SoFi Technologies Reports Fourth Quarter and Fiscal Year 2021 Results|||

Record GAAP and Adjusted Revenue for Quaternary Quarter and Full Year 2021
Fourth Quarter $286 Million GAAP Revenue Up 67%, $280 Million Adjusted Acquirement Up 54% Year-over-Year
Quaternary Quarter Adjusted EBITDA of $v One thousand thousand Positive for sixth Straight Quarter
Tape 523,000 Quarterly New Member Adds Up 39% Sequentially
Record 906,000 Quarterly New Product Adds Upwardly 51% Sequentially

SAN FRANCISCO–(BUSINESS WIRE)–$SOFI–SoFi Technologies, Inc. (NASDAQ: SOFI), a member-centric, ane-stop store for digital fiscal services that helps members borrow, relieve, spend, invest and protect their money, reported financial results today for its 4th quarter and financial twelvemonth concluded December 31, 2021.



“We hit new highs across our fundamental financial and operating metrics in the fourth quarter, finishing 2021 with record annual results,” said Anthony Noto, CEO of SoFi Technologies, Inc. “Adjusted net revenue of $280 1000000 was another quarterly record for u.s., up 54% twelvemonth-over-year and up sequentially, even with the unexpected extension of the federal educatee loan payment moratorium in late December. Nosotros exceeded $i billion in annual adjusted net revenue for the kickoff time. We too delivered quaternary quarter adapted EBITDA of $five million — our sixth consecutive positive quarter — resulting in positive full-year adapted EBITDA of $30 million. The best function is that we were able to attain both our adapted revenue and adapted EBITDA milestones ahead of plan in an increasingly challenging operating surround, while also significantly exceeding our member growth guidance.”

Consolidated Results Summary

Three Months Concluded December 31,

% Change

Year Ended December 31,

% Alter

($ in thousands)

2021

2020

2021

2020

Consolidated

GAAP

Total net revenue

$

285,608

$

171,491

67

%

$

984,872

$

565,532

74

%

Internet loss

(111,012

)

(82,616

)

34

%

(483,937

)

(224,053

)

116

%

Loss per share – basic and diluted

$

(0.15

)

$

(1.85

)

$

(ane.00

)

$

(4.30

)

Consolidated – Non-GAAP

Adapted net revenue(ane)

$

279,876

$

182,019

54

%

$

1,010,325

$

621,207

63

%

Adjusted EBITDA(one)

4,593

11,817

(61

) %

xxx,221

(44,576

)

due north/a

___________________

(1)

Adjusted net revenue and adjusted EBITDA are non-GAAP financial measures. For more information and reconciliations to the well-nigh comparable GAAP measures, see “Not-GAAP Financial Measures” and Table 2 to the “Fiscal Tables” herein.

Noto continued: “As important, we also reached all-fourth dimension highs in members added, products added and engagement besides. Nosotros finished 2021 with approximately 3.5 1000000 full SoFi members, up 87%, or ane.6 one thousand thousand, from where nosotros started the year, and approximately 500,000 ahead of our stated goal. We added a record 523,000 new members in the 4th quarter — a new high in accented number terms, up 39% versus the number of net adds in Q3 2021. We besides extended our string of triple-digit year-over-twelvemonth product growth for the sixth consecutive quarter, adding 906,000 new products, up 51% versus the number of net adds in the third quarter, to end 2021 with a record 5.two 1000000 products in total, more than than two.6 million, or 105%, college from where we started the year. We were able to achieve these milestones in 2021 — and get to such a position of strength today — for three main reasons: First, nosotros connected to drive strong growth through cracking execution across our three diverse businesses, as we adapted to capitalize on changing macro conditions. Second, the success of our unique Financial Services Productivity Loop (FSPL) strategy accelerated every bit we scaled our business in 2021 — allowing us to exceed our original 2021 fellow member growth target by xl% and still hit our adjusted EBITDA target. And third, we took a giant step forrard in 2021 in achieving our goal of condign a household make proper noun past investing in and growing our brand awareness via our SoFi Stadium amalgamation, the success of our integrated multi-media campaigns and the virality of the influencers with whom we partnered.”

