SoFi (SOFI) 2 Mar 222021 Q4 Earnings call transcript

Good afternoon and thank you for attending today's SoFi Q4 2021 Earnings Conference Call. My name is Sam, and I will be your moderator for today's call. All lines will be muted during the presentation portion of the call, with an opportunity for questions and answers at the end. [Operator Instructions] At this time, I would now like to turn the conference over to our host, Andrea Prochniak, VP of Investor Relations. Andrea, please proceed.

thank quarter for XXXX and for us operator, fourth SoFi's earnings you, you joining all today Thank call.

regarding will Joining SoFi's me at prepared the They your CEO; Noto, results remarks share and Chris end. then today Lapointe, SoFi's questions are take the quarter's Anthony and CFO.

release XXXX Just financial after press market quarter fourth we today, SoFi's closed results. and a issued announcing full year

investor our press our Investor available on release, IR XX today and to investors.sofi.com. of which Relations this hour one presentation available of is live results beginning the discussion days, call the Our as our conference conclusion call. the is on page webcast accompanying for is of page. website, This also complementary There's about after a being replay be will an

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

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

is quarter year within on these discussion our IR the refer both our on website. the focus Today's release, the XXXX should which the page to posted to For reconciliations, data measures GAAP full fourth and also of detailed and results. contained you will press financial disclosures

an always, that encourage SoFi's control. by be can to outside affected we on are basis, unexpected performance events you quarterly annual as our results evaluate As

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

and Thank everyone. you, good afternoon, Andrea,

recognize of events the No reality. to unfold I the of is want in the in moment weeks has been past a become watch escalate to taking unacceptable and have place under fear It's should prepared threat take to Ukraine. series that recent or days. currently a to these my now live beginning remarks, few Before violence, over tragedy difficult in which truly one

Our directly hearts to go this everyone tragic indirectly or out by affected situation.

long-term hitting be of the Now, our across ever our quarter, in on position the metrics the had lives financial to results. between. finishing are our decisions best we strong key one-stop annual and our new goal: to another shop financial digital with and XXXX our We strategic results. in and record for members' all operating Today, achieve to highs in moments major

quarter amount new We impressively and our moratorium billion, members Here positive increased record fourth extension a year EBITDA. year-over-year achieved end increased year-over-year fourth higher high the year third quarter. XX% positive third strong growth. quarter, terms business in of member We at our the are from had quarter of quarter amazing on consecutive sixth up $X for million We revenue $X growth. at XXX,XXX added over in a despite call. at number our up full quarter earnings an delivered net added third some sequentially of full our end. of the All record Record of segments just absolute adjusted three in revenue guidance, of delivered which our adjusted was and loan we quarter the goal XX% quarter, federal million the unexpected student $XXX of on the achieved We highlights. very versus and EBITDA

in members, X.X January well above member and an with million the ended we million, up XXXX X.X set result, X year-over-year a million XX% target of increase of As 'XX.

product we enabled in total new quarter adds more year-over-year XX% X.X with had incredible million set were fourth also XXX We achieve at XXXX than of XX% adds. number in of And We third to three XXXX up record today the these million. products, for million versus to reasons. milestones finished XXX,XXX We an double Galileo, a at main accounts the quarter, another X.X of able at to we and year-end such grew XXXX. get strength position the

conditions. drive reflects First, great through capitalize our diverse changing which we continue three growth businesses, strong on ability our execution to across to macro

to we by name of we success demand in home member our year-over-year, took a improved year-over-year of these we points execution, one fourth than with in a X,XXX by partnership In criteria. were of by of market. with home loans By of the second year. And brand businesses. percentage via In in audience in double we as we full the drove XXXX loans, ahead as we goal the Loop billion loans the affiliation, I'll billion campaigns were and will segment Full year total. drive nearly still referred XXXX more our step our billion, from and and, loans the maintaining integrated extension student loan the we in virality our hit low the to quarter broader a across loans, unexpected a jumbo quarter models becoming outperformed strong than of strategy execution influencers quarter. our $X.X home with. quarter a loan quarter, our caused more and This Personal Fourth diversification $X.X credit target loans, $X.X EBITDA student personal across a of December. reenter late anticipated volume. success added our XXXX. fourth forward environment. increased goals XX% of giant in we pre-pandemic more XXXX. loans $X.X result into XXXX of loan revenues through versus of SoFi moratorium the XX% we final purchased week starting fourth in our which and the our XXX% Loans take January how rate Stadium and originations in relaunched deadline accelerating the continued lending as in jumbo and May to growth We diverse grew record of the even even late extension to in XXXX's XX% the met payment us lending, increases number and our demand of Pagaya, which loan SoFi's diversify moratorium the December enhancements through sequentially, three growth billion the originations help quality SoFi's purchase great federal Services XX% up technology the $X.X we year XXXX household rate federal our loans. partnered half loan had In up billion for surprise than one, with And business accelerated XXXX, Productivity loans total while a target. with, payment double-digits multimedia predominantly a achieving XXXX, credit one, Second, unique in fourth original the quarter single-digits the scaled a our as importantly, the service to nearly growth in in rising from our originated exceed Financial student low allowed during reduction refinanced third, saw and to And

