SoFi (SOFI) 30 Jan 232022 Q4 Earnings call transcript

Good morning, and thank you for attending today's SoFi Fourth Quarter and Full Year 2022 Earnings Conference Call. All lines will be placed on mute during the presentation portion of the call with an opportunity to question and answers at the end.

At this time, I would now like to turn the conference over to our host, Maura Cyr, SoFi's Investor Relations.

Thank you, and good morning. Welcome to Sofie's fourth quarter and full year 2022 earnings conference call.

talk CEO; results and to are recent today Noto, Anthony Chris me about and our events Joining Lapointe, CFO.

the section find the can presentation earnings our You release Investor Relations of website. our accompanying on

will and today outlook, expectations and statements business strategy, competitive and performance. current include, and on forecasts are future not services remarks that limited future are include Our and uncertainties. and advantages and products based risks and macroeconomic involve financial but conditions our statements These our forward-looking to,

this Our these from filed forward-looking as we based our today, a future actual and in those contemplated as of no assumptions undertake statements. result call Factors and may differ or are XX-K results these Exchange materially differ with described by forward-looking of make the Commission. Any statements and on events. that results are to release Form statements obligation these update that information could as materially Securities press cause new today's on we upcoming to

now to Anthony. the call I'd over turn like And to

you, everyone. for. a SoFi. year for have than XXXX accomplished us morning, Maura, more and remarkable We hoped any was of Thank good could

that resilient exceptional profitability. of execution Our great our proven to of benefits drove provide to growth the business strategy durability team and improving diversification has deliver and

customers driving allowing compelling deposit spending Money rapidly environment. a changing national the adjusted revenue EBITDA come direct us SoFi a did deposit which adjusted license, times be we we balances. in obtained grew a in is nearly that XXXX XX% delivered to We're XXXX. at could Our X net to bank and a and over $X.X not billion, in better incredibly time, have flexible We product offering high-quality

generating diversify our returns us of revenue. impressive on The and while loans, to offer deposits enabling net improving our income best rates interest bolster funding and surge

of first our lending $XXX income directly attributable time XXXX net itself cost exceeded revenue lending In total million $XXX our by the interest million. fact, marks of

our we powering course $X times $X.X really million million member to from grew X cycle. X.X billion bringing over technology grew in step a we that one X.X adding Technisys, being closer billion our our as and fintech. year, to end-to-end stack build AWS to nearly by XXXX. members, We’ve size us the the our We critical of deposits of X times acquired capability the base

in headwinds, the We reacting high to by extensions diversification business an interest macro year. inflation of and increasing the revenue to our leveraging navigated nimbly fourth rates market exceptional unparalleled quarter two the end quarter The and volatility, of student each loan and of year. was unexpected record hit moratorium an incredible

net another three million, adjusted adjusted year-over-year reflects and growth delivered in quarter of and of record strong A seventh all adjusted revenue overall key consecutive in achievements which our third from up EBITDA quarter the operating record revenue of from net year-over-year, XX% the We results. include segments. quarter quarter record and $XXX business accelerated few revenue XX%

quarters up Record $XX nearly the of critical net important of toward couple adjusted largely equal GAAP million, achieved the is a points. the step quarter-over-quarter, total share-based in is EBITDA million million three now to compensation to combined. profitability. was equal $XX EBITDA we EBITDA income a was expense first inflection of adjusted Adjusted QX, year In XX% financial that of $XX

net expense the $XXX attributable NIM revenue than for lending is $XXX or revenue revenue $XXX lending first million our Additionally, directly of net interest noninterest meaningfully our of of And NIM importantly, time. million million. exceeded greater income revenue,

the just million XXXX $XX income of million, of revenue GAAP GAAP the In resulting $XX way, dropped $XXX line. the QX, loss incremental another had we XX%, quarter Said half million net to third GAAP year-over-year, in a income of an incremental margin net loss. of roughly or of XX%

Given these GAAP plan, income in to XXXX. we expect positive our in quarterly accomplishments, net QX XXXX achieve

which XXX surpass debt versus SoFi other to cost play with out points us to allowed of and to to of basis savings of strategy $X.X using continue on up fund sources billion Our funds is Money, loans. XX% in quarter-over-quarter, deposits,

quarter net at SoFi margin. at positive and income an $XX over Another million of the XX% GAAP for Bank

strong Finally, third highest we in the QX and tangible The the ever XXXX into highest XXX,XXX of quarter. for second quarter to new momentum total grew million, quarter year-over-year. adds our QX saw up XX% book overall consecutive QX. adds X.X our member our value product company for also of with brings members members continuing second

nearly with Of year-over-year. $X.X added financial million $X.X total to by XXX,XXX year-over-year services million, while XX% XX% adds, ending products, We were products in new grew nearly over these to million. new XX% X.X up lending QX, products also up products

to of uniquely provides a to our business how thrive cycles. strength market underscores again, differentiated once services The diversified suite has full of but products results, our been not through able and only endure, that

our level In on to particular charter. on net revenue, adjusted the of generated the drivers million Now diversified prior of we of the as $XXX I'd segment advantage record with touch period. lending, structural versus results, like of bank benefits well a business our focus year up as XX% a

