SOFI TECHNOLOGIES Reports 37.4% Increase in Q2 FY2023 Revenue of USD 498.0 Million
August 20, 2023
☀️Earnings Overview
On June 30, 2023 SOFI TECHNOLOGIES ($NASDAQ:SOFI) revealed their financial report for the second quarter of 2023, ending July 31, 2023. Their revenue totalled USD 498.0 million, a 37.4% improvement compared to the same quarter in the previous year. In terms of net income, the figures for this quarter were USD -47.6 million, a decrease from the prior year’s USD -95.8 million.
Analysis
GoodWhale conducted an analysis of SOFI TECHNOLOGIES‘s wellbeing and found that, when using the Star Chart tool, SOFI TECHNOLOGIES is strong in growth and weak in asset, dividend, and profitability. As a result, SOFI TECHNOLOGIES is classified as a ‘cheetah’ company, meaning it achieved high revenue or earnings growth but is considered less stable due to lower profitability. Investors that may be interested in such a company are those looking for higher risk higher return investments. Unfortunately, SOFI TECHNOLOGIES has a low health score of 2/10 considering its cashflows and debt. This makes it less likely to safely ride out any crisis without the risk of bankruptcy. It is important to note, however, that investing in such companies always carries a degree of risk and investors should do their due diligence before investing. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Sofi Technologies. More…
| Total Revenues | Net Income | Net Margin |
| 1.85k | -216.56 | -10.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Sofi Technologies. More…
| Operations | Investing | Financing |
| -9.59k | -409.24 | 12.5k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Sofi Technologies. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 25.56k | 19.98k | 5.88 |
Key Ratios Snapshot
Some of the financial key ratios for Sofi Technologies are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 52.6% | – | – |
| FCF Margin | ROE | ROA |
| -521.1% | -2.2% | -0.5% |
Peers
In the world of online personal finance, there are a few major players. SoFi Technologies Inc is one of the biggest, and its main competitors are Upstart Holdings Inc, PayPal Holdings Inc, and Ally Financial Inc. All of these companies offer similar services, but each has its own unique strengths and weaknesses. So, which one is the best? That depends on what you’re looking for.
– Upstart Holdings Inc ($NASDAQ:UPST)
Upstart Holdings Inc is a financial technology company that uses artificial intelligence and machine learning to assess credit risk and price loans. The company operates in the United States and Canada. Upstart Holdings Inc has a market cap of 1.78B as of 2022 and a Return on Equity of 6.88%. The company offers loans to consumers and small businesses.
– PayPal Holdings Inc ($NASDAQ:PYPL)
PayPal Holdings Inc is an online payment company that allows users to send and receive money online. The company has a market cap of 97.07B as of 2022 and a Return on Equity of 11.16%. PayPal Holdings Inc enables users to make financial transactions online, including sending money to friends and family, making online purchases, and receiving money from online auctions. The company also provides merchant services, such as allowing businesses to accept payments online, and provides a mobile app that allows users to make payments and transfer money using their mobile devices.
– Ally Financial Inc ($NYSE:ALLY)
Ally Financial Inc has a market cap of 7.83B as of 2022. The company was founded in 1919 and is headquartered in Detroit, Michigan. Ally provides a full range of financial products and services to consumers, businesses, automotive dealers, and corporate clients. Its products include auto financing, home loans, credit cards, and deposit products.
Summary
Investors were generally pleased with SOFI Technologies‘ second quarter FY2023 earnings results, as the company reported a 37.4% increase in total revenue over the same period last year. Despite a net income decrease from the prior year, the company’s stock prices rose on the day of the announcement. Long-term investors may be encouraged by the revenue growth, as well as SOFI’s strong underlying financial metrics. However, the net income decline is something to keep an eye on and could be indicative of future issues.
Related Posts
Recent Posts
