SoFi Soars On Sweet Outlook

SoFi Technologies has had a rough time since its IPO but received a boost today after reporting better-than-expected earnings. 🏦

The digital financial service company had a $0.05 per share loss vs. the expected $0.09 per share loss. Total net revenues of $456.7 million also beat the $423 million analysts expected. Its fourth-quarter adjusted EBITDA was up over 15x YoY to a record $70 million. 

In addition to this quarter’s positive results, executives see the strength continuing into 2023. They now expect $260 to $280 million in adjusted EBITDA for the full year, well above analysts’ $246 million forecast. They also believe the company could generate positive GAAP net income in the fourth quarter of 2023. 💪

In terms of other stats, its total members rose 51% YoY to over 5.2 million. And total product adds were up 53% YoY to roughly 7.9 million.

Like other consumer-oriented financial services companies, it saw net interest income rise sharply and set aside additional reserves for credit losses as the economy softened. Additionally, personal loan originations are rising, offsetting weakness in their student loan and home loan segments. 💵

Overall, expectations were trending lower for the company and its stock price. But today’s beat and stronger outlook could be a turning point for its business and share price.

That’s at least what some investors are betting, as $SOFI shares were up 12% on the day. 📈

More in   Earnings

View All

GameStop Reaches Checkpoint In Turnaround

GameStop shares were tossed aside for AMC, Bed Bath & Beyond, and other more volatile “meme stocks” over the last year. However, while those stocks were moving, it seems GameStop executives were busy making progress on the business. 🤔

Let’s take a look at how it fared during the fourth quarter.

Read It

Some Earnings Worth $HEARing

While everyone is focused on the “bigger-picture” risks in the market, there are still plenty of companies reporting earnings. 📝

Let’s recap some of today’s biggest movers (besides Gitlab). 👇

Read It

DocuSign, More Like DocuDecline

Speaking of challenged tech companies, DocuSign also released results today. 📰

The company reported adjusted earnings per share of $0.65 on revenue of $659.6 million. Both beat expectations for $0.52 and revenue of $639.49 million. Its first-quarter sales forecast of $639 million to $643 million also topped the $640.9 million consensus estimate. 

Read It

Tech’s Revenue Slowdown Continues

Chinese e-commerce giant posted better-than-expected fourth-quarter earnings and revenue. However, its weak outlook left investors hoping for more. 🙁

The company’s adjusted earnings per share of $0.70 and revenues of $42.80 billion topped the expected $0.51 and $42.53 billion.

Read It