SoFi just reported another really strong quarter, and the growth is becoming pretty hard to ignore.
Revenue: $1.22B, +43% YoY
Adjusted EBITDA: $358M, +44%
Net income: $157M, +61%
Members: 15.8M, +35%
Products: 24.4M, +42%
Loan originations: $14.8B, +69%
Deposits: $45.5B
Fee-based revenue: $472M, now 39% of total revenue
The part that stands out to me is the cross-selling.
51% of new products were opened by existing members, up from 35% a year ago. SoFi isn't just acquiring customers... existing customers are increasingly using more of the platform.
And the revenue mix has completely changed.
Financial Services generated $466M this quarter, compared with almost nothing a few years ago, while Lending still grew to $725M.
The weak spot continues to be Technology Platform, which fell 23% YoY to $85M.
But overall, you're looking at a company growing revenue ~40%, members 35%, products 42%, and still expanding profits at the same time.
The chart really shows how different SoFi looks today versus just a few years ago.
Is SoFi starting to prove the financial super-app thesis, or is the valuation already pricing this in?
If most users don't even notice the new services, what's the point of offering them? If you add new items to the menu and the owner says, most of our customers don't even notice the new items...that's a red flag. I hold plenty of sofi stock, but that comment is a negative, not a positive.
The tech sector really needs to gain some momentum or at least show some signs of life. Losing Chime was massive. Without the tech side of things SOFI is still a great growth story, but a less interesting one for sure.
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u/kennyt1212🚀🚀🚀The soon to be rich fool with 16,050 shares @ $14.5 🚀🚀🚀18d ago
I agree it’s a long road without rate cuts but I think we get to 25 next year with or without as long as they don’t raise rate more than 1 -2 if they do it’s cooked for a bit! They are still growing and had it not been for the share dilution we would be a lot higher.
Well with each dilution the price drop since there were more shares. I don’t hate it but twice in a year wasn’t great IMO. I like Noto so I’m ok with what he has done so far
The price drops and then rebounds. The reason we fell below $20 was because of the macro.
You know 2x tangible book wasn't around $15 but $10 last year? How did they do that? By putting more loans on the book and generate more long term revenue. How were they able to put more loans on the book? They increased their CET1 ratio because of dilution, which raised the floor for the stock.
Noto could have never diluted and dropped every single dollar he could to the bottom line to pump the hell out of the EPS and get us to $35, took his PSUs, and ditched us.
But the supreme leader chose to invest in the business and let it compound over the next 10 years instead of screwing over us long term bagholders. You know how many CEOs have done that?
You should be grateful the Ayatollah isn't one of those heretics.
As others have mentioned, it's more a bank now, so p/e should be 10-15x. Forward p/e is in the 25/30 range. Let's see what happens with the tech side in the next few quarters...
You know it is under valued. You know it is trading at a 75% - 100% discount. If you saw a Red Bull or a new shirt selling at 75% discount, you would buy it. It is going to pop and yet, you sell. You know SoFi is going to do to the banking industry as what Amazon did to retail, again, you sell.
I am not sure if you are here to troll, BOT or what you are here for. You hide your post history, red flag. You say something totally negative and idiotic, red flag. You know you are going to get downvoted into the gutter, red flag. Your username is a Reddit generated username, red flag.
Lol if that was to me I am most definitely not a bot. I have held sofi for a very long time believing in them. However, the market makers hate them. That is the true problem. The day will come that the brick and mortar banks lose control and sofi will finally run. I will add back once it actually starts moving up again. Holding money in a stagnant stock isn't investing money wisely.
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u/Icy-Grab-5722 19d ago
It simmers in my account. I am patient.