high robust lack negatively less personal to and loan Student refinancing the Home offset student of demand Our the be of clarity we continue loans. more of in payments. again process faces to the transitioning federal of fulfillment performance from continued new headwinds as end the loans loan borrowers moratorium performance federal than of on rates, continues home loan impacted refi while partners. the macro loan await student

our We its maintained product from continues The billion we've This XX% billion, to XXXX. QX. a QX to as as in rate and underwriting $X.X even criteria. our borrowers raised deliver of stringent coupons personal business maintained in $X.X loans originated our up result strength nearly increases

cost allows driving While These more NIM themselves strength and funding growth Having capture advantages with balance savings. balance with result options these and are a SoFi sheet a returns, origination to of the optimize light of advantage in lending the Bank. direct of our impressive, efficiency critical our new us uncertainty. more macro flexibility levels sources our fund sheet diversification of are provide to while

environment. Additionally, by we difference of basis benefit in and funds the source, using lower QX, basis funding of approximately in XXX our from a basis QX, of points, points rate benefit deposits warehouse for as cost cost XXX deposit a it a funds QX, XXX was a in loans. cost just points in funding and rising In was powerful where our

to 'XX, Lastly, Of at as the of spending average deposits spend bank in in balances average and members, Money has deposits $X.X growth levels billion SoFi strong engagement. This high-quality to contributes higher even led increased. the were XX% setting has this Money improved a newly and by XX% up Roughly members. direct XX% end, impact funded from deposit versus deposit positive quarter significant SoFi on had in QX direct of XX has spending. accounts and day are

XXXX spend was spend per account average total was XX% times spend, funded annualized X.X and quarter-over-quarter. up QX QX

increased Money members XX% SoFi to year-over-year X.X have nearly million total. in

the in XXX with year-over-year grew we for QX. segue quality opportunity $XX a Given FICO ample million members and XX% sequentially cross-buy. million from tripled more net great to is million these of $XX revenue into This see broadly, services nearly score, where financial

all million. Contribution quarter, in the Services Financial approximately more versus loss as of third members. as variable improved more in direct quarter-over-quarter invested and even costs, including breakeven. worthwhile nearly Even now $X is we with million attract Moreover, saw opportunity We this million annualized the a $XXX spend, $XX million this $XX revenue profit, fourth deposit marketing improved marketing was quarter. to

products, scale buy drive positive to XXXX and time. monetize lending efficiencies of anticipate marketing contribution We helps and be as XX% we up cross business. X.X the Financial products continue Financial at Financial and The profit increased of still Services We times in $X.X Services million. finished year-over-year, QX segment scale million will the Services total X.X over

revenue The Services not contributor of to it monetization scale continue be is cross drive marketing to a only of drives as these buy we also proving Financial businesses. and efficiencies, large

In fact, due effects. per growing of quarter. these is year $XX annualized in Xx brand $XX increasing is attractiveness product awareness this QX This the products, to to network up and last in from nearly revenue of

to last committed, checking call, suite, introduced to up January that X.XX% embrace of an we of invest savings as members and iterate our our in and increase we've in continues investment aggressively X. earnings dividends continue as APY we our our As Since to pay and product launches.

variety SoFi Plus, launched We member benefits rewards. bundles wide provides together of premium and incremental a value and a are member service, that

SoFi is Plus unlocked through in deposit. direct enrolling

products more services, deposit and to member We only with our to will add the having value premium the also not direct SoFi. this of to highlight value total and increase of breadth continue your but benefits to service

we and with to deliver on invest our We there insurance, our team for to spend this first with expanded members coverage insurance introduced SoFi our Galileo to good Technisys launched a cyber on include to members promise built anticipated our and much new product way options service, trading, making combined paying the platform. for

to XX% me Technisys. Technology segment XX% margin you leads remains the SoFi's the critical a revenue segment $XX element This our strategy. with if million which a level of full XX% quarter, In at fourth of year-over-year grew segment Platform or exclude

and Galileo platform The XX% XX strategy clients new new United new in XX% with made verticals, and new of products big in and SoFi outside geographies. In new deals of strides Technology strategy, growth the deals the signed QX, States. includes in BXB new

mature continued deals, new our bases, demand Importantly, the services innovative nine more XX customer organizations. of these existing have from for reflecting

digital delivering finish digital signing including days the in Technisys major and for over first been is all sprint saying of all-out lives meet between. product in financial clients new in in its strong in our an five growth clients to years Mexico. needs an deal here by additional our the build also in to new we've that their suite number QX, out last XX I'll members' decision every

the about takes I'm a to digital, in transition the in about and excited secular our business, a even durability positions SoFi license, that of from benefits combined the can go cycle. we with but a strategy not to here. financial we to today of bank resulting winner national excited provide through are diversified where market be more greater uniquely also where services only The most

for that, it over to Chris the me review financials a of quarter. With the let for turn

once good even again and finished durability SoFi's Thanks, volumes. diversified and evolving differentiated business This most XXXX We growth off largest macro pre-COVID as previously Anthony, navigating year proves and morning, a our profitable long-term at drives everyone. business operated model our backdrop that QX remarkable of potential. and a rapidly XX% while

you outlook. of be key and then our versus the year financial full going fourth and year highlights adjusted results some share for quarter some full color through quarter I'll I'm and XXXX. fourth on Unless stated, to otherwise to walk of XXXX referring

all which in the subsequent made and and release today's statement income filing, the can consolidated GAAP available reconciliations coming XX-K weeks. earnings be found in Our be will

we delivered of of $XXX sequentially adjusted and and from accelerated, For high X% and million provided growth quarter, record net third earnings the XX% during year-over-year $XXX guidance top quarter's line the above million, end call. our up last revenue of record the the

