SoFi (SOFI) 11 Nov 212021 Q3 Earnings call transcript

Welcome to today's SoFi Q3 2021 Earnings Conference Call, my name is Jordan and I will be coordinating your call today. [Operator Instructions] I'm now going to hand over to Andrea Prochniak, VP of Investor Relations to begin. Andrea, please go ahead.

Thank you, Jordan. And thank you all for joining us today for SoFi third quarter 2021 Earnings Call.

Anthony CEO are SoFi Chris today CFO. me Noto, and SoFi Lapointe, Joining prepared quarters regarding then will remarks He share the questions the take at you end. your and know,

release results. A as page the of closed issued today, the hour on well. Just complementary call is being today live Investor our website as IR of discussion slides replay third is press call. after beginning financial a Relations page conclusion release, our market will which investors.SoFi.com. XX press conference This this XXXX a And quarter, with webcast available announcing is after we to results be our days SoFi's accompanying of on for available about the one

differ may expectations, Any subject on factors statements During the cause And materially XX-Q make which make that in and filings course forward-looking uncertainties. the including forecasts, sec. today's the Form are upcoming outcomes date. projections SEC there of current factors website the our our with be as forward-looking the filings of statements various actual found our of these risks discuss are we important we from gov/edgar. IR based can on to in to or this can We SEC statements. and call, that conference indicated page website, those

which unless As evaluating measures a non-GAAP when today, will performance. statements. noted, otherwise reminder, are financial are presentation we believe are our we measures, not discussing required Company's forward-looking to update that In our the meaningful be we adjusted

can primarily results. performance our affected you the outside on control. data be and which press contained Well, of on evaluate refer disclosures you the results these by is basis the annual financial should We our discussion page release, measures SoFi's detailed website. reconciliation, encourage as events unexpected are quarter our quarterly GAAP IR focus today's that will on on an For also posted the within to third to

Anthony. call I'll over Now, to the turn

thank demonstrate you conference And for Andrea. today third you, quarter joining The things. us three our all Thank reporting for call. we're earnings results

First, a diversified continue on mix to deliver strategy. our financial record our ability and to execute which our is ability business to our to results, long-term testament

that on innovate standalone Second, our to basis And products and to a iterate both and better learnings when together. are best-in-breed brand cross-buy. things trusted in and consistently work strive marketing building and create make we and third, growth data products, to continued to driving to more ability drive are SoFi brand even commitment as used effective leverage members, name. Collectively, strong household a these our

platforms acquiring to a SoFi Invest, offerings via get volatile and a record tech quarter, broad for opportunities our service money credit suite Money, their to these and created beyond loan in distinct the times diversifying cut our when diversified of of achieve to Let's conditions continuing out also has segments allowed SoFi across spending Diversification SoFi non-financial investing products, us even but allows help financial on shift Building I've loan loans evolve, overnight and one-by-one. platform operating personal card. faster many positions results the months. prominently environment. business in that versus institutions. industry-wide take areas new said that and that loans service core global business and pandemic allowed our into weather home across origination us to exciting in student environment. XX half financial not in us online storm volumes the has our innovate last is for student as among right And resources only integrated financial and model us varying in three economic focus third us and differently us benefit our This people allows Galileo behave the to business unique the

our segment net record Our adjusted million $XXX lending driven the loans hit Even marks CARES Act, record net for end of revenue, third XXXX, of revenues QX business. primarily million personal the of a million of the the quarter record, and guidance. revenue both from $XXX high previous beating adjusted of record quarterly another $XXX our with our extension by

our We our focus to This the of Our position the ongoing Achieving And scale comparisons in new contributed $XX year's $X.XX the segment coupled of despite year-over-year card. efficiencies technology Stimulus million, $XX benefits. and and and million we're businesses: to commitment Protect, nearly credit to last five bottom as products XX% by $XX.X to us platform or quarter dollar drawn XX% line, revenue total SoFi of for sequential third difficult adjusted $X.XX contributions in Invest, XX% by incremental realizing fifth revenue of features in quarter Financial consecutive in cross-buying and our and segment, reinvest third Services revenue, from million quadrupled invest we of necessary business. new growth, SoFi resulted SoFi growth last quarter EBITDA. million, record from the long-term allows every operating SoFi, meaningful on with $X.X benefits quarter, drop year's representing revenue sticking this broad-based SoFi results positive our EBITDA sustainable Lantern to growth. our achieved of from Money,

introduced launched year. from quotes to hours that This bringing to with And personal revenue partnership from X additional allows capture We crypto beginning not are capture Here's after audience additional of That's lending. we new financial XX. approval product SoFi increase may guidelines. we approval in investments capabilities in total loans, while in quarter home an and risk the services, broader coins, next-generation new the marketing serve an to our our we a Invest our within X and In already in from stringent the launched rates risk impact making up new loans, loan made fulfillment us without refinancing and lend purchase loan launched we student credit applicants, a opportunities maintaining some Pagaya to In a drove and at that underwriting improvements features model parameters. otherwise volumes. in better to.