Noto concluded: “Today, SoFi is in its strongest position ever to differentiate our offerings and ensure that we’re delivering for our members and enhancing their experience with each new product they adopt. Our new banking company charter will exist a game changer for us in differentiating our SoFi Checking and Savings offering in the marketplace, and improving our pricing and selection across Lending. Acquiring Technisys, a leading deject-native, digital multi-production core banking platform, will be a critical next step in our continued efforts to vertically integrate SoFi’south businesses to further advance the pace of innovation of our best-of-breed financial products. We expect Technisys to exist a growth multiplier for both SoFi and Galileo, in improver to realizing its ain enormous growth opportunities, which are farther strengthened in partnership with Galileo. We think we are well on our way to building the AWS of fintech. We have the right strategy, offering, leadership, liquidity and people to achieve our long-term strategic goal to be the digital one-end shop for our members for all of the major fiscal decisions in their lives, and all of the moments in between. Having just celebrated my 4th anniversary as CEO of SoFi in Feb, I could not exist more than excited about what’southward alee, and I feel like nosotros are just getting started.”

Consolidated Results

Total GAAP net revenue of $285.vi million in the fourth quarter of 2021 and $984.9 meg for full-year 2021 increased 67% and 74%, respectively, from the corresponding prior-year periods of $171.five million and $565.5 million, respectively. On an adapted basis, internet revenue of $279.9 million for the quaternary quarter and $1.01 billion for the full year were upwardly 54% and 63%, respectively, from the respective prior-twelvemonth menstruation totals of $182.0 million and $621.2 meg, respectively. Force in all three of SoFi’s business segments drove the year-over-year growth in these measures.

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SoFi recorded a GAAP net loss of $111.0 million for the quaternary quarter of 2021 and $483.9 million for total-year 2021, versus the prior-twelvemonth periods’ net losses of $82.6 million and $224.1 million, respectively. Fourth quarter adapted EBITDA of $4.half-dozen meg was positive for the sixth consecutive quarter, culminating in total-year positive adjusted EBITDA of $thirty.2 meg.

Member and Product Growth

SoFi added a tape number of both members and products in accented terms for the quarter and year. The SoFi Stadium affiliation, together with successful integrated marketing and influencer campaigns, took make recognition to new highs, which SoFi leveraged through meliorate execution of its unique Financial Services Productivity Loop (FSPL) strategy.

The v nationally televised NFL regular season games at SoFi Stadium were seen by an average of more 22 million households per game, for 110 million-plus household impressions in total. This visibility helped to increment SoFi’s unaided brand sensation by nearly 70% in 2021, which reached a new tape in the fourth quarter. SoFi unaided brand sensation rose again in Feb 2022, when an estimated 106 million people watched the Los Angeles Rams win the Super Bowl at home at SoFi Stadium.

These brand-edifice strategies, coupled with referral and cross-buy campaigns such as Refer the App, the SoFi Coin Referral program, the SoFi Coin-Personal Loan bundle, and SoFi’s unique rewards plan, drove record new fellow member and product additions. SoFi added approximately 523,000 new members in the fourth quarter – a record in absolute number terms and up 39% from the approximately 377,000 new members added in the 3rd quarter, to finish 2021 at 3.5 million, up 1.6 1000000, or 87%, from 2020.

Total products added in the fourth quarter of approximately 906,000 were 51% higher than the approximately 600,000 added in the 3rd quarter, and up 105% year-over-year, for SoFi’southward sixth consecutive quarter of triple-digit growth. Total products of nearly five.2 million at year-end were more than double the 2.5 million at year-cease 2020. With product growth exceeding member growth in accented terms, members are demonstrating high product satisfaction and greater willingness to prefer additional products, further reinforcing the value of SoFi’s unique FSPL strategy.

(1)

Outset in the fourth quarter of 2021, the Company included SoFi accounts on the Galileo platform-as-a-service in its total Technology Platform accounts metric to better align with presentation of Technology Platform segment revenue. The Company recast the total accounts as of December 31, 2020 to conform to the current twelvemonth presentation, which resulted in an increment of 375,367 in total accounts equally of such appointment. Quarterly amounts for the relevant quarters in 2021 and 2020 were determined to be immaterial, and as such were non recast.

In the Financial Services segment, full products increased by 155% year-over-year, to 4.one million from 1.six million, driven primarily by growth in SoFi Invest and SoFi Money offerings.

Lending products rose xviii% in the fourth quarter, and were upwards across all loan types. Record demand for personal loans was the largest commuter, followed by an increase in need for student loans in the lead-up to the anticipated January 2022 expiration of the moratorium on federal educatee loan payments.