EBITDA a We above points five Adjusted $XX was the million of of points operating XX% of scales. it margin demonstrating the high of our and also end the saw leverage most as sequential improvement, XX recent strong year-over-year guidance. at business margin,

sales has Year-over-year been and driven operating our EBITDA margin resulted incremental XX% expense G&A and marketing, functional margin Ops significant improvement by year-over-year. Overall, in this a leverage lines. adjusted across

profitability. losses Our improvement in improvement notable was our margin million GAAP million net $XX $XX a path to Incremental GAAP sequentially. quarter, a $XX and GAAP step this were year-over-year, net XX% income million year-over-year

single-digit saw to margins from path our a QX our as revenue addition leverage same as XX% in XX.X% us adjusted prior well down at against on the expansion, XXXX, we stock-based year in longer-term putting In to period, of margin stock-based EBITDA percentage of compensation meaningful communicated. previously goal compensation

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

following revised annual moratorium student the April payments. a loan As in of the reminder, guidance on federal XXXX our of we extension

the implied updated Our the adjusted $X.XX million year-end, included student the adjusted ultimate federal ramp $XXX resumption in for anticipated revenue moratorium billion net which loan QX a refinancing EBITDA. of an guidance in payments. ahead of until extension year activity in This and in contemplated guidance

from I $XXX From perspective, million points XXXX million adjusted just margin, adjusted in nearly profit, basis improvement discussed. the XXX above we X% that an we delivered XXXX, EBITDA of extension and presented a guidance times of moratorium delivered following EBITDA $XX XXXX. X the

the adjusted EBITDA diversity our which our by streams. still XXXX, of strategies recent implementing of the of million expected loan moratorium revenue which XXXX guidance subsequent leverage these student and with We we Even $XX $XX the QX revenue results million. in and nimble through demand, June impeded extension ramp asset through that new achieved to the refi exceeded speaks ability by to allocation, by

across lending, where net level million. growth all fourth XXX% the strong by adjusted three were Now revenue net in Results In relatively growth XX% on flat. noninterest year-over-year quarter was income, we year-over-year $XXX grew segments. segment driven while to saw income to our interest performance,

average in the year-over-year net increase resulted was in cost by margin in points income offset and yield, increase up quarter, the in point basis interest-earning interest for average in interest point Growth liabilities. basis interest-bearing XXX assets X.XX% This XXX% of year-over-year a driven XXX-basis year-over-year. of increase average slightly net a XXX by

continued result as loan was home of loan average were at a by macro XX% Personal student loan originations. down coupons loan originations loan XX% offset originations loan income originations year-over-year and lower home while weighted Noninterest relatively partners. fulfillment a billion, year-over-year were personal higher were home increased and transition and flat headwinds $X.X as grew originations year-over-year XX% loan student largely down of to

strong focus Overall, and quality. while our we growth, standards maintaining achieved line credit top stringent on disciplined

borrowers personal with $XXX,XXX, loan average of score income Our a weighted average is XXX. weighted FICO

Our focus quality on student is has with led weighted performance. average $XXX,XXX, borrowers a income strong continued XXX. average loan credit of FICO This to weighted

levels. and In rates still are rates on-balance pre-COVID healthy and our delinquency charge-off remain sheet below fact,

rate Our on-balance basis sheet while loan 'XX, our was personal XX-day points personal was QX loan charge-off rate delinquency annualized X.XX%. XX in

delinquency Our QX was basis was on-balance loan XXXX, charge-off student X.XX%. our while annualized sheet loan student points XX-day in rate rate XX

normalized over but from expect expressed continue up business margin, pre-pandemic industry profit we and delivered million to broader is healthy year performance we to expect revert margin. to a at the to As very levels, of benchmarks. $XXX it metrics more have relative to time million a XX% in The past, ago a reasonable lending XX% credit contribution $XXX

fixed shift efficiencies along personal leverage entire was ops across loans as cost marketing by and a mix as revenue, improvement to driven This segment. higher-margin the with well

segment XX% For million the $X.XX XX% to lending the at delivered and of full year, contribution billion, adjusted revenue a net profit grew margin. $XXX

well million XX% Shifting delivered up $XXX million annual per $XX in account. growth up the where account we revenue driven growth to to total tech our was year-over-year platform, of in growth excluding revenue sequential Galileo Technisys. active quarter, year-over-year, or Overall, net transactions XX% in as as XX% by

are space base. XX also four new three further of signed in our We in Mexico, BXB clients, and of diversifying are which partner which the

the processing processor, revenue which one quarter, the pure volumes a $X majority in to their During million of a our $X migrated resulted of clients to million period. headwind in

of represented and you Technisys. profit a contribution exclude to $XX if million margin were XX%, Segment XX%

full For XX% at the $XX Platform million to delivered grew segment the million, $XXX and contribution year, a of Tech margin. profit XX% revenue

year-over-year margin and revenue Technisys, XX% growth contribution XX%. Excluding was was

