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SoFi Technologies, Inc. Reports Third Quarter 2022 Results

Record GAAP and Adjusted Net Revenue for Third Quarter 2022

 GAAP Net Revenue of $424 Million Up 56%; $419 Million Adjusted Net Revenue Up 51% Year-over-Year

Record Adjusted EBITDA of $44 Million Up 332% Year-over-Year and Up 118% Sequentially

New Member Adds of Nearly 424,000; Quarter-End Total Members Up 61% Year-over-Year to Over 4.7 Million

New Product Adds of Over 635,000; Quarter-End Total Products Up 69% Year-over-Year to Nearly 7.2 Million

Management Raises Full-Year 2022 Guidance

SoFi Technologies, Inc. (NASDAQ: SOFI), a member-centric, one-stop shop for digital financial services that helps members borrow, save, spend, invest and protect their money, reported financial results today for its third quarter ended September 30, 2022.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20221101005542/en/

Note: For additional information on our company metrics, including the definitions of “Members”, “Total Products” and “Technology Platform Total Accounts”, see Table 5 in the “Financial Tables” herein. (Graphic: Business Wire)

Note: For additional information on our company metrics, including the definitions of “Members”, “Total Products” and “Technology Platform Total Accounts”, see Table 5 in the “Financial Tables” herein. (Graphic: Business Wire)

“We delivered another quarter of record financial results with robust growth in members, products, and cross-buy. We generated our sixth consecutive quarter of record adjusted net revenue, which was up 51% year-over-year. We also generated record adjusted EBITDA, which more than doubled sequentially for the second consecutive quarter,” said Anthony Noto, CEO of SoFi Technologies, Inc. “Strength across all three of our business segments — Lending, Technology Platform and Financial Services — drove our record third quarter adjusted net revenue of $419 million and record adjusted EBITDA of over $44 million.”

Consolidated Results Summary

 

Three Months Ended September 30,

 

% Change

($ in thousands)

 

2022

 

2021

 

Consolidated GAAP

 

 

 

 

 

 

Total net revenue

 

$

423,985

 

 

$

272,006

 

 

56

%

Net loss

 

 

(74,209

)

 

 

(30,047

)

 

n/m

 

Loss per share – basic and diluted

 

 

(0.09

)

 

 

(0.05

)

 

n/m

 

 

 

 

 

 

 

 

Consolidated – Non-GAAP

 

 

 

 

 

 

Adjusted net revenue(1)

 

$

419,256

 

 

$

277,190

 

 

51

%

Adjusted EBITDA(1)

 

 

44,298

 

 

 

10,256

 

 

332

%

 

(1)

 

Adjusted net revenue and adjusted EBITDA are non-GAAP financial measures. For more information and reconciliations to the most comparable GAAP measures, see “Non-GAAP Financial Measures” and Table 2 to the “Financial Tables” herein.

Noto continued: “Our strong momentum in member, product and cross-buy adds reflects the benefits of our broad product suite and unique Financial Services Productivity Loop (FSPL) strategy. We added nearly 424,000 new members, and ended with over 4.7 million total members, up 61% year-over-year. We also added over 635,000 new products, and ended with nearly 7.2 million total products, a 69% annual increase.”

Noto concluded: “Our bank charter is enabling new flexibility that has proven even more valuable in light of the current macro environment, and the economic benefits are already starting to materialize and positively impact our operating and financial results. Total deposits grew 86% during the quarter to $5.0 billion at quarter-end, and 85% of SoFi Money deposits (inclusive of Checking and Savings and SoFi Money cash management accounts) are from direct deposit members. For new direct deposit accounts opened in the third quarter, the median FICO score was 750. Half of newly funded SoFi Money accounts are setting up direct deposit by day 30 (versus 37% in the second quarter), and this has had a significant impact on debit spending.

“As a result of this growth in high quality deposits, we have benefited from a lower cost of funding for our loans. Our deposit funding also increases our flexibility to capture additional net interest margin (NIM) and optimize returns, a critical advantage in light of notable macro uncertainty. In its second full quarter of operations, SoFi Bank, N.A. generated approximately $29 million of positive GAAP net income at an 11% margin.”

Consolidated Results

Third quarter total GAAP net revenue increased 56% to $424.0 million from the prior-year period's $272.0 million. Third quarter adjusted net revenue of $419.3 million was up 51% from the same prior-year period's $277.2 million. Strength in all three of SoFi's business segments — Lending, Technology Platform and Financial Services — drove the robust year-over-year growth.

SoFi recorded a GAAP net loss of $74.2 million for the third quarter of 2022, an increase from the prior-year period's net loss of $30.0 million. The third quarter of 2021 included the benefit of $64.4 million from the change in fair value of warrant liabilities. Excluding this impact, GAAP net loss would have improved by $20.2 million year-over-year. Third quarter record adjusted EBITDA of $44.3 million increased 118% sequentially.

Member and Product Growth

SoFi achieved strong year-over-year growth in both members and products in the third quarter of 2022. New member additions of nearly 424,000 brought total members to 4.7 million by quarter-end, up over 1.8 million, or 61%, from the end of 2021's third quarter.

New product additions of over 635,000 in the third quarter brought total products to nearly 7.2 million at quarter-end, up 69% from 4.3 million at the same prior year quarter-end.

In the Financial Services segment, total products increased by 83% year-over-year, to 5.9 million from 3.2 million in the third quarter of 2021. SoFi Money (inclusive of SoFi Money cash management accounts and SoFi Checking and Savings accounts) grew 72% year-over-year to 2.0 million products, SoFi Invest grew 68% during the period to approximately 2.1 million products, and SoFi Relay grew 113% year-over year to 1.6 million products.

Lending products rose 24% year over year, up from the second quarter’s 22% year-over-year growth and resulting in the sixth straight quarter of accelerating year-over-year growth, driven primarily by continued record demand for personal loans.

Technology Platform enabled accounts increased by 40% year over year to 124.3 million, due to both diverse new client additions and growth among existing clients.

Lending Segment Results

Lending segment GAAP and adjusted net revenues were $301.7 million and $297.0 million, respectively, for the third quarter of 2022, up 43% and 38%, respectively. Higher loan balances and net interest margin expansion drove strong growth in net interest income, and record personal loan originations and strong sales execution drove growth in noninterest income.

Lending segment third quarter contribution profit of $180.6 million increased 53% from $117.7 million in the same prior-year period. Contribution margin using Lending adjusted net revenue increased to 61% from 55% in the same prior-year period. These advances reflect SoFi’s ability to capitalize on continued strong demand for its Lending products, while improving upon the member experience and realizing new efficiencies, at high credit underwriting standards.