nearly lending of in loans, fourth third financial Xx the continued XXX,XXX and, by that Looking driven adopted positioning in quarter products many our we step-up XX% the products ongoing record financial end achieved fourth better We growth of the sequentially. quarter, expect up opportunities student in adds. added moratorium, loans monetization loan services, strong in in momentum a revenue large number quarter personal record in new license ahead, the and up services growth our importantly, In new the from home bank in the we payment presents. drove

added services million products, total added added million services produced we as the better than a quarter of phenomenal the We we the increase XXXX. members retail year, fourth to year-over-year regular fourth more investors two IPOs well a $X.X growth full the selection following; in X.X that revenue in SoFi drove in We revenue the $XX year-end. our we year our SoFi nearly we $XX financial leader of improvements double in million For selection offered monetization, XX new making financial quarter. Product as more million. features. way XX with include give and Through at new year's Invest, Xx cryptocurrencies, new

plus limit The leading year. We At in Nubank, introduced first Money, was Facebook XXXX. features now in trading APY, no Checking introduced offer plus in protection. and orders IPO with And the this XX enjoy. many members Brazil. our the early since trade And fees Rivian, national times the average, earlier cashback largest and two-day Savings, fourth margin is the free paycheck, stop fintech second we the minimum autosave, company and or overdraft already quarter X% of members we balance, SoFi launch a of account SoFi no-fee

year-over-year Our first accounts XXXX. its acceleration year-over-year, platform, existing a XX and with XX. Quarterly enabled at both to enabled segment the million the rates, XX% accounts, Galileo Card, full signed fourth accounts diverse in at as in and addition bringing score adoption end-user quarter partners. total rewards of XXXX per was $XXX million of nine the balances partners, year. our revenues $XXX ones growth with in platform transactions products new up XX% XXXX financial the than the year-end, $XX well off XX,XXX accounts year-over-year an in that and year Fourth at at gives products more grew XX double-digit Finishing full and which growth for the start with debut new as Galileo SoFi doubled full transactions to XX%. throughout revenue points only a really Credit year of behaviors, launched inclusion results, includes we by took spend adds new XXXX and up versus tech a quarter, million mid-XXs. million smart And of high of the NPS in to quarter, and from new Galileo of QX account from in the million. added Galileo benefit finished clients increase new

We also Block in service savings in We total Rowe Spruce. and that its new owned We diversified launched just future app, acquired to H&R XXXX. its platform with innovation Galileo revenue. banking the Galileo's emergency a quarter XX% mobile great a year chose further to base rapid benefit operated T. of an leverage grew fourth Price And by Galileo client last to program. our the to BXB and drive business signed Toast power

finding leading businesses our further to we week, accelerate next cloud-native playbook same multi-product as acquiring step of innovation is last banking integrating pace Technisys we're the platform. core by SoFi's financial the the announced Adding Technisys, vertically Now a products. in best-of-breed of

for both addition to which and growth multiplier are growth We opportunities, expect a SoFi Galileo, strengthened Technisys own enormous Galileo. to in be further realizing its in with partnership

on are building our way We well of to AWS fintech. the

point of the third build or they increased about likelihood second product. LTV Critical number best-of-breed member benefit FSPL with strategy. SoFi success incremental increases by for acquisition Services we talk products generating Financial reliability and little Loop let's from revenue unique SoFi's Productivity no a is When the to Now which that per they to members, creating at two, choose the do, customer cost. more trust

members our LTVs. that cross-buy result, million biggest in services, The adopted products had than And XXXX. true to costs and The on invest a at were differentiated has more advantage. in of of its by XXX,XXX enough I competitive of large turn to higher rates, us demand results. a our the than drives our our impact one-third products same acquisition XXXX members now higher more in customer XX% X.X the in total than goal products that more more exceeded is XXXX XXX,XXX. scale yet As the which year-end our year-over-year the in funnel cross-buy quarter volume allows quarter, the our by LTV FSPL more to contributing top fourth products. mentioned and existing triple new decline It's of

my influencers notable without advantage Our exceed this not so targets. our our to these significantly we exceed product unique of for unmatched with Instead, we helped us success success to our our and of a marketing us achieve to multimedia key televised the goal, FSPL awareness, campaigns various reach costs. yet the dramatic nationally EBITDA integrated XXXX, the associated still reality Stadium allowed SoFi's and efficiencies brand in me drive goals, FSPL only did ability factor This third member with. the games, unaided SoFi increase brings partner of

more Stadium Super that visibility XXX SoFi SoFi's games a people televised record helped XX% tuned brand average stats. before are in than awareness to X XXXX watch total. by Here at estimated the This in quarter. of remarkable the an at few XX million And SoFi new nationally a were an per regular was to unaided the increase The seen fourth season Rams Bowl by in nearly million win Stadium. households

results, SoFi. Before turning the thoughts. I additional talk to it fourth I a anniversary over to wanted celebrated few to the CEO of Chris to my as In share February,

not period am a in even short could more we've us. time, ahead of accomplished such I be While about I of proud more of excited what's all

