Shares of SoFi Technologies (SOFI) fell in trading despite the online personal finance company reporting better-than-expected Q2 results. The company swung to a profit in the second quarter, with earnings of $0.01 per share, compared to a loss of $0.06 per share in the same period last year. Analysts had expected the company to break even in the second quarter.
Total net revenues increased by 20% year-over-year, reaching $598.6 million, which beat analysts’ expectations of $565.5 million. SOFI added 643,000 new members to its platform in the second quarter, bringing the total number of members to nearly 8.8 million by the end of the quarter, a 41% increase year-over-year.
SOFI’s CEO Comments
Anthony Noto, CEO of SoFi Technologies, commented, “Our Financial Services and Tech Platform segments now make up a record 45% of SoFi’s adjusted net revenue, up from 38% a year ago and 32% two years ago.” Noto added that in Q2, “these businesses grew revenue by a combined 46% year-over-year, given our clear structural advantages and leading value proposition in Financial Services.”
SOFI’s Q3 and FY24 Outlook
Looking forward, management now expects to deliver adjusted revenue in the range of $625 million to $645 million with earnings of $0.04 per share. In FY24, SOFI has projected adjusted net revenues in the range of $2.43 billion to $2.46 billion, higher than its prior guidance between $2.39 billion and $2.43 billion. Earnings are projected to come in between $0.09 and $0.10 per share in FY24. For reference, analysts had anticipated earnings of $0.08 per share on revenues of $2.42 billion.
This was the second time SOFI has raised its forecast this year.
What Is a Fair Price for SoFi Stock?
Analysts remain sidelined about SOFI stock, with a Hold consensus rating based on four Buys, nine Holds, and three Sells. Over the past year, SOFI has declined by more than 30%, and the average SOFI price target of $8.15 implies an upside potential of 12.6% from current levels. These analyst ratings are likely to change following SOFI’s results today.
