- SoFi Technologies Inc.'s (SOFI) stock shot up in early trading on Monday, reporting earnings that beat predictions. The stock price rose by about 15%, putting it on track to record its third straight post-earnings surge.
- The company said it anticipates reaching profitability on a GAAP basis by the fourth quarter of this year. It reported a decrease in its fourth-quarter losses from $111M, or 15 cents per share, to $40M, or 5 cents.
- In contrast to the $4.6M and $43M from the prior year, a loss of 9 cents per share was anticipated. Adjusted Ebitda for SoFi was $70.1M and $40.1M, respectively. Analysts had predicted a total net sales of $423M, but it really rose to $456.7 million from $285.6M.
Why it matters
This performance, according to the company, was made possible by years of technology investment to automate and speed up the application-to-approval process for qualified borrowers as well as regular testing of risk controls and underwriting models to uphold our high standard of credit quality.
