Sofi Stock Surges Post Q4 Results
March 02 2022 - 6:53AM
Finscreener.org
Shares of fintech company,
SoFi Technologies (NASDAQ:
SOFI) are up over 11% in
pre-market trading today. SoFi announced its Q4 results on March 1
after the market close and reported revenue of $286 million with an
adjusted loss of $0.15 per share.
Comparatively, Wall Street
forecast SoFi to report revenue of $279 million and a loss of $0.17
per share in Q4. In the year-ago period, the company reported
revenue of $171.49 million.
Key metrics for SoFi in Q4
SoFi explained it hit new highs
across key financial and operating metrics in Q4 of 2021, allowing
it to end the year with record results. Its adjusted revenue grew
by 54% year over year despite the extension of the federal student
loan payment moratorium in late December.
The company exceeded $1 billion
in annual adjusted net revenue for the first time ever, allowing
SoFi to report an adjusted EBITDA of $5 million in Q4. It was the
sixth consecutive quarter where SoFi posted an adjusted EBITDA and
this metric stood at $30 million for 2021.
SoFi CEO Anthony Noto explained,
“The best part is that we were able to reach both our adjusted
revenue and adjusted EBITDA milestones ahead of plan in an
increasingly challenging operating environment, while also
significantly exceeding our member growth guidance.”
In Q1 of 2022, SoFi estimates
adjusted revenue between $310 million and $320 million, compared to
the consensus forecast of $306.32 million. We can see that the
fintech disruptor not only exceeded Wall Street in Q4, it also
provided a better-than-expected outlook for the March
quarter.
The company’s management expects
incremental net interest income revenue from SoFi Bank to move the
top-line needle marginally in Q1. These figures should move higher
once the transition towards loan originations will be fully
completed by end of May 2022.
SoFi emphasized that its
diversified business model allowed it to benefit from competitive
advantages in the last few quarters. As it continues to reinvest in
growth and scale operations, revenue growth should remain robust in
2022 and beyond.
The company expects the extension
of the student loan payment moratorium to negatively impact sales
by up to $35 million in Q1. It forecast adjusted sales between $280
million and $285 million in Q1 of 2022, an increase of 30% year
over year while adjusted EBITDA is forecast between $0 million and
$5 million.
For 2022, SoFi expects adjusted
revenue of $1.57 billion compared to consensus forecast of $1.45
billion. The management expects net revenue to rise by 55% while
adjusted EBITDA might surge to $180 million in 2022.
What next for SOFI stock investors?
Despite the recent uptick in SOFI
stock, itU+02019s still down over 40% below all-time highs, valuing
the company at a market cap of $9.1 billion. It onboarded 523,000
customers in Q4 increasing its
total customer base
to 3.5 million, an increase of 87%
year over year. Due to its widening product suite, these customers
added 900,000 product accounts bringing SoFi’s total to 5.2
million, up from 2.5 million in 2020.
SoFi recently disclosed the
acquisition of Technisys for $1.1 billion in an all-stock deal.
Technisys is a next-gen banking system and can support a variety of
products on a single-core system. It can be run on the cloud
enabling banks to process and analyze data on a real-time
basis.
SoFi stock is valued at a forward
price to sales multiple of 5.8x and its loss per share is forecast
to narrow from $1.45 in 2021 to $0.38 in 2022. Analysts tracking
SOFI stock expect it to increase by 30% in the next
year.
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