Lending SoFi new where Moving revenue net and continued XXX% revenue of Invest million high service. Money as a SoFi for all-time Services, on $XX with contributions year-over-year, and strong from Financial increased Card, to SoFi Credit

the $XX. nearly year prior million year-over-year Overall Financial X.X now and sequentially XX% million in by increasing in monetization in from up revenue $XX, XX% million We $XX product the annualized reached times quarter have X SoFi and continues We to with per to products Invest improve XXX,XXX same Money, products, Services new in Relay. adding million products in X.X up X.X X.X SoFi quarter. the

to cost of were result is continue predominantly Contribution reserves SoFi leverage, scale. improved which the as building expected million fixed a well year-over-year, growth a we in as as which the in credit sequentially $XX as CECL for revenue grow card of quarter, losses for as increased the business, result but our

year-over-year addition, revenue. reduction higher-margin digital In a in saw we assets

revenue, and the contribution nearly our cash, segment delivered XX% times X loss product million. per very the we losses $XXX $XX a capitalized $XXX year, in that's Notably, during million strong XXXX, Switching improvement where we excess full XXXX. our contribution XXXX average ratios. ample is and liquidity capital the in well regulatory versus to leverage and remain sheet, were which million of delivered For balance with

year's billion access by result originations. continue flexibility of of more assets lower further strength and growth QX, alternative This in reinforces a SoFi to Bank see personal $X.X as cost to a capital of the to strong In grew loan funding. of provides we relative our and opening sources

growth billion On quarter $X.X the exited warehouse available of this, up we billion, $X.X Because the deposits facilities, our in liability $X.X side, billion of XX% we billion total drawn saw to $X.X which represents our tremendous quarter-over-quarter. with capacity. on of

million consecutive Our tangible sequentially current for more grown book two $XX is value than quarters, has a $X.X value our billion, QX. and in book increase with

Let me guidance. finish up with

curve, guidance. the financial rate are consistent Before on assuming peak numbers, I rate get the interest rate of in consensus Fed year outlook hit QX approximately perspective, an macro our two half forward to want going a with funds XXXX, rate to underpin us reaching X.X% larger through to XXXX. an of From with the that in assumptions some the back exit with a the X% cuts we in specific

We from are contraction around markets are spreads normalization a a capital continued of credit perspective, a of in credit. GDP elevated a expecting X%. a And credit to and of unemployment normalization and assuming X.X% we across consumer continuation

to For we revenue of deliver to to adjusted $XXX EBITDA million adjusted QX, $XX million million. $XXX expect and $XX of million net

For $X.X adjusted of revenue XX% deliver $X.XXX adjusted to expect the net of and billion, we million. of billion to year million EBITDA XXXX, to $XXX representing XX% to full growth $XXX

full year represents for with profitability margins the full Our to XX% year year income margins reach versus incremental XXXX, incremental QX GAAP XXXX, quarterly by expect net XX%. XXXX we of income of for full outlook EBITDA net and GAAP

be loan of that in After XXXX. Department at Education's which refinancing June are hitting in repayments will segment, a than do September. we outlook we recovery to revenue there the run begin. a each do moratorium expect In our Accordingly, there not for return on segment. assumes key levels before higher student days few point quickly points actually of through XXXX, to be September, on until student XX levels but federal extend current rate will the we payments pre-COVID operating Finally, XX, loan believe lending a we trend, levels our expect to to current our

personal credit with ensuring current approach as to loan taking product differentiated underwriting business modest of of we profile. our very remain we industry-leading to headroom this in see We high balance given loans ample our our committed growth prudent an business, and to life and market thoughtful loss share remains In a advantage expect to quality.

In one the is on in for proposition our of Tech to time size, while including durability to of Platform segment, focus means XXXX leverage and still combined value go-to-market focused clients, Tech diversification. drive of investing product areas bigger that wins in year the new us quantity, market which over new quality Platform,

is revenue expected low XXXX and pipeline our expect organic of growth we While already to strategy our with longer-term variety off to due margin in other significant in double-digit diversification starting greater and XXXX. focus, a in factors, this pay expansion

Tech After and our Technisys moving to of a cloud, the value profit a count, growth. meaningful to we two on the leveraging relative Platform, three-year in product to contribution focus period X.Xx the product revenue of between acquisition Galileo, lines, launching as capabilities, in and joint product increase new offerings, as head synergies through growth all well through including the investments Technisys the the investment increasingly will drive

head and high-quality to Importantly, In to advantage driven count. we technology per in In deposits, attractive the products as recognized to Services, to as base. growth have starting deposit product in our year small in opportunities investments We we reduction platform, Financial scale increased front-load monetization revenue, in spend unified expect reduce we will as by continued continue our take of well we strong one AUM. as including costs, to opportunities a growth operate scale

we $X.X million. exceeded could to results not $XXX X the annual and in billion more-proud than summary, nearly of in SoFi more revenue adjusted In delivered EBITDA be XXXX. We grew times

