Latest news with #AnthonyNoto
Yahoo
15-05-2025
- Business
- Yahoo
Jim Cramer Thinks That SoFi Technologies Will Reach'New Highs'
Praising SoFi Technologies, Inc. (NASDAQ:SOFI), a caller inquired about it, and Cramer replied: 'Oh, I like SoFi. We've been back, you know, Anthony Noto knows we have been behind this thing the whole way, and you know what? It gets thrown back at this level, I am not concerned. I think it goes to new highs.' A professional banker shaking hands with an entrepreneur in a boardroom setting. SoFi (NASDAQ:SOFI) provides lending, banking, insurance, and investment services, which are all accessible through a single digital platform. When Cramer was asked about the company in March, he advised investors not to panic, as he commented: 'Let's not worry. Let's not worry. Okay, this is run by Anthony Noto. He is doing a super job. I know that right now, stocks are for sale. I don't want you to sell it. It can come down a little bit more. Do not panic. The company's in good hands and the stock was up a great deal not that long ago. I think you're fine. I'm not saying it can't go to $10, I am saying that Noto's money.' While we acknowledge the potential of SOFI to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SOFI and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: Jim Cramer Commented on These 6 Natural Gas Players and 13 Stocks on Jim Cramer's Radar Recently Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
SoFi targets 30% member growth, CEO talks guidance
-- SoFi Technologies Inc. (NASDAQ:SOFI) continues to outline a multi-pronged strategy centered on member growth, product adoption, and long-term profitability, according to CEO Anthony Noto at the JPMorgan Global Technology, Media and Communications Conference. The company has guided to over 30% annual member growth and mid-to-high 20% revenue growth, while maintaining a goal to reach 50 million members within five years. Noto reiterated an earnings guidance range of $0.55 to $0.80 in EPS for 2026, depending on reinvestment levels and revenue trajectory. Incremental EBITDA margins are targeted at 30%, with the company expecting to reinvest 70% of incremental profit while dropping the remaining 30% to the bottom line. 'We do believe we can achieve the mix of business and capital efficiency to have a 20% to 30% ROE and that has not changed,' Noto said. SoFi's focus on cross-product adoption remains critical, with flagship offerings like SoFi Money and SoFi Relay serving as entry points to the broader financial ecosystem. New features, such as AI-driven tools like 'Cash Coach' and 'ExpenseR,' are designed to give personalized spending and saving recommendations, serving both member engagement and product expansion. On the lending side, Noto highlighted a significant opportunity in the company's loan platform business, which captures demand beyond SoFi's internal credit box. The platform now facilitates loan matching with external capital providers, offering a fee-based model that diversifies revenue. 'The market for the loan platform business is deeper and wider than we ever thought it was,' he said. SoFi is also using its technology to deepen capabilities across its credit card and investing segments. Recent performance improvements have pushed SoFi Invest to variable profitability, enabling greater investment in product enhancements, including expanded asset classes and alternative offerings. Meanwhile, the credit card business is being optimized for revolvers, with Noto noting that current industry-level returns suggest room for disruption. International expansion and future tech platform partnerships were mentioned as long-term opportunities, though Noto declined to disclose specific markets. He pointed to strong momentum in new enterprise deals set to launch in 2026, following renewed demand from large financial institutions. Related articles SoFi targets 30% member growth, CEO talks guidance Foot Locker shares surge as Dick's mulls $24-a-share buyout S&P 500's recovery has legs, as market shifts to 'show me' from 'scare me': BMO Sign in to access your portfolio
Yahoo
08-05-2025
- Business
- Yahoo
Is SoFi a No-Brainer Buy After Another Profitable Quarter?