​Lending – Segment Results of Operations

 

 

Three Months Ended September 30,

 

 

($ in thousands)

 

2022

 

2021

 

% Change

Total net revenue – Lending

 

$

301,694

 

 

$

210,291

 

 

43

%

Servicing rights – change in valuation inputs or assumptions

 

 

(6,182

)

 

 

(409

)

 

n/m

 

Residual interests classified as debt – change in valuation inputs or assumptions

 

 

1,453

 

 

 

5,593

 

 

(74

)%

Directly attributable expenses

 

 

(116,403

)

 

 

(97,807

)

 

19

%

Contribution Profit

 

$

180,562

 

 

$

117,668

 

 

53

%

 

 

 

 

 

 

 

Adjusted net revenue – Lending(1)

 

$

296,965

 

 

$

215,475

 

 

38

%

 

(1)

 

Adjusted net revenue – Lending represents a non-GAAP financial measure. For more information and a reconciliation to the most comparable GAAP measure, see “Non-GAAP Financial Measures” and Table 2 to the “Financial Tables” herein.

Third quarter Lending segment total origination volume increased 2% year-over-year, as a result of continued strong demand for personal loans.

Record personal loan originations of over $2.8 billion in the third quarter of 2022 were up nearly $1.2 billion, or 71%, year-over-year, and rose 14% sequentially. This strong performance was aided by years of investment in technology to automate and accelerate the application-to-approval process for qualified borrowers and constant testing of risk controls and underwriting models to maintain the highest credit quality. Third quarter student loan volume of over $457 million was down more than 50% from the average pre-pandemic volume as the moratorium on student loan payments continues to weigh on the business.

​Lending – Originations and Average Balances

 

 

Three Months Ended September 30,

 

% Change

 

 

2022

 

2021

 

Origination volume ($ in thousands, during period)

 

 

 

 

 

 

Home loans

 

$

216,246

 

$

793,086

 

(73

)%

Personal loans

 

 

2,809,759

 

 

 

1,640,572

 

 

71

%

Student loans

 

 

457,184

 

 

 

967,939

 

 

(53

)%

Total

 

$

3,483,189

 

 

$

3,401,597

 

 

2

%

 

 

 

 

 

 

 

Average loan balance ($, as of period end)(1)

 

 

 

 

 

 

Home loans

 

$

286,855

 

 

$

286,522

 

 

%

Personal loans

 

 

24,772

 

 

 

22,207

 

 

12

%

Student loans

 

 

47,152

 

 

 

49,723

 

 

(5

)%

 

(1)

 

Within each loan product category, average loan balance is defined as the total unpaid principal balance of the loans divided by the number of loans that have a balance greater than zero dollars as of the reporting date. Average loan balance includes loans on the balance sheet and transferred loans with which SoFi has a continuing involvement through its servicing agreements.

 

 

 

September 30,

 

 

​Lending – Products

 

2022

 

2021

 

% Change

Home loans

25,707

 

21,318

 

21

%

Personal loans

 

 

783,645

 

 

 

578,772

 

 

35

%

Student loans

 

 

471,141

 

 

 

430,792

 

 

9

%

Total lending products

 

 

1,280,493

 

 

 

1,030,882

 

 

24

%

Technology Platform Segment Results

Technology Platform segment net revenue of $84.8 million for the third quarter of 2022 increased 69% year-over-year, and includes record Galileo revenues, which were up 29% year-over-year, and continued strong contribution from Technisys. Contribution profit of $19.5 million increased 24% year over year, for a margin of 23%. Excluding Technisys, contribution margin was 30% versus 31% for the same prior-year period. As previously stated, Management intends to continue investing heavily in the Technology Platform segment to capture its significant and accelerating secular growth opportunities across client verticals, products and geographies. We continue to anticipate operating this business in the 20–30% contribution margin range for the foreseeable future as a result of these investments.

Technology Platform – Segment Results of Operations

 

Three Months Ended September 30,

 

 

($ in thousands)

 

2022

 

2021

 

% Change

Total net revenue

 

$

84,777

 

 

$

50,225

 

 

69

%

Directly attributable expenses

 

 

(65,241

)

 

 

(34,484

)

 

89

%

Contribution Profit

 

$

19,536

 

 

$

15,741

 

 

24

%

Technology Platform total enabled client accounts increased 40% year over year, to 124.3 million from 88.8 million, through new client acquisition and growth at existing clients.

 

 

September 30,

 

 

​Technology Platform

 

2022

 

2021

 

% Change

Total accounts

 

124,332,810

 

88,811,022

 

40

%

Financial Services Segment Results

Financial Services segment net revenue increased 288% in the third quarter of 2022 to $49.0 million from the prior year period's total of $12.6 million.

The Financial Services segment contribution loss of $52.6 million was $13.2 million larger than the prior-year quarter's $39.5 million loss, largely due to the credit card business, where SoFi is building current expected credit loss (CECL) reserves. The absolute amount of reserves is expected to increase as the business continues to grow and scale.

Financial Services – Segment Results of Operations

 

Three Months Ended September 30,

 

 

($ in thousands)

 

2022

 

2021

 

% Change

Total net revenue

 

$

48,953

 

 

$

12,620

 

 

288

%

Directly attributable expenses

 

 

(101,576

)

 

 

(52,085

)

 

95

%

Contribution loss

 

$

(52,623

)

 

$

(39,465

)

 

33

%

By continuously innovating for members with new and relevant offerings, features and rewards, SoFi grew total Financial Services products by approximately 2.7 million, or 83%, year-over-year in the third quarter of 2022, bringing the total to approximately 5.9 million. In the third quarter, SoFi Money added nearly 166,000 products, SoFi Invest products increased by over 106,000 and Relay products increased by nearly 256,000.

Most notably, upon securing a bank charter in the first quarter of 2022, SoFi launched a new Checking and Savings offering, which today has an APY of up to 2.50%, no minimum balance requirement, a host of free features and a unique rewards program. Total deposits grew 86% during the quarter to $5.0 billion at quarter-end, and 85% of SoFi Money deposits (inclusive of Checking and Savings and SoFi Money cash management accounts) are from direct deposit members. Half of newly funded SoFi Money accounts are setting up direct deposit by day 30 (versus 37% in the second quarter), and this has had a significant impact on debit spending.

 

 

September 30,

 

 

​Financial Services – Products

 

2022

 

2021

 

% Change

SoFi Money(1)

 

$

2,002,791

)

 

$

1,161,322

)

 

72

%

Invest

 

 

2,067,621

 

 

 

1,233,527

 

 

68

%

Credit Card

 

 

153,978

 

 

 

65,595

 

 

135

%

Referred loans

 

 

36,538

 

 

 

 

 

n/m

 

Relay

 

 

1,600,102

 

 

 

749,972

 

 

113

%

At Work

 

 

57,775

 

 

 

26,367

 

 

119

%

Total financial services products

 

 

5,918,805

 

 

 

3,236,783

 

 

83

%

 

(1)

 

This product category includes SoFi Checking and Savings accounts held at SoFi Bank, which began operating in the first quarter of 2022, and SoFi Money cash management accounts.

