Tag: SoFi Technologies

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.

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.

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.