SoFi: Leading In A Crisis
Update - May 1, 2023
SoFi reported a great quarter. The market is extrapolating too much on full year guidance. The fintech beat Q1'23 EBITDA targets by over $30 million. An investor shouldn't sell just b/c the company provided conservative guidance for the full-year by just hiking guidance for 2023 by $8 million.
- SoFi Technologies () stock in Monday midday trading after the fintech bank issued full-year guidance indicating some metrics could trail Wall Street expectations.
- The company, known for refinancing student loans, now expects 2023 adjusted net revenue of $1.955B-$2.02B vs. $1.97B consensus
- The company also increased its outlook for adjusted EBITDA to $268M-$288M, up from its prior guidance of $260M-$280M, and bracketing the Visible Alpha consensus of $271.3M.
Original article published on Mar. 28
- SoFi launched a $2 million solution to the FDIC insurance limits in a move to garner more deposits during this banking crisis.
- The digital bank affirmed Q1'23 deposits should already match the $2+ billion levels of the prior 2 quarters.
- The fintech stock remains incredibly cheap at 11x '24 adjusted EBITDA talks.