The second Consecutive Quarter of GAAP Profitability was reported by Sofi Technologies

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“In Lending, a record 82% of the segment’s adjusted net revenue was derived from Net Interest Income, compared to 76% last quarter and 62% in the year-ago quarter.
First quarter adjusted net revenue of $580.6 million grew 26% from the corresponding prior-year period of $460.2 million.
In the first quarter of 2024, SoFi Money reached 3.9 million products, Relay reached 3.6 million and SoFi Invest reached 2.2 million products.
This represents 15 to 17% adjusted net revenue growth and a 25% Adjusted EBITDA margin.
Management has not reconciled forward-looking non-GAAP measures to their most directly comparable GAAP measures of total net revenue, net income and gross margin.
About SoFi SoFi (NASDAQ: SOFI) is a member-centric, one-stop shop for digital financial services on a mission to help people achieve financial independence to realize their ambitions.
Total Products Total products refers to the aggregate number of lending and financial services products that our members have selected on our platform since our inception through the reporting date, whether or not the members are still registered for such products.
Technology Platform Total Accounts In our Technology Platform segment, total accounts refers to the number of open accounts at Galileo as of the reporting date.


SAN FRANCISCO—(BUSINESS WIRE)—SoFi Technologies, Inc. (NASDAQ: SOFI) released financial results for its first quarter ended March 31, 2024. SOFI is a member-centric, one-stop shop for digital financial services that helps members borrow, save, spend, invest, and protect their money.

The CEO of SoFi Technologies, Inc. is Anthony Noto. remarked: “We had an incredibly successful first quarter of 2024, showcasing tremendous momentum as we sustain profitability, grow our member base, responsibly grow revenue, and diversify toward our Financial Services and Tech Platform segments.”. A 26 percent year-over-year growth in adjusted net revenue was achieved, totaling $581 million. A more cautious approach in light of macroeconomic uncertainty offset flat Lending segment revenue as the combined revenue from the Financial Services and Tech Platform segments grew by 54% to represent a record 42% of consolidated adjusted net revenue. “.

“We produced $144 million in adjusted EBITDA, a 25% margin that translates into 91 percent growth over the previous year. With all three segments profitable on a contribution basis, this works out to an additional adjusted EBITDA margin of 57 percent. Concurrently, we enhanced our balance sheet by increasing its tangible book value by $608 million. By the end of the quarter, we had $4.11 billion and $3.92 of tangible book value per share, which was a sequential increase of 16 percent. “.

Noto went on, “We carried out two significant transactions in the quarter opportunistically. Initially, in an effort to lower total financing costs, we issued $862,5 million in convertible notes with a coupon of 1.25% due in 2029. Second, in order to further strengthen our balance sheet for long-term growth, we exchanged the principal of our convertible notes due in 2026, which totaled $600,000, for shares of SoFi common stock at a steep discount to par. These transactions lower upcoming maturities, improve tangible book value and tangible book value per share, and have little effect on a fully diluted EPS basis for 2024. Regarding our regulatory capital ratios, we are comfortably above the 10 percent regulatory minimum with a total capital ratio of 17 points3 percent, up 200 basis points from 15 points3 percent the previous quarter.

“Over 90% of SoFi Money deposits—which include checking and savings accounts as well as cash management accounts—come from direct deposit members, driving a record-breaking increase in total deposits to $21.6 billion at the end of the first quarter, growing by 16 percent. More than half of newly funded SoFi Money accounts set up direct deposit by day 30. The median FICO score for new direct deposit accounts opened in the first quarter of 2024 was 744. Debit spend increased by more than three times annually to exceed $1 point nine billion as a result of this account primacy. Significantly, and as expected, we continue to gain from robust cross-buy trends into lending and other Financial Services products from this appealing member base.