SoFi Technologies added 800,000 new members in the quarter, bringing its total member count to 10.8 million. Revenue from the company's lending segment surged 25%, while financial services revenue increased 101% from last year. SoFi has strengthened its loan platform business with multibillion-dollar commitments from Fortress Investment Group and Blue Owl Capital. 10 stocks we like better than SoFi Technologies › SoFi Technologies (NASDAQ: SOFI) is becoming a one-stop destination for financial services. In its latest earnings report, the fintech beat expectations on revenue and earnings, and its loan business was particularly strong. The company has been building on relationships with investors clamoring to purchase its loans. If you haven't added SoFi to your portfolio, now could be an excellent opportunity to invest in this dynamic fintech. Here are some things to consider before buying the stock today. SoFi posted another stellar quarter, adding a record 800,000 members in the first quarter, bringing its total member count on its platform to 10.9 million. Its net revenue grew 20% to $771.7 million, while its diluted earnings per share (EPS) increased 200% from $0.02 one year ago to $0.06, marking its sixth consecutive profitable quarter. SoFi CEO Anthony Noto said: We delivered our highest revenue growth rate in five quarters, driven by new records in members, products, and fee-based revenue. These results demonstrate the strength of SoFi's unique strategy, combination of businesses, and product architecture, which give us a sustainable competitive advantage with the highest lifetime value per member. Growth was present across SoFi's business segments. In the lending segment, where SoFi accounts for personal, student, and home loans, revenue jumped 25% after a slow year of growth here last year. Meanwhile, contribution profits, which measure the segment-level profit (or loss), increased 15% to nearly $239 million. SoFi's financial services segment, which accounts for its various financial services products, like SoFi Money and SoFi Invest, and fees from its loan platform business, where it originates loans for third parties, saw excellent growth as net revenue surged 101% and contribution profit increased 299% to $149.3 million. SoFi's net interest income grew by 24% from last year, illustrating SoFi's success with its aggressive marketing to get customer deposits to its platform. Total deposits for SoFi are now up to $27.3 billion, which have grown significantly since SoFi acquired Golden Pacific Bancorp in 2022. Growth is especially noteworthy in SoFi's loan business. This was one of SoFi's slower-growing businesses last year, but has gotten a boost recently thanks to robust demand from investors for SoFi's loans. SoFi has taken steps to expand its loan platform business, where it refers pre-qualified borrowers to loan origination partners. The growing loan platform business bolsters SoFi's ability to meet borrower demand while shifting toward less capital-intensive, fee-based revenue sources as its investor partners hold on to those loans. Last year, the fintech agreed to a $2 billion agreement with Fortress Investment Group. It has built on this agreement further and now has up to a $5 billion commitment from the investment company. The company also finalized an agreement with Blue Owl Capital for up to $5 billion in loan commitments, showing incredibly strong demand for personal loans. SoFi has added deposits at a staggering pace, has grown net interest income, and continues to churn out profitable quarters. Another positive sign for investors is that its lending was robust, thanks to strong demand for personal loans from SoFi's lending partners. The fintech got off to a strong start to the year, and management raised its revenue forecast by $35 million and its EPS forecast from a range of $0.25 to $0.27 to a range of $0.27 to $0.28. The stock has a price-to-earnings ratio of 31 and a price-to-tangible-book value of 3, making it expensive compared to legacy bank competitors. However, the higher valuation reflects SoFi's rapidly growing business, making it a solid stock for growth-focused investors today. Before you buy stock in SoFi Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and SoFi Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $611,589!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $697,613!* Now, it's worth noting Stock Advisor's total average return is 894% — a market-crushing outperformance compared to 163% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 5, 2025 Courtney Carlsen has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Is SoFi a No-Brainer Buy After Another Profitable Quarter? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
30-04-2025
- Business
- Forbes
SoFi Stock Up 22% As It Beats And Raises On Growth Flywheel
SUN VALLEY, ID - JULY 08: Anthony Noto, chief financial officer of Twitter, attends the Allen & ... More Company Sun Valley Conference on July 8, 2015 in Sun Valley, Idaho. Many of the world's wealthiest and most powerful business people from media, finance, and technology attend the annual week-long conference which is in its 33rd year. (Photo by) Shares of SoFi Technologies have risen 22% since Monday after reporting expectations-beating first quarter results and raising full-year guidance. (Disclosure: I am a SoFi shareholder). Despite that good news, SoFi stock trades roughly 43% below its June 2021 peak of $23. Can SoFi stock reach new all-time highs? The answer depends on whether the company creates new sources of growth to power a string of future beat-and-raise quarters – in which the company exceeds quarterly performance targets and offers guidance above what analysts expecting. To do that, SoFi must be among the small number of public companies that continues to provide upbeat forecasts – as tariff uncertainty