business recognition XXXX. earned from balance poll reduces our Robo-Advisory name. clients. build to in in payment make just our the to We in implemented cloud-based, the impact investment both and brand enough. which products existing SoFi which offering card named a market SoFi, growing and our brand also not a trusted Galileo, and with the Robo-Advisory to applicants. transfers new issuing pre (ph), is need in-app -approvals And order launched engage modern for Having score and credit We we on significant credit platform is members best soft for resonating SoFi At card, best that ways X berries prospective household the

the on marketing effectiveness X our reiteration years significantly of is last the Our improving brand-building efforts. efforts over

quarter for SoFi's game third reach was growth. The visibility and and on a the changer impact our

launched immediate Moves social Here examples season. has NFL success. along SoFi, TV impact In are The the we digital and campaign with September, our televised just dramatic. during and of Money tournament nationally new aired our commercials of the Stadium. SoFi Leveraging U.S. start games during from open tennis brand regular influencers, been television, few a the in the that

doubled and we've the driven biggest impressions drove than some thousand million social content. XXX during the launch high By fall influencers additional media, sports to the week. and awareness with million more digital across a unaided moments brand of an TV sports, biggest new during working and SoFi XXX our XXX SoFi impressions with engagements

The and an naming in than SoFi of we XX full Nationally this hashtag NFL million the of with on SoFi TV coverage sports SoFi million season, branded has have year invest in hashtags, views than more sponsorships. viewers XX game. our TikTok, and compares decision of destination live validated televised media with X across reopening from Stadium, campaign of Our uses for and games total far. to so events, this Moves Money driven our between to viewers X more crowds, stadium TV sports per sold-out entertainment previously all entire has array entertainment. SoFi billion reached the iconic our million That great sports averaged

SoFi run to highly ads base stadium product games, via drive As member better cross-buy. SoFi at during uptake growth, member awareness, we getting and NFL brand downloads. also our a consistently our in and adoption app product a see result, when engaged significant leveraging TV We're

three share quarter. from me examples the Let

continue popular SoFi scale our First, and our by drove bonds personal of a in on SoFi top referrals, members. iterating the in-app a loans, Money expanding communication, to XXX% XX% increase money cross-buy to members. funnel amongst leveraging We products, volume sequential our of

the new X bringing earn financial to to redeem transactions options unique program. The our XX. had ways our SoFi for Second, members to to program that SoFi behaviors and and responsible across allows both points only platform earn earn points total we rewards

Money in app quarter growth. product And drove refer SoFi the promotions programs, referral app XX% rewards our the downloads we in new rank the significantly SoFi around in app new of of XX% quarter's stores. through member our and growth our third, increased launched which and and

plus enhancements more product, were in driving instrumental cross-buy effective marketing and product member, growth. Our

-- ever versus quarter the year-over-year funnel, year-over-year We XX% cross-buy The thousand XXX new to highest amazing scale member XX% are the products, product our total quarter. impact new Total XXX% thousand we products for both new nearly the in volumes. is X.X dramatic XXX,XXX Second and members third XXX grew is which XXX,XXX a Card, of was money second is we Quarter. XX% at are which in having Invest Credit in our new an added The which the to growth, We added product increase $X.X a million. achieving million. increase in members versus products added the members, second grew top on

and services demonstrating record final The with of Money, quarter as the for increases, SoFi credit of Invest, so scale cross-buying productivity with products strategy. will and card XX% cross-buy total accounting a our first SoFi top the cross-buying, of financial our third members benefits for was that SoFi

when the final lifetime value levels high of member. doubles is loan As a more versus Just bottom industry the $XXXX member the already to loan-only than important bought, crossed from a of

