In this video, I will go over SoFi's (SOFI -0.42%) Q4 earnings report and its recent acquisition of Technisys. It's still early days for the company, and from an investment point of view, now might be the perfect opportunity. You can find the video below, but here are some highlights.
- At the end of last month, SoFi agreed to acquire Technisys in an all-stock deal valued at $1.1 billion.
- According to the company, the estimated incremental revenue from the acquisition, including base revenue of Technisys and revenue synergies of the vertically integrated capabilities, is expected to add a cumulative $500 to $800 million through year-end 2025, at high incremental margins.
- In Q4, SoFi added 523 thousand new members. A record for the company which has now over 3 million members.
- Galileo accounts have reached 100 million.
- Adjusted net revenue came in at $280 million, up 54% year over year. And adjusted EBITDA came in at $5 million, representing a sixth consecutive quarter of positive adjusted EBITDA. As for annual adjusted EBITDA, that came in at $30 million, making it the first year of positive annual adjusted EBITDA.
- Full-year revenue guidance is expected to be $1.57 billion, representing 55% growth YOY. The market's expectation was $1.45 billion, so that's a nice surprise on the upside, considering that SoFi expects a negative impact of the federal student loan payment moratorium to be approximately $30 million to $35 million of revenue.
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*Stock prices used were the closing prices of March 1, 2022. The video was published on March 2, 2022.
