The stock market did well last week, and investors hoped that the good times would continue on Wall Street this week. Signs were fairly positive, as index futures on the Nasdaq Composite (^IXIC 2.02%) posted modest gains Monday morning before the opening bell as the bull market's momentum continued.
Before the market opened, SoFi Technologies (SOFI 3.69%) and Symbotic (SYM 1.62%) were among the companies releasing their latest quarterly financial reports. Shareholders of both of these companies were pleased with what they saw, as both look to take advantage of favorable trends in their respective industries. Here's what you need to know about why SoFi and Symbotic are getting a jump on the week Monday morning.
SoFi looks so good
Shares of SoFi Technologies were up nearly 7% on Monday morning in premarket trading. The online financial services provider reported its second-quarter results, and investors were pleased with the signs of continued growth that they saw in the report.
SoFi's adjusted revenue soared 37% year over year to $488 million, buoyed by strong momentum across its product lines. Although the financial company posted a loss of $47.5 million, that was just half of what SoFi lost in the previous year's period. Moreover, adjusted pre-tax operating earnings of $76.8 million almost quadrupled from year-ago levels.
SoFi attributed the strong results to a record number of new customer additions, and its relentless cross-selling efforts kept bearing fruit. With 584,000 new members in the second quarter alone, SoFi now boasts 6.2 million customers using a total of 9.4 million products. At the same time, SoFi's strength as a bank was evident, as total deposits jumped 26% during the second quarter to $12.7 billion.
Guidance from the company also gave shareholders comfort, as SoFi projected that it would generate between $1.025 billion and $1.085 billion of adjusted revenue in the second half of the year. That would put full-year 2023 revenue at $1.974 billion to $2.034 billion, up slightly from its previous range, and adjusted pre-tax operating earnings of $333 million to $343 million would be up $55 million to $65 million from SoFi's previous projections. With the bank now expecting to post a profit even without accounting adjustments by the fourth quarter of 2023, investors are seeing SoFi's business model finally start to take off.
Symbotic keeps riding the AI wave
Shares of Symbotic also did well Monday morning, climbing 6% in premarket trading. The artificial intelligence robotics company reported fiscal third-quarter financial results for the period ended June 24, and its growth continued to impress shareholders.
Symbotic posted revenue of $312 million, which was up 78% year over year. Investors largely ignored a slight weakening in gross margin over the past year, which fell about a percentage point to just below 17%. In addition, net losses widened from year-ago levels to $39.1 million, although adjusted pre-tax operating losses narrowed to just $3.36 million.
CEO Rick Cohen noted the importance of its joint venture with GreenBox, which will add more than $500 billion to the addressable market that Symbotic is looking to serve. The company's efforts to offer what it calls warehouse-as-a-service capabilities appeal to customers, as Symbotic's contracted backlog rose to $23 billion during the quarter. CFO Tom Ernst highlighted the deployment of six new systems during the period, which helped to bolster growth.
Symbotic draws strong reactions from investors, with some pointing to artificial intelligence hype as having inflated the stock's price. For now, though, any sign of positive performance is likely to keep Symbotic's shareholders more excited than ever.
