The financial services company is relieved that macroeconomic growth is much better than feared in 2024. SoFi Technologies (SOFI -6.43%) reported quarterly financial results that included updates on several critical metrics investors need to know about. *Stock prices used were the afternoon prices of Oct. 27, 2024. The video was published on Oct. 29, 2024. ...

SoFi Technologies’ cross-selling continues, and certain trends seem well in place as the interest rate environment becomes more benign.Members are accessing more products across the company’s platform, and momentum in SoFi Money deposits continues to be underpinned by direct deposit members.Having run up more than 50% through the past three months, investors sent SoFi shares down 6% in early trading Tuesday (Oct. 29).“Monetization continues to improve across all products,” with annualized revenue per produc ...

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SoFi Technologies, Inc. (NASDAQ: SOFI ) just delivered a Q3 earnings beat , and yet the stock is down 10% following the release. However, we've seen SoFi rally over 40% in the past 6 months, and the latest earnings prove This is a high-risk/high-reward opportunity, which is exactly what I look for in my YOLO portfolio. Joint the Pragmatic Investor today to get insight into stocks with high return potential. You will also get: - Weekly Macro newsletter - Access to the End of The World and YOLO portfolios - T ...

Shares of SoFi Technologies, Inc. (SOFI) have witnessed a notable surge of 42.4% in the past month. This rise is significant, especially compared to the 4% rise in its industry and the 1.1% rise in the Zacks S&P 500 composite. The stock's closing price in the last trading session was $11.19, just shy of its 52-week high of $11.34. The rise can be largely attributed to the positive sentiment surrounding the company's financial technology platform, Galileo. Recently, Galileo expanded its wire transfer service ...

Financial Data and Key Metrics - Adjusted net revenue reached a record $689 million in Q3 2024, a 30% YoY growth, up from 22% in Q2 [8] - Financial Services segment revenue grew 102% YoY to $238 million, now making up more than a third of total revenue [8] - Tech Platform revenue grew 14% YoY to $103 million, with non-lending segments contributing 49% of total revenue, up from 39% a year ago [10] - GAAP net income improved by $327 million YoY to $61 million, with EBITDA growing 90% YoY to $186 million [36] - Tangible book value increased by $236 million to $4.4 billion, with a total capital ratio of 16.3% [39] Business Line Performance - Financial Services segment achieved $238 million in net revenue, up 102% YoY, with 11.8 million products, up 33% YoY [45] - Lending segment recorded $392 million in adjusted net revenue, with $6.3 billion in loan volume, up 14% YoY [15] - Tech Platform segment delivered $103 million in net revenue, up 14% YoY, with Galileo accounts growing 17% YoY to 160 million [53] - Loan Platform Business generated $56 million in fees, driven by $1 billion of personal loans originated on behalf of third parties [51] Market Performance - Personal loan volume reached a record $4.9 billion, up 26% YoY, with $1 billion originated for third parties [33] - Home loan volume grew 38% YoY to $490 million, with home equity loan volume up 44% QoQ [33] - Student loan origination volume grew 3% YoY to $944 million, the best quarter since Q1 2022 [58] - Loan sales totaled $1.3 billion in Q3, with $375 million of personal loans sold at a 105.9% execution [59] Strategy and Industry Competition - The company is shifting towards more fee-based, capital-light, and lower-risk revenue sources, with fee-based revenue making up 25% of adjusted net revenue in Q3 [13] - SoFi is leveraging its one-stop-shop model to drive cross-buying behavior, with 32% of new products opened by existing members [12] - The company is focusing on building unaided brand awareness, which reached 7% in Q3, up nearly 40% YoY [23] - SoFi is expanding its product offerings, including new credit cards, insurance partnerships, and a cash coach product [31][32][29] Management Commentary on Operating Environment and Future Outlook - Management highlighted the improving rate environment and stable economy as favorable conditions for 2025 [19] - The company expects to deliver adjusted net revenue of $2.535 billion to $2.550 billion for full-year 2024, up from prior guidance of $2.425 billion to $2.465 billion [77] - SoFi anticipates adding at least 2.3 million new members in 2024, representing 30% growth [78] - Management expressed confidence in achieving high ROE returns in a declining rate environment and stable economy [101][102] Other Important Information - The company achieved 17 of 19 quarters of record revenue, despite macroeconomic challenges [17] - SoFi's personal loan borrowers have a weighted average income of $164,000 and a FICO score of 746, while student loan borrowers have a weighted average income of $135,000 and a FICO score of 765 [63] - The company's 90-day personal loan delinquency rate decreased to 57 basis points in Q3, down from 64 basis points in Q2 [64] Q&A Session Summary Question: Loan Platform Business Growth and Economics [81] - The Loan Platform Business is a fee-based, capital-light revenue source, with multiple revenue streams including referral fees, upfront cash fees, and servicing fees [82][83][84][85] - The company declined 70%-80% of personal loan applicants, indicating significant latent potential for growth [89] Question: Originations and Lending Growth [91] - The company expects modest growth in dollar terms on the balance sheet year-over-year, with excess demand for unsecured personal loans being fulfilled through the Loan Platform Business [92][93] Question: Credit Performance and Return on Capital [95] - Recent loan vintages are projected to produce ROEs above 30%, driven by lower expected life-of-loan losses, higher pricing beta, and funding cost efficiencies [97][98][99] Question: Loan Platform Business Expectations [104] - The Loan Platform Business is expected to continue growing, with a $2 billion agreement with Fortress and commitments for Q4 and 2025 with other partners [105][106] - The take rate varies depending on the partner, with no financing commitments or loss share agreements [108][109] Question: Deposit Trends [114] - SoFi Money product continues to resonate in the marketplace, with over $2 billion of member deposit growth in Q3, despite rate cuts [115][116] Question: Financial Services Monetization and Growth Vectors [120] - The Financial Services segment has significant monetization potential, with revenue per product at $81, up 52% YoY, but still below long-term targets [122][123] - Growth vectors include SoFi Invest, SoFi Money, credit cards, SMB, and Protect, with significant opportunities for increased monetization [124][125][126][127][128][129] Question: Alt Credit and Tech Platform Pipeline [134] - Demand for loans from buyers and investors has increased, with new partners and declining rates providing a tailwind [135] - The Tech Platform pipeline includes large financial institutions and branded companies, with decisions expected in the coming months [136][137][138][139] Question: Credit Card Growth [142] - The credit card business is in the early stages, with a methodical approach to growth to ensure profitability [143][144][145]

