SoFi Technologies (SOFI) Q3 2024 earnings summary

Executive summary

• Q3 2024 net revenue reached $697.1M, up 30% year-over-year, with net income of $60.7M, marking the fourth consecutive quarter of GAAP profitability.

• Adjusted net revenue was $689.4M, and adjusted EBITDA rose 90% to $186.2M, with a 27% margin.

• Financial Services and Tech Platform segments combined for 64% revenue growth, now representing 49% of total adjusted net revenue.

• Member count grew 35% year-over-year to 9.4M, and total products increased 31% to 13.7M.

• Management raised FY24 guidance for revenue, EBITDA, and net income.

Financial highlights

• GAAP net revenue: $697.1M (+30% YoY); adjusted net revenue: $689.4M (+30% YoY), both exceeding guidance.

• Net income: $60.7M vs. $(266.7)M YoY; diluted EPS: $0.05 vs. $(0.29) YoY.

• Adjusted EBITDA: $186.2M (+90% YoY); margin: 27%, beating guidance by $21M.

• Net interest income: $431.0M (+25% YoY); net interest margin: 5.57%.

• Noninterest income rose 38% to $266.1M, led by Loan Platform Business and technology services.

Outlook and guidance

• FY24 adjusted net revenue expected at $2.535–$2.55B, up 22–23% from 2023.

• Adjusted EBITDA forecast raised to $640–$645M (25% margin); GAAP net income now $204–$206M.

• Tangible book value growth of $1–$1.05B and total capital ratio above 16% expected.

• Anticipates at least 2.3M new members in 2024, a 30% increase from 2023.

• Financial Services net revenue expected to grow over 80% versus 2023; Tech Platform revenue to grow in the low to high teens percent.