the quarter a over total new year-to-date our funding Galileo The to million strategy. accounts, markets in our long-term to our quarter, of finished past billion for serve financial continuing potential XX% and brought to pending at our impressive rates the momentum especially October, us. we strongest list Today, bank capital in bringing our of license $X.X new signed Our growth a to XX total convertible We economic accomplishments our proud clients, $X.X And for fund capital volatile a year-over-year. and billion position we execute ambitious $X.X as and clients well. for ever total continues application a up on offering, and XX of am X-coupon flexibility year in environment. billion. source this I in represents are and our XX debt to raised the enabling

into turn weeks I'm and head SoFi XXXX, our I humbled year, been and am next final we of all the focus As honored accomplish for has able in chapter XXXX to by and to the XXXX. our team thrilled this

turn I'll to for quarter's discussion over it Now, of a Chris financials. the

trends everyone. the quarter. our exceeded Thanks, We business. despite afternoon, consecutive Anthony. a a And Xth financial outlook in of record with We facing great number across revenue good of positive our the entire quarter quarter achieving EBITDA, in strong had growth while headwinds

of further for some otherwise the the and financial then I'll the diverse some adjusted growth differentiated to outlook. quarter financial share walk highlights quarter results I'm the of long-term be for and stated, Our XXXX. validate referring built. third results on we've and you third versus to business Unless potential durability through going our quarter XXXX model color of key

reconciliations Our statement our be today's found can and filing. all GAAP in release, in XX-Q and consolidated earnings income upcoming

million million quarter, $XXX $XXX quarters of of we million. record net nearly above our guidance to the $XXX adjusted million sequential end record and up from revenue the delivered prior high of of the $XX $XXX XX% million For

$X delivered We guidance high-end positive million which of EBITDA, $XX the than $X million of million negative of adjusted million. $X our in to came also higher

an over We as period. XX% great continue the on last adjusted generated revenue We've an basis XX same from make months, of year the well. strides net to annual prior increase million $XXX

over a in $XXX same EBITDA significant positive million also XX $XXX last $XX million loss, generated We our of year period. improvement from months, the million prior the

previously, incremental Our the revenue for sustainable business of we come. reinvest on discussed we've of XX% incremental average, drive last incremental growth and some [Indiscernible] EBITDA into to months, intend deliver XX the we've XX%, margins XX% years back to margin to for but as

Now on level the segment to performance.

even billion only million year-over-year contributor grew $XXX Not the business, funded lending increase segment a $X personal funded which or revenue record $X.X us. by as pre volume finishing products and the originations into was levels, rates Our personal increase. adjusted loans of sequentially to rate to grew true stringent XX% loans borrowers, our high to a above for our growth to rate booking a a net XXX% in by fixed a interest XXX% QX XXXX volume This billion stuck homes, demand quarter of volume total. from that, standards XX% increased credit funded we fee. attractive ability growth was driven for in The on origination driven by variable refinance at new $X.X a -pandemic debt to the our was remodel capture quarter, in as largest billion

driven profit, contribution XX% up a of in of $XXX up pre a lending margins loan was million $XX stimulus strong growth $XX contribution Overall, quarter, drove a sales in a XX% versus Strong revenue. margins segment ability a of sale benefits are of million -cares platform, and net year year-over-year million in total the credit Shifting The same the to growth and evolving tough in interest and to lending profit tech by in delivered loan the which on represented year net income margin. lending $XXX our million and increased revenue our XX% and and beyond interest XX% material navigate gain to at account to by addition, Galileo interest year-over-year we revenue business from a and remained we've testament where student prior originations growth year-over-year XX% record comparison had In ago. a million the rate success our environment. net delivered margin levels period. $XX growth driven in in refinancing diversifying

margins ongoing we investment ensure products on are XXXX as rising method which the for XXX% to cloud, in well to due demand overall, this capabilities discussed the new the margin earlier capitalize included in ago our previously, Accordingly, to platform noting FinTech a that more in the shift of from the migration year. worth QX that As XX% from It's committed payments as investing geographies. to equity investment to down and to well called physical services. is Galileo and secular overall our contribution significant we digital well-positioned technology are year from as our on-premise in Apex investments XXXX the

margin-range, revenue set strong quarter for segment, underwriting from The platform Onto product stage our for our delivered XX% of We the to million continue year from services tech million, $XX.X our compounding from in $X.X nearly the decline episodic will operating continues foreseeable business the future, segment revenue and about to times revenues, growth reflects IPO that million. a growth. of services which our XXXX of $X.X absence to sequential prior recognized XX% diversified from broad across quarter the QX contribution suite million. at $XX long-term X totaling of This benefit financial and of offerings. Advisory

