SoFi Technologies Inc. ($SOFI) Earnings (Q4 FY21)

 SoFi Technologies Inc. Earnings and Opinion:


SoFi Technologies Inc. is a finance platform that operates fully online. This is a popular business model currently, because of the pandemic and everything transitioning to fully online. They are currently based out of San Francisco, California and was incorporated in 2011. They did not become a publicly traded stock until January 4, 2021. Being a fairly new company, they are not quite yet profitable. 


SoFi Technologies Inc. EPS and Revenue Q4 FY21 (GAAP):

  • EPS of -$0.15 compared to estimates of -$0.17
  • Revenues of $285M compared to $275M 
  • EPS were up 91.89% (YOY) and Revenues were up 67% (YOY)
SoFi Technologies Inc. EPS and Revenue FY21:
  • EPS of -$1.00 
  • Revenues of $984M
SoFi Technologies Inc. Miscellaneous Results:
  • Net loss of $484M compared to Net loss of $224M
  • Total Accounts- Technology Platform Segment were 99,660,657
Opinion:
SoFi Technologies Inc. ($SOFI) is a unique company that is hard to understand. It is a hot topic in the Technology sector. The company even has a stadium named after it in Los Angeles. Getting to the results, SoFi looks to have reported a solid last quarter in the 2021 fiscal year. EPS were up 91.89% YOY and Revenues were up 67% YOY. However, it looks like a lot of expenses were incurred, because over the past fiscal year, Net losses increased by over $200M. This is definitely something that stands out, but is common with companies who are trying to get going. Companies that are young, especially ones like SoFi, find themselves trying to invest more and more back into its business to make it better. One thing to watch out for is when the interest rates hike, how much borrowing SoFi will do. If they do a lot of borrowing, they will be paying a lot of expenses on interest from borrowing. However, if they are able to keep the customer growth going, the will become profitable eventually. I like the outlook of this company and the business model of having a fully online bank platform. I think this is a risky stock, no doubt. However, if you are a risk-taking investor and have extra cash laying around, this may not be a bad option to buy and hold for the next 5 years. 

*Information attained from Yahoo Finance and SoFi
*Estimates attained from Zacks

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