a trailing 12-month basis,” said Anthony Noto,
CEO of SoFi Technologies, Inc.
Consolidated Results Summary
Three Months Ended September
30,
% Change
($ in thousands, except per share
amounts)
2023
2022
Consolidated – GAAP
Total net revenue
$
537,209
$
423,985
27
%
Net loss
(266,684
)
(74,209
)
259
%
Net loss attributable to common
stockholders – basic and diluted(1)
(276,873
)
(84,398
)
228
%
Loss per share attributable to common
stockholders – basic and diluted
(0.29
)
(0.09
)
222
%
Consolidated – Non-GAAP
Adjusted net revenue(2)
$
530,717
$
419,256
27
%
Adjusted EBITDA(2)
98,025
44,298
121
%
Net loss, excluding impact of goodwill
impairment(3)
(19,510
)
(74,209
)
(74
)%
Net loss attributable to common
stockholders, excluding impact of goodwill
impairment - basic and diluted(1)(3)
(29,699
)
(84,398
)
(65
)%
Loss per share attributable to common
stockholders, excluding impact of goodwill
impairment – basic and diluted(3)
(0.03
)
(0.09
)
(67
)%
Tangible book value (as of period
end)(4)
3,272,576
3,101,281
6
%
___________________
- Adjusted for the contractual amount of dividends payable to
holders of Series 1 redeemable preferred stock, which are
participating interests.
- Adjusted net revenue and adjusted EBITDA are non-GAAP financial
measures. For more information and reconciliations to the most
comparable GAAP measures, see “Non-GAAP Financial Measures” and
Table 2 to the “Financial Tables” herein.
- Loss per share attributable to common stockholders, excluding
impact of goodwill impairment is defined as net income (loss)
attributable to common stockholders, adjusted to exclude goodwill
impairment losses of $247.2 million for the three months ended
September 30, 2023, divided by the weighted average common stock
outstanding for the respective periods. The goodwill impairment
adjustment had no impact on weighted average common stock
outstanding, or income tax impacts.
- Defined as permanent equity, adjusted to exclude goodwill and
intangible assets.
Noto continued: “Our record number of member and product
additions, along with improving operating efficiency, reflects the
benefits of our broad product suite and unique Financial Services
Productivity Loop (FSPL) strategy."
Noto concluded: “Total deposits grew by $2.9 billion, up 23%
during the third quarter to $15.7 billion at quarter-end, and over
90% of SoFi Money deposits (inclusive of Checking and Savings and
cash management accounts) are from direct deposit members. For new
direct deposit accounts opened in the third quarter, the median
FICO score was 743. More than half of newly funded SoFi Money
accounts are setting up direct deposit by day 30, and this has had
a significant impact on debit spending, which exceeded $1 billion
in quarterly debit transaction volume and was up 3.2x
year-over-year, representing more than $5 billion of annualized
debit transaction volume. We continue to see strong cross-buy
trends from this attractive member base into Lending and other
Financial Services products. With our launch in the first quarter
of 2023 of enhanced FDIC insurance of up to $2 million, nearly 98%
of our deposits were insured at quarter-end.
As a result of this growth in high quality deposits, we have
benefited from a lower cost of funding for our loans. Our deposit
funding also increases our flexibility to capture additional net
interest margin (NIM) and optimize returns, a critical advantage in
light of notable macroeconomic uncertainty. SoFi Bank, N.A.
generated $84.8 million of GAAP net income at a 19% margin.”
Consolidated Results
Third quarter total GAAP net revenue increased 27% to $537.2
million from the prior-year period's $424.0 million. Third quarter
adjusted net revenue of $530.7 million was up 27% from the same
prior-year period's $419.3 million. Third quarter record adjusted
EBITDA of $98.0 million increased 121% from the same prior year
period's $44.3 million.
SoFi hit a number of key financial inflection points in the
quarter, including positive contribution profit in the Financial
Services segment of $3.3 million, versus a $4.3 million loss in the
second quarter of 2023 and $52.6 million loss in the third quarter
of 2022. Notably, of the $111.5 million of incremental adjusted net
revenue, over $74.4 million, or 67%, came from the non-Lending
segments (Technology Platform and Financial Services segments).
Additionally, adjusted EBITDA of $98.0 million exceeded share-based
compensation expense of $62.0 million for the third consecutive
quarter. These points reinforce the company’s confidence in
achieving GAAP profitability for the company for the fourth quarter
of 2023. SoFi recorded a GAAP net loss of $266.7 million for the
third quarter of 2023, an increase from the prior-year period's net
loss of $74.2 million.
Net interest income of $345.0 million was up 119% from the
prior-year period and up 18% sequentially. Net interest margin of
5.99% was a record for the company, up from 5.74% last quarter and
5.86% in the prior-year quarter. Excluding the impact of a non-cash
impairment of goodwill assets, we would have had a net loss of
$19.5 million.
The average rate on interest-earning assets increased by 53
basis points sequentially and 244 basis points versus the
prior-year period, as the company continued to successfully
increase the weighted average coupon in its personal loans and
student loans, while the average rate on interest-bearing
liabilities increased just 18 basis points sequentially and 230
basis points year-over-year. The funding of loans continued to
shift toward deposits. In the quarter, the average rate on deposits
was 219 basis points lower than that of warehouse facilities.
Member and Product Growth
SoFi achieved strong year-over-year growth in both members and
products in the third quarter of 2023. Record new member additions
of over 717,000 brought total members to over 6.9 million by
quarter-end, up over 2.2 million, or 47%, from the end of 2022's
third quarter.
Record product additions of nearly 1,047,000 in the third
quarter brought total products to over 10.4 million at quarter-end,
up 45% from 7.2 million at the same prior year quarter-end.
Note: For additional information on our company metrics,
including the definitions of "Members", "Total Products" and
"Technology Platform Total Accounts", see Table 6 in the “Financial
Tables” herein.
- The company includes SoFi accounts on the Galileo
platform-as-a-service in its total Technology Platform accounts
metric to better align with the presentation of Technology Platform
segment revenue.
- In 2023, Technology Platform total accounts reflects the
previously disclosed migration by one of our clients of the
majority of its processing volumes to a pure processor. These
accounts remained open for administrative purposes through the end
of 2022, and were included in our total accounts in such
period.
In the Financial Services segment, total products increased by
50% year-over-year, to 8.9 million from 5.9 million in the third
quarter of 2022. SoFi Money (inclusive of Checking and Savings and
cash management accounts) grew 53% year-over-year to 3.1 million
products, SoFi Invest grew 19% year-over-year to 2.5 million
products, and SoFi Relay grew 85% year-over-year to 3.0 million
products.