With the rapid growth in Financial Services products, SoFi finished 2021 with virtually four times every bit many of these high-frequency, low acquisition cost, “top-of-funnel” products as low-frequency, high lifetime value (LTV), “bottom-of-funnel” Lending products. With these “top-of-funnel” offerings driving product growth, full visitor fourth quarter cross-buy book — the term for when existing SoFi members acquire an additional SoFi product — more tripled year-over-yr, to SoFi’s highest absolute number of cross-bought products ever.

Applied science Platform enabled accounts increased by 67% twelvemonth-over-twelvemonth to 99.7 one thousand thousand, due to both diverse new client additions and growth among existing Galileo clients.

Lending Segment Results

Lending segment GAAP and adjusted net revenues were $213.8 one thousand thousand and $208.0 million, respectively, for the 4th quarter of 2021, and $738.3 million and $763.8 million, respectively, for the total year. This represented quarterly yr-over-year increases of 43% and 30%, respectively, and total year increases of 54% and 42%, respectively, driven past growth in net interest income, and origination and gain on auction revenue.

Lending segment contribution profit of $105.1 million, at a 51% margin of adjusted Lending net revenue for the 4th quarter of 2021, increased 23% twelvemonth-over-year, only declined sequentially from the third quarter’south $117.7 meg of contribution profit at a 55% margin. This sequential reject was primarily due to lower domicile loan conversion at SoFi’s third-political party fulfillment partner in home loans, which reduced SoFi’s ability to meet potent habitation loans demand. These issues have since been resolved by the onboarding of another tertiary-party fulfillment partner. Additionally, higher student loan refinancing marketing spend to drive volume in the lead-up to the January 2022 federal educatee loan payment moratorium expiration was not recouped when the moratorium was extended in tardily-December, curtailing need during the final calendar week of the quarter. Full-twelvemonth Lending segment contribution profit of nearly $400 million was up 65%, at a 52% margin.

​Lending – Segment Results of Operations

Three Months Ended

December 31,

Year Ended

December 31,

($ in thousands)

2021

2020

% Alter

2021

2020

% Modify

Total net revenue – Lending

$

213,764

$

148,992

43

%

$

738,323

$

480,866

54

%

Servicing rights – change in valuation inputs or assumptions

(9,273

)

one,127

(923

)%

two,651

17,459

(85

) %

Remainder interests classified every bit debt – change in valuation inputs or assumptions

3,541

9,401

(62

) %

22,802

38,216

(xl

) %

Directly attributable expenses

(102,967

)

(74,316

)

39

%

(364,169

)

(294,812

)

24

%

Contribution Profit

$

105,065

$

85,204

23

%

$

399,607

$

241,729

65

%

Adjusted net revenue – Lending(1)

$

208,032

$

159,520

30

%

$

763,776

$

536,541

42

%

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_________________

(1)

Adapted cyberspace revenue – Lending represents a not-GAAP financial measure. For more information and a reconciliation to the most comparable GAAP measure out, see “Non-GAAP Financial Measures” and Table ii to the “Financial Tables” herein.

Fourth quarter Lending segment total origination volume increased 67% twelvemonth-over-year, with record volume in personal loan originations and higher student loan originations more than offsetting the decline in domicile loan volume.

Record personal loan originations of more than $ane.half dozen billion in the fourth quarter of 2021 were up $1.0 billion, or 168%, yr-over-year, and more than double 4th quarter 2019’south pre-pandemic total. SoFi’s personal loans business outperformed due to improved execution, technology and credit model enhancements, a reopening of personal loan credit eligibility and continued stiff demand for its high-quality loans. Full-yr personal loan originations of more than $v.3 billion were more than than double the 2020 total and 44% in a higher place 2019’south pre-Covid level. In addition, providing loan referral fulfillment services to Pagaya, an artificial intelligence (AI) network that facilitates credit decisioning, enabled SoFi to access a broader audience to drive further growth in personal loans without taking boosted underwriting risk.

In the fourth quarter, pupil loans benefited from accelerating demand ahead of the Jan federal student loan payment moratorium deadline and predictable rate increases in 2022. Student loan originations of most $1.v billion increased 51% sequentially – even with the unexpected late-Dec extension of the federal educatee loan payment moratorium to May 2022. This suggests in that location may be a rapid return to pre-pandemic student loan demand levels once the payment moratorium expires.