We reap and, on we are product equity team. awareness breadth just of as let that turn for fintech, our platform me a the in exponential the the suite, billion financials of our it serve position, for we our industry build starting differentiated over for tech the made brand our AWS that, value, the enormous With and helps review to from benefits the of most strategic have year. progress diversified quarter the balance the of and our to the our Chris of course, growth importantly, sheet $X.X us

good revenue our and afternoon. sixth off consecutive finished and record by year Anthony, positive of delivering a EBITDA. We quarterly remarkable quarter Thanks,

diversified XXXX. to and we fourth on SoFi's key I'm be challenges for otherwise again walk drive and some fourth once despite share going for versus the then potential. financial Unless year quarter through financial our in quarter proving and growth I'll of model long-term quarter to you highlights of quarter, outlook. adjusted the existing results facing and achieved differentiated XXXX color Importantly, new the durability business that referring this and stated, our

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

to delivered as $XXX net revenue at the of adjusted end Adjusted million the up year guidance and period guidance our $X prior $X $XXX For year-over-year EBITDA of high end XX% quarter, the we of to of million. the growth million. of million high accelerated $XXX at million line same top $X record also our of from was million,

net year-over-year. we full revenue, adjusted up year, the For delivered of billion $X.XX XX%

plan XXXX, full $XX January. original still Our headwinds plus original perspective, payment factors million million of EBITDA September by our guided million delivered net recognition what was From federal would of by our an X our assumed exceeded guidance in from of XXXX the on million. equity losses created investment revenue. which revenue process $XX XX, $XX revenue called $XX plan and we expire and Despite XXXX. adjusted those in moratorium student in we in alone, above from $XXX That the $XX $XX up of original also million that a million revenue and year incurred we last profits, loan Apex, full adjusted year was included million

all into which revenue us. funded for $XXX versus increase. performance increase attractive originations refinancing lending, XXX% saw funded Now QX from on and loans captured volume by were personal the billion billion XX% largest remodeling year-over-year contributors growth a where more and grew personal across X high loans variable to debt than fourth our of as to their adjusted fixed to $X.X to for The business, XX% in million in to year-over-year volume to in level new growth or rate which XX% interest XXXX quarter; demand products we $X homes total, increased net segments. driven quarter growth our borrowers $X.X student rate billion. segment accelerated XX% loans, In year-over-year in $X.X rates business the billion a In grew

from refinance our to we prior to continue borrowers federal student throughout XXXX as the student January payment benefited loan student the In funnel. from of expiry to loan we demand moratorium. increased conversion looking anticipated federal loans, improve we Additionally, iterated

home at The increased margin. say versus margins quarterly robust net of year same I'm up performance. gains, had we decline growth income demand prior lower $XXX In These for issues, quarter the business throughout it addition, strong was onboarding slight QX fulfillment by loans interest and partner, caused in interest throughput fulfillment the profit and sale XX% and these in not would net on year-over-year The were margins, dollars were remained a but inclusive revenue sales and period, loan contribution material by XX% hedge XXXX. our of with year-over-year home margins. resulting in down were lower XX% margins from delivered revenue. contribution since to strong loans third-party in gain third-party another margins million issues have Overall partner partner. lending resolved have pleased been drove

on lead we in marketing federal moratorium were higher student XXXX capitalize expiration. elevated the student where loan increased refinancing the January to the payment demand In addition, to expenses in loan When May up the anticipated of and we spent marketing XXXX to the dollars. already week end moratorium had federal was of unexpectedly from a at lost revenue loan student funding extended December, business the

million lending of growth from $XXX at year, period. the full our revenue grew Overall by was driven Shifting we to $XX XX% in the same $XXX profit tech up quarter, total. year net XXX a For account to margin. contribution million million prior segment platform the growth XX% delivered XX% of net XX% delivered segment million and year-over-year in adjusted to revenue the Galileo where

of of see and is normal lag it those the addition accounts. the to a between reminder, and new a As accounts monetization engagement

at quarter XX% trend, contribution have overall cloud, which as encouraged sequentially future XXXX from range contribution operate of the investments capabilities are margin, for of the We to opportunity does one in cost in of previously, due we mark of able in a the to indicator to the foreseeable migration investing is us. Galileo's XX% the business profit technology up but the fixed this as was down leading discussed QX advantage we by we were growth. to margin continue the This million XX% in given and to $XX a QX take year-over-year made to XX% and ahead the the quarter. plan we achieve leverage beginning

and profit platform XX% ability revenue For all than products segment the year, million which services strong million segment, On continues the that from $XX million to at our the in more benefit QX, financial our of sequentially. $XXX million and $XX of and full contribution XXX% five $X times This XX% improved revenue segment growth. quarter across to grew delivered year up tech delivered at prior growth margin. monetize a to to

segment, growth in Money. Card, particularly Within Credit revenue Lantern, year-over-year strong the Invest, and was SoFi SoFi SoFi

our important, total, As in year-over-year added growth demonstrating reached were hit X.Xx, and quarter. and our growth XXX,XXX XXX,XXX accounts monetization. added X.X X.X XXX,XXX million in revenue and exceptional Money added product in for twice and our billion Contribution in total. was accounts reached Invest the accounts million $XX XXX,XXX total. Relay continued of progress losses

improvement we economics investment slight unit sustainable a in remain growth. to focused this for each While on is year-over-year, creating right business the long-term mode, drive

year. For full year-over-year. flat Xx contribution was our million originations $XX billion loss accelerated of we million million the of the in sheet, result nearly switching total, half essentially balance the year, growth $XXX XXXX the back delivered Quickly million was that in our $X.X $XXX and in segment primarily to as $XX revenue grew to in by approximately which of year-over-year a

