Get 40% Off
🤯 Perficient is up a mind-blowing 53%. Our ProPicks AI saw the buying opportunity in March.Read full update

Sofi Tanks as it Posts Higher Than Estimated Q2 Loss; Reiterates Outlook

Published 13/08/2021, 18:06
© Reuters.

By Dhirendra Tripathi

Investing.com – SoFi Technologies stock (NASDAQ:SOFI) slumped 14% Friday after a second quarter loss that was wider than expected.

The fintech reiterated its 2021 outlook. For the full-year, it forecasts adjusted net revenue of $980 million and adjusted earnings before interest, taxes, depreciation and amortization of $27 million.

The company has already logged $453.25 million in revenue in the first six months of the year.

Its second-quarter adjusted net revenue jumped 74% to $237.21 million as both members and products registered strong growth on the back of an expanded slate of offerings. Total members grew 113% year-over-year and total products grew 123%.

But the company’s bottom line came in red. Net loss came in at $165.31 million compared to a net income of $7.80 million.

The loss was attributed to adjustments related to its $1.2 billion cash and stock acquisition of payments platform Galileo Financial in April 2020.  

Sofi remeasured its valuation allowance of 2020 as a result of the deferred tax liabilities recognized in connection with the Galileo acquisition. This decreased the valuation allowance by $99.8 million. The absence of that tax benefit was a key reason behind the company making losses in the second quarter.

There were also significant non-cash stock-based compensation expenses and fair value changes in warrants primarily related to the fair market value of SoFi stock.

 

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.