SoFi Technologies (NASDAQ:SOFI) Inc., the online banking service, reported a 27% revenue increase for the third quarter of 2023, with the figure reaching $537.2 million, surpassing the anticipated $511.3 million. This financial performance was announced on Monday and highlights the company's continued growth in the competitive online banking sector.
Despite the significant revenue growth, SoFi's losses also widened during this period. The company reported losses of $276.9 million compared to last year's $84.4 million. However, after adjusting for one-off items such as goodwill impairment charges, the adjusted loss was lower at 3 cents per share, an improvement from the expected 8 cents per share loss.
The company managed to attract new deposits which more than doubled from the end of last year, reaching a remarkable $15.7 billion. This surge was driven by SoFi's competitive cash interest rates, enticing a greater number of customers to use their services.
CEO Anthony Noto noted that the median FICO score among new direct deposit accounts stood at 743, indicating a healthy credit profile for their customer base. This detail offers insight into the financial health of SoFi's clientele and suggests a positive outlook for the company's future performance.
Overall, despite increased losses, SoFi Technologies' Q3 report shows promising signs of growth and stability within the competitive landscape of online banking.
InvestingPro Insights
In addition to the reported financials, it's important to consider other metrics and insights to get a comprehensive understanding of SoFi's performance. According to InvestingPro, there are several key factors to note.
InvestingPro Tips suggests that SoFi has been consistently increasing its earnings per share, a positive sign for potential investors. However, the company has been quickly burning through cash, which could be a concern. It's also noteworthy that SoFi's stock price movements have been quite volatile, which could indicate a higher-risk investment.
As for the real-time data from InvestingPro, SoFi's market capitalization stands at $6530M USD, while its P/E Ratio is at -27.06. The company's revenue growth in the last twelve months as of Q2 2023 is at 47.38%, which is in line with the reported revenue increase.
It's worth noting that InvestingPro offers additional tips and insights for SoFi and other companies. For more information, you can visit InvestingPro's pricing page.
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