$X.X of us allowed overall ended warehouse raised of with capacity. having facilities, significantly total the $X capitalized, less and on billion well That warehouse In XX% billion to we capacity capital. addition, our new drawn a than very billion cost reduce of the on low our our we of of $X.X reliance exited year funds year

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

a volatility outstanding Xth, all warrants source redeemed public SoFi which SoFi. the and private of removed significant Finally, P&L for on Technologies' December we of

loans incremental of balance cost It's We the of into XXXX efficient will cash. sheet, results make contribute to the opened capitalized are year to of the XXXX. The as before to choices any we continue and prior the strength want excited that net February, nominally bank, That's which because use QX fully not loans expect did getting important in we contribute is ensure to to guidance. capital. thing to we details originating SoFi about the in in when the our the with bank note and bank May I interest that and discuss full bank Bank income existing initially from most we the only last and SoFi QX

our originations and transitioning have bank, still from loan fully are to occur that May. not be We the the until transition complete of operations will end

several proven advantage. last diversified quarters, increasingly the be business to model Over an competitive powerful unique our has

Even scale, as continue. we to and strength to we in that expect invest continue momentum

and contribution approximately of $XX the negative in levels impact incorporates moratorium that guidance estimate of to of loan profit extension to the those QX entire million $XX We to consistent of payment the for federal Our impact with be be three negative XXXX. May $XX the quarter loan with unexpected XXXX. million revenue QX, to of student of origination of quarters million first the to million $XX

$X $XX $XXX to million Had we moratorium would net of million, year-over-year million to EBITDA. up been million that to have XX% revenue million would to $XXX million QX, million. For in QX $XXX we revenue, expired January, been and and EBITDA the adjusted expect $XXX estimate have to of $XX million adjusted $X XX%

scenario alternative our illustrative in included this we've presentation. investor For purposes,

to of million. adjusted to $X.XX are There billion that XXXX, expect adjusted several For EBITDA grow into we year full XX% the our full and net factor recent year-over-year guidance. developments revenue $XXX deliver year

currently on XXXX, student First, contemplated as loan volume loan we those that refinancing May at on and levels assume point year. levels moratorium through QX remain the normalize from partway student payments will at through expires remainder origination and pre-COVID the of the federal X,

believe from the results capitalized loans more we mentioned, opened I with in when opened as can initially And That's because, nominal until appropriate the benefits and will with originate rather loans SoFi's the in of the build bank. in take we will contributing because realize lower cash cost is begin bank won't Second, distinction meaningfully the than see it we bank QX no This and we we impact. we assume than begin Bank loan to QX of SoFi to bank. it QX important the to capital balance our just more balances a to until an fund the sheet.

year the transaction. SoFi deliver year consolidated assume XX% close be discussed compensation our for the QX be this to will fourth, EBITDA that between expect excluding delivered the we XXXX. delivered $XX to stock-based and our not the SoFi full million come. investment and continue to of be and could which billion growth million currently results in we last Technisys and contributing to XXXX The EBITDA cover Technisys, be in Third, Technisys to thing the drive And XXXX. significant $X revenue was to of guidance expense business we to Technisys. contribute exceeded for of start revenue a $XXX is Over a proud XX% to of previously, in as to incremental million $XX year. in following time, margins last year more margins. EBITDA. additive a in will the We we growth our summary, of for on of expect full annual incremental business But years positive XX% we week, core forecast business, impact for full we In as as sustainable XXXX investing small mentioned amount of EBITDA we

up another questions. year are XXXX. With strong to opportunities forward open the in continue extremely it let's look be that, excited well-capitalized of in about to us. to We and front We

Thank you.

Please Instructions] line will session. now John from Hecht begin take our of the [Operator connected. John, We Q&A now first Jefferies. proceed. is the of your line will We question

Thanks fourth Maybe color that what forth? good the And customer product and acquisition in us seeing channels, change you for of Nice opportunities terms acquisition drove very and thanks what the you so are and Any Very can give guidance. member much. guys, quarter. quarter, customer on numbers detailed for there? costs.

Thank John. you,

member the and added rate just more during on social Invest, acquisition SoFi of the talked about in cost. it campaign the strong was then, our need recommendations let operations a but per our to across customer our really marketing in all member the the The layered and I'll rewards of which the to the an information members' company talked of Everything a and of acquisition media, on themselves, quarter, product in a products become members of specifics prepared the that then and but, member it four both members program and reporting program, for that's way, increase decreasing importantly, home and ability and personalized from the going other developing of drove was all leverage the as trust services use us. throughout culmination work marketing, products really brand The per efficient. really customer awareness slip like unaided us basis, remarks relates December, really hard nice SoFi years. the that a to decline and combination of SoFi top information members Money last is differentiating we've over of digital the products gave it Stadium to it's just based to in on and culmination in a a companies, household data growth made their awareness. that I cost which the We extraordinary we reach to October, So at our quarter a app of our make makes lot that November, and name. strong talk influencers. we've hard into feed growth, to course, integrated of unaided the a brand financial individually product, that And and across just product drive our really to Chris traditional brand product broad differentiation

Yeah. Thanks, John.

