SoFi lifts revenue guidance as unchanged profit outlook unsettles investors
SoFi posted record second-quarter results, but shares fell nearly 10% after management cited higher growth spending while holding adjusted EBITDA and earnings-per-share guidance steady.
SoFi Technologies raised its full-year revenue guidance after reporting record second-quarter results, according to The Motley Fool’s account published by Yahoo Finance. The fintech’s shares subsequently fell nearly 10%.
Revenue increased 40% to $1.2 billion, while net income reached a record $157 million and adjusted EBITDA rose 44%. Loan originations totalled $14.8 billion.
Membership grew 35% year on year to 15.8 million. SoFi’s cross-buy rate — the proportion of products opened by existing customers — increased from 35% to 51% over the past year.
The company also said SoFi Plus surpassed 200,000 paid subscribers in its first quarter. Management attributed its unchanged adjusted EBITDA and earnings-per-share outlook to spending on growth initiatives that was higher than originally planned.
The market reaction, as described by The Motley Fool, may reflect concern that the additional spending will not produce a corresponding increase in profits. SoFi’s longer-term ambition is to become its members’ primary bank, but the source noted that weaker member growth or a stall in cross-buying could increase the risks around continued reinvestment.
