Shares of SoFi Technologies (SOFI). jumped 12% in trading Monday after the fintech bank issued strong 2023 guidance and fourth-quarter earnings and revenue beat Wall Street consensus.
The company, known for refinancing student loans, attracted new members and grew deposits. Because of its high-quality deposits, SoFi (SOPHIE) has seen its loan financing costs fall, CEO Anthony Noto said.
“Our deposit funding also increases our flexibility to raise additional net interest margin (NIM) and optimize returns, which is a key advantage in light of significant macroeconomic uncertainty,” he said.
Adjusted net income of $443.4 million for the fourth quarter, beating the average analyst estimate of $425.8 million, was up from $419.3 million in the third quarter and from $279.9 million in the fourth quarter of 2021.
Q4 GAAP EPS of $-0.05 vs $-0.08 consensus, Q3 $-0.09 and Q4 2021 $-0.15.
Adjusted EBITDA for the fourth quarter was $70.1 million, versus the Visible Alpha consensus of $42.9 million and more than double the $44.3 million in the third quarter and $4.59 million in fourth quarter of 2021.
For the full year 2023, SoFi ( SOFI ) expects adjusted net income of $1.93 billion to $2.00 billion vs. consensus of $1.98 billion and adjusted EBITDA of $260 million to $280 million vs. consensus Visible Alpha of USD 253.8 million.
SA affiliate Quad 7 Capital likes to remain net long on SoFi ( SOFI ) after Q4 results, but sees opportunity in bullish calls.