​Lending – Originations and Boilerplate Balances

Iii Months Concluded

Dec 31,

% Alter

Year Concluded

December 31,

% Change

2021

2020

2021

2020

Origination volume ($ in thousands, during flow)

Home loans

$

657,304

$

672,724

(2

) %

$

2,978,222

$

2,183,521

36

%

Personal loans

one,646,289

613,774

168

%

five,386,934

2,580,757

109

%

Student loans

i,461,405

970,543

51

%

4,293,526

iv,928,880

(13

) %

Total

$

3,764,998

$

2,257,041

67

%

$

12,658,682

$

9,693,158

31

%

Boilerplate loan balance ($, as of menses end)(ane)

Dwelling house loans

$

286,991

$

291,382

(2

) %

Personal loans

22,820

21,789

5

%

Student loans

50,549

54,319

(seven

) %

_________________

(1)

Within each loan product category, average loan balance is defined as the full unpaid principal balance of the loans divided past the number of loans that take a residual greater than cypher dollars as of the reporting date. Average loan balance includes loans on the balance canvas and transferred loans with which SoFi has a standing involvement through its servicing agreements.

December 31,

​Lending – Products

2021

2020

% Modify

Home loans

23,035

thirteen,977

65

%

Personal loans

610,348

501,045

22

%

Educatee loans

445,569

402,623

eleven

%

Total lending products

i,078,952

917,645

18

%

Technology Platform Segment Results

SoFi’s Technology Platform segment consists primarily of Galileo Financial Technologies, LLC (Galileo), a technology infrastructure provider caused in May 2020. Galileo signed ix new clients during the fourth quarter, for a total year 2021 total of 44. Client accounts enabled by Galileo rose 67% year-over-yr, to approximately 100 meg from approximately 60 million, through new client acquisition and growth at existing clients. Galileo has also expanded its client base to include B2B and enterprise clients, as adoption of modern digital payments and banking has opened upwardly new verticals, customer types, use cases and opportunities.

Dec 31,

​Engineering science Platform

2021

2020

% Alter

Full accounts

99,660,657

59,735,210

67 %

Technology Platform segment internet acquirement of $53.3 one thousand thousand for the fourth quarter of 2021, and $194.9 meg for the full yr, was upward 42% and 102%, respectively, from the comparable prior year periods. SoFi continues to invest heavily to capture Galileo’s significant and accelerating secular growth opportunities. This intentional increased investment drove quarterly Galileo operating expenses 61% higher year-over-year, and lowered the contribution margin from 45% to 38% in the quaternary quarter. Maintaining this high level of investment for sustained, long-term growth is expected to require operating the business at a 20–30% contribution margin range for the foreseeable future.

Technology Platform – Segment Results of Operations

Three Months Ended

December 31,

Year Ended

Dec 31,

($ in thousands)

2021

2020

% Alter

2021

2020

% Change

Total net revenue

$

53,299

$

37,482

42

%

$

194,886

$

96,316

102

%

Directly owing expenses

(33,291

)

(xx,676

)

61

%

(130,439

)

(42,427

)

207

%

Contribution Profit

$

twenty,008

$

xvi,806

nineteen

%

$

64,447

$

53,889

20

%

Financial Services Segment Results

Fourth quarter 2021 internet revenue of virtually $22.0 million was more than five times the prior yr menstruation’southward total of $4.1 meg, demonstrating SoFi’s rapid progress in monetizing this segment. The Financial Services segment contribution loss of $35.two million improved by $i.6 million from the prior year quarter’s $36.8 million loss, due to the benefits of ongoing investments for growth. For the full year, the segment delivered $58.1 million of acquirement, a nigh v-fold increase from the prior yr’south $11.9 one thousand thousand full, and the $134.nine million contribution loss was essentially apartment versus $132.1 meg in the prior yr period.

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Financial Services – Segment Results of Operations

Three Months Ended

December 31,

Year Ended

December 31,

($ in thousands)

2021

2020

% Change

2021

2020

% Change

Total net revenue

$

21,956

$

four,051

442

%

$

58,078

$

eleven,870

389

%

Straight attributable expenses

(57,145

)

(40,804

)

forty

%

(192,996

)

(143,966

)

34

%

Contribution loss

$

(35,189

)

$

(36,753

)

(4

) %

$

(134,918

)

$

(132,096

)

2

%

By continuously innovating for members with new and relevant offerings, features and rewards, SoFi added approximately 2.v meg Financial Services products in 2021, bringing the total to approximately 4.ane million. Triple-digit growth in SoFi Coin and SoFi Invest products were the largest drivers of the 155% year-over-year increase in total Financial Services products. New SoFi Money features in 2021 include two-twenty-four hours early paycheck, autosave, cashback, and no-fee overdraft protection. SoFi’south new SoFi Checking and Savings offer is truly differentiated in the category, with a one% annual pct yield for direct deposit members — 33 times the national average — and no minimum balance requirements, plus many of the free features SoFi Money members historically enjoyed.

