What happened

Shares of SoFi Technologies (SOFI 1.25%) were up 18% as of 9:50 a.m. ET Monday, according to data provided by S&P Global Market Intelligence, after the banking and financial technology (fintech) leader announced strong second-quarter 2023 results.

As for headline numbers, SoFi's adjusted quarterly revenue climbed 37% year over year to $488.8 million, while its GAAP net loss narrowed to $0.06 per share from $0.12 per share in the same year-ago period. Most analysts were modeling a loss of $0.07 per share on revenue of $476 million. SoFi also posted adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $77 million for the quarter, up 278% year over year. 

So what

SoFi CEO Anthony Noto credited the beat to a combination of record revenue from its technology platform and financial services business segments, as well as continued strong lending segment growth. SoFi also increased its member count by 44% year over year to over 6.2 million, including 584,000 new members this quarter. New products climbed 43% year over year to over 9.4 million.

"Our record number of member additions and strong momentum in product and cross-buy adds, along with improving operating efficiency, reflects the benefits of our broad product suite and unique Financial Services Productivity Loop (FSPL) strategy," Noto said in a statement.

What's more, total deposits at the company's SoFi Bank subsidiary climbed 26% sequentially this quarter to $12.7 billion, providing an attractive lower-cost funding source for SoFi's loans. Over 90% of SoFi Money deposits (including checking and savings and cash management accounts) were funded by direct deposit members, with a median FICO score for new members of 747.

Now what

SoFi also raised its full-year guidance and reiterated its target for reaching sustained generally accepted accounting principles (GAAP) profitability on a consolidated basis by the end of 2023. The company now expects 2023 adjusted net revenue of $1.974 billion to $2.034 billion (up 30.1% year over year and increased from previous guidance of $1.955 billion to $2.02 billion), and adjusted EBITDA of $333 million to $343 million (up from prior guidance of $268 million to $288 million).

In the end, SoFi's beat-and-raise performance was as strong as any bullish investor could have hoped, and shares of the fast-growing fintech stock are unsurprisingly rallying in response.