SoFi Technologies is seeing steady growth across its technology, lending and other financial services lines of business as the firm continues investing in new products, retaining and growing its high-income borrower base and taking advantage of its banking charter.
The San Francisco-based fintech, which got its start refinancing student loans,
"The strength of our results once again underscores how our full suite of differentiated products and services is the foundation for a uniquely diversified business that is able to endure through market cycles," CEO Anthony Noto said on the earnings call.
SoFi offers student loan refinancing, personal loans, home loans and credit cards; other banking products; investing services; and insurance.
SoFi's acquisition of Golden Pacific Bancorp earlier this year has
The company's net revenue was $419 million in the third quarter, up 51% year over year and marking the sixth consecutive quarter of record adjusted net revenue. SoFi also brought in nearly 424,000 members in the quarter for a total of 4.7 million members, up by 1.8 million members from the previous year's third quarter. SoFi saw a 5.3% rise in its stock on Tuesday, closing at $5.73.
SoFi management raised its fiscal year 2022 revenue guidance to between $1.517 billion and $1.522 billion, up from $1.508 to $1.513 billion.
A report from equity analysts at Jefferies said the fintech's third-quarter earnings outperformed across segments, including lending, technology and financial services, and gave the company a buy rating. The
SoFi said its "stringent credit standards" also boost top line growth. The fintech primarily serves high-income, high-FICO-score customers, who have been harmed less by record inflation levels. Noto added President Biden's student loan forgiveness plan, which could relieve debt of $10,000 per borrower subject to income caps of $125,000 per individual and $250,000 per household, likely won't be applicable to many of SoFi's members and target demographics.
"We've been clear that we support targeted forgiveness programs, and the announced programs that the administration released are aligned with what we thought would be a fair and balanced targeted view on programs," Noto said. "We think the addressable market for student loan refinancing is quite large."
The company plans to launch a new buy now/pay later-type product called "pay in four" in the coming months that could serve lower- and moderate-income consumers, Noto said.
SoFi is on a mission to be "the AWS of fintech," Noto has repeated several times in the past. Earlier this year, the company
The company is also using Galileo and Technisys to expand geographically in Latin America, and Noto noted on the call that SoFi is also beginning to migrate away from sole business-to-consumer offerings and serve more business clients.
