Why SoFi Technologies Stock Is Surging Today

SoFi Technologies Inc (NASDAQ: SOFI) shares are trading higher Monday morning after the company reported fourth-quarter results that topped analyst expectations and issued strong guidance. 

What Happened: SoFi reported fourth-quarter revenue of $443 million, which beat average analyst estimates of $425.88 million, according to Benzinga Pro. Fourth-quarter adjusted net revenue was up 58% on a year-over-year basis. 

SoFi reported a quarterly net loss of 5 cents per share, which beat average estimates for a loss of 9 cents per share. The company said its losses were 64% improved year-over-year.

SoFi added nearly 480,000 new members, bringing its total member count up to more than 5.2 million, representing an increase of 51% year-over-year. SoFi also added over 695,000 new products during the quarter, up 53% year-over-year. Total deposits grew 46% sequentially during the fourth quarter to $7.3 billion at year's end.

From Last Month: SoFi Stock Jumps After CEO Bets The Bottom Is In: What's Going On?

"As a result of this growth in high quality deposits, we are benefiting 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 macroeconomic uncertainty," said  Anthony Noto, CEO of SoFi Technologies.

SoFi sees first-quarter adjusted net revenue between $430 million and $440 million. The company expects full-year 2023 adjusted net revenue in a range of $1.925 billion to $2 billion. SoFi expects to reach quarterly profitability by the fourth quarter of 2023.

SoFi is a one-stop shop for digital financial services that helps members borrow, save, spend, invest and protect their money.

See Also: US Futures Slump Ahead Of Fed Decision, Big Tech Earnings: Powell Key For Keeping Rally Hopes Alive, Say Analysts

SOFI Price Action: SoFi has a 52-week high of $13.55 and a 52-week low of $4.24. 

SoFi shares are up 6.05% at $6.30 Monday morning, according to Benzinga Pro.

Photo: Thank You from Flickr.