Lending products increased 24% year-over-year to 1.6 million
products, driven primarily by continued growth in personal loan
products as well as accelerating growth in student loan
products.
Technology Platform enabled accounts increased by 10%
year-over-year to 136.7 million.
Lending Segment Results
Lending segment GAAP and adjusted net revenues were $349.0
million and $342.5 million, respectively, for the third quarter of
2023, up 16% and 15%, respectively, compared to the third quarter
of 2022. Higher loan balances and net interest margin expansion
drove strong growth in net interest income, which significantly
exceeded directly attributable expenses of $138.5 million.
Lending segment third quarter contribution profit of $204.0
million increased 13% from $180.6 million in the same prior-year
period. Contribution margin using Lending adjusted net revenue
remained healthy at 60% in the third quarter of 2023, versus 61% in
the same prior-year period. These advances reflect SoFi’s ability
to capitalize on continued strong demand for its lending
products.
Lending – Segment Results of
Operations
Three Months Ended September
30,
($ in thousands)
2023
2022
% Change
Net interest income
$ 265,215
$ 139,516
90 %
Noninterest income
83,758
162,178
(48) %
Total net revenue – Lending
348,973
301,694
16 %
Servicing rights – change in valuation
inputs or assumptions
(7,420)
(6,182)
20 %
Residual interests classified as
debt – change in valuation inputs or assumptions
928
1,453
(36) %
Directly attributable expenses
(138,525)
(116,403)
19 %
Contribution Profit
$ 203,956
$ 180,562
13 %
Adjusted net revenue –
Lending(1)
$ 342,481
$ 296,965
15 %
___________________
- Adjusted net revenue – Lending represents a non-GAAP financial
measure. For more information and a reconciliation to the most
comparable GAAP measure, see “Non-GAAP Financial Measures” and
Table 2 to the “Financial Tables” herein.
Lending – Loans Held for Sale
Personal Loans
Student Loans
Home Loans
Total
September 30,
2023
Unpaid principal
$
14,177,004
$
5,929,047
$
110,320
$
20,216,371
Accumulated interest
105,156
26,497
163
131,816
Cumulative fair value adjustments(1)
568,836
86,000
(9,187
)
645,649
Total fair value of loans(2)
$
14,850,996
$
6,041,544
$
101,296
$
20,993,836
June 30,
2023
Unpaid principal
$
12,171,935
$
5,262,975
$
87,928
$
17,522,838
Accumulated interest
82,868
21,164
150
104,182
Cumulative fair value adjustments(1)
496,360
99,782
(9,495
)
586,647
Total fair value of loans(2)
$
12,751,163
$
5,383,921
$
78,583
$
18,213,667
___________________
- During the three months ended September 30, 2023, the
cumulative fair value adjustments for personal loans were primarily
impacted by higher origination volume and higher coupon rates,
partially offset by lower fair value marks driven primarily by
higher prepayment rate assumption and a higher discount rate. The
cumulative fair value adjustments for student loans were primarily
impacted by a higher discount rate, which resulted in lower fair
value marks, partially offset by higher origination volume and
increases in coupon rates.
- Each component of the fair value of loans is impacted by
charge-offs during the period. Our fair value assumption for annual
default rate incorporates fair value markdowns on loans beginning
when they are 10 days or more delinquent, with additional markdowns
at 30, 60 and 90 days past due.
The following table summarizes the significant inputs to the
fair value model for personal and student loans:
Personal
Loans
Student
Loans
September 30,
2023
June 30, 2023
September 30,
2023
June 30, 2023
Weighted average coupon rate(1)
13.8
%
13.6
%
5.3
%
5.0
%
Weighted average annual default rate
4.6
4.6
0.5
0.5
Weighted average conditional prepayment
rate
20.3
19.0
10.5
10.6
Weighted average discount rate
6.6
6.1
4.8
4.4
___________________
- Represents the average coupon rate on loans held on balance
sheet, weighted by unpaid principal balance outstanding at the
balance sheet date.
Third quarter Lending segment total origination volume increased
48% year-over-year, as a result of continued strong demand for
personal loans and notable sequential growth in student loan
originations.
Record personal loan originations of $3.9 billion in the third
quarter of 2023 were up $1.1 billion, or 38%, year-over-year, and
rose 4% sequentially. Third quarter student loan volume of over
$919 million was up $462 million, or 101%, year-over-year, and rose
133% sequentially as borrowers prepared to resume student loan
payments in October. Third quarter home loan volume of $356 million
was up 64% year-over-year, as we began to benefit from the
integration of Wyndham Capital Mortgage with improved fulfillment
capacity from our acquisition at the beginning of the second
quarter.
Lending – Originations and Average
Balances
Three Months Ended September
30,
% Change
2023
2022
Origination volume ($ in thousands, during
period)
Personal loans
$
3,885,967
$
2,809,759
38
%
Student loans
919,330
457,184
101
%
Home loans
355,698
216,246
64
%
Total
$
5,160,995
$
3,483,189
48
%
Average loan balance ($, as of period
end)(1)
Personal loans
$
24,221
$
24,772
(2
)%
Student loans
44,828
47,152
(5
)%
Home loans
285,773
286,855
—
%
_________________
- Within each loan product category, average loan balance is
defined as the total unpaid principal balance of the loans divided
by the number of loans that have a balance greater than zero
dollars as of the reporting date. Average loan balance includes
loans on the balance sheet and transferred loans with which SoFi
has a continuing involvement through its servicing agreements.
Lending – Products
September 30,
2023
2022
% Change
Personal loans
1,057,995
783,645
35 %
Student loans
507,567
471,141
8 %
Home loans
28,344
25,707
10 %
Total lending products
1,593,906
1,280,493
24 %
Technology Platform Segment Results
Technology Platform segment record net revenue of $89.9 million
for the third quarter of 2023 increased 6% year-over-year and 3%
sequentially. Record contribution profit of $32.2 million increased
65% year-over-year, for a margin of 36%, primarily as a result of a
12% year-over-year reduction in directly attributable expenses.
We are seeing continued diversification of our client base and
revenue growth, along with strong adoption of new product
offerings, including Konecta, our natural language AI driven
intelligent digital assistant, and our Payments Risk Platform
(PRP), a platform which leverages transactional data to reduce
transaction fraud.
