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How Good Were SoFi's Earnings?

By Jose Najarro – Nov 12, 2021 at 11:00AM

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SoFi is seeing substantial growth in all its segments.

Today's video focuses on SoFi (SOFI -0.67%) and its recent earnings, reported on Nov. 10 after the market closed. Here are some highlights from the video.

  1. SoFi reported adjusted revenue of $277 million, up 27% year over year (YOY) and 16.9% quarter over quarter (QOQ). The growth was higher than the top-end guidance it gave last quarter. SoFi also increased its full-year adjusted revenue guidance. 
  2. Total members in SoFi's platform reached 2.937 million users, up 96% YOY and 14.7% QOQ. The growth was driven by SoFi's financial products: SoFi Money, SoFi Invest, and SoFi Credit Card accounted for 79% of new users. Management also mentioned that it saw many new users use more than one of SoFi's products. 
  3. The most significant revenue segment for SoFi is its lending platform, which represents roughly 77% of total adjusted revenue. Its lending platform was up 30% YOY, driven by solid growth in its personal loans. Investors should note that the student lending environment is still depressed and can be very volatile. Student lending volatility could be seen as a catalyst when this business portion gets back to normal. 

Click the video below for my full thoughts and analysis. 

*Stock prices used were the midday prices of Nov. 11, 2021. The video was published on Nov. 11, 2021.


 

Jose Najarro has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends SoFi Technologies, Inc. The Motley Fool has a disclosure policy. Jose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

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