2024

Bank AI

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<p class="has-drop-cap">Shares of SoFi Technologies (NASDAQ: SOFI) surged over 16% in premarket trading Monday after the online banking company <a aria-label="reported (opens in a new tab)" href="https://s27.q4cdn.com/749715820/files/doc_financials/2023/q4/SoFi-Q4-2023-Earnings-Release.pdf" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">reported</a> its first-ever quarterly profit. The company also issued a better-than-expected earnings outlook for the full fiscal 2024, further improving investor sentiment.&nbsp;</p>
<h3 id="sofi-turns-profitable-in-q4">SoFi Turns Profitable in Q4</h3>
<p>SoFi unveiled <a href="https://tokenist.com/sofi-technologies-sofi-smashes-q4-expectations-with-594-2m-in-revenue/" rel="noopener noreferrer nofollow" class="deco-link">Q4 financial results</a> on Monday, reporting an earnings per share (EPS) of 2 cents for that period. The figure exceeded Wall Street’s estimates of a break-even quarter and marked a notable improvement from a loss of 5 cents per share in the year-ago quarter.&nbsp;</p>
<p>The bank generated $48 million in fourth-quarter net income, well above the $9.9 million profit expected by analysts. Adjusted net revenue came in at $594.25 million, topping the consensus estimates of $572 million and up from $443.42 million reported in the same quarter last year.&nbsp;</p>
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 <p>“Record revenue at the company level was driven by record revenue across all three of our business segments, with a record contribution of 40% of adjusted net revenue generated by our non-lending segments (Technology Platform and Financial Services segments).”</p> <cite>– CEO Anthony Noto said in a statement.</cite>
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<p>Results from SoFi’s lending segments revealed a year-over-year surge in origination volumes for personal, student, and home loans by 31%, 95%, and 193%, respectively. Moreover, deposits saw a quarter-on-quarter increase of $2.9 billion, reaching $18.6 billion, while the customer base expanded by nearly 585,000, surpassing 7.5 million members.</p>
<p>The bank anticipates Q1 adjusted net revenue ranging from $550 million to $560 million, with adjusted EBITDA between $110 million and $120 million and a net income of $10 million to $20 million. Analysts had predicted revenue of $578 million.</p>
<p>For 2024, SoFi projects earnings per share in the range of 7 to 8 cents, surpassing analysts’ previous estimate of 5 cents.</p>
<p>The company also foresees strong growth in 2026, with a compound revenue growth rate of 20% to 25% between 2023 and 2026. EPS is expected to be between 55 cents and 80 cents that year.</p>
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<h3 id="2024-could-be-transformational-for-sofi">2024 Could Be Transformational For SoFi</h3>
<p>SoFi, headquartered in San Francisco, believes this year will be transformational. Instead of relying primarily on its lending division, a core part of its business, the company expects growth to be driven by its technology and financial services segments.</p>
<p>Its journey began with a focus on lending, encompassing student, personal, and home loans. However, under the leadership of former Goldman Sachs executive Anthony Neto, SoFi has evolved into a multifaceted entity operating through three distinct segments: lending, financial services, and a robust technology platform.&nbsp;</p>
<p>Despite experiencing a remarkable <a href="https://www.nasdaq.com/articles/why-sofi-stock-gained-116-in-2023#:~:text=SoFi%20Technologies%20(NASDAQ%3A%20SOFI),face%20of%20a%20pressured%20economy." target="_blank" aria-label="115% surge (opens in a new tab)" rel="noopener noreferrer nofollow" class="deco-link">115% surge</a> in 2023, the company’s shares faced a challenging start to the new year, witnessing a decline of over 21% year-to-date.</p> <iframe src="https://tokenist.substack.com/embed" width="100%" height="320" style="border:1px solid #EEE; background:white;" frameborder="0" scrolling="no"></iframe>
<p><em><strong>Can the first quarterly profit kick off another major uptrend for SoFi’s shares in 2024? Let us know in the comments below.&nbsp;</strong></em></p>
<p><em>Disclaimer: The author does not hold or have a position in any securities discussed in the article.</em></p>
<p>The post <a rel="noopener noreferrer nofollow" href="https://tokenist.com/sofi-stock-surges-after-digital-bank-reports-first-quarterly-profit/">SoFi Stock Surges After Digital Bank Reports First Quarterly Profit</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://tokenist.com">Tokenist</a>.</p>

SoFi Stock Surges After Digital Bank Reports First Quarterly Profit

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