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SoFi stock gains 6% on earnings beat, strong profit forecast

Published 01/30/2023, 07:56 AM
Updated 01/30/2023, 08:05 AM
© Reuters.  SoFi (SOFI) stock gains 6% on earnings beat, strong profit forecast
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By Senad Karaahmetovic

SoFi (NASDAQ:SOFI) shares are moving higher in pre-open Monday after the company reported better-than-expected fourth-quarter results and offered a positive full-year forecast.

SoFi posted a Q4 loss of $0.05 per share on revenue of $456.68 million, beating the analyst consensus for a loss of $0.09 on revenue of $425.37M. Revenue increased by 58% year-over-year while adjusted EBITDA came in at $70.1M, much better than the $42.6M consensus.

“Our strong momentum in member and product adds, and the momentum in products added from cross-buy, reflects the benefits of our broad product suite and Financial Services Productivity Loop (FSPL) strategy,” said CEO Anthony Noto.

For this quarter, SoFi sees revenue at $435M (up or down $5M), below the $445.82M consensus. The FQ1 adjusted EBITDA forecast is in the region of $40M - $45M, again below the $49.5M consensus.

However, investors were positively surprised by the full-year forecast that sees SoFi recording between $1.925B and $2B, leading to an adjusted EBITDA of $260M - $280M. Analysts were looking for revenue of $1.98B and an adjusted EBITDA of $242.7M.

“Management expects to reach quarterly GAAP Net Income profitability by Q4 2023,” the company said in a statement.

SoFi stock was already up nearly 29% year-to-date (YTD) heading into the earnings season. As of 06:55 ET (12:55 GMT), SoFi stock is up 5.7%.

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