XX% you nearly you'll sales marketing divided marketing basis, this and see new And full it year when if total to down on per member overall look at look full was new XXXX, was that So year our sequentially. at you sales and XX% a if by QX members, XXXX. comparing about it down

contribution rates year. the of the and for the an just expenses then what give out during does the great. course the Thanks of that as cycle? the second bank, from of of Chris, of color. kind know, kind moved you idea, context And assuming hike the coming question, the That's can year, through revenues the maybe rate about a go talked us I and to But Okay. bank we'll over you

our absolutely. curves at within is hikes overall, line XX% question staying our overall in historically. five implied $XXX contemplates rates. this to even margin contribution by the business, QX, as to And Yeah, even for contribution we business a the I today. on of increase. the the lending say can level lending high roughly profit our we XXXX. what forward type But rate bank. in guidance And That's range of maintain what's talked I would a in we with margin reminder, maximize forward, seek current In delivered to portfolio, a with address as about expect across approach rates that we've XX% the at dollars dollars XX% entire going while million that

in personal lending and From insulated hedging rate to a bit a currently wherein build with on as subject market impact pricing, really perspective, overly securitization future hedging. of benefit and interest would In outlet, relates specifically last pace weighted hard the previously, eliminate what worked the have coupon model margin is exit that diversified look thing adjust some sheet, can't real environments. a in as to overall in a right and average moves and structured react our changes we And have margin course QX, well, have depend rate of hedge remained our we've personal to take well to risk. and rising in movements balance And increase we pricing know, and such you that In our From we note lower fact impact to business. in specific objectives. rates gain that from to demand loan or the Overall, rate refinancing compression that well. situations. we us agreements seeing that order fixed in that with on order robust, and volatility credit really our the well the to has diversified impact in in And capital perspective, to pull on a portfolio fairly number and prices perspective, in our loans also, forward expected. can rate to years we wherein market time do keep And allows sale. structure do last loans an now. do don't loans of our loan we to the that rates, sale macro and From markets rate businesses loan of business that's several then backdrops. allocate we've therefore, incredibly over to really on offset as achieve the opportunities products we you rate flow student and our the in businesses we quickly it muscle pricing don't levers construct refinancing the at and rates an to different does as we environments, we're dislocation well do home this discussed rate interest know, are you rate need sales deals our isolation we as a in, environments, of we're mix more really diversified of volatility I of As of moderate capabilities started

meaningfully. additional if throughout track rates of and XXXX The and benefit, is you to of year, that environment XXXX, we've sort up everyone's to navigated go XXXX that, I'd for interest into back add then an thing going rates just

into went to pivot then to I rate then from funds one was those the areas XXXX, market think four XXXX, there at and maybe Fed place are putting environment. We that to that. really spent think started -- when In year we're for we're hearing expecting in XXXX, benefited whole up we in to rate increases. not able rate the right again. the pivoted I geared point loan for business rates addition our marketing in And from to capabilities right I whole about to increases our and distribution got COVID, we again, one funding a zero, at from loans and pricing channels go standpoint, think standpoint or completely channels, costs X.X% prepared a that. ADS switched, our today, unlike two the for we we flat during five was rate When our

the We'll our of perfect. great through So always gives we're navigated playbook make in us in to mistakes, to having sort going not past bottle be environment the but navigate that future.

for John. question, your you Thank

from comes question next Our Citi. of Ashwin Shirvaikar

with your Ashwin, please question. proceed

could wondering was kind that. you by assumptions segment if guidance I Thanks. of through walk the the on and cadence

take can Ashwin. I absolutely. Yes, that one,

point. call you rate at from where to full things I few or level, at there to aren't this specific segment- guide revenue are we help or product-level bridge the we in would a perspective our order But from providing a current run progression that guidance quarterly year are out. guidance So

and run First, includes, beginning for a return impact and That have part or there that quantified And loan our that much a will loss pre-COVID are QX ends. in student refinancing are beyond bucket our moratorium businesses contribution first, normalized guide. once as to the factors of QX current impact meaningful year. rate this in you not originations revenue we've but of more several

close fully to and the following and lower contribution hold Second, the May period a then year of by a loans Technisys have from originating cost the we be third, in And capital thereafter. months from the of expect bank few transaction. extended this of we'll benefit benefiting

to fixed the for overall folks on our as that Within continue several quarters bucket last look our business variable attractive second mentioned just rates continued in loans impact student and across personal our to really growth improve the funnel rise at had strong but consider growth rate to conversion, momentum refinancing The debt all a loans. which lending, continued in a us. And see into of rate we business, I expect also is has refinance loan we segments.

