SoFi Beats Estimates, Raises Outlook on Loan Volumes and Deposits

Shares of SoFi Technologies (SOFI) skyrocketed more than 17% in early trading on Monday as the online bank posted better-than-expected results on strong loan demand and deposits. The company also raised its full-year guidance. 

SoFi reported a fiscal 2023 second quarter loss of $0.06 per share, half of what it was in 2022 and less than forecasts. Revenue soared 37% to an all-time high of $489 million, also exceeding estimates.

Personal loan origination volume jumped 51% to a record $3.74 billion. Home loan origination volume sank 27% to $243 million. That, however, was almost three times higher than in the first quarter because of improvements in technology. Both were greater than analysts anticipated.

Student loan origination volume dropped 1% to $395 million amid continued uncertainty about the future of President Biden’s federal student loan forgiveness plan. 

Deposits reached $2.7 billion, a gain of 26%. In addition, SoFi set a record for new member additions and added more products. 

The company now predicts 2023 revenue will be in the range of $1.97 billion to $2.03 billion, up from its previous outlook of $1.96 billion to $2.02 billion. It sees earnings before interest, taxes, depreciation, and amortization (EBITDA) of $333 million to $343 million, exceeding its earlier estimate of $268 million to $288 million.

Shares of SoFi Technologies traded at their highest level since February 2022 following the news.