Sofi Stock Surges Post Q4 Results

Shares of fintech company, SoFi Technologies (NASDAQ: SOFI) are up over 11% in pre-market trading today. SoFi announced its Q4 results on March 1 after the market close and reported revenue of $286 million with an adjusted loss of $0.15 per share. 

Comparatively, Wall Street forecast SoFi to report revenue of $279 million and a loss of $0.17 per share in Q4. In the year-ago period, the company reported revenue of $171.49 million.

Key metrics for SoFi in Q4

SoFi explained it hit new highs across key financial and operating metrics in Q4 of 2021, allowing it to end the year with record results. Its adjusted revenue grew by 54% year over year despite the extension of the federal student loan payment moratorium in late December.

The company exceeded $1 billion in annual adjusted net revenue for the first time ever, allowing SoFi to report an adjusted EBITDA of $5 million in Q4. It was the sixth consecutive quarter where SoFi posted an adjusted EBITDA and this metric stood at $30 million for 2021.

SoFi CEO Anthony Noto explained, “The best part is that we were able to reach both our adjusted revenue and adjusted EBITDA milestones ahead of plan in an increasingly challenging operating environment, while also significantly exceeding our member growth guidance.”

In Q1 of 2022, SoFi estimates adjusted revenue between $310 million and $320 million, compared to the consensus forecast of $306.32 million. We can see that the fintech disruptor not only exceeded Wall Street in Q4, it also provided a better-than-expected outlook for the March quarter.

The company’s management expects incremental net interest income revenue from SoFi Bank to move the top-line needle marginally in Q1. These figures should move higher once the transition towards loan originations will be fully completed by end of May 2022.

SoFi emphasized that its diversified business model allowed it to benefit from competitive advantages in the last few quarters. As it continues to reinvest in growth and scale operations, revenue growth should remain robust in 2022 and beyond.

The company expects the extension of the student loan payment moratorium to negatively impact sales by up to $35 million in Q1. It forecast adjusted sales between $280 million and $285 million in Q1 of 2022, an increase of 30% year over year while adjusted EBITDA is forecast between $0 million and $5 million.

For 2022, SoFi expects adjusted revenue of $1.57 billion compared to consensus forecast of $1.45 billion. The management expects net revenue to rise by 55% while adjusted EBITDA might surge to $180 million in 2022.

What next for SOFI stock investors?

Despite the recent uptick in SOFI stock, it's still down over 40% below all-time highs, valuing the company at a market cap of $9.1 billion. It onboarded 523,000 customers in Q4 increasing its total customer base to 3.5 million, an increase of 87% year over year. Due to its widening product suite, these customers added 900,000 product accounts bringing SoFi’s total to 5.2 million, up from 2.5 million in 2020.

SoFi recently disclosed the acquisition of Technisys for $1.1 billion in an all-stock deal. Technisys is a next-gen banking system and can support a variety of products on a single-core system. It can be run on the cloud enabling banks to process and analyze data on a real-time basis.

SoFi stock is valued at a forward price to sales multiple of 5.8x and its loss per share is forecast to narrow from $1.45 in 2021 to $0.38 in 2022. Analysts tracking SOFI stock expect it to increase by 30% in the next year.

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