SoFi Technologies (SOFI, Financials) reported its third-quarter earnings on Tuesday, exceeding both revenue and earnings per share estimates while raising its full-year revenue guidance.
Having increased 30% from $537.2 million in Q3 2023, SoFi announced total net income of $697.1 million for the third quarter of 2024. Versus a deficit of $266.7 million in the previous year, net income for the quarter was $60.7 million. Reflecting a 30% annual growth, adjusted net sales came in at $689.4 million.
Up from 39% a year earlier, the company's technology platform divisions and financial services accounted for 49% of adjusted net revenue. Driven by a move toward capital-light, fee-based income sources, revenue in these divisions climbed by a combined 64%. Up from prior expectations of $2.43 billion to $2.47 billion, SoFi revised its full-year 2024 projection to now reflect adjusted net income between $2.535 billion and $2.550 billion.
Strong success was ascribed by CEO Anthony Noto to constant growth, product innovation, and SoFi's brand-building activities—which drew more members and customers to the platform. During the quarter, SoFi attracted 756,000 new subscribers, increasing the overall count to 9.4 million, a 35% annual growth over year.
With personal loan originations at a record $4.9 billion and SoFi's lending unit showing overall net income of $396.2 million, up 14% year over year in Q3 2024. The technological platform of the corporation gained 160 million enabled accounts, a 17% rise from the year before.
Third quarter net interest income for SoFi was $431.0 million, a 25% annual increase over year. A mix toward lower-yielding secured loans caused the company's net interest margin of 5.57% to drop somewhat from 5.99% in Q3 2023.
Looking forward, SoFi projects modified EBITDA for 2024 to be between $640 million and $645 million, a rise from previous projection of $605 million to $615 million.
