SoFi Technologies Beats On Q1, Boosts 2023 Guidance

SoFi Technologies Inc SOFI reported a Q1 2023 adjusted revenue increase of 43% Y/Y to $460.2 million, beating the consensus of $441.0 million.
SoFi added nearly 433,000 new members in Q1, bringing its total member count to around 5.7 million (+46% Y/Y).
SoFi also added over 660,000 new products in Q1, with a total count of 8.6 million total products (+46% Y/Y) at the end of the quarter.
In the Financial Services segment, total products rose by 51% Y/Y to 7.1 million. SoFi Money (inclusive of Checking and Savings and cash management accounts) rose 48% Y/Y to 2.4 million products.
Adjusted EBITDA rose significantly to $75.7 million (from $8.7 million a year ago), representing a 48% incremental EBITDA margin and a 16% margin overall.
Loss per share came in at $(0.05) (vs. $(0.14) in Q1 2022), better than the consensus of $(0.07).
Total deposits grew 37% Y/Y to $10 billion at the end of Q1, with 90% of SoFi Money deposits (including Checking and Savings and cash management accounts) coming from direct deposit members.
Outlook Raised: For 2023, the company now expects adjusted net revenue of $1.955 billion - $2.02 billion (vs. prior guidance of $1.925 billion - $2.0 billion and consensus of $1.99 billion) and adjusted EBITDA of $268 million - $288 million (vs. earlier guidance of $260 million - $280 million), representing a 30% incremental adjusted EBITDA margin.
For Q2 2023, SoFi expects adjusted net revenue of $470 million - $480 million (+32% to +35% Y/Y, vs. consensus of $473.4 million) and adjusted EBITDA of $50 million to $60 million.
Price Action: SoFi shares are trading lower by 10.5% at $5.57 on the last check Monday.

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