Sofi Technologies Inc Stock Price, News & Analysis

SoFi Technologies (NASDAQ: SOFI) reported its Q2 2024 results, achieving net revenue of $599 million, a 20% increase year-over-year, and net income of $17 million, marking the third consecutive quarter of GAAP profitability. Financial Services and Tech Platform segments drove a combined 46% revenue growth, while Lending grew 5%. The company added over 643,000 new members, reaching nearly 8.8 million. Product additions totaled 946,000, increasing total products to 12.8 million.

Adjusted net revenue hit a record $597 million, up 22%, with adjusted EBITDA at $138 million, an 80% rise. SoFi Invest saw a 58% increase in assets under management. The Lending segment's net interest income grew 20% to $279 million. Member and product growth remained strong, with Financial Services products increasing 39% year-over-year.

Management raised FY24 guidance, expecting adjusted net revenue between $2.425 and $2.465 billion and adjusted EBITDA between $605 and $615 million. GAAP net income is projected between $175 and $185 million, and EPS between $0.09 and $0.10.

Galileo Financial Technologies, a subsidiary of SoFi Technologies (NASDAQ: SOFI), has launched Galileo 3D Secure (3DS) Access Control Server to combat card-not-present (CNP) fraud. This enhancement comes as CNP fraud is projected to reach $28.1 billion globally by 2026, a 40% increase from 2023. The 3DS protocol adds an extra layer of security for online credit and debit card transactions, potentially reducing fraud rates by up to six times compared to non-3DS transactions.

Key features of Galileo 3DS include:

• Enhanced fraud protection through dynamic risk rules
• Chargeback liability shift to card issuers
• Advanced risk management using Galileo's proprietary data consortium
• Self-service tool for monitoring and adjusting security measures
• Real-time data and trend analysis

The service is now available in the U.S., Canada, and Latin America, catering to various clients from fintechs to established financial institutions and e-commerce merchants.

Galileo Financial Technologies, a subsidiary of SoFi Technologies (NASDAQ: SOFI), has announced the introduction of wire transfer capabilities for fintechs. This service aims to enhance the speed and security of financial transactions for both consumers and businesses.

The new wire transfer API, in partnership with Community Federal Savings Bank (CFSB), connects fintechs to the Fedwire system, which processed over 193 million transfers in 2023. This addition addresses growing demands for fast, reliable money movement, benefitting users with same-day transactions, enhanced security, and real-time notifications.

David Feuer, CPO at Galileo, emphasized that this service supports the need for rapid and secure financial transactions, integrating seamlessly with existing fintech infrastructures via API access.

This development aims to attract and retain more customers for fintechs by addressing critical needs in financial operations such as home sales, tuition payments, and vendor payments.

SoFi Technologies (NASDAQ: SOFI) will host a conference call to discuss its Q2 2024 financial and operating results on Tuesday, July 30, 2024, at 8 a.m. Eastern Time. The results will be released on the company's investor relations page at approximately 7 a.m. Eastern Time on the same day. Investors can pre-register for the call to receive personal dial-in details or access an audio-only webcast through provided links. A replay of the webcast will be available after the call on SoFi’s investor relations page.

Galileo Financial Technologies, a SoFi Technologies company, released the Galileo Consumer Banking Report with Datos Insights. The report reveals that while 85% of consumers have positive experiences with their primary financial institution (FI), many are diversifying their financial services across various providers.

This trend is particularly pronounced among Gen Z and younger millennials, who use an average of six financial tools, with more than half from outside their primary FI. The study emphasizes the growing demand for digital-first, personalized, and autonomous services, highlighting that traditional FIs may lose valuable customers to digital competitors if they do not innovate.

Additionally, the report notes that 60% of consumers prefer DIY financial services, and 42% of younger millennials have used virtual assistants for financial tasks. Gig workers are identified as a unique demographic with specific needs that FIs are currently not fully addressing.

SoFi Technologies (NASDAQ: SOFI), a digital personal finance company, will participate in the Mizuho Technology Conference on June 12, 2024. SoFi’s CFO, Chris Lapointe, will engage in a moderated fireside chat at 9:55 AM EDT. The session will be available via webcast, and archived versions will be accessible for on-demand viewing on SoFi's Investor Relations website.

SoFi Technologies (NASDAQ: SOFI) has appointed Stephen Simcock as its new general counsel, effective immediately. Simcock brings over three decades of legal experience from major financial institutions, including JPMorgan Chase and Citigroup. He will succeed Rob Lavet, who is retiring but will remain an advisor and director at SoFi Bank, N.A. Simcock will oversee all legal affairs, regulatory compliance, and corporate governance at SoFi. CEO Anthony Noto praised Simcock's extensive experience and leadership qualities, aligning well with SoFi's mission and values. Simcock expressed enthusiasm for joining a firm dedicated to financial independence through consumer-focused products.

SoFi Technologies (NASDAQ: SOFI) announced a $350 million personal loan securitization with PGIM Fixed Income, a Prudential Financial company. This Q1 2024 placement aims to enhance SoFi's lending capabilities.

CEO Anthony Noto highlighted the ongoing demand for SoFi's personal loan sales and emphasized the partnership with PGIM, which boasts extensive experience in asset-based finance lending.

To date, SoFi has sold over $15 billion and securitized $14.5 billion in personal loan collateral, underscoring the high quality of its loan portfolio. PGIM Fixed Income's Managing Director, Edwin Wilches, commended the long-standing partnership, which began with SoFi's student loan origins and has evolved into a multi-channel business.

Templum is partnering with SoFi to democratize access to alternative investments, traditionally reserved for the ultra-wealthy. SoFi aims to empower over 8 million members by offering them unique investment opportunities. The global market for alternative assets is projected to reach $24.5 trillion by 2028, up from $16.3 trillion today. This collaboration will leverage Templum's technology and regulatory expertise to provide everyday investors with higher and uncorrelated returns, enhancing portfolio diversification. Both companies are committed to increasing innovation and investor confidence in this rapidly growing sector.