Excluding revenues these essentially QX specific flat. items, were

credit of card, had Financial SoFi QX in from SoFi was Every credit in good which million grew by Invest, our grew segment, performance. million Invest, X.X X.Xx drove million and of triple digits Lantern, X.X million XXX,XXX We products in growth strong and Services SoFi to in our products in products cards. in $X.X Relay SoFi Protect. continue Money, to momentum see one Exponential particularly growth the $X.X in Money year-over-year strong Within XXXX revenue and year-over-year.

remain for to see a on revenue long-term investment business to to segment starting unit focused we're contribution the While from in drive sustainable more consolidated this right each will meaningful growth. creating mode, economics

of QX investment financial $XX this reflected a contribution loss in $X ago. which from a of can up losses million, million year $XX see million were services our You

thing million. address The to balance next our marketing, Excluding want I well-capitalized. we're improved profit contribution Overall, sheet. is by very $X acquisition

Over of Balance interest with overall Sheet Rowe the The us October. we quarters. net resulting helped of $X.X in our two through last that a which T. the significant strength income [Indiscernible], have last year, capital, provided came our lower of billion in which in billion $X.X combined cost and flexibility IPO, of through raised convertible private-placement X% in closed debt capital, $X.X came our and billion offering by of has strong of a Price led

book value $X.X and extremely current capital our are billion, and strong. is Our ratios leverage

still have fund to the lending operations help billion we and our warehouse access nearly addition, capacity growth of In to $X of segment.

the guidance, strong about several last financial Balance over right. of the have business by that excited we'll demonstrated model efficient Sheet of and our delivering finish cost are uniquely strength we to quarters, and diversified We choices and make with the use operating most up All growth. I'll of our continue benefits the ensure capital.

to exercises December last acceleration deliver of adjusted the $XXX discussed XXXX our $XXX Public which guidance were IPO will be year-over-year, mentioned holders adjusted fair exercise in have million. SoFi $X that $XX original invest to to to based of these despite to in EBITDA our revenue, we basis of net an million year, with methodology. of to exercise during a extension on this of or And being billion of Private redemption SLR million We to on million up to our growth with $XX the Switching impact on relative million part continue and estimated be the prior shares full-year be million will above revenue, non-cash P&L original impact the that our change expect end our and of adjusted QX Warrants QX $X.XXX facing we called we Warrant process. Act million range equity cash associated Apex market in million earnings EBITDA. adjusted from we as XX% million redeeming $XX of in determined now previously call. value investment on $XX non-cash $XXX of issuance to warrant is as exceeding to headwinds to XX% QX QX, $X.XXX $X the will $XX Technologies, date expect items to the up growth. as For announced share option the adjusted of earlier and $XX volumes This CARES issued negative We guidance QX be drive $XX EBITDA week net below to the the until our depending full-year XXXX. and of cashless X. in our

$XX we to expense our billion performance Overall, QX, Finally, revenue, positive consecutive be $X with more than delivered we forecast where of QX. in annualized stock-based compensation $XX million we're in our of to quarter Xth thrilled and EBITDA.

continue We very well-capitalized top and our let's pursuing remain financial begin to great continue make a progress that, objective institution. to of With ultimately the Q&A. longer-term becoming

As like if question you'd [ a a reminder, Instructions]. register to Operator

change and please mind, you speaking. your when Operator [ Instructions] unmuted you're If ensure

question the of line Betsy first Stanley. comes is Morgan Our yours. Betsy, from Graseck

thanks evening, okay? Hey, everyone. so much. you me, Can hear Good

Okay.

Yes.

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encouraged to to the And we're X in so, selection a generally And to a Actually, day the our and the and add what within what look of to and started now invest, for points, in we're cryptocurrency have they over up also by risks the we'll cryptocurrency, cryptocurrency. overall. continue give for strong XX to setting new recurring QX core you're in growth about it turn so capabilities. investing AUM. in we we want, up is members outside investor and We earnings really for of on opportunities well want educating opportunity dollar year we and see diversified and responsible, we trends into really the the members, QX, every buy I'll as do right, and both hear both had averaging, added over growth which cost between to to strong how it number and as points, to in throughout them quarter. really investments but with the We're them we our way, would And and quite differences seeing Chris QX, going like, overall. they talk strong momentum

Hey Yes. Betsy.

