SoFi Technologies, Inc. Q4 FY2024 earnings call

• 2024 was SoFi's best year ever with over 10 million members (up 34% YOY) and over 14.7 million products (32% YOY growth). Financial Services products drove over 89% of product growth.
• Adjusted net revenue was $2.6 billion in 2024, up 26% YOY. Financial Services and Technology Platform segments accounted for 47% of adjusted net revenue, up from 38% the prior year.
• Lending segment adjusted net revenue grew 11% to nearly $1.5 billion. Total fee-based revenue was a record $970 million in 2024, up 74% YOY.
• Brand building efforts included partnerships like TGL presented by SoFi. Loan platform business (LPB) grew with $63 million in fees in Q4 and a large agreement with Blue Owl Capital Funds in Q1 2025.
• Investments in products: Launching SoFi Plus with new benefits, expanding Invest with partnerships and more alternative investments, and iterating on Credit Card and small/medium business capabilities.

In 2024, the Financial Services and Technology Platform segments generated $1.2 billion of revenue, up 54% year-over-year, accounting for 47% of adjusted net revenue. The Lending segment's adjusted net revenue grew 11% to nearly $1.5 billion. For the fourth quarter, Financial Services net revenue was $257 million, up 84% year-over-year, with contribution profit of $115 million. Tech Platform had net revenue of $103 million in Q4, up 6% year-over-year. The loan platform business generated $63 million in fees in Q4, and the company is off to a strong start in Q1 2025 with a large LPB agreement in the works.

• Full year 2025 expects at least 2.8 million new members (28% YOY growth). Adjusted net revenue projected $3.20B-$3.275B (23%-26% growth). Adjusted EBITDA $845M-$865M. Adjusted GAAP net income $285M-$305M. Adjusted EPS $0.25-$0.27.
• Tangible book value expected to grow $550M-$575M in 2025. First quarter 2025 expects adjusted net revenue $725M-$745M, adjusted EBITDA $175M-$185M.
• Medium-term outlook: Exceed 20%-25% compound annual revenue growth through 2026, with 2026 EPS expected $0.55-$0.80 per share.

Factors such as macroeconomic conditions, competitive landscape, regulatory changes, and potential impacts on deposit growth and interest rates could affect results. However, the transcript does not provide detailed in-depth discussion of specific risks beyond general mentions of forward-looking statement uncertainties.

Q: Kyle Peterson asked about funding and deposit growth impact.

A: Anthony Noto and Chris Lapointe responded discussing APY strategy, funding target near 85%-90%, and SoFi Money's role in member acquisition.

Q: Dan Dolev asked about EPS guidance and operating leverage.

A: Anthony Noto responded emphasizing long-term margin targets (30% EBITDA, 20% net income) and confidence in driving revenue growth through investments.

Q: Terry Ma asked about lending business and loan platform outlook.

A: Chris Lapointe responded discussing lending growth in low double-digits to teens, scaling home loans, and strong loan platform demand with commitments from partners.

Q: John Hecht asked about loan platform in volatile markets.

A: Chris Lapointe and Anthony Noto responded discussing strong loan buyer demand, diversified business monetization avenues, and loan platform's cash upfront accounting benefit.

Q: Mihir Bhatia asked about segment expectations.

A: Chris Lapointe responded discussing Financial Services growth 60%-65%, lending low double-digits to teens growth, and Tech Platform low double-digits to teens growth with margin details.

Q: Reggie Smith asked about loan platform loan quality and fees.

A: Anthony Noto and Chris Lapointe responded discussing loan platform serving both within and outside credit box, and fee structure including flat fees and origination fees.

Q: Andrew Jeffrey asked about SoFi Invest and fee-based business composition.

A: Anthony Noto responded discussing SoFi Invest growth drivers, awareness focus, and long-term goal of increasing fee-based revenue proportion.

Q: Jeff Adelson asked about SoFi Plus and crypto.

A: Anthony Noto and Chris Lapointe responded discussing SoFi Plus investment details, SoFi Invest features, and crypto approach tied to regulatory clarity.