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

the comes question Ng first Instructions] Michael Sachs. [Operator Our of of line from Goldman

open. go Please is Your ahead. line

good color just the and the wondering detail assumptions. bit XXXX. for much Hi, a question. thank very the little morning appreciate you more into go all I around was could around if I you origination

could deal well? gave do very you You and loan loans, that as student good some around Thank homes for personal you much.

sure. Yes,

one, and that can hit Anthony can in. I chime So,

headroom We outlook back our to So, originations, in prepared of there assuming That's said a where growth modest up ample business. our what in my on remarks, box. in being from given our continued in see share growth terms do overall market we I going Currently, a are our share credit today. year personal loans about X% X.X% is about market we're at for ago.

we extension. as run expect do followed continue levels a to the And of we of originations, loan XXXX, to expect right significant uptick approach and a and to resolve end with are XX-day a issues. our ahead back ends monitor the in-home all bit us, we're we're we now of refinancing, but credit and a the as half student of to pace headroom by current that So we uptick that the the fulfillment rate at are necessary. of in assuming take continue make at an potential year In then originations at in moratorium once June going the August current at this prudent loan of through changes least

from line next the Oppenheimer. of Our ahead. question Dominick go Please Gabriele comes of

results. Great

are Is rate, originations been really year. Thank wanted on outlook else? that really just curious excellent. provide the in the need gotten deposit just astounding you an to about would deposit less environment, about you've last color much. I something environment let's Any perhaps, down. it so go may And you is And can it rate deposits? talk how mean how -- think or it's be where So you growth how would I been you Anthony, it's about, that trimming growth you much about growth. that over I'm say,

of over able pleased to than we've billion trend getting that X on less deposit of been -- Yes. at the to achieve side and $X that And $X And starting Dominic. at behind you, really rate high strategy the to offer we've proud employed the a interest beginning of reflects very of high bank billion to be the the on what your deposits, of able year. We're thank really interest bills, your to functionality savings be be from able and to fees to transactions, over friends to checking on app. at our X% send a of phone be money your on all pay X.XX%, function complete all really at to to rate no able able look to your and to money movement right

deploying people much we how product, growth is will after have behind become The that trouble our Once of combination deposits has had really that close to by resources The go focus number. driven that. is, our in strong alumina What driving we the direct on total I'd is plus that on we're have point aware high-quality the of nowhere driven to deposits would we've that it. deposit them. our say adoption the pretty

the And so related the to way fund on in opportunities we the the own two, have be marketplace. to our loans; loans have we that last to our deposits be opportunistic could today deployed one, are that quarters; several

obviously There sector And growing can leverage businesses deposits would medium business would also. including entire deposits, well. being loans medium leverage several not today and in and deposits that from businesses we're in small we and are that small require as

the they for today, a return can them to many drive are ways great than we if in we significantly our get company. are deploy higher So point other to the many, that deposits

of next comes question Piper the Kevin Our from of Sandler. Barker line

Your go line open, now is ahead. please

thanks And for my morning. questions. Good taking

of In over several or companies for how Could seen late And you. versus held a the Your quarter about fee the net relative to numbers. trying to between start first do balance has due market rest interest tremendously Thank the year, versus last securitization you to just talk for to sheet the deposit driving investment grown with see year? tightening gain growth. we've strategy? differences back on held-for-sale to income about how you partly income? potentially in particular, come think the balance I'm you sale that 'XX the spreads some the

Yes. key the we for in inflection of points remarks Thank prepared the release the and question. in We a that noted you year. couple press hit

One that of inflection points the NIM. biggest our is

Our a able getting and of now the last five margin deposits lending cetera. fund our over big noninterest and bank through use license to of the was greater It pretty initiatives to is our recycle being revenue sales, to a that's years, lot one than reflects net quick not that cash and interest which loans revenue, et milestone. the have

recurring the decisions and make So at long-term hold more revenue in And look luxury stream loans sheet the the balance able longer to margin. being generate look we have our marketplace, been to we've for best we've of returns. able net that's that, and from as interest that done

sector. as a You revenue to should expect the in and percentage of lending dollars the total NIM to continue grow, both absolute in

The profitability visible, fixed should get it choices that, which business, the based the noninterest making quarter, milestone to grow. to to luxury to -- QX, non-interest income the another in cost fourth at big on for we But the contribution accomplishment lending have best were attributable It is we that a income. revenue able the revenue on expect sorry, is directly year, more were the we basis needed stream sale revenue but NIM you of gain the in continue the of greater than lending consistent get that's to full than second more marketplace. was big was able the meaning the to

terms specifics the talk holding. versus Chris loan of whole about versus let sales I'll securitizations in

Yes.

in overall warehouse at and the attractive cost relative question. we're have of improve funding November, year. we securitization term an of continued first terms a of the market, Back things month to this market in to expect in XXXX, ABS where in actually did be cost that In to deal seeing highlighted we the the exact in same you $XXX million your trends

So we in access of to be rest to able here the year. expect the that for market QX and

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

now open, ahead. please Your line is go

actually sold you that, personal during a period and as And well? portfolios actually as the can students? did you what maybe follow-up any the during buy about So quarter in to you talk