“Due to the significant macroeconomic uncertainty, this growth in high-quality deposits lowers the cost of funding for our loans and gives us more flexibility to maximize returns and capture additional net interest margin (NIM).”. Our net interest margin increased to 5 points91 percent in the quarter, year over year growth. Bank of SoFi, N. 1. yielded an annualized return on tangible equity of 11.7 percent and $100 million in GAAP net income at a 21 percent margin in the first quarter of 2024. “.”.

“Our consistent product development and successful shift in sales strategy has enabled us to diversify growth and pursue larger, more durable revenue opportunities,” Noto said in closing. “Tech Platform revenue growth accelerated to 21 percent year-over-year, while contribution margins rose from 19 percent to 33 percent.”.

Net interest income generated a record 82 percent of the segment’s adjusted net revenue in lending, up from 76 percent in the previous quarter and 62 percent in the same period last year. The robust performance of our balance sheet assets directly contributes to this. The percentage of adjusted lending revenue derived from net interest income has increased by over 100% since the launch of SoFi Bank two years ago. “.

Consolidated Results.

For example, SoFi’s first-quarter 2024 GAAP net revenue of $645 million was up 37% from $472 million in the same period the previous year. This was just one of several significant financial successes the company announced. The first quarter’s adjusted net revenue of $580 million increased by 26% over the same period in the previous year, which was $460 million. At $144,04 million for the first quarter, adjusted EBITDA rose by 91% compared to $75,07 million in the same period last year.

With $88.0 million in the first quarter of 2024—which includes a $59.2 million one-time benefit from exchanging convertible debt during the quarter—SoFi reported its second consecutive quarter of GAAP net income. In contrast, the first quarter of 2023 saw a loss of $34.4 million. A benefit from the convertible debt exchange during the quarter was not included in the first quarter’s diluted earnings per share of $0.02.

With net interest income of $402 point 7 million for the first quarter, it increased by 71% and sequentially by 3%. The net interest margin increased to 5 points91 percent from 5 points48 percent in the same quarter last year.

While interest-bearing liabilities’ average rate increased 54 basis points year over year and decreased 13 basis points sequentially, interest-earning assets’ average rate decreased 20 basis points and increased 114 basis points compared to the same period last year. Deposits are increasingly being used to fund loans. A 226 basis point difference separated the average deposit rate in the first quarter of 2024 from that of warehouse facilities.

Growth of Members and Product.

Our broad product suite and exclusive Financial Services Productivity Loop (FSPL) strategy have resulted in continued growth of over 35 percent in both total members and products, as well as improved operating efficiency.

Approximately 622,000 new members were added during the quarter, bringing the total number of members to over 8 million by the end of the quarter, an increase of nearly 2 million, or 44%, from the same period the previous year.

The first quarter of 2024 saw over 989,000 new product additions, and at quarter’s end, there were over 11 million products overall, up 38% from 8 million during the same period the previous year.

The total products in the Financial Services segment climbed from 7.1 million in the first quarter of 2023 to 10.1 million, a year-over-year increase of 42%. SoFi Relay grew 64% year over year to 3.6 million products, SoFi Money (which includes checking and savings accounts as well as cash management accounts) grew 61% year over year to 3.9 million products, and SoFi Invest grew 1% year over year to 2.2 million products. However, when the accounts of our now-closed digital assets business are excluded, the total number of products increased by 24% year over year.

At 1 point 7 million, lending products saw a 20 percent year-over-year increase in demand, mostly from the student loan market and the ongoing demand for personal loan products.

A 20 percent year-over-year increase to 151 million Technology Platform enabled accounts was achieved.

Results for the Lending Segment.

While adjusted net revenue for the Lending segment stayed constant at $325.3 million year over year, GAAP net revenue for the first quarter of 2024 fell by 2% to $330.5 million. Strong growth in net interest income for the first quarter of 2024 was driven by higher loan balances and net interest margin expansion, totaling $65.5 million, or 33% year over year. For the first quarter of 2024, net interest income of $266.5 million greatly outpaced directly attributable segment expenses of $117.6 million.