as terms lower don't down we crypto In our that sequentially, days specifically, trading million a see in that in and versus do you'll revenue, QX few QX about filings, that a it by we revenues of XX-Q result disclose filed in $X.X that our activity. of gets brokerage was but disclose and

Into you However, XX% excluding within brokerage speaks about in strong our benefits those by a as will what had the it fourth a SoFi come think be of, our is growth, seeing positive well of really basis really growth, as platform into businesses, basis. we revenue on quarter those which guidance, quarter-over-quarter decline would are and we're then from were a terms and in from an businesses year-over-year similar talked diversification as about financial Money to in to QX and flowing the And in guiding And the headwind about generate [Indiscernible] tech us we faster and this benefiting When sequentially. year-over-year sequential services, revenue as for both trends than that acceleration QX, XX% year-over-year the in in when and QX the of that Services. which we faster to sequential flat revenue. majority think the material credit from that I the revenue initiatives growth sequential offset Financial QX, Lantern, allowed that QX which just in faster in was card vast standpoint. to you growth mentioned of

it. you charter has about your on would bank any bank saw moving change with speech separate outside And wondering that your the as regulation how around application I'm comments channels. a whether thinking as like for and need indicated of question not if you bank plans speech, have to Thanks. seeking Company part question if I for they level the potential with and that you to forward or the outstanding. is And structure and to Got the do business? of institutions that be or The thoughts then the question that charter, know recent regular from a you're might heads have a there where OCC that holding are acting

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So, huge competitive finishing on reaching a in forward the to milestone mile will we light comments look -- we think Company that be especially and this the for that last last advantage, of week.

Okay. Thanks that. Anthony. so Appreciate much,

You're welcome.

Our from Suisse. Credit Orenbuch Moshe of yours. is Moshe next question comes line the

a SoFi. I also was discussion the on context do some about the the for relationship that in part. then a bit could think Great. student little little that process Thanks. hoping Pagaya originations, what bit you And have talk and additional of the a I with expand underwriting of changes that allowed with could there's to you

lending business. to want I be our Yeah. super clear on

XXXs. fico and delinquencies. testing quality pricing, prime, have up are size, We all into fico are is target that high we our not different variables on our and on we we're constantly alone our focus, they're end loan the we're well haven't losses, and scores model, let where still What average changed indication scores changed the credit of doing

data models it to continued analysis. pricing on new-generation develop And based we're are But philosophy think was to both the Pagaya? there make the tied just spectrum. well that is on iteration second efficient we're our I of we that? -- So, approach changed we the haven't as credit as to spectrum, a and part that being Okay, that willing to or credit there your anything to to Is sure underwrite. question?

yeah, Yeah, Pagaya Pagaya. --

Yes.

Sorry, I apologize.

a beyond of So value we our and for which of we're in property. only XX% how X And the meeting we strategy years if -- could we more And a credit brand credit. was call obviously brand-building. [Indiscernible] we called in We're capture extension that our the about Pagaya is investing approach able demand to what Lantern want we're loans, personal that, get unsecured started meet by found built of to SoFi, that ago. XX% we PL, investing a our change property in demand, our if we don't to we is what

well Pagaya member And we taking services, risk, taking our underwriting to that paper, servicing we and add other bigger we're was we're was them allows able step and credit take the generate running their SoFi and would the and get guidance with credit credit them against investments both Pagaya not making. for our their into integrating we're us it's in money to we minimis de the high-margin and all lend the broader serve with and the along us first that extension people people quite then not and to of -- maintain so taking decision The We're risk. and the it, profile. partnership their and opportunity to and to the we to send pricing improve so but are But revenue credit from not It Our additional we're it, model serve of our of than partners to serve and lead credit continue our and and products changing other Lantern them help partners model, be set some that that engine, fund. a [Indiscernible] out the them the that. relationship revenue otherwise frankly, credit right. quarter, offer to us a simultaneously. can allows otherwise that

broader strategy. of So, it's part a

as you could extremely on just a Got And Thanks. trending see That's costs go marketing helpful. little if talk your bit it. about you and you forward. expectations how maybe them

what future think drive quarters? actually that next how growth. will And I over about be you reflected the -- the are seeing several to and talked re-investments talked You Chris

