• Adjusted Net Revenue: $581 million, up 26% year-over-year.

• Adjusted EBITDA: $144 million, up 91% year-over-year, 25% margin.

• GAAP Net Income: $88 million, includes a $59 million one-time benefit.

• GAAP EPS: $0.02 per share, excluding one-time benefits.

• Tangible Book Value: $4.1 billion, up $608 million from prior quarter.

• Consumer Deposits: Increased by $3 billion.

• Loan Sales: Over $1.9 billion sold in Q1.

• SoFi Bank Net Income: $100 million, 21% margin.

• Total Capital Ratio: 17.3%, up 200 basis points from last quarter.

• Member Base: Grew to 8.1 million, up 44% year-over-year.

• New Product Additions: 989,000 in the quarter, 93% in Financial Services.

• Warning! GuruFocus has detected 7 Warning Signs with SOFI.

Release Date: April 29, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Q & A Highlights

Q: Chris, you gave some of the metrics in the personal lending book on charge-offs and so forth. I'm wondering, what you're looking at, at this point in terms of payment trends and kind of the underwriting factors that informs your credit outlook? And maybe if you could give us your thoughts on that as well. A: Christopher Lapointe - SoFi Technologies, Inc. - CFO: Sure. I'll start and then Anthony can chime in. So we feel really good about our credit and the underlying performance of our loans, and everything is performing in line with expectations, while we continue to see the underlying signs of improvement. In Q1, our net charge-off rate was 3.45%, which was down from 4.0% in Q4, which included the impact of asset sales, new originations as well as the delinquency sale that we did in the quarter. In terms of our outlook, we anticipate ongoing normalization in credit performance towards pre-pandemic levels of 7% to 8% life of loan losses, which is in line with what we said last quarter.

Q: Yes. I was curious whether just kind of given where you are now with the equity capital levels whether you feel you have enough sources to support future growth? Or do you potentially see yourself having to raise additional outside equity? A: Anthony J. Noto - SoFi Technologies, Inc. - CEO & Director: Thanks for the question. We had significant excess capital prior to the transactions that occurred in the quarter. Our risk-based capital level was -- over 15%. It's now over 17%, well, well, well above our regulatory department. And given our outlook on lending, there's no reason for us to change our stance in that business.

Q: Really strong results, congrats. I have a question about the NIM. Really stable NIM trends. Can you, Chris comment on the future NIM trends, how you're seeing them? I would appreciate it. A: Christopher Lapointe - SoFi Technologies, Inc. - CFO: Sure. Thanks, Dan. So yes, we've been very successful in maintaining healthy net interest margins and continuing to expand them over time. In Q1, our net interest margin was 5.9%, which was up 43 basis points year-over-year. And more importantly, what we've seen is year-over-year net interest margin expansion in every single quarter throughout 2022 and 2023.

Q: Great. Just wanted to dive a bit more into deposit growth and pricing, obviously been really strong growth on that front. But if you could give a little more detail, specially on deposit betas and what the biggest drivers of growth will be -- particularly if we are in a higher for longer environment, that would be great? A: Anthony J. Noto - SoFi Technologies, Inc. - CEO & Director: Yes. Chris can comment on the betas. What I'd say is we raised our '24 revenue outlook in terms of the range by more than we'd be in Q1. That's because of the positive tailwinds we're seeing in both Tech Platform as well as Financial Services. We had record growth in deposits in Q1 of $3 billion. We've seen really strong debit spending trends. We're annualizing more than $8 billion now.

Q: I wanted to kind of dig into the Financial Services segment a little bit. One of the disclosures you guys given in the press release is the FICO score of some of your new depositors. I guess my question is, what's your appetite for really growing the Credit Card business. And maybe talk about like what that looks like ultimately growing that? A: Anthony J. Noto - SoFi Technologies, Inc. - CEO & Director: We're really excited about where we are with Credit Card. We've had a great journey in launching a credit card, learning quite a bit about our go-to-market strategy, how we're marketing and targeting potential new members with credit card in addition to understanding the underlying credit trends and what the right credit model is, in addition to other factors like fraud and risk overall.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus.