By Dean Seal
Profitability Surge
SoFi Technologies achieved a profit of $47.9 million in the fourth quarter, a remarkable improvement from the $40 million loss reported in the same period the previous year. The earnings per share surged from a loss of 5 cents to 2 cents, surpassing market expectations. Analysts surveyed by FactSet had predicted the company to break even on a per-share basis.
Revenue Growth
The company experienced a remarkable 35% increase in revenue, reaching $615.4 million for the fourth quarter. This figure surpassed analyst projections of $572 million, according to FactSet. SoFi Technologies’ robust performance was driven by substantial growth in all three business segments.
Record Member and Product Additions
Chief Executive Anthony Noto highlighted the positive impact of member and product additions on the company’s success. SoFi Technologies added nearly 585,000 new members and almost 695,000 new products during the quarter. Such significant growth resulted in record-breaking revenue at the company level.
Encouraging Forecasts
SoFi Technologies expressed optimism for the future, providing an optimistic outlook for its profitability and revenue growth. The company anticipates generating a profit of $10 million to $20 million in the first quarter of 2024. Furthermore, they aim to achieve full-year net income of $95 million to $105 million, translating to a positive earnings per share between 7 cents and 8 cents. These projections exceed the 6 cent profit forecasted by analysts polled by FactSet for 2024.
Long-Term Growth Strategy
The company has also formulated ambitious goals for long-term growth, aiming for a compound revenue growth rate of 20% to 25% through 2026. By adhering to this strategy, SoFi Technologies aims to achieve earnings of 55 cents to 80 cents per share by 2026.