Guidance and Outlook

Management now expects full-year 2022 adjusted net revenue of $1.517-1.522 billion (up from $1.508-1.513 billion previously) and full-year adjusted EBITDA of $115-120 million (up from $104-109 million previously). This marks the third quarter of a positive revision to full-year 2022 financial guidance despite extensions of the student loan moratorium throughout the year. Management will further address full-year 2022 guidance on the quarterly earnings conference call.

Earnings Webcast

SoFi’s executive management team will host a live audio webcast beginning at 8:00 a.m. Eastern Time (5:00 a.m. Pacific Time) today to discuss the quarter’s financial results and business highlights. All interested parties are invited to listen to the live webcast at https://investors.sofi.com. A replay of the webcast will be available on the SoFi Investor Relations website for 30 days. Investor information, including supplemental financial information, is available on SoFi’s Investor Relations website at https://investors.sofi.com.

Cautionary Statement Regarding Forward-Looking Statements

Certain of the statements above are forward-looking and as such are not historical facts. This includes, without limitation, statements regarding our expectations for full year adjusted net revenue and adjusted EBITDA, our expectations regarding our ability to continue to grow our business, our ability to navigate the macroeconomic environment and the financial position, business strategy and plans and objectives of management for our future operations. These forward-looking statements are not guarantees of performance. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. Words such as “anticipate”, “believe”, “continue”, “could”, “expect”, “intend”, “may”, “future”, “strategy”, “might”, “plan”, “should”, “would”, “will be”, “will continue”, “will likely result” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Factors that could cause actual results to differ materially from those contemplated by these forward-looking statements include: (i) the effect of and uncertainties related to macroeconomic factors such as inflation and rising interest rates and any resurgence of the COVID-19 pandemic; (ii) our ability to achieve profitability and continued growth across our business in the future; (iii) the impact on our business of the regulatory environment and complexities with compliance related to such environment, including any further extension of the student loan payment moratorium or loan forgiveness, and our expectations regarding the return to pre-pandemic student loan demand levels; (iv) our ability to realize the benefits of being a bank holding company and operating SoFi Bank; (v) our ability to respond and adapt to changing market and economic conditions, including inflationary pressures and rising interest rates; (vi) our ability to continue to drive brand awareness and realize the benefits or our integrated multi-media marketing and advertising campaigns; (vii) our ability to vertically integrate our businesses and accelerate the pace of innovation of our financial products; (viii) our ability to manage our growth effectively and our expectations regarding the development and expansion of our business; (ix) our ability to access sources of capital on acceptable terms or at all, including debt financing and other sources of capital to finance operations and growth; (x) the success of our continued investments in our Financial Services segment and in our business generally; (xi) the success of our marketing efforts and our ability to expand our member base; (xii) our ability to maintain our leadership position in certain categories of our business and to grow market share in existing markets or any new markets we may enter; (xiii) our ability to develop new products, features and functionality that are competitive and meet market needs; (xiv) our ability to realize the benefits of our strategy, including what we refer to as our FSPL; (xv) our ability to make accurate credit and pricing decisions or effectively forecast our loss rates; (xvi) our ability to establish and maintain an effective system of internal controls over financial reporting; (xvii) our expectations with respect to our anticipated investment levels in our Technology Platform segment and our expected margins in that segment, including our ability to realize the benefits of the Technisys acquisition; and (xviii) the outcome of any legal or governmental proceedings that may be instituted against us. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties set forth in the section titled “Risk Factors” in our last quarterly report on Form 10-Q, as filed with the Securities and Exchange Commission, and those that are included in any of our future filings with the Securities and Exchange Commission, including our annual report on Form 10-K, under the Exchange Act.

These forward-looking statements are based on information available as of the date hereof and current expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

As a result of a number of known and unknown risks and uncertainties, our actual results or performance may be materially different from those expressed or implied by these forward-looking statements. You should not place undue reliance on these forward-looking statements.

Non-GAAP Financial Measures

This press release presents information about our adjusted net revenue and adjusted EBITDA, which are non-GAAP financial measures provided as supplements to the results provided in accordance with accounting principles generally accepted in the United States (GAAP). We use adjusted net revenue and adjusted EBITDA to evaluate our operating performance, formulate business plans, help better assess our overall liquidity position, and make strategic decisions, including those relating to operating expenses and the allocation of internal resources. Accordingly, we believe that adjusted net revenue and adjusted EBITDA provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management. These non-GAAP measures are presented for supplemental informational purposes only, have limitations as analytical tools, and should not be considered in isolation from, or as a substitute for, the analysis of other GAAP financial measures, such as total net revenue and net income (loss). Other companies may not use these non-GAAP measures or may use similar measures that are defined in a different manner. Therefore, SoFi's non-GAAP measures may not be directly comparable to similarly titled measures of other companies. Reconciliations of these non-GAAP measures to the most directly comparable GAAP financial measures are provided in Table 2 to the “Financial Tables” herein.

Forward-looking non-GAAP financial measures are presented without reconciliations of such forward-looking non-GAAP measures because the GAAP financial measures are not accessible on a forward-looking basis and reconciling information is not available without unreasonable effort due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including adjustments reflected in our reconciliation of historic non-GAAP financial measures, the amounts of which, based on historical experience, could be material.

About SoFi

SoFi's mission is to help our members achieve financial independence to realize their ambitions. Our products for borrowing, saving, spending, investing and protecting give our over 4.5 million members fast access to tools to get their money right. SoFi membership comes with the key essentials for getting ahead, including career advisors and connection to a thriving community of like-minded, ambitious people. SoFi is also the naming rights partner of SoFi Stadium, home of the Los Angeles Chargers and the Los Angeles Rams. For more information, visit https://www.sofi.com or download our iOS and Android apps.

Availability of Other Information About SoFi

Investors and others should note that we communicate with our investors and the public using our website (www.sofi.com), the investor relations website (https://investors.sofi.com), and on social media (Twitter and LinkedIn), including but not limited to investor presentations and investor fact sheets, Securities and Exchange Commission filings, press releases, public conference calls and webcasts. The information that SoFi posts on these channels and websites could be deemed to be material information. As a result, SoFi encourages investors, the media, and others interested in SoFi to review the information that is posted on these channels, including the investor relations website, on a regular basis. This list of channels may be updated from time to time on SoFi’s investor relations website and may include additional social media channels. The contents of SoFi’s website or these channels, or any other website that may be accessed from its website or these channels, shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.

FINANCIAL TABLES

  1. Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss
  2. Reconciliation of GAAP to Non-GAAP Financial Measures
  3. Unaudited Condensed Consolidated Balance Sheets
  4. Unaudited Condensed Consolidated Statements of Cash Flows
  5. Company Metrics
  6. Segment Financials

Table 1

SoFi Technologies, Inc.