impels many public companies to stop offering guidance. Moreover, government policy could hinder and help SoFi's growth. Tariffs could drive many employers to part ways with employees – which could make the job market more difficult and increase SoFi's loan charge-offs. On the other hand, SoFi could benefit from looser cryptocurrency regulation which could create a new source of revenue growth. And pending legislation aimed at lessening government involvement with student loans could affect demand for SoFi student loans. Ultimately, SoFi will continue to benefit from a growth flywheel – the Financial Services Productivity Loop – in which customer lifetime value rises as the company's product innovation and brand building add new products, according to StockTitan. SoFi exceeded investor expectations for the first quarter of 2025 and raised full year guidance. The company delivered our highest revenue growth rate in five quarters, driven by new records in members, products, and fee-based revenue," SoFi CEO Anthony Noto said in a statement. "We are off to a tremendous start in 2025," he added. Here are the key numbers: Since early 2018 when he became CEO, Noto said he wanted to build a 'mission-driven company,' he told Barron's. 'From day one over seven years ago, it has always been our mission to become a one-stop shop,' he added. Aiming to make SoFi one of the top 10 financial institutions in the U.S. based on market capitalization, SoFi wants to help customers 'borrow better, save better, spend better, invest better, and protect better,' Noto concluded. SoFi appears to be relatively immune for now to the public company guidance conundrum – which is forcing CEOs to choose between the desire to raise guidance to benefit their stock prices and the tariff uncertainty making realistic forecasts impossible. Business leaders are feeling anxious about the Trump administration's shifting tariff policy and other regulatory changes, according to poll conducted last week by business group Leadership Now Project and the Harris Poll, featured in a Wall Street Journal report. After surveying 'more than 300 senior corporate executives,' 84% reported In a survey of more than 300 senior corporate executives released April 29, 84% reported feeling 'somewhat concerned or very concerned about how the current political and legal climate will affect their businesses,' noted the Journal. This concern has led some public companies to pull their guidance. General Motors, JetBlue, Snap and Volvo are among the companies withdrawing their guidance because 'the trade war's unknowable course and consequences make it futile to forecast future performance,' reported the Journal. Meanwhile, Porsche's new guidance excludes any tariff impact beyond May. "If the current tariffs remain in place, Porsche would need to raise prices and adjust its guidance again, the company said, according to the Journal. Tariffs are creating a new set of winners and losers. SoFi joins the list of winners – which include Netflix and ServiceNow, as I wrote in an April 25 Forbes post. New government polices could have a mixed impact on SoFi's future. The good news is loosening policies towards banks operating in the cryptocurrency business represent an opportunity for SoFi – enabling the fintech firm 'to offer crypto investing by year-end, barring unforeseen circumstances,' Noto told CNBC. It is unclear how new legislation aiming to tighten student loans would affect SoFi's business. The tighter lending terms in the bill could reduce demand for student loan refinancing. The bill could also increase loan charge offs in the short-term while improving longer-term credit quality, noted SoFi's Q1 2025 earnings call transcript. Finally, Trump's tariffs could hurt SoFi's growth. If tariffs remain at current levels, trade tensions could hurt growth and push inflation higher, motivating Morgan Stanley analyst Jeffrey Adelson to issue a sell rating on the stock and setting a price target of $6 – implying significant downside, according to The Globe And Mail. In 2021, one analyst envisioned SoFi would grow rapidly by 2025 and forge a path to profitability. Mizuho analyst, Dan Dolev wrote that he saw SoFi enjoying 40% average annual revenue growth between 2021 and 2025 and becoming profitable in 2024, according to my September 2021 Forbes post. Dolev was pretty close in his estimate. Between 2021 and 2024, SoFi's revenues grew at a 39% average annual rate from $977 million to $2,640 million. In 2024, SoFi earned $479 million in net income – after a loss in 2023, according to a company release. To reach profitability, SoFi needed to lower its costs as it grew. To that end, SoFi would need to investment in a platform to support new services and then encourage its customers to buy more of them, I wrote. In so doing, SoFi might 'spread its costs over more products — achieving economies of scope — and through excellent customer service has the potential to add many new customers — thus spreading its costs over more customers,' according to my post. Dolev envisioned this working as SoFi encouraged 'user engagement, nurturing a flywheel effect of more users taking advantage of SoFi's multiple services driving additional growth.' He expected this flywheel to create 'operating leverage' as revenues grow — ultimately 'shrinking losses profits,' according to Nasdaq. Will Morgan Stanley's bearish view prevail or will Noto's optimism enable the company's stock to rise? Here are three bullish analyst views: Yet with first quarter gross domestic product contracting 0.3%, according to CNBC, the concerns raised by Morgan Stanley could cap SoFi's upside. Disclosure: I own shares in SoFi Technologies – starting as an angel investor in 2014.
Yahoo
30-04-2025
- Business
- Yahoo
SoFi Technologies Inc (SOFI) Q1 2025 Earnings Call Highlights: Record Revenue and Member Growth ...