first seeing to XX% record cross-buying costs good our that coming us term credit game best marketing by -- card direct helping say a quarter, -- real stadium, that us are breed as We is based that sequentially. acquisition differentiators couple we're saw leads mentioned, changer the of best of which across driven customer They're be long the driving all I marketing, Cross-buying each I marketing, of acquisition to is paying and very in as customer range, on well good operating operating investing customer for money we've and over the we targets drive performance. our remarks, things long-term strong one in challenged the of second tied mentioned it's influencer are our which of worked my mail marketing, and in scale there. and we're multilayered to everyone over the scale a may costs. really of the unit marketing, obvious efficiencies We're their the you the see. a digital as their acquisition of line the social not really our we're Each that items, the that product, we're customer what's when prepared like to to members, those of really level our last the drive build businesses is that long-term acquisition still all the by at together was And product their years, television, one drive to hard build And unit cost that achieving specific was elements economics. costs. allowing cost, not economics

you hit we're a we million the through year-end there. in we're XXXX. public target would the year quarter trends strong a million had we X and We at X.X process in and as of So, this X when we Well, quarter and went seeing over million members the ended presentation good of imagine, X.X members. do now, January

total achieve even but on down like programs referrals vehicles greater that unique and we're It's are If allowing significantly to lower-cost driving to marketing SoFi. growth us you think we profitability. members which member went costs the have still other should in out-sized about sequentially, cost-per-member, but delivering to through expectations, our relative growth

Thank much. you very

You're welcome.

comes Gabriele question Dominick, Oppenheimer. go next from of please Our Dominick ahead.

results. great and Great

have looking think to you Thanks. of your among through in quarter still customer planning. about a I some product believe gather the then that you this launch, base up. SoFi that launching Could you're I financial If the with just follow of dynamics particular walk

Sure.

you're not what an our referring Work. partnership new a we FPA. call SoFi program, what think extension at of is I with it's to It's

employees through for where that their approach suite us Work them driven to is companies, a to we of are from SoFi a to enterprises, SoFi portal advantage services their offer for of employee our and and products At take communications. offers unique

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see lower and money be that could them could certified utilized someone loan planner over can a a -- invest the Relay lot one be could through and we we cards someone offer cash account, financial offer and excess years. compounding see SoFi a we of number Money are is can we'll personal it personal based of loan credit that see could paying our that and free loan to term at we help loan federal refinance we on a that Often lower-cost cost. also session have or a see through and We their a case still has a fully what business, in that with someone personal that person loan that could can have person that that

planning it's that opposed questions: of every What But we're more as deal? do What to they answer do? in helping they must their X day financial that one business particular day in a our thing. should can the what experience financial life? So, they holistic members of SoFi,

-- then And Great.

as So, you up to going well? follow

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the of you that Thank of next overall being came XX. margin obviously to I reacts cloud, could the we It of, moving segment be progress is cadence And believe, over on great. XX then your talked much. you talk very If Maybe client this margin the about the quarter. and technology range in -- number about quarters. you your the in above how range that how

the on-board partners place into detailed We're has XX cloud migrating phenomenal that On-Prem throughout the and currently Company will really happy We're a building XXXX. completing the ago. customers we're job upgrading all directly The done take with of with craft technology cloud team of the Galileo cloud build-out. months capabilities, existing plan of addition to of as the well the new all into a as

XX the here really now launch cloud that resources up And and built migration, and big and about services. In terms -- have re-engineered of offensively disputes we did more it's investments a our from can the reallocate we upgraded a that already we're accounts there less well. the and that making in will new On-Prem product, new us and we allowing other team new than -- products our products reintroduced heavy in in We which capture was launch new the for members. that XXXX just drive a for million series contributing existing XXXX, to partners us to accounts not of year. be revenue mention against start XX brings quarter, They'll to accounts the XX way partners to we as enable XX unfold million that the will that incremental that that new

XX% in where that quarter XX% higher, we in a range. think over want could and We to time that We desire much business, that the ensure durable enough, revenue we growth be margin's committed there's change spend we to we terms to think as growth our little drive on and where want of the but we margin that here bit that's In margin investing, to want don't invest so no range. enormous, but or it. let's in capturing right There in to are to in make, invest it. just we're comes of being can prudent the investments can't as level a in, XX% XX% opportunity compounding is the to under staying

again. Thanks

Our John John, go next question ahead. Jefferies. of comes please Hecht from

guys. for Thanks taking questions. Afternoon, my

execution also in First we was the to services than sales lending quarter that and the of, of there. gain maybe how segment securitizations And relative mix prior the or stronger execution on there to originations quarters. was sale fee financial that should companies is versus sales worked other the be and and loan aware then out general the whole yield other accruals I'm wondering, is this

Yeah, sure. John, this Hey, is Chris.