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss

(In Thousands, Except for Share and Per Share Data)

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

2022

 

2021

 

2022

 

2021

Interest income

 

 

 

 

 

 

Loans

$

191,525

 

 

$

89,844

 

 

$

451,247

 

 

$

246,743

 

Securitizations

 

2,633

 

 

 

2,999

 

 

 

7,958

 

 

 

11,260

 

Related party notes

 

 

 

 

 

 

 

 

 

 

211

 

Other

 

3,881

 

 

 

758

 

 

 

6,758

 

 

 

2,023

 

Total interest income

 

198,039

 

 

 

93,601

 

 

 

465,963

 

 

 

260,237

 

Interest expense

 

 

 

 

 

 

 

Securitizations and warehouses

 

20,653

 

 

 

19,360

 

 

 

59,158

 

 

 

75,418

 

Deposits

 

14,149

 

 

 

 

 

 

19,123

 

 

 

 

Corporate borrowings

 

5,270

 

 

 

1,366

 

 

 

11,369

 

 

 

7,752

 

Other

 

117

 

 

 

500

 

 

 

801

 

 

 

1,400

 

Total interest expense

 

40,189

 

 

 

21,226

 

 

 

90,451

 

 

 

84,570

 

Net interest income

 

157,850

 

 

 

72,375

 

 

 

375,512

 

 

 

175,667

 

Noninterest income

 

 

 

 

 

 

 

Loan origination and sales

 

163,697

 

 

 

142,147

 

 

 

465,815

 

 

 

362,211

 

Securitizations

 

(8,772

)

 

 

(4,551

)

 

 

(31,790

)

 

 

(6,613

)

Servicing

 

7,296

 

 

 

458

 

 

 

30,003

 

 

 

(11,875

)

Technology products and solutions

 

82,035

 

 

 

49,951

 

 

 

223,562

 

 

 

140,560

 

Other

 

21,879

 

 

 

11,626

 

 

 

53,754

 

 

 

39,314

 

Total noninterest income

 

266,135

 

 

 

199,631

 

 

 

741,344

 

 

 

523,597

 

Total net revenue

 

423,985

 

 

 

272,006

 

 

 

1,116,856

 

 

 

699,264

 

Noninterest expense

 

 

 

 

 

 

 

Technology and product development

 

110,702

 

 

 

74,434

 

 

 

291,976

 

 

 

209,771

 

Sales and marketing

 

162,129

 

 

 

114,985

 

 

 

444,121

 

 

 

297,170

 

Cost of operations

 

83,083

 

 

 

69,591

 

 

 

232,611

 

 

 

187,785

 

General and administrative

 

126,199

 

 

 

40,461

 

 

 

388,533

 

 

 

373,374

 

Provision for credit losses

 

16,323

 

 

 

2,401

 

 

 

39,387

 

 

 

2,887

 

Total noninterest expense

 

498,436

 

 

 

301,872

 

 

 

1,396,628

 

 

 

1,070,987

 

Loss before income taxes

 

(74,451

)

 

 

(29,866

)

 

 

(279,772

)

 

 

(371,723

)

Income tax benefit (expense)

 

242

 

 

 

(181

)

 

 

(629

)

 

 

(1,202

)

Net loss

$

(74,209

)

 

$

(30,047

)

 

$

(280,401

)

 

$

(372,925

)

Other comprehensive loss

 

 

 

 

 

 

 

Unrealized losses on available-for-sale securities, net

 

(1,914

)

 

 

(150

)

 

 

(8,360

)

 

 

(150

)

Foreign currency translation adjustments, net

 

325

 

 

 

204

 

 

 

231

 

 

 

(142

)

Total other comprehensive income (loss)

 

(1,589

)

 

 

54

 

 

 

(8,129

)

 

 

(292

)

Comprehensive loss

$

(75,798

)

 

$

(29,993

)

 

$

(288,530

)

 

$

(373,217

)

Loss per share

 

 

 

 

 

 

 

Loss per share – basic

$

(0.09

)

 

$

(0.05

)

 

$

(0.35

)

 

$

(0.94

)

Loss per share – diluted

$

(0.09

)

 

$

(0.05

)

 

$

(0.35

)

 

$

(0.94

)

Weighted average common stock outstanding – basic

 

916,762,973

 

 

 

800,565,830

 

 

 

893,455,206

 

 

 

429,750,486

 

Weighted average common stock outstanding – diluted

 

916,762,973

 

 

 

800,565,830

 

 

 

893,455,206

 

 

 

429,750,486

 

 

Table 2

Non-GAAP Financial Measures

Reconciliation of Adjusted Net Revenue

Adjusted net revenue is defined as total net revenue, adjusted to exclude the fair value changes in servicing rights and residual interests classified as debt due to valuation inputs and assumptions changes, which relate only to our Lending segment. For our consolidated results and for the Lending segment, we reconcile adjusted net revenue to total net revenue, the most directly comparable GAAP measure, as presented for the periods indicated below:

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

($ in thousands)

 

2022

 

2021

 

2022

 

2021

Total net revenue

 

$

423,985

 

 

$

272,006

 

 

$

1,116,856

 

 

$

699,264

Servicing rights – change in valuation inputs or assumptions(1)

 

 

(6,182

)

 

 

(409

)

 

 

(26,860

)

 

 

11,924

 

Residual interests classified as debt – change in valuation inputs or assumptions(2)

 

 

1,453

 

 

 

5,593

 

 

 

7,078

 

 

 

19,261

 

Adjusted net revenue

 

$

419,256

 

 

$

277,190

 

 

$

1,097,074

 

 

$

730,449

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

($ in thousands)

 

2022

 

2021

 

2022

 

2021

Total net revenue – Lending

 

$

301,694

 

 

$

210,291

 

 

$

811,800

 

 

$

524,559

 

Servicing rights – change in valuation inputs or assumptions(1)

 

 

(6,182

)

 

 

(409

)

 

$

(26,860

)

 

 

11,924

Residual interests classified as debt – change in valuation inputs or assumptions(2)

 

 

1,453

 

 

 

5,593

 

 

$

7,078

 

 

 

19,261

 

Adjusted net revenue – Lending

 

$

296,965

 

 

$

215,475

 

 

$

792,018

 

 

$

555,744

 

 

(1)

 

Reflects changes in fair value inputs and assumptions on servicing rights, including conditional prepayment and default rates and discount rates. These assumptions are highly sensitive to market interest rate changes and are not indicative of our performance or results of operations. Moreover, these non-cash charges are unrealized during the period and, therefore, have no impact on our cash flows from operations. As such, these positive and negative changes are adjusted out of total net revenue to provide management and financial users with better visibility into the net revenue available to finance our operations and our overall performance.