businesses growth that have to home We we existing I overall we're things with are in growth programs services that monetization premium also our on large beyond our our to member base. jumbo see expect and continued we and move our business and expecting services, going are capture ETFs. the third-party product to increased and issues well see scale remarks strong purchase as in that management to Money as drive scaling financial new well throughput as Within spend business, loans as our assets to continue continue in in opportunities products prepared my our as about Card Invest increased talked Credit releases, and under that monetization. And

some higher as Just revenue, quickly generate on in of from Money, inter-exchange. interest growth the net we know, you and hitting income drivers within financial services,

flow, assets we a Given generate we interest as as margin thing all digital financial are More from is new growth In in AUM going as and And and around drive out income, just interest revenue help really and our growth that nearly trends In sequentially. play soon-to-be under Credit start quarters Card, well do in And high share trends trends year-over-year the net about revenue to more in continued the the Invest, we're obviously, monetization the relates growth that segment lending, offer payment you about platform, in been of the and sources: a in then to here, forecast expected member order to margin we partners product interchange Xx within from can with base accounts, and, really course growth particularly options. the being we we number driven that monetization, up segment. get those that our revenue that actual growth over last the we've expect to tech here. And recently, reference the alone, assets. management, combination for really continues and can really drive the competitive really and in then here launched several that balances are expect per of grows. last services seeing Technisys I'd QX by we're out account, accounts call helping seeing our I generate now was than well about spend we of we've rate, it able recent overall Collectively, continued behaviors the per drive as seen a optimistic talked optimistic spending. transactions and are XX% product to growth per there in further numbers.

it, got Got it.

loan personal in perhaps Pagaya such a Okay. the and about could included the loans stepping be off And clarification the partnerships number just might talk pipeline? in that the a originations this that use on you as future as

our that a member strategy, our lending it we the want referral loan even we products them I other sending to where which we personal years and relates it's which that and we're and applications correct? box other XX% decline that on near to loan think monetization approval paper, The credit servicing the run strategy, financial When Yeah. do build and offer Chris, Lantern. completely SoFi as satisfy to prime get a the Pagaya partner. a our SoFi do is underwriters. of a because applicants lead of and improve we not process. way services taking want It's is prime as service. we've and And loans. services. think built underwrites. a number people a partnership the generation fee on of sub-prime. them contributed it or included, integrated success that And And a credit for the to but call our Pagaya if four applying to business that is volume, a not are because you on and the outside simultaneously. The Pagaya talk pricing that was with risk benefit This and first underwritten entered revenue focused our do that We to partnership, We loan credit models was we people fee, take for we as borrowers, in revenue others, as fee. here more contribution lending are a arrived the not of the it first ago, about only a but about the on of to through help application quarter We of by don't there

the we disclosures. disclose number the that don't segment, volume. you'll members in you that disclosures of in our see we What actual in Pagaya the that No, actual financial and services loan outline but are see can attributable to is

your for question Ashwin. you Thank

you Morgan that of please not Stanley. Betsy is proceed. line from Betsy, Betsy comes your Our Graseck next question muted. confirmed can

can reenter Okay. we’re move on. like. going In the interest there of queue time if to you you Betsy

from is Suisse. question proceed. of Moshe, next Orenbuch Moshe please Our Credit

Thanks. Great.

both a more thinking -- rate growth marketing. you little So lot plan you the the the $XX what you incremental spent and spending, marketing you're XXXX be for margins? on Can in you'll about the about efficiency, CAC. about bit much you're of efficiency of Chris, talk million that maybe marketing means Anthony, talked both how a seeing it you lower about how in terms And

Moshe. Yeah, that, I can take

level I level of What say in not we're have in progress to efficiencies. at it at to spend is But would overall or outlook, need provide like of term said, different be the going the order XX% margin overall detail. level. in that say terms at what we're target level our made support to a at I I segment really would we So the consolidated we currently terms longer

products. and towards right dollars we're the within cross-buy really services economics you where to we're our marketing feel trends, now As unit alluded those lower about at starting more segment, as strong know, shifting we comfortable right we're financial seeing to, CAC

Thanks. it. Got

about I things of up deposit ability customers. One in know customers you and could for direct to into over a Money last about the the gotten launched the bank to talked relatively that terms that get deposit progress as But suite of and engagement? the we've couple any running, closed means you've getting and talk products recently. that use of the just that the you deposit SoFi is direct as months, there what tool for of

throughout XX% also QX QX of we're are really introduce The into of to starting number interest quarter. marketing. benefit we, early direct It's week just deposit increasing days, another already. the now. and start nicely. on not QX small. The that from more to QX They're signed we the per numbers to still just and starting obviously, from It's increased to would started and XXXX, we see And very each rate XX% we're I accounts the it's and that something more just emphasize emphasize, something and Yes.

