Sofi Earnings Report

They are happy about the results they delivered in 2022 and expect growth to continue into 2023. They acquired some fintech companies and mentioned being an AWS of fintech in their earnings call. Also, they have always wanted to be a one-stop-shop for finances, and as we can see they're able to navigate through the macro and continue to help users with everything related to finances and they seem to be on track to achieving their goals with growth and economies of scale.

Business highlights

• 2022 marks the first time their lending net interest income revenue of $530 million by itself exceeded the total directly attributable lending cost of $443 million.
• grew deposits 7 times to $7.3 billion from $1 billion over the course of the year.
• finished the year with over $143 million EBITDA in 2022.
• grew our member base by 1.8 million to 5.2 million members, nearly 9 times our size in 2018.
• originated nearly $2.5 billion personal loans, up 50% from $1.6 billion in Q4 2021.
• Adjusted EBITDA was $70 million is now largely equal to share-based compensation expense of $71 million, a critical step toward GAAP net income profitability.

Question-and-Answer highlights

• expect a bit of an uptick in student loan refinancing once the moratorium ends in June, 2023 followed by a 60-day extension.
• deposit going to $7B because of the strategy they're employing such as high interest rate on checking of over 2% and a high interest rate on savings at 3.75% with functionalities.

All in all, this is a company that we should continue to monitor.

$sofi

Source: https://s27.q4cdn.com/749715820/files/doc_financials/2022/q4/Q4'22-Investor-Presentation.pdf