The primary goal of the Cash Flow Kingdom Income Portfolio is to produce an overall yield in the 7% - 10% range. We accomplish this by combining several different income streams to form an attractive, steady portfolio payout. The portfolio's price can fluctuate, but the income stream remains consistent. Start your free two-week trial today!SoFi Technologies, Inc. (NASDAQ: SOFI ) has reported strong earnings results for the third quarter, beating estimates easily. While SOFI's valuation isn't low, investors ...

SoFi stock costs a lot... and may be worth it.SoFi Technologies (SOFI -9.61%) stock tumbled 12.5% through 9:45 a.m. ET Tuesday despite beating on top and bottom lines in its earnings report this morning.Heading into earnings, analysts forecast the online bank would earn $0.04 per share on $632.3 million. In fact, SoFi reported a profit of $0.05 per share, and its revenue exceeded expectations, at $697.1 million. SoFi by the numbersSoFi continued to post impressive growth in the third quarter, with members r ...

| --- | --- | --- | |-------|--------------------|-------| | | | | | | | | | | | | | 2024 | Q3 Summary Results | | | | October 2024 | | Disclaimer Use of Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures (including on a forward-looking basis) such as Adjusted Net Revenue, Adjusted EBITDA, Adjusted EBITDA Margin, and Tangible Book Value. These nonGAAP measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in ac ...

SoFi Technologies Reports Net Revenue of $697 Million and Net Income of $61 Million for Q3 2024, Demonstrating Durable Growth and Strong Returns Record Adjusted Net Revenue with Growth Accelerating to 30% Driven by 64% Combined Growth in Financial Services and Tech Platform Segments, representing 49% of Total Adjusted Net Revenue 35% Growth in Members and Strong Product Innovation Remain Key Drivers of Growth Company Recorded $174 Million in Capital Light, Fee-Based Revenue, Reinforcing Strength of Increase ...