The online personal lender SoFi, which will soon go public through Chamath Palihapitiya's blank check company, Social Capital Hedosophia Holdings V (IPOE), reported earnings before interest, taxes, depreciation, and amortization (EBITDA) of roughly $4.1 million in the first quarter of the year.
Adjusted EBITDA is up $70 million year over year, while total revenue of roughly $216 million is up more than 150% year over year. Overall, both adjusted EBITDA and total revenue easily beat guidance provided by management in the fourth quarter.
The fast-growing company also added 430,000 new members in the quarter, bringing total membership to 2.28 million, up 110% year over year. Members are a big part of SoFi's model because the company's goal is to sell multiple products to members and greatly reduce customer-acquisition costs.
In the first quarter, total loan-origination volume fell 24% from the first quarter of 2020, while adjusted net revenue and the contribution margin increased significantly year over year.
The company's fintech platform, Galileo, which SoFi acquired in the beginning of 2020, added 11 million accounts in the quarter and now has 70 million in total accounts, up from just 30 million accounts in the first quarter of 2020.
Galileo helps fintech companies carry out the front- and back-end capabilities so they can offer digital-banking products to their customers. Not only does Galileo bring in lots of fee income, but it also gives SoFi a big cross-selling opportunity with its own lending and other financial products.
Revenue in the company's technology segment, largely composed of Galileo, increased significantly year over year, reaching more than $46 million, but the contribution profit was hurt by increased expenses due to acquisition-financing costs.
If IPOE shareholders approve the merger with SoFi on May 27, SoFi could start trading on the Nasdaq on June 1.