and good originations, and margins. overall was revenue saw loan on-sale of sales both as of well growth gain what our the sequential in terms In year-over-year drove some there, growth we by NIM driven as which

up healthy from a our So, margin quarter. improved X.X% was last our loans. loan few and very Loans that the up home at quarter, you'll filed personal last days. quarter. Home X%, the from at in healthy in That's and remained on-sale again, Student X.X% on-sale remained personal in again, X.X% loans, X.X% loans quarter. refinancing XX-Q both level and margins in at in this the was business business see In But gets very in

and yield. XX-XX things And paying quarter, it proceeds in some deployed Loans in what the our our loans we that in then, of as whole towards each driving the NIM some In addition terms personal that, the XX% IPO down about to we've line with of helped strong and securitizations, of warehouse overall in split. mix cost and that debt capital margin was historically. reduced of -- of seen It's refinancing, of the student was loan drive

quarter -- in been I'm SoFi you I then of change know products. different anything does And loans Okay. in really talked and guys product. loans channels there customer Money And in the the given you is a about future? acquisition. marketing strong mean increase entry wondering, unit versus that economics level not if of the the personal kind in in of in And terms student the inbound particularly

really paying cross-buying on PL line process, strong the products marketing We've services those back to PL we that in variable benefits us the the high margins want is response has pays just not on capturing because It's just SLR. some Loans business they've a time high both loan are in what us. into takes make we're we're the economics driving to XX% had results in spend. We've that and with strong but cost The that acquisition range, the the the the and over second front financial always seen of loans unit marketing you Home very all and and been in We've reinvest be to very return place rates front IPO been growth real profit. personal attractive customer that's capturing and continued those consistent. And trying the of the and to more range. efficiencies from in during not have right greatest. return the to versus of cross-buy. definitely opportunity XX% But [Indiscernible] back know efficiencies good away. to Yeah. from stayed in we shared that on sure the

the the to about a think First points, member. is money funnel, very the top On the of funnels of Money the is at of entry is a top way big the cross-buying driver

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of that doesn't would product of revenue is add and XX% XX% it money of drive have the card. other another The cross-buy to by our contribution cross-buy credit card, Relay, instead credit money directly invest to we driven that invest so

be would Relay. to First added in closer added in we XX% it members, if

services the So, on member will while and that levers the we're mentioned. it it that product but momentum start driving a to think that card spend the are do line, build revenue I seeing products or And versus lot it outside as and And future of on different come QX the revenue it. their hits strong in growth. line. those going up credit to before going we AUM back maximize takes we're QX financial loans, to spending our balances a or have And there's member for to benefits, we're then in lead because to into

thanks. Appreciate call, that

Thank you.

from please Our Dan, of comes Dan ahead. Mizuho. next Dolev go question

Chris. results quarter, Great amazing. hi, Anthony, great Hi, and

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has we're capture which that. the this make important capturing as really we're in really partner also unique we're a can top found of mentioned, recapturing lending SoFi But right love well. get any and quarter. for of products their on beyond technology down take relationship allows I them and as that is XX% the does help money it X, what As in It SoFi products thing means longer-term on what a of economically happen. it I our But a part the one technology Relay, to benefit and like And partner. personal, we to credit also we're day we'll but XX% we family, lending now the report Money, about that road, Lantern, of right with Protect card doing SoFi member and comes missing of other relationship. with it. demand relationship, capturing type investing SoFi This our other It's we're economic

those strong Thank app, you're dream come really looking Anthony are follow-up, towards really then and this really the quarter? be it's and you cool, have and Where share quickly. Totally And the which we metrics, What to mean, moving I Yes. and this product strong. strong improving looking very nicely. a I true member quick about the it's that sequentially, you. XMoney can per of headed? seems looks at I'm Chris. really

Yes.

