It's extremely difficult to predict where any stock will be 12 months from now. But this is definitely a positive sign, and it could boost the stock price should it come to fruition. A lot can happen throughout the course of 2023, so investors shouldn't take their victory laps just yet. In a surprise bit of news, management expects to reach positive net income on a GAAP ( Generally Accepted Accounting Principles ) basis in the fourth quarter this year. Shareholders might shrug this off because SoFi has been trying to expand quickly, foregoing profit in the name of gaining market share and boosting its membership base.īut at a time when investors are once again prioritizing profitability and financial soundness, SoFi needs to figure out a path to turning the corner soon. In fact, SoFi posted a net loss of $320.4 million in 2022, the fifth straight year the business has been in the red. While SoFi's revenue and membership growth has been outstanding, this business hasn't yet produced positive net income on a consistent basis. This is a notable slowdown from prior years, but it would still be a healthy gain given the current economic climate. Management expects adjusted net revenue to jump 25% to 30% in 2023. This adaptability really bodes well for SoFi in what has been one of the most uncertain economic periods in recent memory. "The fourth quarter was an incredible end to an exceptional year." "We navigated unparalleled market volatility, macro headwinds, high inflation, and increasing interest rates and two unexpected extensions of the student loan moratorium by reacting nimbly and leveraging the diversification of our business to hit record revenue in each quarter of the year," CEO Anthony Noto said on the Q4 2022 earnings call. The membership base increased by 51%, bringing the total to 5.2 million.
Adjusted revenue of $1.5 billion was 52% higher than the prior year and more than triple 2019's total, with strong gains posted in every single quarter of 2022. Even in 2022, when interest rates were rising rapidly, SoFi was able to put up strong numbers. There's no denying just how impressive SoFi's growth has been over the years, with the company's revenues, membership count, and products increasing at impressive rates.
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