The stock of SoFi Technologies (SOFI) is up 13% after the online bank reported its first quarterly profit along with record revenue.
SoFi, which issues products ranging from student loans to credit cards, reported fourth-quarter 2023 earnings per share (EPS) of $0.02 U.S., beating Wall Street forecasts of a break-even quarter.
A year earlier, SoFi Technologies had reported a loss of $0.05 U.S. per share.
Revenue in Q4 2023 totaled $594.25 million U.S., hitting record levels, and beating the $572 million U.S. that analysts expected. Sales were up 34% from $443.42 million U.S. a year ago.
The company’s lending segment posted excellent results, with personal, student, and home loan origination volumes rising 31%, 95%, and 193%, respectively.
Deposits at the online lender rose by $2.9 billion U.S. in the quarter to $18.6 billion U.S., and its membership increased by nearly 585,000 to more than 7.5 million customers.
Looking ahead, SoFi forecast revenue in the current first quarter of 2024 of $550 million U.S. to $560 million U.S. Analysts had forecast Q1 revenue of $578 million U.S.
For all this year, SoFi expects EPS of $0.07 U.S. to $0.08 U.S. Analysts had been calling for EPS of $0.05 U.S.
Before today (Jan. 29), SoFi’s stock had gained 14% over the last 12 months to trade at $7.62 U.S. per share.
