SoFi Technologies Inc (SOFI, Financial) released its Q3 2023 earnings report on October 30, 2023, showcasing a strong performance with record GAAP and Adjusted Net Revenue. The company reported a 27% Year-over-Year increase in both GAAP Net Revenue and Adjusted Net Revenue, reaching $537 Million and $531 Million respectively. The company also reported a record Adjusted EBITDA of $98 Million, up 121% Year-over-Year.
Financial Performance and Highlights
SoFi Technologies Inc (SOFI, Financial) reported a GAAP EPS loss of $0.29, with an EPS loss excluding the impact of Goodwill Impairment of $0.03. The company added over 717,000 new members, bringing the total members up 47% Year-over-Year to over 6.9 million. The company also added nearly 1,047,000 new products, bringing the total products up 45% Year-over-Year to over 10.4 million.
SoFi Technologies Inc (SOFI, Financial) reported a total deposit growth of $2.9 Billion, up 23% during the third quarter to $15.7 Billion. The company also reported a $68 Million growth in tangible book value, $171 Million on a trailing 12-month basis.
We delivered another quarter of record financial results and generated our tenth consecutive quarter of record adjusted net revenue of $531 million. We saw record new member adds of 717,000 and accelerating growth of 47% for total ending members of over 6.9 million, along with record new product adds of over 1 million, also with accelerating growth of 45% to over 10 million total products. Record revenue at the company level was driven by record revenue across all three of our business segments, with 67% of adjusted net revenue growth coming from our non-Lending segments (Technology Platform and Financial Services segments). On a consolidated level, we saw sequential and year-over-year expansion in our net interest margin to 5.99% and record sequential deposit growth of $2.9 billion. We also generated record adjusted EBITDA of $98 million, representing a 48% incremental adjusted EBITDA margin and a 18% margin overall, with all three business segments profitable as the Financial Services segment posted positive contribution profit for the first time. Excluding the impact of a non-cash impairment of goodwill assets, we would have had a net loss of $19.5 million and an EPS loss of $0.03, which reinforces our confidence in achieving positive GAAP net income in the fourth quarter of 2023. Finally, we generated $68 million in tangible book value growth in the quarter and $171 million on a trailing 12-month basis,” said Anthony Noto, CEO of SoFi Technologies, Inc.
Financial Tables and Analysis
The company's consolidated GAAP results for Q3 2023 showed a total net revenue of $537,209, a 27% increase from Q3 2022. The net loss was reported at $(266,684), a 259% increase from the previous year. The loss per share attributable to common stockholders was $(0.29), a 222% increase from Q3 2022.
On the non-GAAP side, the adjusted net revenue was $530,717, a 27% increase from Q3 2022. The adjusted EBITDA was $98,025, a 121% increase from the previous year. The net loss, excluding the impact of goodwill impairment, was $(19,510), a 74% decrease from Q3 2022. The loss per share attributable to common stockholders, excluding the impact of goodwill impairment, was $(0.03), a 67% decrease from the previous year.
Outlook and Guidance
SoFi Technologies Inc (SOFI, Financial) raised its full-year 2023 guidance, expecting adjusted net revenue of $2.045 to $2.065 billion, up from its prior guidance of $1.974 to $2.034 billion, and full-year adjusted EBITDA of $386 to $396 million, up from its prior guidance of $333 to $343 million. The company is confident in achieving GAAP profitability for the fourth quarter of 2023.
Explore the complete 8-K earnings release (here) from SoFi Technologies Inc for further details.