Technology Platform – Segment Results
of Operations
Three Months Ended September
30,
($ in thousands)
2023
2022
% Change
Net interest income
$
573
$
—
n/m
Noninterest income
89,350
84,777
5
%
Total net revenue – Technology
Platform
89,923
84,777
6
%
Directly attributable expenses
(57,732
)
(65,241
)
(12
)%
Contribution Profit
$
32,191
$
19,536
65
%
Technology Platform total enabled client accounts increased 10%
year-over-year, to 136.7 million from 124.3 million. The company
has made great progress on our strategy to sign larger, more
durable clients. Additionally, there is a robust pipeline of
ongoing discussions with potential partners with large existing
customer bases across both the U.S. and Latin America spanning both
the financial services and non-financial services segments.
Technology Platform
September 30,
2023
2022
% Change
Total accounts
136,739,131
124,332,810
10
%
Financial Services Segment Results
Financial Services segment record net revenue increased 142% in
the third quarter of 2023 to $118.2 million from the prior year
period's total of $49.0 million, helped by 43% growth in segment
interchange revenue and 231% growth in net interest income.
Notably, the company exceeded $1.2 billion in point of sale debit
transaction volume in the quarter, representing an annualized $5
billion run-rate. Strength in the segment results was driven by
SoFi Money along with contributions from SoFi Invest and SoFi
Credit Card.
For the first time, the Financial Services segment posted a
positive contribution profit of $3.3 million, reflecting a $55.9
million improvement over the prior-year quarter's $52.6 million
loss. This came as a result of continued improvement in
monetization for the segment, along with increasing operating
leverage as we efficiently scale the business. Monetization
progress is underscored by annualized revenue per product of $53,
which grew 61% year-over-year and 8% sequentially. Operating
leverage is evident, as the segment generated $69.3 million in
incremental revenue, with only $13.4 million of incremental
directly attributable expenses versus the year-ago period.
Financial Services – Segment Results of
Operations
Three Months Ended September
30,
($ in thousands)
2023
2022
% Change
Net interest income
$
93,101
$
28,158
231
%
Noninterest income
25,146
20,795
21
%
Total net revenue – Financial
Services
118,247
48,953
142
%
Directly attributable expenses
(114,987
)
(101,576
)
13
%
Contribution profit (loss)
$
3,260
$
(52,623
)
n/m
By continuously innovating with new and relevant offerings,
features and rewards for members, SoFi grew total Financial
Services products by 2.9 million, or 50%, year-over-year in the
third quarter of 2023, bringing the total to 8.9 million at
quarter-end. In the third quarter of 2023, SoFi Money products
increased by a record of nearly 371,000, Relay products increased
by a record of over 405,000, and SoFi Invest products increased by
over 149,000.
Most notably, our Checking and Savings offering has an APY of up
to 4.60% as of October 30, 2023, no minimum balance requirement nor
balance limits, FDIC insurance of up to $2 million, a host of free
features and a unique rewards program. Total deposits grew 23%
sequentially to $15.7 billion at quarter-end, and over 90% of SoFi
Money deposits (inclusive of Checking and Savings and cash
management accounts) are from direct deposit members. More than
half of newly funded SoFi Money accounts were setting up direct
deposit by day 30 in the third quarter of 2023.
Financial Services – Products
September 30,
2023
2022
% Change
Money(1)
3,063,778
2,002,791
53
%
Invest
2,465,072
2,067,621
19
%
Credit Card
235,791
153,978
53
%
Referred loans(2)
51,301
36,538
40
%
Relay
2,958,497
1,600,102
85
%
At Work
79,461
57,775
38
%
Total financial services products
8,853,900
5,918,805
50
%
___________________
- Includes SoFi Checking and Savings accounts held at SoFi Bank,
and cash management accounts.
- Limited to loans wherein we provide third party fulfillment
services.
Guidance and Outlook
For the full year 2023, management expects adjusted net revenue
of $2.045 to $2.065 billion, up from its prior guidance of $1.974
to $2.034 billion, and full-year adjusted EBITDA of $386 to $396
million, up from its prior guidance of $333 to $343 million,
representing a 48% incremental adjusted EBITDA margin and a range
of 18.9% to 19.2% adjusted EBITDA margin. As the company moves
toward expected GAAP net income profitability in the fourth
quarter, management expects depreciation and amortization and
share-based compensation expenses to increase in the mid-to-high
single digit percentage range in the fourth quarter relative to
third quarter results.
Management will further address full-year 2023 guidance on the
quarterly earnings conference call. Management has not reconciled
forward-looking non-GAAP measures to their most directly comparable
GAAP measures of total net revenue, net income and gross margin.
This is because the company cannot predict with reasonable
certainty and without unreasonable efforts the ultimate outcome of
certain GAAP components of such reconciliations due to
market-related assumptions that are not within our control as well
as certain legal or advisory costs, tax costs or other costs that
may arise. For these reasons, management is unable to assess the
probable significance of the unavailable information, which could
materially impact the amount of the future directly comparable GAAP
measures.
Earnings Webcast
SoFi’s executive management team will host a live audio webcast
beginning at 8:00 a.m. Eastern Time (5:00 a.m. Pacific Time) today
to discuss the quarter’s financial results and business highlights.
All interested parties are invited to listen to the live webcast at
https://investors.sofi.com. A replay
of the webcast will be available on the SoFi Investor Relations
website for 30 days. Investor information, including supplemental
financial information, is available on SoFi’s Investor Relations
website at https://investors.sofi.com.
