Please ensure Javascript is enabled for purposes of website accessibility

This Fintech Company Continues To Grow at a Respectable Clip

By Danny Vena and Jason Hall - Jun 23, 2022 at 2:45PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Product offerings are on the rise.

Some may think that SoFi's (SOFI 5.68%) financial health is poor, but is that true? In this clip from "The Future of Fintech" on Motley Fool Live, recorded on June 9, contributors Danny Vena and Jason Hall take a look at some metrics that show the fintech company is not in trouble but growing steadily.

Danny Vena: I want to bring up SoFi's investor presentation with its summary results from the first quarter. Because I think I want to do this to dispel the notion that the financial health of the company is in bad shape because I don't believe that to be the case. If you look at let's see here, I'm going to get a couple of slides here.

Right now, the number of members joining SoFi was up 70% year over year in the first quarter, that's pretty respectable. The number of new products added to their portfolio up 84% year over year. Now, that's down from the triple-digit growth over the past few quarters but necessarily not surprising. Galileo, which is their deposit account that I think they acquired this company not terribly long ago.

Jason Hall: Yes it's a platform. It's something that it provides services for other fintechs too. It's a really, really, really great business.

Vena: Again, on a sequential basis, that's down a little bit, but still 58% growth is respectable. Look at the number of lending products and financial products. Lending products up about 20%, financial products up a 111%, so still triple-digit growth there.

I wanted to bring that up because if you look at these charts, these are not the charts of a company that is in trouble growth-wise. The company is still growing at a respectable clip, maybe down a little bit from the across-the-board triple-digit growth that we saw over the course of the past year or so.

Danny Vena has positions in SoFi Technologies, Inc. Jason Hall has positions in SoFi Technologies, Inc. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

SoFi Technologies, Inc. Stock Quote
SoFi Technologies, Inc.
$7.81 (5.68%) $0.42

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/11/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.