- SoFi surpasses $30 million in revenue.
- The outlook is high for the full year in terms of profitability and revenue.
- SOFI stock fails to hold on to session gains despite positive quarter.
- The general downward trend in the technology sector is dragging SOFI shares down.
The financial report of SoFi Technologies‘ (SOFI) The second quarter of 2019 was a resounding success. In almost all categories and areas, the neobank was strong with improved profitability and a healthy growth rate.
SOFI stock initially jumped 8.5% on the news on Tuesday, but traders quickly took profits and the stock fell back to a slight loss before lunch. The stock was down more than 2% at the time of writing.
There is some concern among tech stocks as CrowdStrike (CRWD), Nvidia (NVDA) and Super Micro Computer (SMCI) continue to lose ground, and some of that general depression is seeping into the minds of SOFI traders. Microsoft (MSFT), Advanced Micro Devices (AMD) and Starbucks (SBUX) release results after the close on Tuesday.
SoFi Technologies Earnings News
Wall Street had expected SoFi to break even in the second quarter as the personal banking solution focuses its strategy on breakneck growth. But analysts were wrong when the firm led by CEO Anthony Noto reported $0.01 in earnings per share (EPS) on a GAAP basis.
Revenue rose 22% year-over-year to $597 million, beating analyst consensus by an impressive $30 million. Assets under management increased 58% year-over-year, and net interest income jumped 42% from a year ago to $412.6 million.
“Our Financial Services and Technology Platform segments now make up a record 45% of SoFi’s adjusted net revenue, up from 38% a year ago and 32% two years ago,” CEO Anthony Noto said in a statement. “In the second quarter, these businesses grew revenue by 46%.” [anualmente] combined”.
The company added 643,000 new customers in the quarter, increasing to 8.77 million total customers. That’s 2.5 million more customers than a year ago. Management says it expects a total of 2.3 million new customers during 2024, but that could easily be a low projection.
With users increasing by more than 40% in the past year, the total products in use increased by approximately 36% to 12.78 million.
In addition to raising its third-quarter outlook, SoFi said it now projects GAAP EPS of $0.09-$0.10 for 2024, up a penny from prior guidance. The internal expectation for full-year adjusted EBITDA was raised to a midpoint of $610 million from its prior midpoint guidance of $595 million.
SoFi Technologies Stock Forecast
SoFi stock failed to reach the range high of July 18, but found support at the 20-day simple moving average (SMA). The region between $7.90 and $8.00 appears to be stubbornly resistant to bulls once again. It has been that way since at least April.
Longer-term support comes in between $6.15 and $6.50 and major resistance emerges at $8.40.
SOFI stock daily chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