that, I'd say once pickup does it spending, One deposit begin, which is the things the about direct in see alluded activity of that to. Chris do the you

really and to steady But the and we're So started. are right. we're just increases getting the positive seeing

had January, the We of with all switch in to had in the outside the that, whole approved go We the had be relationships ongoing. had marketing We still change switch that We had the is through looking a from is bank collateral. when to our the things we to license Reserve obvious product may One to launch. to And not the technology. all process reporting. change affiliates. that Federal

do of marketing Early It rollout collateral we're a launched as been day a process. And first the a we went to with product actually affiliates, wood, launching direct It if it the when was protection. launched It when it AutoSave. in et deposit started members. just cetera. Paycheck. on over now started out entirely And rolling initiative, slowly to all to give all was product a sort million can credit. product, have So not that Checking. Savings. SoFi before and the this switch flip drive accounts new a ton of had stand up a we of incredibly since coordinated will fashion. and in in we disclosed, which process sudden, was a over our well, Checking just and, it's driving And knock now called things new didn't But new it it's then It's of down executing far. like that the start Money you through continuous when your It existing relates two lot it Money just I an team so we we a February. been really launched service as business our and product, But X to in overdraft a members SoFi we we started SoFi it switching terms of very close

the as versus but numbers So really higher contributing in revenue direct we're up And to financial deposit XX%. strong you week line. small, are growth QX adds QX, per now, another The it's services in XX% see right in QX. QX

Thank you, Moshe.

Mihir, of is proceed. from of Our Bhatia please next Mihir Bank America. question

that things in specifically, and just growth by things Great. to specifically, that have stimulus, you're talk can platform? within can about impact account up. you product. that Galileo, with the to on some impact couple Just that at Thank technology the But coming neobanks, you. a overall that major renewals contract of just from growth you appreciate the any not I'm from And maybe stimulus I give maybe Thanks for taking competitive do expectations hoping that may guidance have you growth seeing address about my if two in any ask maybe the us of and backdrop a just question. giving platform. I you're perspective, platform. wanted account on

Yes.

are, for how I business important that high level benefiting that or physical We're absolutely from payments BXB what a to the contextualize The is and first. in frame digital the business, think whether payments, not me and business payment opportunities well of terms let a understood that's consumer just of so entire and the growth or activity. to BXC transition it, the secular it's everybody. growth secular impacting that's at payments that's trend probably Galileo drives behind

the are Here drivers. growth

growth accounts of our partners. the is First existing of

Galileo's year. dynamic pipeline enabled can us existing we of to this the add a partners. provide products that we are number base million products debit, enabled, new fraud That that's quarter introduce new grow throughout a to that million accounts. that like of and from And products accounts you'll That other secured protection existing partners. the continues services have through to and things reported very accounts, that So XXX robust of services and the we installed XXX see

in big driver first the is So those growth accounts.

of those each The against one all products of that increased that the of accounts. within second is underlying course, And new accounts. driver on is activity top just then, of those

sort of of new growth partners. second is The of bucket driver

new a with entirely app the consumer announced there of called partners, a new XXXX. we and example. good added of the XX new are new partners Spruce is in H&R Block we Some partner, example an partners

international. is driver growth third The

already can of operating in in. into XX markets acquisition and that largest on Mexico. they're We We're as of the of Technisys, now have the expanding we And four neobanks back another in partners enter Colombia. the

expansion two the we'll thing or advantage consumer buckets neobanks. much use that of So last on And is increasingly, enterprise bucket we well. the attracted bank. in BXC events, bucket. some is And also the a as while businesses And another SoFi built we that, international our But within businesses. these more I'd continue first to was have business back are are The say diversify cases. has a of competitive Enterprise relationships. commercial to

the bank Bank be sponsor enterprise the SoFi payment partners, fact could top processor. basis a to the a also points sponsor commercial XX partners So because that XX and bank have on advantage, we of we're are to

So drivers, at a these the to et Galileo. of stimulus opportunities will doubt, face what we're growth that about same-store on. and through really is customers comps, And our some growth organic overcome Without the cetera. tough all focused excited other that's we're goal

it. reflects outlook Our

there, drive to some Technisys So, strong continue not the have a headwind growth but to existing from understand other be the bunch we versa. increased the absolutely mention we opportunities that and of may to vice for the partners, with there tailwinds partnership growth of

Got little your Maybe a comprehensive. guide. it. about quite That switching was curious gears was just I bit,

the saw some $XX Your million EBITDA impact student million of that. ramp. loans effectively clearly QX going and to is, coming I from that $X are of we understand back the

there scale just at driving maybe the talk break much benefit out the bank growth driving is a versus to way some it. revenue Maybe factors scale? that? just about you get how from of it So, just other Is charter

absolutely. Yes,

in your start student of moratorium. are are guide, refinancing revenue specifically million EBITDA on as start to $XXX across would the quantifying loans again of I bank towards impact of overall you bank, of see more want February, as terms on will just we that to is end question there for good the businesses, terms it really personal the bridge today out, ago call The Similar going also reiterate pointed just terms in loans of million few then In thereafter. bank day how because we that's overall in are there that said $X say that our our bank. not of with I'd loan year, out. The loans. one, within contributing to and we opened more, Galileo. higher-margin QX the from what I and where a to things cash, growth we started the of loans there I and $X also and will scale capitalized important things zero What contributing the the and were originating in And reason at the to you're

expect be May We loans of by to the those this year. fully of end originating

start occurring in a As balance the will benefits will of thereafter, sheet holding the to cost loans on because and start hold months result, four for the four we're capital extended to months. QX benefits five already three

would guide $XX embedded year and currently today. million in what's million the million you were relatively personal $XX and an as three-month capital That's million originations assume for to to $XX to assumptions, refinancing loan loans business student of of $XX revenue If extended about adjusted savings the conservative EBITDA. as our pre-COVID our growth in and impact be hold normalized period continued of cost well

you, Thank Mihir.

