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Tag: SOFI stock

  • SoFi Technologies Inc. (SOFI) Plummets on Revised Guidance Adjusting the New Student-Loan Pause

    Recently, SoFi Technologies Inc. (SOFI) had provided upbeat guidance for fiscal 2022 in its previous earnings report. However, today brings grave news as the company has revised and lowered the guidance reflecting the latest extension of student loans. Additionally, SOFI also announced the resignation of three members of its board: Clay Wilkes (Founder Galileo), Combes, and Carlos Medeiros (SoftBank).

    Consequently, on April 6, 2022, SOFI stock plunged further down by 6.40% at an active volume of 6.48 million shares in the after hours. Thus, the stock was trading at a value of $8.19 per share in the late trading session.

    SOFI’s Forecast Cut Down

    To reflect the latest extension of the federal student loan payment moratorium, the financial services company has cut down its 2022 forecast.

    Source: US News

    Therefore, the company now expects adjusted net revenue of $1.47 billion while it forecasted $1.57 billion previously.

    Moreover, SOFI brought down its 2022 adjusted EBITDA guidance to $100 million against the prior $180 million.

    On the other hand, the company reaffirmed the previous Q1 2022 guidance of $280-$285 million for revenue and $0-5 million for EBITDA.

    What Happened to Student Loans?

    Previously, the Biden government keeping in mind the impact of Covid-19 had initiated a pause on federal student loan repayments from January through September 2021. The loan repayments were then scheduled for resuming in May 2022.

    In the latest official report from the White House, the president’s administration has decided to extend the pause further through August 31, 2022. According to the report, if resumed as scheduled, millions of student loans borrowers would face immense economic pressure and hardship. This in turn would threaten the country’s still recovering financial stability. Hence, the government hopes to provide some relief and a continued lifeline to people as the U.S. recovers from the pandemic in the form of this extension.

    How Does SOFI’s Future Look Despite the Cut Down?

    Even though the latest forecast cut down has put the company and its stock in a bleak position, all is still not lost. While having reduced the forecasted figures, the company is still looking ahead to a nice growth of 45% YOY in revenue and tripling of the EBITDA.

    Other than this, the company has a promising business structure with many developments taking place continuously. Its continuous engagement to win customers on top of winning with other fintech businesses (Galileo’s acquisition) is something that can’t be overlooked.

    Conclusion

    With the extension on student-loans repayments, SOFI has cut down its forecast for 2022. While the news affected the stock negatively, the company is still looking forward to much growth in the future.

  • SoFi Technologies Inc. (SOFI) stock Rebounds After Hours on Beat 2021 Earnings

    On March 01, 2022, SoFi Technologies Inc. (SOFI) declared its financial results for Q4 and fiscal 2021. Consequently, the shares of the company’s stock rebounded and became bullish in the after hours.

    The investors seemed to have been unsure of the earnings as the stock suffered a decline of 2.18% before the earnings. During the regular session, SOFI stock remained in the red at an active volume of 198% of the average. The stock closed the session at $11.20 per share as 107.85 million shares exchanged hands. Following the announcement, the stock rebounded to add 18.13% at an after-hours volume of 30.13 million. Hence, SOFI was trading at $13.23 apiece in the after-hours on Tuesday.

    The financial services provider, SoFi Technologies Inc. offers various kinds of loans and credit card facilities. Founded in 2011, the company has a market capitalization of $9.49 billion with its 828.59 million shares outstanding.

    SOFI’s 2021 Financials

    The company reported adjusted net revenue of $279.9 million and $1.01 billion for Q4 and fiscal 2021, respectively. This marks a respective increase of 54% and 63% against 182.0 million and $621.2 million in the same period of 2020.

    Source: Entrepreneur

    Moreover, the GAAP net loss was $111.0 million in Q4 2021 and $483.9 million in fiscal 2021. Comparatively, the GAAP net loss was $82.6 million and $224.1 million in Q4 and fiscal 2020, respectively.

    Furthermore, SOFI had adjusted EBITDA of 4.6 million in Q4 2021, against $11.8 million in the year-ago period. The adjusted EBITDA was $30.2 million for fiscal 2021.

    2022 Guidance

    With the negative impact of federal student loan payments due to extension, the expected adjusted revenue for Q1 2022 is $280-$285 million. SOFI expects an adjusted EBITDA of $0-$5 million in the quarter.

    Additionally, for fiscal 2022, the expected adjusted net revenue is 1.57 billion approx. with adjusted EBITDA of $180 million.

    SOFI Checking & Savings

    On February 24, the company announced launching SoFi Checking and Savings for helping people to get their money right. The latest offering will let members have greater control over their money management along with an improved user experience. The offering also provides a huge array of customizable options.

    Technisys Acquisition Agreement

    On February 22, the company announced its definitive merger agreement for acquiring Technisys for a consideration of 84 million SOFI common shares to Technisys’ shareholders. Technisys is a leading cloud-native, digital multi-products core banking platform.

    The merger deal is expected to close in the second quarter of 2022.

  • SoFi Technologies Inc. (SOFI) stock Rallies After Hours on a Regulatory Approval

    On January 18, SoFi Technologies Inc. (SOFI) announced receiving regulatory approvals for becoming a bank holding company. Following the announcement, the stock rallied in the after-hours to gain a huge 16.50%.

    During regular trading, SOFI stock suffered a loss of 8.64% at its close of $12.06 on Tuesday. Consequent to the news, the stock was trading at $14.05 in the after-hours at a hefty volume of 10.97 million shares.

    The financial services provider, SoFi Technologies Inc. has a market capitalization of $10.65 billion. In the past five days, its 806.92 million outstanding shares have decreased by 9.80%. Currently, the stock stands at a year-to-date loss of 23.72%, while it lost 40.18% last year.

    SOFI’s Regulatory Approval

    As per Tuesday’s announcement, the Office of the Comptroller of Currency (OCC) and the Federal Reserve have approved its applications. The company had submitted applications for becoming a bank holding company through Golden Pacific Bancorp, Inc.’s acquisition. Also, to operate its bank subsidiary as SoFi Bank, National Association. Hence, as per the remaining customary closing conditions, the acquisition is expected to close in February.

    Previously, SOFI had announced a definitive agreement by its subsidiary Social Finance Inc., for the acquisition of Golden Pacific Bancorp Inc. (GPBI) and Golden Pacific Bank, N.A. (a wholly-owned subsidiary of GPBI).

    Furthermore, the company intends to continue on its national, digital business plan while also nurturing community bank business and the footprint of GPB. Additionally, the company also plans to contribute $750 million in the capital. Consequently, SOFI will achieve the status of SoFi Bank, National Association’s parent company after the acquisition is completed.

    Completion of Redemption of Outstanding Warrants

    On October 8, 2020, warrants for buying SOFI’s common sock shares, par value $0.0001 per share, under the Warrant Agreement were issued. These warrants were issued by and between the company and Continental Stock Transfer & Trust Company, as a warrant agent. Further, these warrants were sold as part of the company’s initial public offering.

    On December 15, the company announced the completion of the redemption of these outstanding warrants. Moreover, the outstanding warrants issued under the Warrant Agreement in a simultaneous private placement were also redeemed completely.

    Resultantly, in regard to the redemption, the Public Warrants were delisted and stopped trading on NASDAQ.

    In addition, the outstanding warrants in relation to the company’s business combination with Social Capital Hedosophia Holdings Corp. V, are outstanding and unaffected.