A contribution profit of $207,7 million was made in the first quarter of 2024 by the lending segment, a 1% decrease from $209,9 million in the same period the previous year. Using Lending adjusted net revenue, the contribution margin for the first quarter of 2024 dropped from 65 percent to 64 percent compared to the same period the previous year. These robust margins demonstrate SoFi’s capacity to take advantage of the ongoing high demand for its lending products.


The important inputs to the fair value model for both student and personal loans are compiled in the following table.

As a result of the ongoing high demand for personal loans and the steady growth in student loan originations, the first quarter’s total origination volume for the lending segment increased by 22% year over year.

As expected given our more cautious approach in light of macro uncertainty, personal loan originations in the first quarter of 2024 increased by 2 percent sequentially and by 11% year over year to $3.3 billion. With almost $752 million in student loan volume, the first quarter saw a 43% year-over-year increase and a 5% sequential decline. The $336 million in home loans made in the first quarter represented a 274 percent year-over-year and 9 percent sequential increase.

Outcomes of the Technology Platform Sector.

Compared to the previous quarter’s 13 percent net revenue, the Technology Platform segment’s $94.4 million first quarter 2024 revenue increased by 21% year over year, in line with our guidance for faster growth. A 33 percent margin was achieved in the first quarter of 2024 with a contribution profit of $30.7 million, up 107% from the previous year.

Large bank deals signed in LatAm, strong performance from new clients onboarded over the previous three quarters, and strong monetization of existing clients launching new products on our platform were the main drivers of growth in the first quarter of 2024. As previously mentioned, we’re still making great progress toward our goal of utilizing our distinctive product suite to drive more varied growth and substantial, long-term revenue opportunities.

Technology Platform total enabled client accounts rose from 126.3 million in the year prior to 151.0 million, a 20 percent year-over-year increase.

There is a strong stream of continuing conversations with possible partners who have sizable current clientele in both the U.S. S. , covering both the non-financial services and financial services sectors in Latin America.

Segment Results for Financial Services.

From the total of $81.1 million in the previous year to a record $150.6 million in the first quarter of 2024, the Financial Services segment’s net revenue increased by 86 percent. This growth was primarily driven by increases of 106 percent in net interest income and 65 percent in segment interchange revenue. Remarkably, in the first quarter of 2024, the company’s point-of-sale debit transaction volume surpassed $1.9 billion, indicating an approximate annualized run rate of $8 billion. The new all-time high revenue for SoFi Money and lending as a service, along with ongoing contributions from SoFi Invest and Credit Card, were the main drivers of the segment’s strength in the results.

For the first quarter of 2024, the Financial Services segment reported a contribution profit of $37.2 million, which represents a $61.4 million improvement over the corresponding quarter of the previous year’s $24.2 million loss. Contribution margin increased sequentially by 7 percentage points to 25 percent. This is compelling evidence of our capacity to grow new ventures from a substantial investment stage to profitability through an ongoing process of maximizing unit economics, effectively recruiting members, and accomplishing cross-buy. The first quarter of 2024 saw an annualized revenue per product of $59, up 31% year over year, which highlights the progress made in terms of monetization. The segment generated $69.5 million in additional revenue year over year, with only $8.0 million in additional directly attributable expenses. This indicates operating leverage, as the segment’s incremental contribution profit margin increased to 88.4 percent.

SoFi increased the total amount of Financial Services products by almost 3.0 million, or 42%, year over year, to 10.1 million at the end of the quarter by consistently innovating with new and relevant offerings, features, and rewards for members. Relay reached 3.6 million products, SoFi Invest reached 2.2 million products, and SoFi Money reached 3.9 million products in the first quarter of 2024.

Most notably, SoFi Money offers an APY of up to 4.60 percent as of April 29, 2024; no minimum or maximum balance limits; FDIC insurance up to $2 million via a network of participating banks; a plethora of free features; and a special rewards program. The total amount of deposits increased by 16 percent in the first quarter to $21 point6 billion by the end of the quarter. Members of direct deposit made up more than 90% of SoFi Money deposits, which include checking and savings accounts as well as cash management accounts. By the thirtyth day of the first quarter of 2024, over fifty percent of newly funded SoFi Money accounts had set up direct deposit.

Direction and Prospects for the Future.

For SoFi, 2024 will likely always be a transitional year as the Tech Platform and Financial Services segments will likely spearhead growth, increasing their combined share of total adjusted net revenue from 38% in 2023 to roughly 50% in 2024. The management has projected adjusted net revenue for the full year 2024 of $2.39 to $2.43 billion, a $25 million increase over the implied prior guidance range of $2.365 to $2.405 billion. This guidance assumes that revenue from lending will be between 92% and 95% of 2023 levels, which is consistent with previous guidance. Revenue from financial services is anticipated to grow by more than 75% year over year, and revenue from tech platforms will grow by about 20% annually.

Furthermore, the management has raised its expectations from the previous guidance of $580 to $590 million to $590 to $600 million for adjusted EBITDA. This translates to an adjusted EBITDA margin of 25% and a growth in net revenue of 15 to 17 percent. The management now projects GAAP net income for the entire year of $165 to $175 million, above previous estimates of $95 to $105 million, and GAAP EPS of $0.08 to $0.09, above previous estimates of $0.07 to $0.08.

A rise in tangible book value of between $800 million and $1 billion is anticipated by management for the year, as opposed to the $300 to $500 million previously guided amount, considering the advantages of the recent convertible debt exchange and the impact of fresh convertible issuance. The transactions have caused us to revise our earlier guidance of 14 percent to over 16 percent for the year’s total capital ratio. We still predict that by 2024, there will be at least 23 million new members, or a 30% increase.

The management projects adjusted net revenues of $555 to $565 million, adjusted EBITDA of $115 to $125 million, and net income of $5 to $10 million for the second quarter of 2024.

During the quarterly earnings conference call, management will go into further detail regarding full-year guidance. The management has not compared its most directly comparable GAAP measures of total net revenue, net income, and gross margin to forward-looking non-GAAP measures. This is because the company is unable to predict, with reasonable certainty or without undue effort, the final result of some GAAP components of these reconciliations due to market-related assumptions, costs associated with legal or advisory services, potential tax liabilities, and other costs. For these reasons, management is unable to determine whether the missing information is likely to be significant enough to materially affect the amount of future directly comparable GAAP measures.

Earnings Webcast.

At 8:00 a.m., SoFi’s executive management team will conduct a live audio webcast. me. Eastern Standard Time (5:00 a.m. m. to talk about the business highlights and financial results for the quarter at 2:00 PM Pacific Time. The live webcast can be accessed at https://investors . sofi . com by anyone with an interest. For 30 days, the SoFi Investor Relations website will host a webcast replay. Investor Relations at https://investors . sofi . com is the place to find investor information, including additional financial data.

A Word of Caution About Forward-Looking Statements.

Our actual results or performance could differ materially from those stated or suggested by these forward-looking statements due to a variety of known and unknown risks and uncertainties. These are forward-looking statements, and you should not rely on them unduly.

Non-GAAP Financial Indices.

Information about our adjusted net revenue and adjusted EBITDA, which are non-GAAP financial measures supplied as supplements to the results reported in compliance with generally accepted accounting principles in the United States (GAAP), is provided in this press release. We make strategic decisions, such as those pertaining to operating expenses and the distribution of internal resources, using adjusted net revenue and adjusted EBITDA to assess our overall liquidity position, create business plans, and assess our operating performance. Because of this, we think that adjusted net revenue and adjusted EBITDA give investors and other interested parties valuable information to help them comprehend and assess our operating results in the same way that we do. These non-GAAP measures have limitations as analytical tools, are only provided for supplemental information, and should not be used in place of or as an alternative to the analysis of other GAAP financial measures like net income (loss) and total net revenue. These non-GAAP measures might not be used by other businesses, or they might be used with comparable measures that have a different definition. Consequently, there’s a chance that SoFi’s non-GAAP measurements and similarly named measures from other businesses won’t be directly comparable. Table 2 to the “Financial Tables” herein provides reconciliations of these non-GAAP measures to the most directly comparable GAAP financial measures.

