SoFi stock surged 15% on Monday: Here’s the catalyst

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SoFi Technologies Inc (Nasdaq: Sophie) rose about 15% this morning after reporting better-than-expected results for its fiscal fourth quarter.

SoFi offers exciting full-year guidance

More importantly, the digital financial services company on Monday provided upbeat guidance for the full year. SoFi Technologies Inc Adjusted EBITDA for the year is projected at $260 million to $280 million.


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By comparison, analysts were instead at $246 million. Its current quarter outlook also tops the ratings. CEO Anthony Noto said Earnings press release:

Our continued strong growth and significant improvement in GAAP net income margin positions us well in 2023 to achieve significant revenue and EBITDA growth and GAAP net income profitability in Q4.

SoFi stock is now up about 50% year-to-date.

SoFi Technologies’ Q4 Earnings Snapshot

  • It lost $40 million against $111 million last year
  • Losses per share also narrowed to 5 cents from 15 cents
  • Revenue rose 60% year over year to $456.7 million
  • It lost 9 cents on revenue of $423 million
  • SoFi Bank noted a consistent growth of 46% in deposits

Student-loan and home loan originations decreased by 72% and 84%, respectively. Personal-loan originations, however, increased by 50% in Q4. Noto added:

Strong momentum in membership and product additions, and added products from cross-buying, reflects the benefits of our broad product portfolio and FSPL strategy. We added nearly 480K new members (up 51%) and 695K new products (up 53%) in Q4.

Wall Street currently has a consensus “Overweight” Valuation on SoFi stock.



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