Yes, I on can hit that.

of securitization. sales did securitization, up deposit that million in the terms million so total. $XXX loan and in ended term and We funding, So warehouse predominantly $XXX funding about for quarter, sales relying we million the term about worth on of whole $XXX

In time. large much us source ways I growing period loans terms and flexibility pay longer us them, that our originate allows provides go last of a the We bank having we or the the are more purchases, to grow marketing of out a loan for can said quarter, hold can with sheet. balance loans. a sheet upfront an loans, on and the base, bring funding There during with and balance new which can we a of deposit like costs loans the and and few to purchase

the years they were then of Overall in quality And coming hundred net So it's characteristics, loans securitizations the and similar opportunity was opportunity of given knew did buy course really for consolidated underwrote. the normal profile also cleanup seasoned some had were of we as cost loss to given interest on what these borrower on seasoned. jumped in from of And quarters and the the our had few refinancing will to several loan strong space, time, in they our -- we were best, that calls overall funding. up set QX, credit This us dollars we QX. were income a about we the million some we size originally return student loans. all half that and we

of next comes Eugene Our Towers [ph]. of from the question Simuni line

open, please Your go line now is ahead.

from guys, Simuni MoffettNathanson. is Eugene Hi, how are you? This

the the your to you that high the me swing XXXX? to three allow would from call, say, go outlook the was question be to are for helpful very two you that What guide. But end the wondering the here top results on have could swing the would factors Chris. things of let's factors, that to XXXX, or looking in I guys for Quick back

underlying a the both prepared and Chris question. in Eugene, out thank for you micro. the some remarks our of -- There's assumptions, laid macro

a forecast and our low of X.X%. we as a we than as a implications, decline conservative have. we On the have growth, have stronger our And so a, think, that's number GDP, economy side, macro not for what relatively dower i.e. about we in GDP

sells Unemployment, coupons, have profitability had sold even at loan the I negative, And well the as make be tailwind we about comes NIM pretty X.X%. more would than relative than to outcome. worse could interest up if that, optimal as it a That's coming if as back X% and then can part a to to than curve passing it back range, we be the that a the at came per think good deposits of relates rates in it would on factor down X% X%. a and then on an X.X% could rates, in peaking we Xs. be If we that them be our

bases coming have Separate more sector, from many that, our for the But clients -- diverse. there we really large consumer platform have more are pipeline existing pipeline. second launched user a importantly, that And technology robust the partners those It's in of members sorry, from become we the in board large or in the bases. XXXX tech upside extent on benefit year, can to the from sector. before those half that

As lot upside we services of really a it category. sector, have I financial believe in relates the invest the to

selection. products, the make we're innovative receptive table differentiation We that launching sure launch new base, quickly products some member user we able if it think I have could also those And are a to be tailwind. that to some but to base more and a stakes

if a sole could We the Rivian invest be tailwind can the opens we new for IPO to back is IPO. up, channel the retail that We're IPOs. participated the in distribution Second thing bank. underwrite market

prices. IPO with at IPOs and Street IPOs -- access Main uniquely those want prices We're to and members providing IPO to IPO prices. access Our

and To the assets of the to extent monetize calendar selection, because the a they want us as we opens product well, drives management, back new more. by there have but drive it which that incremental users also unique allows adoption more revenue under which with helps both up, pipeline

are us trends when Chris... those some could we the of pass So give to tailwind over a underlying that

credit other thing that, to minutes I ago would Anthony, around a I back comments one of only Yes. is made add spreads. that The few the to

January guidance, in throughout continued elevated So we're the is have life. some expecting to showing looking and seems what signs see credit to I be tightened implied that mentioned pretty things ABS of in good and market spreads the are Obviously, year. our spreads and

in well. throughout So upside if be as business continues year, that additional the could there the lending

of comes Our line the from next question of Merrill Lynch. Mihir Bhatia America Bank

Your line is now open, ahead. please go

Good ask I questions. the about wanted segment. morning. And to thank taking my Technology you for just Platform

like here, you of in bit Thank on the these implications introductions of much think not just cross-sell bigger also basis. of that some clients clients in change sell, of cross existing it some in are from the strategy that come go in some new biofuel of -- to with that winning of, Sounds And I of curious as and about existing but new going segment like maybe large focusing product cross you're after your little segment, is how was strategy? quality What to as refinement clients from partners? or terms you. we versus growth a

I it think in you refinement for the And the you question. a strategy. it's Thank characterized that of appropriate

head operating in Now marketing Technisys reduction. synergy Chris United does there're we some States. can especially both mentioned have the platform areas savings, and small is when on in unified that which why with drive cost But and count you go-to-market approach, that combined we're Galileo, also like cost that different savings the one leverage unified

tech We capabilities. maintaining the platform X.Xx. we've We've that, while over to away headcount on-prem increased the this the year. by in years. made investments go on-prem significant moved now cloud In addition three really last The will to

a at adding been new done XX-plus great partners. adding partners We've job year. also We've a

the at focus look to a capabilities. sit, for great well-capitalized installed our we strategy that we companies is year the think platform and return we macroeconomic the that As know bases, companies we leverage durable with environment on where make and get we'll to or large transition right the can

approaching the so year. that's we're And how

expansion made, that we leverage to time, investment platform meaningful start to we're growing. For still and margin the we're have tech in first going the to but we're investing, still

the invested that me expect we'll let of fruit to example of we've you year, some in. this areas give investing we in And bear keep and an that

diversify our out the ACH just product expanded type to of debit category. wanted or in of products BXB we interchange foremost, a and First

have are We that BXB revenue a new of partners number generating today.