The GAAP financial measures are not available on a forward-looking basis, and the reconciliation information is not readily available without undue effort due to the inherent difficulty in forecasting and quantifying certain amounts that are required for such reconciliations. These amounts include adjustments reflected in our reconciliation of the historical non-GAAP financial measures, the amounts of which, based on past experience, may be material. For these reasons, forward-looking non-GAAP financial measures are presented without these reconciliations.

Regarding SoFi.

On a mission to assist people in realizing their dreams of financial independence, SoFi (NASDAQ: SOFI) is a member-centric, one-stop shop for digital financial services. With quick access to the resources they need to manage their finances well, all in one app, the company’s comprehensive range of financial products and services helps its more than 811 million SoFi members borrow, save, spend, invest, and safeguard their money more effectively. On their journey to financial independence, SoFi also provides members with the tools they need to succeed, such as access to exclusive experiences and events, CFP®s, and a vibrant community.

SoFi is a company that innovates in three business segments: Lending, Financial Services (which includes SoFi Invest, SoFi Checking and Savings, SoFi Credit Card, SoFi Protect, and SoFi Insights), and Technology Platform. The latter provides the only fully integrated financial technology stack from beginning to end. SoFi Bank, N.A. 1. is a bank holding company governed by the Federal Reserve, and is an affiliate of SoFi. Both banks are nationally chartered and subject to OCC and FDIC regulations. Along with being the home of the Los Angeles Chargers and Los Angeles Rams, SoFi Stadium has the company’s naming rights. Get more details by downloading our iOS and Android apps or by going to https://www . sofi . com.

Additional Information About SoFi Is Available.

Investors and others are advised to be aware that we communicate with our investors and the public through our website (https://www . sofi . com), our investor relations website (https://investors . sofi . com), and social media (Twitter and LinkedIn). These channels encompass a variety of communication channels, such as investor fact sheets and presentations, filings with the Securities and Exchange Commission, press releases, audiocasts, and public conference calls. It is possible to classify the content that SoFi publishes on these platforms and websites as material information. As a result, SoFi advises interested parties, including the media and investors, to regularly check the information that is shared on these platforms, including the investor relations website. SoFi’s investor relations website may occasionally update this list of channels, and it might contain links to other social media platforms as well. No filing made pursuant to the Securities Act of 1933, as amended, shall be deemed to incorporate by reference any content from SoFi’s website, these channels, or any other website that may be accessed from them.


Tables of Finances.

(Not audited).

1. Condensed Consolidated Statements of Operations and Comprehensive Income (Deficit).

2. Financial Measures: A Reconciliation of GAAP and Non-GAAP.

Three. Balance sheets that are condensed and consolidated.

4. Net interest earnings analysis and average balances.

5. Condensed Consolidated Cash Movement Information.

6. Organizational Measures.

7. Financials by Segment.

Table of Adjusted EBITDA Reconciliation.

The definition of adjusted EBITDA is net income (loss), reduced as necessary to eliminate the following: (i) corporate borrowing-based interest expense (we do not adjust for warehouse or securitization-based interest expense, nor for deposit interest expense and finance lease liability interest expense, as these are direct operating expenses); (ii) income tax expense (benefit); (iii) depreciation and amortization; (iv) share-based expense (including equity-based payments to non-employees); (v) restructuring charges; (vi) impairment expense (including goodwill impairment and property, equipment, and software abandonments); (vii) transaction-related expenses; (viii) foreign currency impacts related to operations in highly inflationary countries; and (ix) fair value changes in warrant liens. The most directly comparable GAAP measure, net income (loss), is compared to adjusted EBITDA for the following periods:.