Cautionary Statement Regarding Forward-Looking
Statements
Certain of the statements above are forward-looking and as such
are not historical facts. This includes, without limitation,
statements regarding our expectations for the full year 2023
adjusted net revenue and adjusted EBITDA, our expectations
regarding the profitability of our three business segments and GAAP
profitability of our company in the fourth quarter of 2023, our
expectations regarding our ability to continue to grow our
business, improve our financials and increase our member, product
and total accounts count, our ability to navigate the macroeconomic
environment and the financial position, business strategy and plans
and objectives of management for our future operations. These
forward-looking statements are not guarantees of performance. Such
statements can be identified by the fact that they do not relate
strictly to historical or current facts. Words such as “achieve”,
“continue”, “expect”, “growth”, “may”, “plan”, “strategy”, “will
be”, “will continue”, and similar expressions may identify
forward-looking statements, but the absence of these words does not
mean that a statement is not forward-looking. Factors that could
cause actual results to differ materially from those contemplated
by these forward-looking statements include: (i) the effect of and
uncertainties related to macroeconomic factors such as fluctuating
inflation and interest rates; (ii) our ability to achieve
profitability, operating efficiencies and continued growth across
our three businesses in the future, as well as our ability to
achieve GAAP net income profitability in the fourth quarter of 2023
and expected GAAP net income margins; (iii) the impact on our
business of the regulatory environment and complexities with
compliance related to such environment; (iv) our ability to realize
the benefits of being a bank holding company and operating SoFi
Bank, including continuing to grow high quality deposits and our
rewards program for members; (v) our ability to respond and adapt
to changing market and economic conditions, including recessionary
pressures, inflationary pressures, interest rates, and volatility
from global events; (vi) our ability to continue to drive brand
awareness and realize the benefits or our integrated multi-media
marketing and advertising campaigns; (vii) our ability to
vertically integrate our businesses and accelerate the pace of
innovation of our financial products; (viii) our ability to manage
our growth effectively and our expectations regarding the
development and expansion of our business; (ix) our ability to
access sources of capital on acceptable terms or at all, including
debt financing and other sources of capital to finance operations
and growth; (x) the success of our continued investments in our
Financial Services segment and in our business generally; (xi) the
success of our marketing efforts and our ability to expand our
member base and increase our product adds; (xii) our ability to
maintain our leadership position in certain categories of our
business and to grow market share in existing markets or any new
markets we may enter; (xiii) our ability to develop new products,
features and functionality that are competitive and meet market
needs; (xiv) our ability to realize the benefits of our strategy,
including what we refer to as our FSPL; (xv) our ability to make
accurate credit and pricing decisions or effectively forecast our
loss rates; (xvi) our ability to establish and maintain an
effective system of internal controls over financial reporting;
(xvii) our ability to maintain the security and reliability of our
products; and (xviii) the outcome of any legal or governmental
proceedings that may be instituted against us. The foregoing list
of factors is not exhaustive. You should carefully consider the
foregoing factors and the other risks and uncertainties set forth
in the section titled “Risk Factors” in our last quarterly report
on Form 10-Q, as filed with the Securities and Exchange Commission,
and those that are included in any of our future filings with the
Securities and Exchange Commission, including our annual report on
Form 10-K, under the Exchange Act.
These forward-looking statements are based on information
available as of the date hereof and current expectations, forecasts
and assumptions, and involve a number of judgments, risks and
uncertainties. Accordingly, forward-looking statements should not
be relied upon as representing our views as of any subsequent date,
and we do not undertake any obligation to update forward-looking
statements to reflect events or circumstances after the date they
were made, whether as a result of new information, future events or
otherwise, except as may be required under applicable securities
laws.
As a result of a number of known and unknown risks and
uncertainties, our actual results or performance may be materially
different from those expressed or implied by these forward-looking
statements. You should not place undue reliance on these
forward-looking statements.
Non-GAAP Financial Measures
This press release presents information about our adjusted net
revenue and adjusted EBITDA, which are non-GAAP financial measures
provided as supplements to the results provided in accordance with
accounting principles generally accepted in the United States
(GAAP). We use adjusted net revenue and adjusted EBITDA to evaluate
our operating performance, formulate business plans, help better
assess our overall liquidity position, and make strategic
decisions, including those relating to operating expenses and the
allocation of internal resources. Accordingly, we believe that
adjusted net revenue and adjusted EBITDA provide useful information
to investors and others in understanding and evaluating our
operating results in the same manner as our management. These
non-GAAP measures are presented for supplemental informational
purposes only, have limitations as analytical tools, and should not
be considered in isolation from, or as a substitute for, the
analysis of other GAAP financial measures, such as total net
revenue and net income (loss). Other companies may not use these
non-GAAP measures or may use similar measures that are defined in a
different manner. Therefore, SoFi's non-GAAP measures may not be
directly comparable to similarly titled measures of other
companies. Reconciliations of these non-GAAP measures to the most
directly comparable GAAP financial measures are provided in Table 2
to the “Financial Tables” herein.
Forward-looking non-GAAP financial measures are presented
without reconciliations of such forward-looking non-GAAP measures
because the GAAP financial measures are not accessible on a
forward-looking basis and reconciling information is not available
without unreasonable effort due to the inherent difficulty in
forecasting and quantifying certain amounts that are necessary for
such reconciliations, including adjustments reflected in our
reconciliation of historic non-GAAP financial measures, the amounts
of which, based on historical experience, could be material.
About SoFi
SoFi (NASDAQ: SOFI) is a member-centric, one-stop shop for
digital financial services on a mission to help people achieve
financial independence to realize their ambitions. The company’s
full suite of financial products and services helps its over 6.9
million SoFi members borrow, save, spend, invest, and protect their
money better by giving them fast access to the tools they need to
get their money right, all in one app. SoFi also equips members
with the resources they need to get ahead – like career advisors,
Credentialed Financial Planners (CFP®), exclusive experiences and
events, and a thriving community – on their path to financial
independence.
SoFi innovates across three business segments: Lending,
Financial Services – which includes SoFi Checking and Savings, SoFi
Invest, SoFi Credit Card, SoFi Protect, and SoFi Insights – and
Technology Platform, which offers the only end-to-end vertically
integrated financial technology stack. SoFi Bank, N.A., an
affiliate of SoFi, is a nationally chartered bank, regulated by the
OCC and FDIC and SoFi is a bank holding company regulated by the
Federal Reserve. The company is also the naming rights partner of
SoFi Stadium, home of the Los Angeles Chargers and the Los Angeles
Rams. For more information, visit https://www.sofi.com or download our iOS and
Android apps.
Availability of Other Information About SoFi
Investors and others should note that we communicate with our
investors and the public using our website (https://www.sofi.com), the investor relations
website (https://investors.sofi.com),
and on social media (Twitter and LinkedIn), including but not
limited to investor presentations and investor fact sheets,
Securities and Exchange Commission filings, press releases, public
conference calls and webcasts. The information that SoFi posts on
these channels and websites could be deemed to be material
information. As a result, SoFi encourages investors, the media, and
others interested in SoFi to review the information that is posted
on these channels, including the investor relations website, on a
regular basis. This list of channels may be updated from time to
time on SoFi’s investor relations website and may include
additional social media channels. The contents of SoFi’s website or
these channels, or any other website that may be accessed from its
website or these channels, shall not be deemed incorporated by
reference in any filing under the Securities Act of 1933, as
amended.
