Table of Contents
a. Key Points
The new SoFi Plus program is performing very well.
Chime migration led to sharply negative Y/Y tech platform growth.
SoFi now expects 0 rate cuts vs. 2 previously.
Credit health remains strong.
b. Demand
Beat revenue estimates by 3.5% & beat guidance by 4.5%.
Lending revenue beat estimates by 22%.
Financial services revenue missed estimates by 9%.
Tech platform revenue missed estimates by 27%.
Beat net interest income estimates by 6.6%.
Slightly beat non-net interest income estimates.
Beat member estimates by 2.8%.
Beat product estimates by 3.2%.
c. Profits & Margins
Beat EBITDA estimates by 7.6% & beat guidance by 13.3%.
EBITDA rose by 62% Y/Y.
Met $0.12 EPS estimates & guidance. EPS would have been $0.13 without negative stock price action during the quarter that diminished expected tax benefits.
Beat 56% lending contribution margin estimate by 480 basis points (bps; 1 basis point = 0.01%).
Missed 51% financial services contribution margin estimate by 540 bps.
Missed 30% tech platform contribution margin estimate by 1400 bps.
Tangible Book Value (TBV) growth was aided by capital raises from last year.
d. Balance Sheet, Credit Health & Capital Market Access
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