(2)

 

Reflects changes in fair value inputs and assumptions on residual interests classified as debt, including conditional prepayment and default rates and discount rates. When third parties finance our consolidated securitization variable interest entities (“VIEs”) by purchasing residual interests, we receive proceeds at the time of the closing of the securitization and, thereafter, pass along contractual cash flows to the residual interest owner. These residual debt obligations are measured at fair value on a recurring basis, but they have no impact on our initial financing proceeds, our future obligations to the residual interest owner (because future residual interest claims are limited to contractual securitization collateral cash flows), or the general operations of our business. As such, these positive and negative non-cash changes in fair value attributable to assumption changes are adjusted out of total net revenue to provide management and financial users with better visibility into the net revenue available to finance our operations.​

Reconciliation of Adjusted EBITDA

Adjusted EBITDA is defined as net income (loss), adjusted to exclude, as applicable: (i) corporate borrowing-based interest expense (our adjusted EBITDA measure is not adjusted for warehouse or securitization-based interest expense, nor deposit interest expense and finance lease liability interest expense, as discussed further below), (ii) income tax expense (benefit), (iii) depreciation and amortization, (iv) share-based expense (inclusive of equity-based payments to non-employees), (v) impairment expense (inclusive of goodwill impairment and property, equipment and software abandonments), (vi) transaction-related expenses, (vii) fair value changes in warrant liabilities, and (viii) fair value changes in each of servicing rights and residual interests classified as debt due to valuation assumptions. We reconcile adjusted EBITDA to net loss, the most directly comparable GAAP measure, for the periods indicated below:

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

($ in thousands)

 

2022

 

2021

 

2022

 

2021

Net loss

 

$

(74,209

)

 

$

(30,047

)

 

$

(280,401

)

 

$

(372,925

)

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Interest expense – corporate borrowings(1)

 

 

5,270

 

 

 

1,366

 

 

 

11,369

 

 

 

7,752

 

Income tax expense (benefit)(2)

 

 

(242

)

 

 

181

 

 

 

629

 

 

 

1,202

 

Depreciation and amortization(3)

 

 

40,253

 

 

 

24,075

 

 

 

109,007

 

 

 

75,041

 

Share-based expense

 

 

77,855

 

 

 

72,681

 

 

 

235,018

 

 

 

162,289

 

Transaction-related expense(4)

 

 

100

 

 

 

1,221

 

 

 

17,446

 

 

 

24,580

 

Fair value changes in warrant liabilities(5)

 

 

 

 

 

(64,405

)

 

 

 

 

 

96,504

 

Servicing rights – change in valuation inputs or assumptions(6)

 

 

(6,182

)

 

 

(409

)

 

 

(26,860

)

 

 

11,924

 

Residual interests classified as debt – change in valuation inputs or assumptions(7)

 

 

1,453

 

 

 

5,593

 

 

 

7,078

 

 

 

19,261

 

Total adjustments

 

 

118,507

 

 

 

40,303

 

 

 

353,687

 

 

 

398,553

 

Adjusted EBITDA

 

$

44,298

 

 

$

10,256

 

 

$

73,286

 

 

$

25,628

 

 

(1)

 

Our adjusted EBITDA measure adjusts for corporate borrowing-based interest expense, as these expenses are a function of our capital structure. Corporate borrowing-based interest expense primarily included (i) interest on our revolving credit facility, (ii) for the 2022 periods, the amortization of debt discount and debt issuance costs on our convertible notes, and (iii) for the nine-month 2021 period, interest on the seller note issued in connection with our acquisition of Galileo. Our adjusted EBITDA measure does not adjust for interest expense on warehouse facilities and securitization debt, which are recorded within interest expense—securitizations and warehouses in the unaudited condensed consolidated statements of operations and comprehensive income (loss), as these interest expenses are direct operating expenses driven by loan origination and sales activity. Additionally, our adjusted EBITDA measure does not adjust for interest expense on deposits or interest expense on our finance lease liability in connection with SoFi Stadium, which are recorded within interest expense—other, as these interest expenses are direct operating expenses. Revolving credit facility interest expense for the three- and nine-month periods increased due to higher interest rates during the 2022 periods on identical outstanding debt period over period.

(2)

 

Our income tax expense positions for the nine-month periods were primarily a function of SoFi Lending Corp.’s profitability, and for the 2022 period, SoFi Bank, in state jurisdictions where separate filings are required. The income tax expense in the 2022 period was partially offset by an income tax benefit at Technisys.

(3)

 

Depreciation and amortization expense for the three- and nine-month 2022 periods increased compared to the comparable 2021 periods primarily in connection with our recent acquisitions and growth in our software balance, partially offset by the acceleration of core banking infrastructure amortization during the nine-month 2021 period.

(4)

 

Transaction-related expenses in the nine-month 2022 period primarily included financial advisory and professional services costs associated with our acquisition of Technisys. Transaction-related expenses in the three-month 2021 period included costs associated with our then-exploratory acquisition of Technisys. Transaction-related expenses in the nine-month 2021 period also included the special payment to the holders of Series 1 Redeemable Preferred Stock in conjunction with the Business Combination and financial advisory and professional services costs associated with our then-pending acquisition of Golden Pacific.

(5)

 

Our adjusted EBITDA measure excludes the non-cash fair value changes in warrants accounted for as liabilities, which were measured at fair value through earnings. In conjunction with the Business Combination, SoFi Technologies assumed certain common stock warrants (“SoFi Technologies warrants”) that were accounted for as liabilities and measured at fair value on a recurring basis. The amount in the three-month 2021 period and a portion of the nine-month 2021 period relate to the SoFi Technologies warrants. The fair value of the SoFi Technologies warrants was based on the closing price of ticker SOFIW and, therefore, fluctuated based on market activity. In addition, a portion of the amount in the nine-month 2021 period related to changes in the fair value of Series H warrants issued by Social Finance in 2019 in connection with certain redeemable preferred stock issuances. We did not measure the Series H warrants at fair value subsequent to May 28, 2021 in conjunction with the Business Combination, as they were reclassified into permanent equity.

(6)

 

Reflects changes in fair value inputs and assumptions, including market servicing costs, conditional prepayment and default rates and discount rates. This non-cash change is unrealized during the period and, therefore, has no impact on our cash flows from operations. As such, these positive and negative changes in fair value attributable to assumption changes are adjusted out of net loss to provide management and financial users with better visibility into the earnings available to finance our operations.

(7)

 

Reflects changes in fair value inputs and assumptions, including conditional prepayment and default rates and discount rates. When third parties finance our consolidated VIEs through purchasing residual interests, we receive proceeds at the time of the securitization close and, thereafter, pass along contractual cash flows to the residual interest owner. These obligations are measured at fair value on a recurring basis, which has no impact on our initial financing proceeds, our future obligations to the residual interest owner (because future residual interest claims are limited to contractual securitization collateral cash flows), or the general operations of our business. As such, these positive and negative non-cash changes in fair value attributable to assumption changes are adjusted out of net loss to provide management and financial users with better visibility into the earnings available to finance our operations.

 

Table 3

SoFi Technologies, Inc.