SOFI-F
FINANCIAL TABLES
1. Condensed Consolidated Statements of Operations and
Comprehensive Loss (Unaudited)
2. Reconciliation of GAAP to Non-GAAP Financial Measures
3. Condensed Consolidated Balance Sheets (Unaudited)
4. Average Balances and Net Interest Earnings Analysis
(Unaudited)
5. Condensed Consolidated Cash Flow Data (Unaudited)
6. Company Metrics
7. Segment Financials (Unaudited)
Table 1
SoFi Technologies,
Inc.
Condensed Consolidated
Statements of Operations and Comprehensive Loss
(Unaudited)
(In Thousands, Except for
Share and Per Share Data)
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
Interest income
Loans
$
537,947
$
191,525
$
1,337,476
$
451,247
Securitizations
1,980
2,633
7,693
7,958
Other
24,343
3,881
60,661
6,758
Total interest income
564,270
198,039
1,405,830
465,963
Interest expense
Securitizations and warehouses
63,847
20,653
181,231
59,158
Deposits
145,563
14,149
325,208
19,123
Corporate borrowings
9,784
5,270
26,951
11,369
Other
113
117
341
801
Total interest expense
219,307
40,189
533,731
90,451
Net interest income
344,963
157,850
872,099
375,512
Noninterest income
Loan origination and sales
81,683
163,697
311,258
465,815
Securitizations
(6,298
)
(8,772
)
(22,375
)
(31,790
)
Servicing
8,009
7,296
29,803
30,003
Technology products and solutions
81,856
82,035
236,946
223,562
Other
26,996
21,879
79,654
53,754
Total noninterest income
192,246
266,135
635,286
741,344
Total net revenue
537,209
423,985
1,507,385
1,116,856
Noninterest expense
Technology and product development
125,698
110,702
369,602
291,976
Sales and marketing
186,719
162,129
544,695
444,121
Cost of operations
98,258
83,083
276,051
232,611
General and administrative
124,457
126,199
379,326
388,533
Goodwill impairment
247,174
—
247,174
—
Provision for credit losses
21,831
16,323
42,853
39,387
Total noninterest expense
804,137
498,436
1,859,701
1,396,628
Loss before income taxes
(266,928
)
(74,451
)
(352,316
)
(279,772
)
Income tax benefit (expense)
244
242
3,661
(629
)
Net loss
$
(266,684
)
$
(74,209
)
$
(348,655
)
$
(280,401
)
Loss per share
Loss per share – basic
$
(0.29
)
$
(0.09
)
$
(0.40
)
$
(0.35
)
Loss per share – diluted
$
(0.29
)
$
(0.09
)
$
(0.40
)
$
(0.35
)
Weighted average common stock
outstanding – basic
951,183,107
916,762,973
939,070,185
893,455,206
Weighted average common stock
outstanding – diluted
951,183,107
916,762,973
939,070,185
893,455,206
Table 2
Non-GAAP Financial Measures
Reconciliation of Adjusted Net Revenue
Adjusted net revenue is defined as total net revenue, adjusted
to exclude the fair value changes in servicing rights and residual
interests classified as debt due to valuation inputs and
assumptions changes, which relate only to our Lending segment. For
our consolidated results and for the Lending segment, we reconcile
adjusted net revenue to total net revenue, the most directly
comparable GAAP measure, as presented for the periods indicated
below:
Three Months Ended September
30,
Nine Months Ended September
30,
($ in thousands)
2023
2022
2023
2022
Total net revenue
$
537,209
$
423,985
$
1,507,385
$
1,116,856
Servicing rights – change in valuation
inputs or assumptions(1)
(7,420
)
(6,182
)
(28,105
)
(26,860
)
Residual interests classified as
debt – change in valuation inputs or
assumptions(2)
928
1,453
415
7,078
Adjusted net revenue
$
530,717
$
419,256
$
1,479,695
$
1,097,074
Three Months Ended September
30,
Nine Months Ended September
30,
($ in thousands)
2023
2022
2023
2022
Total net revenue – Lending
$
348,973
$
301,694
$
1,017,495
$
811,800
Servicing rights – change in valuation
inputs or assumptions(1)
(7,420
)
(6,182
)
(28,105
)
(26,860
)
Residual interests classified as
debt – change in valuation inputs or
assumptions(2)
928
1,453
415
7,078
Adjusted net revenue – Lending
$
342,481
$
296,965
$
989,805
$
792,018
___________________
- Reflects changes in fair value inputs and assumptions on
servicing rights, including conditional prepayment, default rates
and discount rates. These assumptions are highly sensitive to
market interest rate changes and are not indicative of our
performance or results of operations. Moreover, these non-cash
charges are unrealized during the period and, therefore, have no
impact on our cash flows from operations. As such, these positive
and negative changes are adjusted out of total net revenue to
provide management and financial users with better visibility into
the net revenue available to finance our operations and our overall
performance.
- Reflects changes in fair value inputs and assumptions on
residual interests classified as debt, including conditional
prepayment, default rates and discount rates. When third parties
finance our consolidated securitization VIEs by purchasing residual
interests, we receive proceeds at the time of the closing of the
securitization and, thereafter, pass along contractual cash flows
to the residual interest owner. These residual debt obligations are
measured at fair value on a recurring basis, but they have no
impact on our initial financing proceeds, our future obligations to
the residual interest owner (because future residual interest
claims are limited to contractual securitization collateral cash
flows), or the general operations of our business. As such, these
positive and negative non-cash changes in fair value attributable
to assumption changes are adjusted out of total net revenue to
provide management and financial users with better visibility into
the net revenue available to finance our operations.