medium it payments and using are Some receivable business for and accounts small some for are payable. lending, accounts and doing simply

big a well there's et pipeline But good fleets of other as partners large have economy cetera. companies, as that

to consumer-facing tried building for the In products out channel, we've more to BXB clients. addition add also

of as adopted Card. the been that's And that we Secure have one products so

launched fraud is we've a protection. more Another product that recently

way think can, you and As scale actually you have may to data about models. the may fraud, they of have the Galileo, some drive and of think partners about in not have that the the not fraud the scale we that of they invest we to those

so we've our that of a piece of available rolled fraud make out to And all want platform X partners. we to

If they issues not their fraud, when have we solved. actually servicing can saves they reliable, overhead allows that to help the better losses, makes do eliminate more but their service it customers hit them them also in and be centers only to the reduces in it have have SLAs call

type a bringing it's So major classic your of product. foot footprint,

drive help to addition them we're engagement. things will focused that, In that on

both instant more you'll to the switching launched engagement. a we've money movement first launched product our like drive for. if high us of funding customer is available for very score that of FICO do them That we another continue better of see just And our that and our for Galileo, partners many playing you same the at high and We're any at are about high-end Technisys are. and SoFi, Galileo we And not income. direct are which product to think now is a makes Things the partners. last, with deposit paying segment partners. more product, and faster on So vehicle then

or is wait the can a the our them is product we've innovation credit launched unsecured we to and a return Galileo's into does we're partners at have better card, partners. Most revenue higher with at in or that interchange of Pay-in-X the it unbanked product compared underbanked. some turnkey X% that It secure fashion about loan get think debit. example or bring of card risk much in actually But be in much with what a for so driven A scale market a another against. on that it's than and that generating cautiously we X% to a now with can of we'll

now the It's about both uses model that it's on to product thing so choice speak. and of has continue company touch is is talked I'll all before, as we've adopted, rough, well. complete to be and SoFi did that's AI-driven on RFP And the we for choices the SoFi Connect. service customer call different partners to And our best last to one after something It's and we'll the in in text. but diamond an not it's think product and a that our Connect voice the invest available that that a determined

technology relates is geographically And to imagine. could that our opportunity the the platform say thing about expand where strategy you than to is last bigger I'd the

investment. LatAm more of really Galileo's is products. especially to our market, XX we're in a area pace the focus, there's And of Technisys our of cross-sell penetration lot level markets, have than We within while which geographically not expanding with today, helping,

line Dolev question Mizuho. next Dan of of comes Our from the

now ahead. is open, line Your go please

in. just quarterly of squeezing you. and me Can through, mortgages, the maybe sort particularly Thank on Thanks kind how three student January? some trends give the of end for are loans loans, metrics, things Great results. say, us of you personal trending

Yes.

the So thanks, Dan, for question.

in levels So we on as to guide, the it right we expect our are I mentioned we But the saw QX that trending in QX. specific views how run at January, is, front, aren't providing on be now. would loan student existing things what and rate say through

personal things are In progressing. loans,

direction. last the fulfillment issues in those side, don't progress As in good loan the the of in of business, And it's two but lot respect course some add about then on that we've over made a to things of one we would we're home are of headroom the talked I mindful Anthony, there's expect, really being that there? anything if you'd know some months previously terms trending right to and credit. with three have

And throughout did leveraging say on my that. over like, remarks of last marketing we're channels. we year, a work started I lot the year, benefit in the on the we the life I Dan, trend add, new two as strong product in seeing messages, only growth to the to in QX. that. on The fourth a I'd efficient of prepared we and continue channels, was and quarter, that marketing see we feel it culmination the most marketing member saw iterating of continue as thing constantly years, And the and other -- cycle We've, Yes.

of but about So rate those product and as members just the in products, as not growth great of members addition in cost adoption to quality acquisition. we feel the the well really

Our Ashwin comes Shirvaikar from Citigroup. of next of the line question

Your line is now open, please go ahead.

Questions affecting guess, factors you the of transition? in on Congratulations seem months mentioned line, impact? But you. results. fulfillment And investors this Chris. expect have to two, good, that Thank partners. been time just timely terms what's should up, what the has process on of been the three come last few new financial more to quarters main and It's be, the a I a transfer

that of great just do was loans. film partner to funnel. is here, helping -- the after the side little do of had We all the the top drive you And a We that. bit success history on we drive the through us partner steps the equation. demand marketing the with underwriting the for to a And at a fulfillment the we that, give partner back-end We to locked. get of the loan all the after Yes. do

which We economic as the another that entity rates economics partner. we That changing, platform new was had was and a realized and that relationship the to we switch quite needed acquired. acquired got required And partner technology became we unfortunately and were ultimately, with company, was seeing onerous make costly increased, time-consuming. that the then

diversification. before We started pursuing quite other just needing frankly, acquisition partners, well happened that

fast-tracked hope. to. transition to as happen needed we second partner we that And would we transition didn't so as quickly That the

