SoFi Technologies (NASDAQ: SOFI) reported Q4 EPS of $0.02, $0.02 better than the analyst estimate of $0.00. Revenue for the quarter came in at $594.2 million versus the consensus estimate of $571.83 million.

GUIDANCE:

• SoFi Technologies sees Q1 2024 revenue of $550-560 million, versus the consensus of $580.1 million.
• Management expects to generate $550 to $560 million of adjusted net revenue in the first quarter of 2024, $110 to $120 million of adjusted EBITDA and GAAP net income of $10 to $20 million. This guide anticipates a 20% adjusted EBITDA margin.
• For the full year 2024, management expects Tech Platform and Financial Services segments combined to grow at least 50% and lending revenue to be 92% to 95% of 2023 levels, and expenses under the EBITDA line to be flat when compared to 2023 results, excluding the reported goodwill impairment expense. This guidance anticipates an adjusted EBITDA margin of approximately 30% by year-end, which equates to a range of $580 to $590 million for the year. We anticipate that revenue from our Tech Platform and Financial Services segments, combined, will be approximately equal to revenue from our Lending segment for the year. That equates to full-year GAAP net income in the range of $95 to $105 million, or GAAP EPS of $0.07 to $0.08. We expect growth in tangible book value of $300 to $500 million for the year. In terms of Member growth, we expect at least 2.3 million new members during the full year 2024, which represents 30% growth.
• Looking beyond 2024 management expects 20% to 25% compound revenue growth for the time periods of 2023 through 2026, assuming no meaningful changes in the macroeconomic environment and no significant new business launches or acquisitions. This implies 50% compound growth for Financial Services revenue, mid-20% compound growth for Technology Platform revenue, and mid teens compound growth for Lending segment revenue. This is expected to drive between $0.55 and $0.80 in GAAP earnings per share in 2026.
• Moreover, we see 20% to 25% EPS growth beyond 2026 reflecting both the continued growth of the core business growth plus the added benefit from new business lines launched in the 2024 to 2026 time period.
• Management will further address full-year guidance on the quarterly earnings conference call. Management has not reconciled forward-looking non-GAAP measures to their most directly comparable GAAP measures of total net revenue, net income and gross margin. This is because the company cannot predict with reasonable certainty and without unreasonable efforts the ultimate outcome of certain GAAP components of such reconciliations due to market-related assumptions that are not within our control as well as certain legal or advisory costs, tax costs or other costs that may arise. For these reasons, management is unable to assess the probable significance of the unavailable information, which could materially impact the amount of the future directly comparable GAAP measures.

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