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to points. and card, buy single-stocks, or or it credit ETFs people more the redeem they Robo, So, redeem back they to use just buy X% investor, cryptocurrency redeem card get if credit with to just they into or investments, recurring into right target off list churning pay we points money down redeem now rewards, they the of of credit where off But we're the those just we cards, they not loans double

how starting an the off That's pay, bill is c. direct of to have deposit, often of app, et impact.

leverage to these why enhancements see our hard drive new to we approach both relationship forward at the that's now members. XXX,XXX strategy, next unique XXX,XXX the that point we're to we and looking 'XX. doing we're new so, of one products in that were And of have data, the It's you logic, the each to so fast, the to And it the contributing level and And where to it. product growth. product seeing

again. Congrats results. Amazing

you. Thank

Horgan Sean, comes please Securities. question Rosenblatt from of next go Our Sean ahead.

for Thanks my taking guys. Hey, questions.

additional I dig wanted the the cross-buy So, just in on appreciate gave. I rates. disclosure to you

comprises first think member? SoFi said products for the I that average Money members volumes? what's XX% sequentially. the on Money cross-buy cross-buy product for you In first second typical SoFi you expand words, other increased this Can the

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and takes costs Someone the in then as into of save go and out customer If through personal Invest come student comes a SoFi refinancing equally happy. existing super we're hours happy. through in XXX and Money they loan, we loan a we're

to across And remain value by product itself economics, so, we'll indifferent. always earlier, as trying the best-of-breed best-in-class that so we're be best I profit build well and the suggestions to in right the as -- each We mentioned between. to them major everything the for make want lives, and in at there the to time, use in we all decisions moment data right be make their for they have of

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Yeah, growth that well. guess In really quarter overall loans, a incremental sense, personal where I is guess did I makes then. fair for assumption. the a example,

follow-up. gears to switching my Just

your around campaigns. metrics helpful brand some influencer provided in You

TikTok. to acquisition X how how has allocation on of these marketing views the spent performance metrics recent customer as the new users increased For customer your and example, translating privacy discuss weighing what channels? marketing data to changes more grew these acquisition are Can billion a And channels you costs? result costs of traditional on

really that the to seen. haven't question costs people others I'll answer customer our have from you privacy first. your other the last changes part impact data referenced We an seen for of acquisition and

right range targets that set So, to relationship just that customer I LTV: acquisition of I sure right the in within get upfront. would are for by-product make long-term where them long-term return. costs the the earlier say CAC said we our we

that drive we're new shows just And rare so, growing members, been opposed X%, fast, down the and marketing. within have staying cost which that report done it job driving even this to fixed acquisition measure that sequentially, About good sales team a in marketing of we efficiency the a total and very by true divide the drive we growth dollar per to efficiency. member spending and that the sales marketing increase if by customer -- -- has think being took you quarter limits. those and dollars. that our But and marketing that just able went actually you sales you is you we're we had would XX% cost our really marketing see of that lot you more as It's I costs. we've One

about each prepared can also just in math. as talked if that efficiency I across you So, our remarks in We're what and element. P&L you do driving was the see effectiveness that it

Financial to will what's and in product the really Each integration efficiency that a unfolds revenue So, direct look that at mentioned. street new for time want that's basis. over the well. over marketing own, basis comes its unfolds of into Services we has again, revenue had Day as from And our the continue -- to on encouraged member. one marketing overall impact It X, product products indirect this from point I loans time bands to to way those I revenue on reinforce our reinvest we're has the but the by And an the experience.

member X cross-buy [Indiscernible] comes So, faster, for to But it loan, as come on. to by up over deposit, $X they Invest, a revenue a obviously driving a $X or quarter drive a while But then new hours stock It se. that own that's time not build could In start to that in, transfer have drives does, on that investing. increase. have contribute. we signs to on takes then a into it direct to money it in a thousand. the in, Money [Indiscernible] and sitting that revenue start per during up, its starts member when level and Money Typically, to starts

over they services up the point funnel, close miss revenue anyone we're that that them they is top for last was the the kick have Day Same the line drive to momentum guiding couple of and on reflection members thing and of the in a the AUM. with card, financial a a start services in balance to don't that to come seeing revenue but or quarters But to Day credit build spending starting we're the have right to from obviously growth to fourfold standpoint. up don't of that those I wait We want financial basis. year-over-year lending a away. into to X X, Sequentially, can

questions further so back the Noto, CEO. on phone no line, hand have We Anthony we'll to

additional lifetime. we incredibly third the will a of Company SoFi to at all-hands quarter, companies these in team accomplishments and incredible marks SoFi ended. yearlong a you of progress I accomplished QX our this told at year Thank call many which the than like meeting when achieve other I'd today's more much. We've finish milestones. sprint made what with during very our I'm proud

Now, SoFi we you. for and us. with doubt And are deliver fourth more. Thank you where aspirations that right we aspirations and the Thanks stands today strategy, report look for we on thing goals to I these our between is the absolutely team that today results. quarter the have no have us the only and right long-term forward to to we talking when joining right

call. joining. you today's Thank for concludes This

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