Unaudited Condensed Consolidated Balance Sheets

(In Thousands, Except for Share Data)

 

September 30,

2022

 

December 31,

2021

Assets

 

 

Cash and cash equivalents

$

935,159

 

 

$

494,711

 

Restricted cash and restricted cash equivalents

 

326,274

 

 

 

273,726

 

Investments in available-for-sale securities (amortized cost of $204,359 and $195,796, respectively)

 

195,133

 

 

 

194,907

 

Loans, less allowance for credit losses on loans at amortized cost of $34,370 and $7,037, respectively

 

11,204,403

 

 

 

6,068,884

 

Servicing rights

 

168,438

 

 

 

168,259

 

Securitization investments

 

261,672

 

 

 

374,688

 

Equity method investments

 

 

 

 

19,739

 

Property, equipment and software

 

164,421

 

 

 

111,873

 

Goodwill

 

1,622,951

 

 

 

898,527

 

Intangible assets

 

456,771

 

 

 

284,579

 

Operating lease right-of-use assets

 

100,411

 

 

 

115,191

 

Other assets, less allowance for credit losses of $1,791 and $2,292, respectively

 

399,270

 

 

 

171,242

 

Total assets

$

15,834,903

 

 

$

9,176,326

 

Liabilities, temporary equity and permanent equity

 

 

 

Liabilities:

 

 

 

Deposits:

 

 

 

Noninterest-bearing deposits

$

89,761

 

 

$

 

Interest-bearing deposits

 

4,941,869

 

 

 

 

Total deposits

 

5,031,630

 

 

 

 

Accounts payable, accruals and other liabilities

 

565,910

 

 

 

298,164

 

Operating lease liabilities

 

121,729

 

 

 

138,794

 

Debt

 

4,568,523

 

 

 

3,947,983

 

Residual interests classified as debt

 

45,734

 

 

 

93,682

 

Total liabilities

 

10,333,526

 

 

 

4,478,623

 

Commitments, guarantees, concentrations and contingencies

 

 

 

Temporary equity:

 

 

 

Redeemable preferred stock, $0.00 par value: 100,000,000 shares authorized; 3,234,000 shares issued and outstanding as of September 30, 2022 and December 31, 2021

 

320,374

 

 

 

320,374

 

Permanent equity:

 

 

 

Common stock, $0.00 par value: 3,100,000,000 and 3,100,000,000 shares authorized; 927,345,977 and 828,154,462 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively

 

92

 

 

 

83

 

Additional paid-in capital

 

6,654,026

 

 

 

5,561,831

 

Accumulated other comprehensive loss

 

(9,600

)

 

 

(1,471

)

Accumulated deficit

 

(1,463,515

)

 

 

(1,183,114

)

Total permanent equity

 

5,181,003

 

 

 

4,377,329

 

Total liabilities, temporary equity and permanent equity

$

15,834,903

 

 

$

9,176,326

 

 

Table 4

SoFi Technologies, Inc.

Unaudited Condensed Consolidated Statements of Cash Flows

(In Thousands)

 

Nine Months Ended September 30,

2022

 

2021

Operating activities

 

 

 

Net loss

$

(280,401

)

 

$

(372,925

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

Share-based compensation expense

 

235,018

 

 

 

162,289

 

Depreciation and amortization

 

109,007

 

 

 

75,041

 

Deferred debt issuance and discount expense

 

12,106

 

 

 

14,228

 

Provision for credit losses

 

39,387

 

 

 

2,887

 

Deferred income taxes

 

(4,420

)

 

 

699

 

Fair value changes in residual interests classified as debt

 

7,078

 

 

 

19,261

 

Fair value changes in securitization investments

 

13,256

 

 

 

(7,106

)

Fair value changes in warrant liabilities

 

 

 

 

96,504

 

Other

 

11,635

 

 

 

(7,275

)

Changes in operating assets and liabilities:

 

 

 

Originations and purchases of loans

 

(11,635,939

)

 

 

(9,375,583

)

Proceeds from sales and repayments of loans

 

6,654,289

 

 

 

9,297,238

 

Other changes in loans

 

10,566

 

 

 

2,138

 

Servicing assets

 

(179

)

 

 

(13,877

)

Related party notes receivable interest income

 

 

 

 

1,399

 

Other assets

 

(36,691

)

 

 

(26,883

)

Accounts payable, accruals and other liabilities

 

28,265

 

 

 

18,037

 

Net cash used in operating activities

$

(4,837,023

)

 

$

(113,928

)

Investing activities

 

 

 

Purchases of property, equipment, software and intangible assets

$

(75,976

)

 

$

(38,445

)

Purchases of available-for-sale investments

 

(44,974

)

 

 

(205,128

)

Proceeds from sales of available-for-sale investments

 

23,497

 

 

 

15,789

 

Proceeds from maturities and paydowns of available-for-sale investments

 

14,327

 

 

 

 

Changes in loans, net

 

(130,100

)

 

 

 

Proceeds from securitization investments

 

99,760

 

 

 

201,093

 

Purchases of non-securitization investments

 

 

 

 

(20,000

)

Proceeds from non-securitization investments

 

 

 

 

109,534

 

Acquisition of businesses, net of cash acquired

 

58,540

 

 

 

 

Proceeds from repayment of related party notes receivable

 

 

 

 

16,693

 

Net cash provided by (used in) investing activities

$

(54,926

)

 

$

79,536

 

 

SoFi Technologies, Inc.

Unaudited Condensed Consolidated Statements of Cash Flows (Continued)

(In Thousands)

 

Nine Months Ended September 30,

2022

 

2021

Financing activities

 

 

 

Proceeds from debt issuances

$

7,861,804

 

 

$

6,296,901

 

Repayment of debt

 

(7,306,856

)

 

 

(8,368,904

)

Payment of debt issuance costs

 

(4,076

)

 

 

(5,136

)

Net change in deposits

 

4,859,240

 

 

 

 

Taxes paid related to net share settlement of share-based awards

 

(7,476

)

 

 

(37,240

)

Proceeds from stock option exercises

 

2,489

 

 

 

20,642

 

Payment of redeemable preferred stock dividends

 

(20,047

)

 

 

(20,047

)

Finance lease principal payments

 

(364

)

 

 

(397

)

Purchases of common stock

 

 

 

 

(526

)

Redemptions of redeemable common and preferred stock

 

 

 

 

(282,859

)

Proceeds from Business Combination and PIPE Investment

 

 

 

 

1,989,851

 

Payment of costs directly attributable to the issuance of common stock in connection with Business Combination and PIPE Investment

 

 

 

 

(26,951

)

Net cash provided by (used in) financing activities

$

5,384,714

 

 

$

(434,666

)

Effect of exchange rates on cash and cash equivalents

 

231

 

 

 

(142

)

Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents

$

492,996

 

 

$

(469,200

)

Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period

 

768,437

 

 

 

1,323,428

 

Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period

$

1,261,433

 

 

$

854,228

 

 

 

 

 

Reconciliation to amounts on unaudited condensed consolidated balance sheets (as of period end)

 

 

 

Cash and cash equivalents

$

935,159

 

 

$

533,523

 

Restricted cash and restricted cash equivalents

 

326,274

 

 

 

320,705

 

Total cash, cash equivalents, restricted cash and restricted cash equivalents

$

1,261,433

 

 

$

854,228

 

 

 

 

 

SoFi Technologies, Inc.