Reconciliation of Adjusted EBITDA
Adjusted EBITDA is defined as net income (loss), adjusted to
exclude, as applicable: (i) corporate borrowing-based interest
expense (our adjusted EBITDA measure is not adjusted for warehouse
or securitization-based interest expense, nor deposit interest
expense and finance lease liability interest expense, as these are
not direct operating expenses), (ii) income tax expense (benefit),
(iii) depreciation and amortization, (iv) share-based expense
(inclusive of equity-based payments to non-employees), (v)
impairment expense (inclusive of goodwill impairment and property,
equipment and software abandonments), (vi) transaction-related
expenses, (vii) fair value changes in warrant liabilities, (viii)
fair value changes in each of servicing rights and residual
interests classified as debt due to valuation assumptions, and (ix)
other charges, as appropriate, that are not expected to recur and
are not indicative of our core operating performance. We reconcile
adjusted EBITDA to net loss, the most directly comparable GAAP
measure, for the periods indicated below:
Three Months Ended September
30,
Nine Months Ended September
30,
($ in thousands)
2023
2022
2023
2022
Net loss
$
(266,684
)
$
(74,209
)
$
(348,655
)
$
(280,401
)
Non-GAAP adjustments:
Interest expense – corporate
borrowings(1)
9,784
5,270
26,951
11,369
Income tax (benefit) expense(2)
(244
)
(242
)
(3,661
)
629
Depreciation and amortization(3)
52,516
40,253
147,967
109,007
Share-based expense
62,005
77,855
202,109
235,018
Restructuring charges(4)
—
—
4,953
—
Impairment expense(5)
247,174
—
248,417
—
Transaction-related expense(6)
(34
)
100
142
17,446
Servicing rights – change in valuation
inputs or assumptions(7)
(7,420
)
(6,182
)
(28,105
)
(26,860
)
Residual interests classified as
debt – change in valuation inputs or
assumptions(8)
928
1,453
415
7,078
Total adjustments
364,709
118,507
599,188
353,687
Adjusted EBITDA
$
98,025
$
44,298
$
250,533
$
73,286
___________________
- Our adjusted EBITDA measure adjusts for corporate
borrowing-based interest expense, as these expenses are a function
of our capital structure. Corporate borrowing-based interest
expense includes interest on our revolving credit facility and the
amortization of debt discount and debt issuance costs on our
convertible notes. Revolving credit facility interest expense in
the 2023 periods increased due to higher interest rates relative to
the prior year periods on identical outstanding debt.
- Income taxes were primarily attributable to tax expense
associated with the profitability of SoFi Bank in state
jurisdictions where separate filings are required. For the three
and nine month 2023 periods, this expense was more than offset by
income tax benefits from foreign losses in jurisdictions with net
deferred tax liabilities related to Technisys.
- Depreciation and amortization expense for the 2023 periods
increased compared to the 2022 periods primarily in connection with
acquisitions and growth in our internally-developed software
balance.
- Restructuring charges in the nine-month 2023 period primarily
included employee-related wages, benefits and severance associated
with a small reduction in headcount in our Technology Platform
segment in the first quarter of 2023, which do not reflect expected
future operating expenses and are not indicative of our core
operating performance.
- Impairment expense includes $247,174 related to goodwill
impairment in the three and nine month 2023 periods, and $1,243
related to a sublease arrangement in the nine month 2023 period,
which are not indicative of our core operating performance.
- Transaction-related expenses in the 2023 and 2022 periods
included financial advisory and professional services costs
associated with our acquisitions of Wyndham and Technisys,
respectively.
- Reflects changes in fair value inputs and assumptions,
including market servicing costs, conditional prepayment, default
rates and discount rates. This non-cash change is unrealized during
the period and, therefore, has no impact on our cash flows from
operations. As such, these positive and negative changes in fair
value attributable to assumption changes are adjusted out of net
loss to provide management and financial users with better
visibility into the earnings available to finance our
operations.
- Reflects changes in fair value inputs and assumptions,
including conditional prepayment, default rates and discount rates.
When third parties finance our consolidated VIEs through purchasing
residual interests, we receive proceeds at the time of the
securitization close and, thereafter, pass along contractual cash
flows to the residual interest owner. These obligations are
measured at fair value on a recurring basis, which has no impact on
our initial financing proceeds, our future obligations to the
residual interest owner (because future residual interest claims
are limited to contractual securitization collateral cash flows),
or the general operations of our business. As such, these positive
and negative non-cash changes in fair value attributable to
assumption changes are adjusted out of net loss to provide
management and financial users with better visibility into the
earnings available to finance our operations.
Table 3
SoFi Technologies,
Inc.
Condensed Consolidated Balance
Sheets
(Unaudited)
(In Thousands, Except for
Share Data)
September 30,
2023
December 31, 2022
Assets
Cash and cash equivalents
$
2,813,876
$
1,421,907
Restricted cash and restricted cash
equivalents
483,141
424,395
Investment securities (includes
available-for-sale securities of $486,091 and $195,438 at fair
value with associated amortized cost of $486,999 and $203,418, as
of September 30, 2023 and December 31, 2022, respectively)
579,738
396,769
Loans held for sale, at fair value
20,993,836
13,557,074
Loans held for investment (less allowance
for credit losses on loans at amortized cost of $51,923 and
$40,788, as of September 30, 2023 and December 31, 2022,
respectively)
361,248
307,957
Servicing rights
142,654
149,854
Property, equipment and software
201,931
170,104
Goodwill
1,393,505
1,622,991
Intangible assets
387,307
442,155
Operating lease right-of-use assets
93,379
97,135
Other assets (less allowance for credit
losses of $1,581 and $2,785, as of September 30, 2023 and December
31, 2022, respectively)
526,538
417,334
Total assets
$
27,977,153
$
19,007,675
Liabilities, temporary equity and
permanent equity
Liabilities:
Deposits:
Interest-bearing deposits
$
15,607,349
$
7,265,792
Noninterest-bearing deposits
64,624
76,504
Total deposits
15,671,973
7,342,296
Accounts payable, accruals and other
liabilities
566,477
516,215
Operating lease liabilities
113,361
117,758
Debt
6,241,386
5,485,882
Residual interests classified as debt
10,194
17,048
Total liabilities
22,603,391
13,479,199
Commitments, guarantees, concentrations
and contingencies
Temporary equity:
Redeemable preferred stock, $0.00 par
value: 100,000,000 and 100,000,000 shares authorized; 3,234,000 and
3,234,000 shares issued and outstanding as of September 30, 2023
and December 31, 2022, respectively
320,374
320,374
Permanent equity:
Common stock, $0.00 par value:
3,100,000,000 and 3,100,000,000 shares authorized; 957,860,430 and
933,896,120 shares issued and outstanding as of September 30, 2023
and December 31, 2022, respectively
95
93
Additional paid-in capital
6,904,869
6,719,826
Accumulated other comprehensive income
(loss)
600
(8,296
)
Accumulated deficit
(1,852,176
)
(1,503,521
)
Total permanent equity
5,053,388
5,208,102
Total liabilities, temporary equity and
permanent equity
$
27,977,153
$
19,007,675
Table 4
SoFi Technologies,
Inc.
