![]() The personal loans business, which grew 168% or $1 billion year-over-year to $1.6 billion in originations for the quarter, driven by home improvement demand and refinancing activities. In lending, Q4 adjusted net revenue grew 30% year-over-year to $208 million versus 21% in Q3 of 2021. The good news is that once again growth accelerated across all 3 reporting segments. That remains to be seen but is a short-term risk that keeps on weighing revenue down. Please keep in mind that it may get extended again in an effort to provide relief from high food and gas prices. This comes despite the continued extension of the student loan repayment moratorium. Keep in mind that for all of 2021, SOFI put in just over $1 billion of adjusted net revenue, up 63% year-over-year, while adjusted EBITDA was $30 million in profits for the year, way up from the losses of $45 million in 2020. Adjusted EBITDA of $5 million was also at the high end of expectations, it really stood out as a big strength. This was also at the high end of management's guidance of $272 million to $282 million and it beat consensus estimates slightly. In the most recent quarter, top line growth accelerated and the company saw record adjusted net revenue of $280 million, up 54% year-over-year from the same prior-year period. We love it because it builds on the existing strength of the company. Lending is SoFi's biggest source of revenue and profits and with the charter, we are talking about a possible $1 billion in profit margins in the next few years being recognized. SoFi has a very low cost of customer acquisition with low-value financial products and high-value loans on the same app. Valuation-wise, it is expensive even after the retracement, but not prohibitively so. Overall, the immense bearishness makes no sense in regards to operational growth. This combines with the already very low cost to acquire customers. The charter means the company is going to pay far less to lend to customers. SoFi now has its charter, on top of being a fintech. ![]() It increased costs for the company in terms of how much it had to pay to acquire funding. Not having it made costs to lend be much higher than banks. We felt getting the charter was absolutely key. They offer products that a bank offers, without being an actual bank until very recently. Discussionįor years, this company has been used as an alternative to banking. As the sentiment gets more bearish, we like to buy. More and more you will see complaints like "I hate this stock" in reference to SoFi. The action in the share price has been absolutely horrific. With the stock falling, the valuation has improved with this massive retracement. The stock has nosedived with the overall market, but also with fintech which has been decimated. We have been bullish since the charter application was approved by the Office of the Comptroller of Currency and the Federal Reserve. ![]() It has been a tough stock to be bullish on. We have discussed SoFi ( NASDAQ: SOFI) stock a number of times, and have traded it both long and short. ![]()
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