SoFi Boosts 2024 Profit Forecast for Second Time This Year

(Bloomberg) — SoFi Technologies Inc. raised its forecast for this year’s profit and revenue as the fintech benefits from both its newer technology businesses and its trademark lending operation.

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The forecast for earnings per share in 2024 increased to 9 cents to 10 cents, according to the company, which three months ago raised that range to between 8 cents and 9 cents. Adjusted net revenue is now expected to fall between $2.425 billion and $2.465 billion, up from a previous range of $2.39 billion to $2.43 billion, SoFi said in a statement Tuesday.

“Despite the rate environment and our conservative stance in lending, we drove sustained strong results in the quarter and are ready to move quickly once things improve,” SoFi Chief Executive Officer Anthony Noto said in the statement.

Noto said the company’s financial-services and tech-platform segments now make up a record 45% of adjusted net revenue, up from 38% a year ago and 32% two years ago.

Second-quarter adjusted earnings before interest, taxes, depreciation and amortization were $138 million, according to the statement, topping estimates of $122 million.

Shares of the company advanced 3.1% in early New York trading at 8:16 a.m.

The San Francisco-based consumer bank has seen significant growth from its financial-services and technology platform as rates remained higher for longer than many analysts had predicted, driving SoFi to pull back from lending. That’s been the case in previous quarters, and three consecutive profitable periods demonstrate the strategy has thus far paid off. Noto said in a separate interview that he’ll continue to focus on building a more diversified, less capital-intensive business.

Diversification has helped the company expand beyond its student-lending days into what Noto now calls a financial services “one-stop shop,” with savings, investing, lending and other offerings for customers.

(Adds shares in sixth paragraph. A previous version of this story corrected the spelling of Noto’s name in fourth paragraph.)