SoFi Technologies (SOFI) Q4 2023 earnings summary

Executive summary

• FY 2023 adjusted net revenue was $2.074B (+35% YoY) and adjusted EBITDA was $431.7M (+201%); Q4 records were $594.2M in adjusted revenue and $181.2M in adjusted EBITDA.

• Members reached 7.542M (+44% YoY) and products reached 11.142M (+41%); Technology Platform and Financial Services supplied 40% of Q4 adjusted revenue.

• Q4 deposits grew $2.9B to $18.6B; tangible book value increased $204M in Q4 and $334M for FY23.

Financial highlights

• FY23 GAAP revenue was $2.123B, up 35%; GAAP net loss was $300.7M, including $247.2M of goodwill impairment.

• Q4 GAAP revenue rose 35% YoY to $615.4M; GAAP net income was $47.9M and diluted EPS was $0.02.

• Q4 net interest income increased 87% YoY to $389.6M; FY23 net interest income rose 116% to $1.3B.

• FY adjusted net revenue exceeded the high end of guidance by $9M and adjusted EBITDA exceeded it by $36M.

Outlook and guidance

• Q1 2024 guidance: adjusted net revenue $550M–$560M, up 20%–22% YoY; adjusted EBITDA $110M–$120M at a 20%–21% margin; GAAP net income $10M–$20M.

• FY24 guidance: adjusted EBITDA $580M–$590M, GAAP net income $95M–$105M, EPS $0.07–$0.08, and tangible book value growth of $300M–$500M.

• FY24 Technology Platform and Financial Services revenue combined expected to grow at least 50%; Lending revenue expected at 92%–95% of FY23, with below-EBITDA expenses flat excluding goodwill impairment.

• Adjusted EBITDA margin expected to reach ~30% by year-end 2024; 2023–26 revenue CAGR target is 20%–25% and 2026 GAAP EPS outlook is $0.55–$0.80.