SoFi reported its first quarterly profit Monday, as its lending and non-lending segments gained.
SoFi added 585,000 members in the fourth quarter for a total of 7.54 million, a 44% jump from 2022.
SoFi’s full-year earnings and revenue outlooks were above estimates.
SoFi Technologies Inc. (
SOFI
) shares jumped over 19% in intraday trading Monday after the online bank and personal finance lender posted its first quarterly profit Monday as sales and membership soared for the fourth quarter.
The California-based bank reported fourth-quarter
net income
of $47.9 million, or 2 cents per share. Revenue jumped 34% from the prior-year quarter to a record $594.25 million.
Both results exceeded
forecasts
.
Chief Executive Officer (CEO) Anthony Noto pointed out that 40% of adjusted net revenue was generated by non-lending segments (Technology Platform and
Financial Services
segments). Lending also rose for SoFi, with
personal
, student, and home loan origination volumes up 31%, 95%, and 193% from a year ago, respectively.
Noto said that SoFi added 585,000 new members, an 8.4% increase from the third quarter. That brought total membership at the end of the year to 7.54 million, a 44% gain from 2022. He noted that total deposits grew by $2.9 billion, or 19%, in the quarter, finishing the year at $18.6 billion. Noto added that more than 90% of SoFi Money deposits, including checking and savings and
cash management accounts
, were from direct deposit members.
The company anticipates full-year earnings per share of between 7 cents and 8 cents, with revenue of $550 million to $560 million. Those were above analysts’ estimates as well.
SoFi shares were up 19.4% to $9.09 per share as of about 1:45 p.m. ET Monday, and have climbed about 36% over the past year.