Average Balances and Net
Interest Earnings Analysis
(Unaudited)
Three Months Ended September
30, 2023
Three Months Ended September
30, 2022
($ in thousands)
Average Balances
Interest
Income/Expense
Average Yield/Rate
Average Balances
Interest
Income/Expense
Average Yield/Rate
Assets
Interest-earning assets:
Interest-bearing deposits with banks
$
2,342,361
$
24,485
4.15
%
$
1,067,810
$
2,529
0.95
%
Investment securities
517,786
1,838
1.41
504,365
3,097
2.46
Loans
19,996,570
537,947
10.67
9,150,847
191,525
8.37
Total interest-earning assets
22,856,717
564,270
9.79
10,723,022
197,151
7.35
Total noninterest-earning assets
3,116,217
3,019,934
Total assets
$
25,972,934
$
13,742,956
Liabilities, Temporary Equity and
Permanent Equity
Interest-bearing liabilities:
Demand deposits
$
2,355,243
$
12,837
2.16
%
$
1,982,603
$
7,769
1.57
%
Savings deposits
9,416,236
104,375
4.40
1,453,458
6,114
1.68
Time deposits
2,244,196
28,351
5.01
354,211
266
0.30
Total interest-bearing deposits
14,015,675
145,563
4.12
3,790,272
14,149
1.49
Warehouse facilities
3,223,333
51,257
6.31
1,523,903
12,539
3.29
Securitization debt
724,063
9,374
5.14
487,142
4,492
3.69
Other debt
1,644,295
13,113
3.16
1,647,221
7,988
1.94
Total debt
5,591,691
73,744
5.23
3,658,266
25,019
2.74
Residual interests classified as debt
10,744
—
—
48,894
904
7.40
Total interest-bearing liabilities
19,618,110
219,307
4.44
7,497,432
40,072
2.14
Total noninterest-bearing liabilities
783,925
735,086
Total liabilities
20,402,035
8,232,518
Total temporary equity
320,374
320,374
Total permanent equity
5,250,525
5,190,064
Total liabilities, temporary equity and
permanent equity
$
25,972,934
$
13,742,956
Net interest income
$
344,963
$
157,079
Net interest margin
5.99
%
5.86
%
Table 5
SoFi Technologies,
Inc.
Condensed Consolidated Cash
Flow Data
(Unaudited)
(In Thousands)
Nine Months Ended September
30,
2023
2022
Net cash used in operating activities
$
(6,979,198
)
$
(4,837,023
)
Net cash used in investing activities
(476,335
)
(54,926
)
Net cash provided by financing
activities
8,906,046
5,384,714
Effect of exchange rates on cash and cash
equivalents
202
231
Net increase in cash, cash equivalents,
restricted cash and restricted cash equivalents
$
1,450,715
$
492,996
Cash, cash equivalents, restricted cash
and restricted cash equivalents at beginning of period
1,846,302
768,437
Cash, cash equivalents, restricted cash
and restricted cash equivalents at end of period
$
3,297,017
$
1,261,433
Table 6
Company Metrics
September 30,
2023
June 30, 2023
March 31, 2023
December 31,
2022
September 30,
2022
June 30, 2022
March 31, 2022
December 31,
2021
September 30,
2021
Members
6,957,187
6,240,091
5,655,711
5,222,533
4,742,673
4,318,705
3,868,334
3,460,298
2,937,379
Total Products
10,447,806
9,401,025
8,554,363
7,894,636
7,199,298
6,564,174
5,862,137
5,173,197
4,267,665
Total Products — Lending segment
1,593,906
1,503,892
1,416,122
1,340,597
1,280,493
1,202,027
1,138,566
1,078,952
1,030,882
Total Products — Financial Services
segment
8,853,900
7,897,133
7,138,241
6,554,039
5,918,805
5,362,147
4,723,571
4,094,245
3,236,783
Total Accounts — Technology Platform
segment(1)
136,739,131
129,356,203
126,326,916
130,704,351
124,332,810
116,570,038
109,687,014
99,660,657
88,811,022
___________________
- Beginning in the fourth quarter of 2021, the company included
SoFi accounts on the Galileo platform-as-a-service in its total
Technology Platform accounts metric to better align with the
presentation of Technology Platform segment revenue. Quarterly
amounts for the earlier quarters in 2021 were determined to be
immaterial, and as such were not recast.
Members
We refer to our customers as “members”. We define a member as
someone who has a lending relationship with us through origination
and/or ongoing servicing, opened a financial services account,
linked an external account to our platform, or signed up for our
credit score monitoring service. Our members have continuous access
to our certified financial planners, our career advice services,
our member events, our content, educational material, news, and our
tools and calculators, which are provided at no cost to the member.
We view members as an indication not only of the size and a
measurement of growth of our business, but also as a measure of the
significant value of the data we have collected over time.
Once someone becomes a member, they are always considered a
member unless they violate our terms of service. We adjust our
total number of members in the event a member is removed in
accordance with our terms of service. This could occur for a
variety of reasons—including fraud or pursuant to certain legal
processes—and, as our terms of service evolve together with our
business practices, product offerings and applicable regulations,
our grounds for removing members from our total member count could
change. The determination that a member should be removed in
accordance with our terms of service is subject to an evaluation
process, following the completion, and based on the results, of
which, relevant members and their associated products are removed
from our total member count in the period in which such evaluation
process concludes. However, depending on the length of the
evaluation process, that removal may not take place in the same
period in which the member was added to our member count or the
same period in which the circumstances leading to their removal
occurred. For this reason, our total member count may not yet
reflect adjustments that may be made once ongoing evaluation
processes, if any, conclude.
Total Products
Total products refers to the aggregate number of lending and
financial services products that our members have selected on our
platform since our inception through the reporting date, whether or
not the members are still registered for such products. Total
products is a primary indicator of the size and reach of our
Lending and Financial Services segments. Management relies on total
products metrics to understand the effectiveness of our member
acquisition efforts and to gauge the propensity for members to use
more than one product.
In our Lending segment, total products refers to the number of
personal loans, student loans and home loans that have been
originated through our platform through the reporting date, whether
or not such loans have been paid off. If a member has multiple loan
products of the same loan product type, such as two personal loans,
that is counted as a single product. However, if a member has
multiple loan products across loan product types, such as one
personal loan and one home loan, that is counted as two
products.
