Earnings Results: SoFi stock gains after earnings as revenue beats and losses shrink

by | Aug 2, 2022 | Stock Market

Shares of SoFi Inc. were up nearly 3% in after-hours trading Tuesday after the company beat expectations with its latest results and delivered an upbeat earnings forecast for the current quarter. The company reported a second-quarter net loss of $95.8 million, or 12 cents a share, whereas it recorded a loss of $165.3 million, or 48 cents a share, in the year-prior quarter. Analysts tracked by FactSet were modeling a 14-cent GAAP loss per share for the latest quarter.

posted adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) of $20 million, up from $11 million a year before and ahead of the FactSet consensus, which was for $10 million. Revenue increased to $362 million from $231 million, while analysts had been looking for $344 million. “While the political, fiscal and economic landscapes continue to shift around us, we have maintained strong and consistent momentum in our business,” Chief Executive Anthony Noto said in a statement. “We built our products and services to provide durable growth and profitability, and that is what we are delivering.” SoFi saw $2.5 million in personal loan originations during its second quarter, which marked a 91% rise relative to a year prior. “This outperformance resulted from 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,” SoFi executives said in the release. The company disclo …

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