🚀 SoFi Technologies: impressive growth and record results!
SoFi Technologies Inc, $SOFI the leader in digital financial services, delivers great news !
With a unique strategy and innovative product offerings, this fast-growing company is reporting third quarter 2024 record numbers.
The company announced results on Tuesday, but the market reaction was negative, and the stock price fell by more than 10 %, but later in the day, it partially erased that loss. Yesterday, the share price rose by more than 8 %.🔍
🏆 Key financial results
SoFi Reached Total net revenue of $697 million, with net income USD 61 million. These numbers mean:
📈 30% increase in adjusted net income
💰 90% growth in EBITDA profit
Its strategy of focusing on capital-light, fee-based revenue has enabled a tremendous shift and steady growth across product lines, making SoFi has positioned SoFi as one of the most exciting companies in the digital financial sector. 🔑
📊 Growth in member base and products
With an increase of 35 % the number of members has reached SoFi nearly 9.4 million. Similarly, the total number of products increased by 31 %, representing a staggering 13.7 million of active products. This growth demonstrates the high level of public interest in digital finance and how SoFi can respond flexibly to market demand. 💡
💼 Segments Financial services and technology platforms grew year-on-year by 64 %, which now accounts for nearly half of net revenue SoFi.
Loans segment reported record personal loan volume of $4.9 billion (26% year-over-year growth).
🔧 Innovation as the basis for growth
SoFi opts for a strategy "Financial Services Productivity Loop" (FSPL), a loop that leverages a wide range of products and increases efficiency by attracting new members and engaging them in all available services 💳 Products such as SoFi Money, SoFi Invest and SoFi Credit Cards stand out. Also, the technology platform expands the user base by 14 %, bringing in additional stable revenue. 📱
Commenting on the results, the company's CEO, Anthony Noto, said : "This quarter was a historic milestone for SoFi. Our innovation and improving brand are attracting more members than ever before. Our financial services and technology platform revenue reached a record 49% of adjusted net income, a big improvement from last year's 39%."
🏅 Outlook for 2024
SoFi raised its annual outlook for adjusted net revenue to $2.535 billion to $2.550 billion - a year-over-year increase of 22-23 %! In doing so, it expects full-year GAAP net income to be in the range of $204 million to $206 million and earnings per share to be $0.11 to $0.12.
Very good results, which I rate positively, and I am curious about the next ones. I took advantage of these declines to expand my position. SoFi continues to head for steady growth, building on innovation, fee-based products and broader member engagement.
What is your opinion of SoFi? Has anyone taken advantage of the downturn?
I have a small position and I am very satisfied. The company still has a lot of potential and the room for growth is great.
I'm not really interested in Sofi, but I find $SQ interesting in this sector.
It's definitely a great business, but the price is pretty high, so I'll be buying later. I'd like to buy under $8.
Fine results and fine company, but maybe $SQ is more interesting to me.
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It's certainly a very interesting company. I'm just following it so far.