In our Financial Services segment, total products refers to the
number of SoFi Money accounts (inclusive of checking and savings
accounts held at SoFi Bank and cash management accounts), SoFi
Invest accounts, SoFi Credit Card accounts (including accounts with
a zero dollar balance at the reporting date), referred loans (which
are originated by a third-party partner to which we provide
pre-qualified borrower referrals), SoFi At Work accounts and SoFi
Relay accounts (with either credit score monitoring enabled or
external linked accounts) that have been opened through our
platform through the reporting date. Checking and savings accounts
are considered one account within our total products metric. Our
SoFi Invest service is composed of three products: active investing
accounts, robo-advisory accounts and digital assets accounts. Our
members can select any one or combination of the three types of
SoFi Invest products. If a member has multiple SoFi Invest products
of the same account type, such as two active investing accounts,
that is counted as a single product. However, if a member has
multiple SoFi Invest products across account types, such as one
active investing account and one robo-advisory account, those
separate account types are considered separate products. In the
event a member is removed in accordance with our terms of service,
as discussed under “Members” above, the member’s associated
products are also removed.
Technology Platform Total Accounts
In our Technology Platform segment, total accounts refers to the
number of open accounts at Galileo as of the reporting date.
Beginning in the fourth quarter of 2021, we included intercompany
accounts on the Galileo platform-as-a-service in our total accounts
metric to better align with the Technology Platform segment
revenue, which includes intercompany revenue. We recast the
accounts in the fourth quarter of 2021, but did not recast the
accounts for the earlier quarters in 2021, as the impact was
determined to be immaterial. Total accounts is a primary indicator
of the accounts dependent upon our technology platform to use
virtual card products, virtual wallets, make peer-to-peer and
bank-to-bank transfers, receive early paychecks, separate savings
from spending balances, make debit transactions and rely upon
real-time authorizations, all of which result in revenues for the
Technology Platform segment. We do not measure total accounts for
the Technisys products and solutions, as the revenue model is not
primarily dependent upon being a fully integrated, stand-ready
service.
Table 7
Segment Financials
(Unaudited)
Quarter Ended
($ in thousands)
September 30,
2023
June 30, 2023
March 31, 2023
December 31,
2022
September 30,
2022
June 30, 2022
March 31, 2022
December 31,
2021
September 30,
2021
Lending
Net interest income
$
265,215
$
231,885
$
201,047
$
183,607
$
139,516
$
114,003
$
94,354
$
77,246
$
72,257
Total noninterest income
83,758
99,556
136,034
144,584
162,178
143,114
158,635
136,518
138,034
Total net revenue
348,973
331,441
337,081
328,191
301,694
257,117
252,989
213,764
210,291
Adjusted net revenue(1)
342,481
322,238
325,086
314,930
296,965
250,681
244,372
208,032
215,475
Contribution profit
203,956
183,309
209,898
208,799
180,562
141,991
132,651
105,065
117,668
Technology Platform
Net interest income (expense)
$
573
$
—
$
—
$
—
$
—
$
—
$
—
$
—
$
39
Total noninterest income
89,350
87,623
77,887
85,652
84,777
83,899
60,805
53,299
50,186
Total net revenue(2)
89,923
87,623
77,887
85,652
84,777
83,899
60,805
53,299
50,225
Contribution profit
32,191
17,154
14,857
16,881
19,536
21,841
18,255
20,008
15,741
Financial Services
Net interest income
$
93,101
$
74,637
$
58,037
$
45,609
$
28,158
$
12,925
$
5,882
$
1,785
$
1,209
Total noninterest income
25,146
23,415
23,064
19,208
20,795
17,438
17,661
20,171
11,411
Total net revenue
118,247
98,052
81,101
64,817
48,953
30,363
23,543
21,956
12,620
Contribution profit (loss)(2)
3,260
(4,347
)
(24,235
)
(43,588
)
(52,623
)
(53,700
)
(49,515
)
(35,189
)
(39,465
)
Corporate/Other
Net interest expense
$
(13,926
)
$
(15,396
)
$
(23,074
)
$
(20,632
)
$
(9,824
)
$
(4,199
)
$
(5,303
)
$
(2,454
)
$
(1,130
)
Total noninterest income (loss)
(6,008
)
(3,702
)
(837
)
(1,349
)
(1,615
)
(4,653
)
(1,690
)
(957
)
—
Total net revenue (loss)(2)
(19,934
)
(19,098
)
(23,911
)
(21,981
)
(11,439
)
(8,852
)
(6,993
)
(3,411
)
(1,130
)
Consolidated
Net interest income
$
344,963
$
291,126
$
236,010
$
208,584
$
157,850
$
122,729
$
94,933
$
76,577
$
72,375
Total noninterest income
192,246
206,892
236,148
248,095
266,135
239,798
235,411
209,031
199,631
Total net revenue
537,209
498,018
472,158
456,679
423,985
362,527
330,344
285,608
272,006
Adjusted net revenue(1)
530,717
488,815
460,163
443,418
419,256
356,091
321,727
279,876
277,190
Net loss
(266,684
)
(47,549
)
(34,422
)
(40,006
)
(74,209
)
(95,835
)
(110,357
)
(111,012
)
(30,047
)
Adjusted EBITDA(1)
98,025
76,819
75,689
70,060
44,298
20,304
8,684
4,593
10,256
Total permanent equity
5,053,388
5,257,661
5,234,072
5,208,102
5,181,003
5,186,180
5,210,299
4,377,329
4,248,529
Tangible book value (as of period
end)(3)
3,272,576
3,204,883
3,191,201
3,142,956
3,101,281
3,079,681
3,089,079
3,194,223
3,048,811
___________________
- Adjusted net revenue and adjusted EBITDA are non-GAAP
financial measures. For additional information on these measures
and reconciliations to the most directly comparable GAAP measures,
see “Non-GAAP Financial Measures” and Table 2 to the “Financial
Tables” herein.
- Technology Platform segment total net revenue includes
intercompany fees. The equal and offsetting intercompany expenses
are reflected within all three segments’ directly attributable
expenses, as well as within expenses not allocated to segments. The
intercompany revenues and expenses are eliminated in consolidation.
The revenues are eliminated within Corporate/Other and the expenses
represent a reconciling item of segment contribution profit (loss)
to consolidated loss before income taxes. For the year ended
December 31, 2021, all intercompany amounts were reflected in the
fourth quarter, as inter-quarter amounts were determined to be
immaterial.
- Defined as permanent equity, adjusted to exclude goodwill and
intangible assets.
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version on businesswire.com: https://www.businesswire.com/news/home/20231030099822/en/
Investors: SoFi Investor Relations IR@sofi.com
Media: SoFi Media Relations PR@sofi.com
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