next Our Oppenheimer. of question from proceed. is please Dominick Gabriele Dominick,

but shone. revenue -- go questions. the color just to really and products you product actually the Thanks I back think this little really, you want back to your financial getting modeling have Thank quarter for segment, helpful. back average would by cross-sell. and a per really to about Any you. faster would and base of great. mix slower Maybe those or products my around much be than was better talk little financial you within and a covered expected go the the taking go in in segments the bit, so could changed customer much perhaps than I you was Hey, just really a that which metrics how to I adopted are mix which on want and

was good I'll financial that and Where we $X ended hit the about of QX, services that in the quarter. it million up But up which million $XX ended $XX We growth. on I'll improvement. of Anthony. over from the was in traction financial overall, from to business, last the Yes. growth turn year-over-year That revenue XX% Xx did driving our in then really component, million up contributed Invest that so an coming segment.

delivered about $X million the businesses contributed QX about $X and quarter of combined growth. Pagaya Card of revenue XX% the Our Lantern and million Money XX% the and contributed our growth. And of Credit to businesses about in delivered and

brokerage the I'm to of product adds across products. would high across it out say, strong of In all performance like. at at the net the and, product a each and the a not disclosed, was the a on one looking would well absolute of And the hard say I be and pick of as and are basis, fast all the level, crypto growing as as really we'll as really had an basis, XX-K. relative in We terms it a products. see in robo. These each products, strong It in strong on we'd growth quarter was them in Money

We're every selection, opportunity. it cetera. can on that's is there opportunities content a still well focused work road all Money to mentioned, think products. a brokerage we going probably the they as down opportunity as not et savings, have convenience There which one options, one those big differentiate of in, big do least we're relates other differentiate there a launch we opportunities. invested the the those products think we've robo fast I more, That's the things the on of are as high-yield think mean to products, of still in to so. lot do one on products is the I I or doesn't That and team and differentiating But is just in of one and four interested the better is that four the and together. oldest more making

international. Work and think scratched I is The Credit At surface. done a our you, the I opportunity And I I phenomenal Credit the a about and But Card, job. achieved. about trends just us. really tell already Card team has would you've product talked think, for we've huge

It's card. of segmented one types of different members. different types We have not by

spenders. have You

more with opportunity Card. Credit Card And make our the do better the there's You all to the could revolvers. lot an to we products. have also rest also There's Credit a personalization work with of

the as really opportunities would another I think that quarter. fourth characterize excited about trends And the we're So, hard next financial one level. of the services products. be of some in but do to the or The it out underperforming, what opportunity are strong in I some to take pick to the products

Great.

into drive products significantly You with opportunity. Card. kind compared of can other ARPU is some to huge led it the the its nature. really a That It me despite straight Credit higher,

some the and about loan just you loss target score, of it the you particular, about When I so, rates products, Thanks as think ramp up? you so FICO in for products what these be the on life that And was curious you prime mentioned of targeting is about how you the average other think would audience? much. just

doing we right We The still with same can But Yeah. Card. it too we to have prime these doing cylinders or drive product to differentiation that in high-quality we we think just time. we for enough, to can't we broader ask, base. we opportunities we member they relates of I want are it. FICO a a much? a at we think of balance is very market product step its all going And the doing too want have to zone. And there's fit opportunity as before the enough, doing product within explore Credit to way make are much sort base. with out build different XXX. lot the we play are engagement. And great card strong Credit Card a want We segment of high sure over score We of our have that comfort time, Over

in that we that room still to reason there's no still. within prime the customer you, differentiate business, reserves, within have of now, lot Dominick. relatively a terms change. at and So personal can a can We see Dominick, And of we're so you that X.X% running which our in loans filing with right is healthy. about really consistent our Operator: loss Thank CECL rate

so we at questions. time currently any the the are We do additional for of not have hour, top

over So the closing remarks. for pass back conference Anthony, to any I'll

tuning Thank you. Thank for today. in you all

out to to wrap-up, this our we grit, share And come point our time, turns. has and its the The and fog at uncertainty, navigate to twist achieve cohesion single to has I every wanted perseverance final through stronger. of of Before thoughts. shown road the and had SoFi team goals unexpected the

exceed more one Now than have to companies managed only our most goals, ambitious their achieve we've we lifetime. accomplished in year, already in

those the because who trying day are day before work. our the page will where leadership I excites the we've with of matters love greatest with to I XXXX, the better than love wins. our most an wake me. dares a up It company. on take As win. creates and strategy. I off when winners The when to And greater started leader I turned for opportunities more most it's environment who It's has be volatile decided. XXXX love every reminding I love uncertainty dare team. fog that our myself uncertainty. the even I who

years, thing for of four any between and twice on I knowing you us. when And the your results. report and we would only that wake every take first up Thank next Sundays. addressing time we the QX week day realizing to our us look I you the also setup For in quarter, today. forward day, time ambitions is

XXXX all the Thank concludes for Call. Earnings QX SoFi That participation. your you Conference

disconnect You may now lines. your