We address our clients as “members.”. Anyone who opened a financial services account, connected an external account to our platform, signed up for our credit score monitoring service, or had a lending relationship with us through origination and/or ongoing servicing is considered a member. Our members receive free access to all of our content, teaching materials, news, CFPs, member events, tools, and calculators. We see members as a gauge of our company’s size and growth as well as the noteworthy value of the information we have gathered over the years.

Unless they are removed in compliance with our terms of service, in which case we modify our total number of members, once someone joins, they are always regarded as a member. This could happen for many reasons, such as fraud or in accordance with specific legal procedures. Additionally, our criteria for eliminating members from our total membership count may vary as our terms of service, business procedures, product offerings, and relevant regulations change. In the event that an evaluation process is completed and the results are determined, relevant members and the products they are associated with are removed from our total member count for the duration of the evaluation process. This process determines whether a member should be removed in accordance with our terms of service. But that removal might not happen during the same time that the member was added to our membership list or that the events that led to their removal happened, depending on how long the evaluation process takes. Because of this, changes that could be made after any ongoing evaluation processes come to an end may not yet have been reflected in our total member count. We synchronized our calculations of member and product metrics with our definitions of members and products, starting with the first quarter of 2024, to include joint and co-account holders, co-borrowers, and co-signers, as appropriate. Quarterly amounts from previous periods were deemed irrelevant and were not recast.

Complete Products.

Total products, whether or not members are still registered for such products, is the total number of lending and financial services products that members have chosen from our launch to the reporting date on our platform. Our Lending and Financial Services segments’ size and reach can be primarily determined by looking at the total products. Total product metrics are used by management to assess the success of our member acquisition campaigns and the likelihood that a member will use multiple products.

Total products in our lending segment are all the loans—personal, student, and home—that were originated through our platform as of the reporting date, regardless of whether they were repaid or not. It is considered a single product if a member has more than one loan product of the same type, for example, two personal loans. It is considered two products, though, if a member has more than one loan product of a different type, for example, one home loan and one personal loan. Co-signer or co-borrower accounts are not regarded as distinct lending products.

Total products in our Financial Services segment are the number of SoFi Money accounts (which include cash management accounts and checking and savings accounts held at SoFi Bank), SoFi Invest accounts, SoFi Credit Card accounts (which include accounts with a zero dollar balance at the reporting date), referred loans (which are originated by the Company or a third-party partner to which we provide pre-qualified borrower referrals), SoFi At Work accounts, and SoFi Relay accounts (which have either external linked accounts or credit score monitoring enabled) that have been opened through our platform as of the reporting date. We use a total products metric that counts checking and savings accounts as a single account. The two products that make up our SoFi Invest service are robo-advisory accounts and active investing accounts. Any one or more of the SoFi Invest product categories are available for selection to our members. A member’s possession of multiple SoFi Invest products of the same kind of account, like two active investing accounts, is considered one product. However, those distinct account types are regarded as separate products if a member has multiple SoFi Invest products across account types, such as one active investing account and one robo-advisory account. A joint or co-account holder’s account is regarded as a distinct financial services product. The related products of a member are also removed in the event that the member is removed in compliance with our terms of service, as stated above under “Members.”.

Total Accounts for the Technology Platform.

Total accounts in our Technology Platform segment is the total number of active accounts at Galileo as of the reporting date. To better align with the revenue from the Technology Platform segment, which includes intercompany revenue, we include intercompany accounts on the Galileo platform-as-a-service in our total accounts metric. Consolidation eliminates intercompany revenue. In order to use virtual card products, virtual wallets, peer-to-peer and bank-to-bank transfers, receive early paychecks, separate savings from spending balances, make debit transactions, and rely on real-time authorizations—all of which generate revenue for the Technology Platform segment—total accounts is a key indicator of the accounts that depend on our technology platform. Because Technisys’ revenue model does not primarily rely on being a fully integrated, stand-alone service, we do not measure total accounts for its products and solutions.

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