Unaudited Condensed Consolidated Statements of Cash Flows (Continued)

(In Thousands)

 

Nine Months Ended September 30,

2022

 

2021

Supplemental non-cash investing and financing activities

 

 

 

Issuance of common stock in acquisition

$

873,377

 

$

Vested awards assumed in acquisition

 

2,855

 

 

 

 

Loans received in acquisition

 

84,485

 

 

 

 

Debt assumed in acquisition

 

2,000

 

 

 

 

Deposits assumed in acquisition

 

158,016

 

 

 

 

Deposits credited but not yet received in cash

 

14,374

 

 

 

Available-for-sale securities received in acquisition

 

10,014

 

 

 

 

Property, equipment and software received in acquisition

 

3,192

 

 

 

 

Non-cash loan reduction

 

1,386

 

 

 

 

Share-based compensation capitalized related to internally-developed software

 

16,177

 

 

 

 

Redeemable preferred stock dividends accrued but unpaid

 

10,189

 

 

 

10,189

 

Non-cash property, equipment, software and intangible asset additions

 

 

 

 

859

 

Deferred debt issuance costs accrued but unpaid

 

 

 

 

850

 

Securitization investments acquired via loan transfers

 

 

 

 

89,111

 

Available-for-sale investment securities purchased but unpaid

 

 

 

 

7,712

 

Costs directly attributable to the issuance of common stock paid in 2020

 

 

 

 

588

 

Reduction to temporary equity associated with purchase price adjustments

 

 

 

 

743

 

Warrant liabilities recognized in conjunction with the Business Combination

 

 

 

 

200,250

 

Series H warrant liabilities conversion to common stock warrants

 

 

 

 

39,959

 

Conversion of temporary equity into permanent equity in conjunction with the Business Combination

 

 

 

 

2,702,569

 

 

Table 5

Company Metrics

 

September 30,

2022

 

June 30,

2022

 

March 31,

2022

 

December 31,

2021

 

September 30,

2021

 

June 30,

2021

 

March 31,

2021

 

December 31,

2020

 

September 30,

2020

Members

4,742,673

 

4,318,705

 

3,868,334

 

3,460,298

 

2,937,379

 

2,560,492

 

2,281,092

 

1,850,871

 

1,500,576

Total Products

7,199,298

 

 

6,564,174

 

 

5,862,137

 

 

5,173,197

 

 

4,267,665

 

 

3,667,121

 

 

3,184,554

 

 

2,523,555

 

 

2,052,933

 

Total Products — Lending segment

1,280,493

 

 

1,202,027

 

 

1,138,566

 

 

1,078,952

 

 

1,030,882

 

 

981,440

 

 

945,227

 

 

917,645

 

 

892,934

 

Total Products — Financial Services segment

5,918,805

 

 

5,362,147

 

 

4,723,571

 

 

4,094,245

 

 

3,236,783

 

 

2,685,681

 

 

2,239,327

 

 

1,605,910

 

 

1,159,999

 

Total Accounts — Technology Platform segment(1)

124,332,810

 

 

116,570,038

 

 

109,687,014

 

 

99,660,657

 

 

88,811,022

 

 

78,902,156

 

 

69,572,680

 

 

59,735,210

 

 

49,276,594

 

 

(1)

 

Beginning in the fourth quarter of 2021, the Company included SoFi accounts on the Galileo platform-as-a-service in its total Technology Platform accounts metric to better align with the presentation of Technology Platform segment revenue. Quarterly amounts for the earlier quarters in 2021 and 2020 were determined to be immaterial, and as such were not recast.

Members

We refer to our customers as “members”. We define a member as someone who has had a lending relationship with us through origination and/or ongoing servicing, opened a financial services account, linked an external account to our platform, or signed up for our credit score monitoring service. Once someone becomes a member, they are always considered a member unless they violate our terms of service. Our members have continuous access to our certified financial planners, our career advice services, our member events, our content, educational material, news, tools and calculators, which are provided at no cost to the member. We view members as an indication not only of the size and a measurement of growth of our business, but also as a measure of the significant value of the data we have collected over time.

Total Products

Total products refers to the aggregate number of lending and financial services products that our members have selected on our platform since our inception through the reporting date, whether or not the members are still registered for such products. In our Lending segment, total products refers to the number of home loans, personal loans and student loans that have been originated through our platform through the reporting date, whether or not such loans have been paid off. If a member has multiple loan products of the same loan product type, such as two personal loans, that is counted as a single product. However, if a member has multiple loan products across loan product types, such as one personal loan and one home loan, that is counted as two products. In our Financial Services segment, total products refers to the number of SoFi Money accounts (presented inclusive of SoFi Money cash management accounts and SoFi Checking and Savings accounts held at SoFi Bank), SoFi Invest accounts, SoFi Credit Card accounts (including accounts with a zero dollar balance at the reporting date), referred loans (which relate to an arrangement in the third quarter of 2021 and are originated by a third-party partner to which we provide pre-qualified borrower referrals), SoFi At Work accounts and SoFi Relay accounts (with either credit score monitoring enabled or external linked accounts) that have been opened through our platform through the reporting date. Our SoFi Invest service is composed of three products: active investing accounts, robo-advisory accounts and digital assets accounts. Our members can select any one or combination of the three types of SoFi Invest products. If a member has multiple SoFi Invest products of the same account type, such as two active investing accounts, that is counted as a single product. However, if a member has multiple SoFi Invest products across account types, such as one active investing account and one robo-advisory account, those separate account types are considered separate products. Total products is a primary indicator of the size and reach of our Lending and Financial Services segments. Management relies on total products metrics to understand the effectiveness of our member acquisition efforts and to gauge the propensity for members to use more than one product.

Technology Platform Total Accounts

In our Technology Platform segment, total accounts refers to the number of open accounts at Galileo as of the reporting date. Beginning in the fourth quarter of 2021, we included SoFi accounts on the Galileo platform-as-a-service in our total accounts metric to better align with the Technology Platform segment revenue, which includes intercompany revenue from SoFi. We recast the accounts in the fourth quarters of 2021 and 2020, but did not recast the accounts for the earlier quarters in 2021 and 2020, as the impact was determined to be immaterial. Total accounts is a primary indicator of the accounts dependent upon Galileo’s technology platform to use virtual card products, virtual wallets, make peer-to-peer and bank-to-bank transfers, receive early paychecks, separate savings from spending balances, make debit transactions and rely upon real-time authorizations, all of which result in revenues for the Technology Platform segment. We do not measure total accounts for the Technisys products and solutions, as the revenue model is not dependent upon being a fully integrated, stand-ready service.

