Revenue: Q1 2024 adjusted net revenue was $581 million, marking a 26% year-over-year growth.
Profit: GAAP net income stood at $88 million, including a $59 million one-time benefit from the exchange of convertible notes. Adjusted EBITDA was $144 million, up 91% year-over-year.
Margins: Adjusted EBITDA margin was 25%, up 9 percentage points from 16% a year ago.
Growth: 12th consecutive quarter of greater than 25% growth. Financial Services and Technology Platform segments constituted 42% of adjusted net revenue, up from 40% in the previous quarter.
Member Base: Grew to 8.1 million, up 44% from the prior year, with 622,000 new members added in Q1.
Lending: Lending adjusted net revenue was flat year-over-year at $325 million.
Future Guidance
Adjusted Net Revenue: Expectation for 2024 increased to $2.39 billion to $2.43 billion, up $25 million from prior guidance.
Adjusted EBITDA: Revised guidance for 2024 to $590 million to $600 million, up from the previous guidance range of $580 million to $590 million.
Segment Growth: Lending revenue is expected to be 92% to 95% of 2023 levels. Tech Platform is anticipated to grow approximately 20% year-over-year. Financial Services segment revenue is expected to grow more than 75% year-over-year.
Trends, Market Conditions, Sentiment
Diversification: SoFi continues to diversify its revenue sources, with significant growth in Financial Services and Technology Platforms.
Market Conditions: Cautious optimism despite volatility in interest rates and a challenging macroeconomic environment, including inflation and liquidity concerns.
Credit Quality: Focused on high-quality credit underwriting; personal loan borrowers had a weighted average income of $169,000 and a FICO score of 746.
Opportunistic Capital Management: Executed strategic transactions to optimize the financing structure and strengthen the balance sheet, including the issuance of new convertible notes and an exchange that reduced 2026 maturities.
Digital Financial Services Push: Emphasized the aim to make SoFi a one-stop shop for digital financial services, showing success in cross-selling products.
Investment in Technology: Continued product development in the Tech Platform segment to capture larger, more durable revenue opportunities.
Notable Quotes
”Q1 was another exceptionally strong quarter for SoFi.” - Anthony Noto, CEO.
”We remain as confident as ever in SoFi’s future.” - Anthony Noto, CEO.
”Our broad product offering continues to attract more and more members to SoFi.” - Anthony Noto, CEO.
”Our increasingly diversified and differentiated business model drives SoFi’s durability and long-term growth potential.” - Chris Lapointe, CFO.
”Despite external unpredictability, I remain as confident as ever in SoFi’s future.” - Anthony Noto, CEO.
”These transactions put us in an even stronger position for years to come.” - Chris Lapointe, CFO, on finance restructuring efforts.
