SoFi Stock Jumps As CEO Hails 'Strongest Quarter In Our History': Retail Confidence Grows

Shares of SoFi Technologies Inc. ($SOFI) rose 6% in pre-market trading Tuesday after the company delivered upbeat third-quarter earnings and raised its 2024 guidance. 

The neobank reported Q3 earnings per share of $0.05, topping Wall Street’s estimate of $0.04, while adjusted net revenue reached $697.12 million, well above the forecasted $632.33 million. 

SoFi’s book value per share also hit $4.00, marking a strong financial footing.

"This quarter was the strongest quarter in our history. Our results reflect how SoFi is consistently achieving durable growth, how our innovation and brand building are attracting more members and clients to our platform than ever before, and how we are delivering strong and improving returns,” CEO Anthony Noto said in a statement.

Originally a debt refinancing lender, SoFi now operates three segments: lending, financial services, and a tech platform. 

The financial services and tech platform segments contributed to a record 49% of SoFi’s adjusted net revenue, growing their combined revenue by 64% year-over-year.

Following these results, SoFi raised its 2024 revenue forecast to a range of $2.535 billion to $2.55 billion, surpassing analyst estimates of $2.46 billion. 

It also raised EPS guidance to $0.11-$0.12 per share, compared to the consensus of $.10. This quarter marked SoFi’s fourth consecutive period of profitability on a GAAP basis.

On Stocktwits, sentiment among SoFi’s 115,000 followers shifted from ‘bearish’ to ‘neutral’ before the bell, reflecting renewed retail interest. Message volume also increased.

SoFi’s member base grew by over 756,000 in Q3, bringing total members to nearly 9.4 million, a 35% increase year-over-year. 

The company reiterated that it expects to add at least 2.3 million new members in 2024, representing 30% growth over 2023. 

On Monday, Noto told Barron’s he was optimistic about next year, expecting a more favorable rate environment and a stable economy that could support further expansion.

SoFi stock has now gained nearly 16% this year, underscoring investor confidence in its growth trajectory and diversification efforts.

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