SOFI Earnings Prediction
The chart below shows how SOFI performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SOFI sees a -1.59% change in stock price 10 days leading up to the earnings, and a -4.25% change 10 days following the report. On the earnings day itself, the stock moves by -0.16%. This data can give you a slight idea of what to expect for the next quarter's release.
SOFI Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
605.97M
18.48%
5.68%
Gross Margin
--
--
--
Operating Margin
9.89%
-1.10%
-11.22%
Net Margin
54.87%
485.59%
418.13%
EPS
0.29
625.00%
480.00%
No Data Available
SOFI Earnings Analysis
SoFi Technologies Inc Corporation (SOFI.O) Earnings Conference Call
Positive
Record Member Growth: SoFi achieved record member growth, surpassing 10 million members, a 34% increase year-over-year, and added 785,000 new members in the fourth quarter alone.
2024 Revenue Growth: Adjusted net revenue for 2024 reached $260 million, reflecting a 26% year-over-year growth, with Financial Services and Technology Platform segments generating $120 million in revenue, up 54% year-over-year.
Lending Segment Revenue Growth: The Lending segment saw adjusted net revenue grow 11% to nearly $150 million, driven by record originations of over $23 billion, a 33% increase from the prior year.
Record Adjusted EBITDA Growth: Adjusted EBITDA for 2024 was a record $665 million, with an EBITDA margin of 26%, up nearly 500 basis points year-over-year, indicating strong profitability across all segments.
Tangible Book Value Growth: Tangible book value increased to $490 million, a year-over-year rise of nearly $140 million, demonstrating significant growth in the company's financial health.
Negative
Quarterly Revenue Shortfall: Adjusted net revenue for the quarter was $7.39 billion, which was below expectations, indicating potential challenges in sustaining growth momentum.
Lending Segment Revenue Slowdown: The Lending segment's adjusted net revenue grew only 22% year over year, significantly lower than the 54% growth seen in the Financial Services and Technology Platform segments, suggesting a slowdown in lending performance.
Loan Yield Decline: Despite record loan originations of $7.2 billion, the average yield on loans decreased by 62 basis points, indicating pressure on interest income and profitability in the Lending segment.
Profitability Concerns: The company reported a GAAP net income of only $4.99 million, which is marginal compared to the overall revenue, highlighting concerns about profitability sustainability.
Tax Rate Normalization Impact: The effective tax rate is expected to normalize at approximately 26%, which could impact future net income and earnings per share growth, especially after benefiting from non-recurring tax benefits in 2024.
SOFI FAQs
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SOFI Earning Call Sentiment
Earnings call transcript: SoFi Technologies Q4 2024 earnings beat forecasts
SOFI.O
-2.76%Positive
The earnings call highlights strong financial performance, record revenues, and significant growth in key areas like loan originations and member deposits. The company provided optimistic guidance for future growth and profitability. Despite some concerns about cost management strategies in the Q&A, the overall sentiment remains positive due to robust financial metrics and growth projections. The lack of a share buyback or dividend program slightly tempers the sentiment, but the strong financial outlook and growth potential outweigh these factors.
