SoFi Technologies Reports Strong Revenue Growth Across Segments

Segments of Revenue

SoFi Technologies reported a total net revenue of $2.12 billion, with the Lending segment contributing $1.37 billion, the Technology Platform segment adding $352.34 million, and the Financial Services segment bringing in $436.51 million. The Technology Platform segment saw a 12% increase in total net revenue from the previous year, reaching $352.34 million.

Strengths

The company's strong revenue growth was driven by robust organic growth of existing partners and new product adoption. The Technology Platform segment, in particular, saw a 24% increase in contribution profit to $94.8 million, driven by Galileo account growth and decreases in directly attributable expenses. The company also benefited from the contributions of increasingly diversified clients launched within the second half of the year.

Challenges

Despite the strong revenue growth, SoFi Technologies reported a net loss of $300.74 million. The company also saw a 13% decrease in total noninterest income to $861.04 million. The company's total noninterest expense also increased by 28% to $2.42 billion.

Noteworthy

The company began recording interest income earned on segment cash balances within the Technology Platform segment in the third quarter of 2023. This was a new development that contributed to the segment's net interest income of $1.51 million.

Summary

SoFi Technologies reported strong revenue growth across all segments, driven by organic growth, new product adoption, and diversified client contributions. However, the company still reported a net loss, with increased noninterest expenses and a decrease in noninterest income. The company's decision to record interest income on segment cash balances within the Technology Platform segment is a noteworthy development.