Shares of SoFi Technologies (NASDAQ:SOFI) Inc. experienced a 7% surge in premarket trading on Monday, driven by robust quarterly revenue and an optimistic future outlook. This comes despite the company's Q3 net loss of $266.7 million, a considerable increase from last year's $84.4 million loss. However, SoFi anticipates a positive GAAP net income by Q4 2023, excluding non-cash impairment charges.
The company reported a more than doubled EBITDA of $98 million and revenue of $537 million, surpassing the FactSet consensus. Key growth areas for SoFi include personal-loan originations, which increased by 38% to $3.9 billion, and home-loan originations that saw a significant jump of 64% to $355.7 million following the integration of Wyndham Capital Mortgage from a Q2 acquisition.
Student-loan originations also witnessed substantial growth, skyrocketing by 101% to $919.3 million. This performance has led SoFi to project an adjusted net revenue of between $2.045 billion and $2.065 billion and full-year adjusted EBITDA of between $386 million and $396 million, exceeding previous estimates.
These promising financial results and projections have addressed what is often referred to as the 'thousand-dollar question' in tech earnings, demonstrating SoFi's potential for sustained growth and profitability into the future.
InvestingPro Insights
In light of SoFi Technologies Inc.'s recent performance, InvestingPro provides some valuable insights. According to InvestingPro data, SoFi has a market cap of $6530M USD and a negative P/E ratio of -26.98, indicating that the company is not currently profitable. The company's revenue growth in the last twelve months as of Q2 2023 is 47.38%, which, although impressive, seems to be slowing down according to InvestingPro Tips.
InvestingPro Tips also suggests that SoFi's stock is in oversold territory and has fared poorly over the last month, with the stock price falling significantly. Despite this, the company's liquid assets exceed short-term obligations, indicating a strong financial position in the short term.
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