NEW YORK - SoFi Technologies, Inc. (NASDAQ: NASDAQ:SOFI) reported its second-quarter earnings, matching analyst expectations for adjusted EPS at $0.01 and surpassing revenue forecasts with $598.62 million against the consensus of $564.39 million. Despite these strong results, shares fell by 2%, indicating investor caution amid broader market concerns.
The fintech company's second-quarter performance showed significant year-over-year (YoY) growth, with adjusted net revenue climbing 22% from the previous year's $488.8 million. The company also turned around its profitability, posting a GAAP net income of $17.4 million, a stark contrast to the -$47.5 million loss in the same quarter last year. The net interest income saw a substantial 42% YoY increase, and the net interest margin improved slightly from the prior year.
SoFi's CEO Anthony Noto attributed the robust quarter to the company's focus on product innovation and member growth, which he believes will "fuel financial growth for years to come." The Financial Services and Tech Platform segments now account for 45% of SoFi's adjusted net revenue, up from 38% a year ago.
Looking ahead, SoFi provided guidance for the third quarter of 2024, projecting adjusted net revenue between $625 and $645 million and adjusted EBITDA between $160 and $165 million. The company also anticipates an adjusted EPS of $0.04, which is above the analyst consensus of $0.03.
For the full year 2024, SoFi raised its guidance, now expecting adjusted net revenue of $2.425 to $2.465 billion, surpassing the consensus of $2.418 billion, and adjusted EPS of $0.09 to $0.10, higher than the analyst estimate of $0.07.
The company's management remains optimistic, expecting to "add at least 2.3 million new members in 2024," which would represent a 30% growth. This forward-looking sentiment is reflected in the raised full-year guidance for both revenue and earnings.
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