SoFi Technologies stock surged 16.8% in Tuesday morning trading after the app for borrowing, saving, spending and investing money posted record adjusted net revenue and adjusted EBITDA for its third quarter and boosted its guidance for the year.
"Strength across all three of our business segments — Lending, Technology Platform and Financial Services — drove our record third quarter adjusted net revenue of $419M and record adjusted EBITDA of over $44M," said CEO Anthony Noto.
"Our bank charter is enabling new flexibility that has proven even more valuable in light of the current macro environment, and the economic benefits are already starting to materialize and positively impact our operating and financial results," he said.
Q3 adjusted net revenue of $419.3M, topping the average analyst estimate of $391.8M, rose from $356.1M in Q2 and from $277.2M in Q3 2021.
Q3 GAAP EPS of -0.09$ vs. -$0.10 consensus, -$0.12 in Q2 and -$0.05 in the year-ago quarter.
Q3 adjusted EBITDA of $44.3M vs. $30.5M Visible Alpha consensus, $20.3M in the prior quarter and $10.3M in the year-ago quarter.
The company added almost 424K new members in the quarter vs. 450K new members in Q2, bringing its total member to 4.7M.
Lending segment adjusted net revenue of $297.0M rose 38% Y/Y, as higher loan balances and net interest margin expansion drove growth in net interest income. Record personal loan originations and sales execution drove growth in noninterest income.
Technology Platform net revenue of $84.8M increased 69% Y/Y, including record Galileo revenue, which rose 29% Y/Y.
Financial services net revenue of $49.0M jumped more than three-fold. The unit's contribution loss of $52.6M widened from the year-ago loss of $39.5M, due to its credit card business, where SoFi (SOFI) is building current expected credit loss reserves.