SoFi CEO says student loans were not the primary driver of strong Q3

October 30, 2023 09:08 AM PDT | By Invezz

SoFi CEO says student loans were not the primary driver of strong Q3 — Image source: Invezz

SoFi raised guidance on Monday

The stock is being rewarded also because the management raised its guidance for the full year.

SoFi is now calling for its revenue to fall between $2.045 billion and $2.065 billion in fiscal 2023 on up to $396 million of adjusted EBITDA. On CNBC’s “Squawk Box”, CEO Anthony Noto said today:

Bigger driver was the really strong performance from our tech platform and financial services [which made up] 67% of our absolute growth in dollars.

The personal finance company had previously guided for $1.974 billion to $2.034 billion on up to $343 million, respectively. SoFi shares have lost more than 20% over the past two weeks.

Andrew Jeffrey from Truist Financial maintained a Buy rating on $SoFi Technologies, with a price target of $16.00.

— TradeSter JJ (@TRADEsterJJ) October 22, 2023

Personal and home loans performance

SoFi reported $919.3 million of student loan originations in its recently concluded quarter versus $651.5 million only that experts had forecast.

Personal and home loans came in at $3.89 billion and $355.7 million respectively – well above expectations. CEO Noto also told CNBC on Monday:

We think it will be a slow, steady, gradual increase over time on student loan side. We won’t get back to where we were in Q4 of 2019 probably until 2025.

The Nasdaq-listed firm lost 3 cents per share on an adjusted basis in its third quarter on $530.72 million of adjusted net revenue. In comparison, analysts were at 8 cents loss on $511 million revenue.

What else was noteworthy?

Other notable figures in the earnings report include $15.7 billion worth of total deposits while the number of customers almost hit 7.0 million with an addition of over 0.7 million in Q3. The Chief Executive added:

SoFi is taking market share from incumbents. We are a secular grower. We are still seeing very strong demand or our loan products that are very differentiated.

SoFi Technologies now expects to report a profit for its current financial quarter, as per the earnings press release. Wall Street currently has a consensus hold rating on the fintech stock.

Watch here: https://www.youtube.com/embed/88ZXAylJBb8?feature=oembed

The post SoFi CEO says student loans were not the primary driver of strong Q3 appeared first on Invezz

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