Table 6

Segment Financials

 

 

Quarter Ended

($ in thousands)

 

September 30,

2022

 

June 30,

2022

 

March 31,

2022

 

December 31,

2021

 

September 30,

2021

 

June 30,

2021

 

March 31,

2021

 

December 31,

2020

 

September 30,

2020

Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

139,516

 

 

$

114,003

 

 

$

94,354

 

 

$

77,246

 

 

$

72,257

 

 

$

56,822

 

 

$

51,777

 

 

$

57,127

 

 

$

52,222

 

Total noninterest income

 

 

162,178

 

 

 

143,114

 

 

 

158,635

 

 

 

136,518

 

 

 

138,034

 

 

 

109,469

 

 

 

96,200

 

 

 

91,865

 

 

 

109,890

 

Total net revenue

 

 

301,694

 

 

 

257,117

 

 

 

252,989

 

 

 

213,764

 

 

 

210,291

 

 

 

166,291

 

 

 

147,977

 

 

 

148,992

 

 

 

162,112

 

Adjusted net revenue(1)

 

 

296,965

 

 

 

250,681

 

 

 

244,372

 

 

 

208,032

 

 

 

215,475

 

 

 

172,232

 

 

 

168,037

 

 

 

159,520

 

 

 

178,084

 

Contribution profit

 

 

180,562

 

 

 

141,991

 

 

 

132,651

 

 

 

105,065

 

 

 

117,668

 

 

 

89,188

 

 

 

87,686

 

 

 

85,204

 

 

 

103,011

 

Technology Platform

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income (expense)

 

$

 

 

$

 

 

$

 

 

$

 

 

$

39

 

 

$

(32

)

 

$

(36

)

 

$

(42

)

 

$

(47

)

Total noninterest income

 

 

84,777

 

 

 

83,899

 

 

 

60,805

 

 

 

53,299

 

 

 

50,186

 

 

 

45,329

 

 

 

46,101

 

 

 

37,524

 

 

 

38,865

 

Total net revenue(2)

 

 

84,777

 

 

 

83,899

 

 

 

60,805

 

 

 

53,299

 

 

 

50,225

 

 

 

45,297

 

 

 

46,065

 

 

 

37,482

 

 

 

38,818

 

Contribution profit

 

 

19,536

 

 

 

21,841

 

 

 

18,255

 

 

 

20,008

 

 

 

15,741

 

 

 

13,013

 

 

 

15,685

 

 

 

16,806

 

 

 

23,986

 

Financial Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

28,158

 

 

$

12,925

 

 

$

5,882

 

 

$

1,785

 

 

$

1,209

 

 

$

542

 

 

$

229

 

 

$

88

 

 

$

98

 

Total noninterest income

 

 

20,795

 

 

 

17,438

 

 

 

17,661

 

 

 

20,171

 

 

 

11,411

 

 

 

16,497

 

 

 

6,234

 

 

 

3,963

 

 

 

3,139

 

Total net revenue

 

 

48,953

 

 

 

30,363

 

 

 

23,543

 

 

 

21,956

 

 

 

12,620

 

 

 

17,039

 

 

 

6,463

 

 

 

4,051

 

 

 

3,237

 

Contribution loss(2)

 

 

(52,623

)

 

 

(53,700

)

 

 

(49,515

)

 

 

(35,189

)

 

 

(39,465

)

 

 

(24,745

)

 

 

(35,519

)

 

 

(36,753

)

 

 

(37,467

)

Corporate/Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest expense

 

$

(9,824

)

 

$

(4,199

)

 

$

(5,303

)

 

$

(2,454

)

 

$

(1,130

)

 

$

(1,320

)

 

$

(4,690

)

 

$

(18,350

)

 

$

(3,061

)

Total noninterest income (loss)

 

 

(1,615

)

 

 

(4,653

)

 

 

(1,690

)

 

 

(957

)

 

 

 

 

 

3,967

 

 

 

169

 

 

 

(684

)

 

 

(319

)

Total net revenue (loss)(2)

 

 

(11,439

)

 

 

(8,852

)

 

 

(6,993

)

 

 

(3,411

)

 

 

(1,130

)

 

 

2,647

 

 

 

(4,521

)

 

 

(19,034

)

 

 

(3,380

)

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

157,850

 

 

$

122,729

 

 

$

94,933

 

 

$

76,577

 

 

$

72,375

 

 

$

56,012

 

 

$

47,280

 

 

$

38,823

 

 

$

49,212

 

Total noninterest income.

 

 

266,135

 

 

 

239,798

 

 

 

235,411

 

 

 

209,031

 

 

 

199,631

 

 

 

175,262

 

 

 

148,704

 

 

 

132,668

 

 

 

151,575

 

Total net revenue

 

 

423,985

 

 

 

362,527

 

 

 

330,344

 

 

 

285,608

 

 

 

272,006

 

 

 

231,274

 

 

 

195,984

 

 

 

171,491

 

 

 

200,787

 

Adjusted net revenue(1)

 

 

419,256

 

 

 

356,091

 

 

 

321,727

 

 

 

279,876

 

 

 

277,190

 

 

 

237,215

 

 

 

216,044

 

 

 

182,019

 

 

 

216,759

 

Net loss

 

 

(74,209

)

 

 

(95,835

)

 

 

(110,357

)

 

 

(111,012

)

 

 

(30,047

)

 

 

(165,314

)

 

 

(177,564

)

 

 

(82,616

)

 

 

(42,878

)

Adjusted EBITDA(1)

 

 

44,298

 

 

 

20,304

 

 

 

8,684

 

 

 

4,593

 

 

 

10,256

 

 

 

11,240

 

 

 

4,132

 

 

 

11,817

 

 

 

33,509

 

 

(1)

 

Adjusted net revenue and adjusted EBITDA are non-GAAP financial measures. For additional information on these measures and reconciliations to the most directly comparable GAAP measures, see “Non-GAAP Financial Measures” and Table 2 to the “Financial Tables” herein.

(2)

 

Technology Platform segment total net revenue includes intercompany fees earned by Galileo from SoFi, which is a Galileo client. There is an equal and offsetting expense reflected within the Financial Services segment contribution loss representing the intercompany fees incurred to Galileo. The intercompany revenue and expense are eliminated in consolidation. The revenue is eliminated within “Corporate/Other” and the expense represents a reconciling item of segment contribution profit (loss) to consolidated loss before income taxes. For the year ended December 31, 2021, all intercompany amounts were reflected in the fourth quarter, as inter-quarter amounts were determined to be immaterial. Additionally, for the three months ended June 30, 2022 and September 30, 2022, total net revenue for the Technology Platform segment included intercompany fees earned by Technisys from Galileo, which is a Technisys client. There is an equal and offsetting expense reflected within the Technology Platform segment directly attributable expenses representing the intercompany fees incurred by Galileo to Technisys. The intercompany revenue and expense are eliminated in consolidation. The revenue is eliminated within Corporate/Other and the expense is adjusted in our reconciliation of directly attributable expenses.

SOFI-F

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