Fintech company SoFi Technologies (NASDAQ:SOFI) soared in pre-market trading after reporting a Q4 profit of $0.02 per share compared to -$0.05 per share in the same period last year. Analysts were expecting the company to break even in the fourth quarter.
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The firm generated adjusted revenues of $594 million, up by 34% year-over-year, and surpassed consensus estimates of $572 million. At the end of the fourth quarter, SoFi had new member additions of around 585,000, with total members increasing by 44% year-over-year to more than 7.5 million.
More significantly, 40% of SoFi’s adjusted net revenue came from its non-lending segments: Technology Platform and Financial Services. This was a record for the company.
Looking forward, the firm expects to generate adjusted net revenues in the range of $550 to $560 million in the first quarter of FY24, with adjusted EBITDA between $110 million and $120 million, implying an EBITDA margin of 20%.
In FY24, the company has projected earnings in the range of $0.07 to $0.08 per share and expects its members to grow by 30% year-over-year to 2.3 million new members. Over the long term, SoFi estimates revenues will increase in the range of 20% to 25% between 2023 and 2026. In 2026, the company expects earnings between $0.55 and $0.80 per share.
What Is the Price Target for SoFi?
Analysts remain sidelined about SOFI stock with a Hold consensus rating based on five Buys, seven Holds, and three Sells. Over the past year, SOFI stock has gone up by 12%, and the average SOFI price target of $9.33 implies an upside potential of 22.4% at current levels.