Revenue: $771 million, up 33% year-over-year. Adjusted EBITDA: $210 million, up 46% year-over-year, with a margin of 27%. Net Income: $71 million, with a margin of 9%. Earnings Per Share (EPS): $0.06. Member Growth: Added 800,000 new members, reaching 10.9 million, a 34% year-over-year increase. Product Growth: Added 1.2 million new products, totaling 15.9 million, a 35% year-over-year increase. Financial Services Revenue: $303 million, more than double from Q1 2024. Lending Segment Revenue: $412 million, up 27% year-over-year. Loan Originations: $7.2 billion, up 66% year-over-year. Fee-Based Revenue: $315 million, up 67% year-over-year. Net Interest Income: $361 million, up 35% year-over-year. Deposits: Total deposits grew to over $27 billion. Tangible Book Value: $5.1 billion, a year-over-year increase of $946 million. Guidance for 2025: Adjusted net revenue expected between $3.235 billion to $3.310 billion; adjusted EBITDA expected between $875 million to $895 million. Warning! GuruFocus has detected 5 Warning Signs with SOFI. Release Date: April 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. SoFi Technologies Inc (NASDAQ:SOFI) reported a 33% year-over-year increase in revenue, reaching a record $771 million for Q1 2025. The company added a record 800,000 new members, marking a 34% year-over-year growth, bringing the total to 10.9 million members. Adjusted EBITDA for the quarter was a record $210 million, up 46% year-over-year, with a margin of 27%. The Financial Services segment doubled its revenue year-over-year to over $300 million, driven by strong growth in SoFi Money and the Loan Platform Business. SoFi Technologies Inc (NASDAQ:SOFI) increased its full-year guidance for adjusted net revenue and adjusted EBITDA, reflecting confidence in continued growth. Despite strong growth, the company faces macroeconomic uncertainties and potential volatility in interest rates, which could impact future performance. The Tech Platform segment saw a slight decrease in accounts, down 6% year-over-year, which could indicate challenges in client retention or acquisition. The company is heavily reliant on fee-based revenue, which, while growing, may face pressure if market conditions change or if competition intensifies. SoFi Technologies Inc (NASDAQ:SOFI) continues to operate in a highly competitive environment, particularly in the financial services and technology sectors, which could impact margins. The company's strategy to expand into new areas such as crypto and blockchain is subject to regulatory changes, which could pose risks to execution and growth. Q: Can you envision a time where SoFi is primarily a fee-based business, and what are the implications for deposit and interest rate environments? A: Anthony Noto, CEO: We foresee an increase in fee-based revenue, currently at 41% on an annualized basis. This growth is not just from the Loan Platform Business but also from interchange, referral revenue, and other smaller businesses. We aim for fee-based revenue to exceed 50%, especially if we expand the Loan Platform Business beyond our current credit box. Additionally, the Invest business, including potential crypto offerings, will contribute to fee-based revenue. However, we still value holding loans on our balance sheet for a balanced ROE of 20% to 30%. Q: Has recent market volatility affected the Tech Platform pipeline or client decision-making? A: Anthony Noto, CEO: There has been no change in our outlook for the Tech Platform business despite recent market volatility. We continue to sign new partners, and our revenue guidance remains unchanged. We anticipate potential acceleration in 2026 as traditional financial institutions and consumer brands seek to innovate and compete more aggressively. Q: How is SoFi handling underwriting in the current macroeconomic environment with potential shocks? A: Anthony Noto, CEO: We use an early warning dashboard to monitor economic indicators and adjust credit policies accordingly. Currently, indicators do not suggest a need to change our underwriting standards. Our credit performance remains strong, and we are prepared to adjust quickly if necessary. Q: How does SoFi plan to position its student loan business if Congress caps certain programs like Grad Plus and Parent Plus? A: Anthony Noto, CEO: We are prepared to capture opportunities in the in-school student loan market if the government reduces its role. These loans offer higher WACC and ROE, often backed by co-borrowers. We would also refinance these loans post-graduation, enhancing member relationships and revenue streams. Q: What are the implications of changing Fed fund expectations on deposit costs and growth? A: Anthony Noto, CEO: We have a competitive advantage with our insured depository entity and lending products, allowing us to offer competitive APYs. We expect industry APYs to decrease, but ours will remain top-tier. We aim to grow deposits in line with loan growth, maintaining a strong competitive position. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