SoFi Invest expanded fellow member selection in both cryptocurrencies and retail IPOs in 2021. Two new crypto coin additions in the fourth quarter brought the full-year full added to 25, and the year-stop total of thirty placed SoFi amongst the selection leaders in the space. SoFi Invest also brought ii regular-way IPOs to members in the fourth quarter — as the primary retail channel for Rivian, the largest IPO since Facebook in 2012, and Nubank, a leading fintech company in Brazil. SoFi introduced finish-limit trade orders in the fourth quarter also, and added margin trading in the starting time quarter of 2022. The SoFi Credit Card — with a unique Rewards platform that awards points for both transactions and smart fiscal behaviors — experienced strong take-upwards in its first full year. Total accounts grew from approximately half-dozen,000 to more 91,000 from the kickoff through the end of 2021, and quarterly spend, balances and accounts averaged high double-digit growth throughout the twelvemonth. In addition, SoFi’south partnership with Pagaya resulted in nearly 7,700 referred loans, a promising debut in its kickoff total quarter.

Dec 31,

​Financial Services – Products

2021

2020

% Change

Coin

1,436,955

645,502

123 %

Invest

i,595,143

531,541

200 %

Credit Bill of fare

91,216

6,445

n/m

Referred loans

vii,659

n/m

Relay

930,181

408,735

128 %

At Piece of work

33,091

13,687

142 %

Total products

iv,094,245

1,605,910

155 %

Subsequent Events

National Bank Charter Approval

A key element of SoFi’due south long-term strategy has been to secure a national bank charter. In January 2022, SoFi received regulatory approving to become a banking company holding company and to acquire Golden Pacific Bancorp, Inc., and its wholly-endemic subsidiary, Golden Pacific Bank, National Association, a national banking company (“Aureate Pacific Bank”) (such acquisition, the “Bank Merger”). SoFi also received approval to change the composition of Golden Pacific Banking company’s assets. The Bank Merger closed in February 2022, after which SoFi became a bank property company and Gilded Pacific Banking company began operating equally SoFi Banking concern.

Direction’south view is that operating every bit a bank belongings company can heighten SoFi’due south overall profitability. Management believes that moving from a reliance on third-party banking company holding companies past operating under a national bank charter will allow SoFi to provide current and prospective members broader and more than competitive options across their financial services needs, including deposit accounts and loan products, while lowering the overall cost to fund loans (by utilizing members’ deposits held at SoFi Bank instead of third parties to fund loans). This is expected to enable SoFi to offer lower involvement rates on loans to members, also as competitive interest rates on SoFi Checking and Savings accounts that elect direct deposit, without having to accuse not-interest based fees. With the Bank Merger complete, SoFi has begun to transfer SoFi Coin products to SoFi Banking company, and intends to continue to transfer its Lending, SoFi Money and SoFi Credit Card products to SoFi Bank over time.

Technisys Acquisition

On February 22, 2022, SoFi Technologies, Inc. announced that it had entered into an agreement and plan of merger (the “Merger Agreement”) to larn Technisys, a leading cloud-native, digital multi-production core banking platform, at a transaction value of approximately $1.one billion. Technisys’ shareholders will receive a base consideration of approximately 84 one thousand thousand shares, subject to customary adjustments prepare forth in the terms of the Merger Agreement. The transaction is subject to satisfaction of sure closing conditions.

Direction believes the conquering of Technisys will provide a critical strategic asset, every bit both an bonny business concern, and an innovative applied science advancing SoFi’s effort to build the AWS of Fintech and its ambition to provide best-of-breed products on a one-stop shop platform that meets all of its members’ fiscal needs. In management’southward view, combining Technisys’ Cyberbank platform with Galileo volition create i of the most modern full-stack offerings available with multi-product capabilities — including eolith, checking, lending, credit cards and investing likewise as future products — all surfaced through manufacture-leading APIs. In addition, it is believed that the growth opportunities of both Galileo and Technisys will expand meaningfully every bit a event of gaining admission to each company’s big installed client base.

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