SoFi Technologies posted first quarter results that topped expectations on the top and bottom lines on strong year-over-year growth in both members and products.
However, this wasn’t enough to impress investors with shares of the San Francisco-based financial services provider sliding by more than 7% after the market opened on Monday.
For the three months ended March 31, 2023, SoFi achieved net revenue of $472.2 million up 43% from $330.3 million in the first quarter of 2022.
The company drmatically narrowed its net loss to $34.4 million, or a loss per share of $0.05 during the quarter from a net loss of $110.4 million, or a loss per share of $0.14 in the same quarter a year earlier.
Analysts, on average, had expected a loss per share of $0.08 on revenue of $440.6 million, according to FactSet.
SoFi CEO Anthony Noto highlighted that the company added 433,000 new members during the quarter to nearly 5.7 million members, a 46% increase year-over-year.
“We also added nearly 660,000 new products during the quarter, and ended with nearly 8.6 million total products, a 46% annual increase, while sales and marketing expenses as a percent of revenue declined approximately 100 basis points sequentially and approximately 475 basis points year-over-year,” Noto said in a statement.
He also highlighted that the firm’s deposits grew by a record $2.7 billion to $10 billion at the quarter-end, a 37% increase year-over-year.
SoFi shares were down 7.2% at US$5.78 shortly after the opening bell in New York, after initially rising about 9% in pre-market trading following the release of its first quarter results.
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