I will both right seen I'm time-to-funding to encouraged progress but the last the ability has We're of the flow, nowhere XX the process you, members progress the direction we've to the months, hit time for more have in integration, than better. team while. first in perfect, the move made, near we we're in in tell terms and starting there last a metrics months, two technology in and the the serve our by

gas half in overall gas first year. to we of a high-quality it way. year. economic want relates of fulfill starting is can't gain to start team year bigger to the In was really positions demand. half because business, would the the the demand start of that ramp executing that can the And a point, the the clear we share more frankly, market We've gas, had as our generate But by than we don't it on think to Chris foot strongly that the think, the half step year way it quite I I stepping we'll in the bit about a see much will to the of pretty there in the there. saying off on to second be us on I the think more throughout we're impact a where little terms and second get as

there's I rates, there such us revenue to a interest have higher being think as huge opportunity as market profitable. for small a share. drive Even We with well that revenue

And benefit on risk. see well. fraud, of glass, and pricing, so testing, In our on thing to gives we own addition iterating, from Technisys SoFi we in to on the businesses, similar user having owning advantages it such lending at same the of credit, as Galileo to on rest do, Money, want some the to that, speak, on and point, now end-to-end. us on We metal own flow, to on

we at and where our emotional of point, And we back meet of partner. is focused term. also. volumes, we're of especially members, always so on to a transaction huge own transaction, and for and the two have It's sources aspirations some end given in We'll It be. could we'll think needs big to is capacity, that's need be the to it our able and It all great home this our long scale financial members. how

Jefferies. from question line John comes of next Our the Hecht of

please open, now is line Your go ahead.

BXB in and you Again XXXX? in opportunities the guys how about my talked on also estimates uses you of up. starting for about and you and change members do [indiscernible] and Thanks terms in taking live customers And question. members. any marketing think And have

your to about that muted was your really in was connection. BXB it to question that. a something question. it heard John, dial back after I don't better hard what guess could pretty I and you just want hear Maybe was. with

this better? this Is guys, is better? Sorry,

you. Perfect. Yes. Thank

you can sorry, I'm now? me hear

you. hear Yes, we can

Anthony, as BXB bad. I headphones are Okay. activity. The question my you mentioned just, was apologize

clearly anything you wondering, channels of customers. in at momentum still new from that acquisition, perspective? given look new changed XXXX? cost from with regard You acquisition, do very your have has members customer guys positive of I'm there and opportunities And how customer characteristic a the

Yes.

in SMB longer with the that's the I term that to market. the an serve of an type it's aligned do believe is plans acquiring target. We that XXXX for So member opportunity, we're We opportunity our think, enter really over core opportunity market that don't have in us to well.

it's you constant checking we get medium a small to and media, medium If business any and launch business lending. savings, us people on follow small requests from social that

are demand, us the leverage trying were that many period, SoFi an a to PPP loans. a When is that XXXX allowed the the did very clearly small to traffic a time. but We commercial were tons could happy website now March realize us That lenders. very lending back to that The of go with we we area apply our into, operating led them side time serve and on small, was have We we of coming started have take to stood people license. businesses at in as traffic And lantern as came don't medium point medium a small, that up and small that send of business and businesses that could that to pandemic in -- medium banking to medium it to first for of it. we result well. SoFi that, inundated with marketplace members on we the

not second that our opportunity of focus mentioned, it in that could I right went it's in we other us. review If say something the so it's on student We'll say expected, would in things than XXXX. of same. that we now, market it's economy would half But the some huge something way the but not and the loan back list, I and the as be on may year. every it the never do a came But sooner forth, for funding the quarter.

sure willing more capturing products on cards, side would and we the grow The too and been big, if asked only in reason the was, deploy they great earlier have. and excess make high-returning we're to loan of loan great of we're earlier originate what I home side credit side mentioned it SLR If what personal problem about grow deposits be that that we and had -- to a offer resource to assets. would asked happened question deposits lending and to against they

the from of [ph]. question line Perito comes today Michael of last Our Stifel

Your line is open. ahead. go Please

as healthy a guide, forward? Good are thinking or lot bank bank have But to that just for projections, how and you just in curious thought my you morning. can to XXXX. hit of have baked morning. to run you very done some a kind guys imagine of reminder ask guys growth capital this you where there's already sheet around on I just of still maybe where guys Thanks taking capital you obviously, context kind I'm levering ratios the the Obviously, question. today. of I'd some balance your in us how compares maybe bit the want the Chris, in of give XXXX normalized you going

Yes. Thanks, question. Mike, for the

So bank, at the I'll but balance provide guidance thinking insight a sheet it. least about on of bit to I'm providing side be we're within on the not little going how

capital. $X capitalized we've now, right about the So with bank of billion

in still that later the a call currently at our XX% above out operating We're regulatory today. is leverage report limits. significantly bank ratio, comes see about that which You'll

continue to So expect as lending see growth do we scale our sheet additional business. to we balance

loans home growth relatively modest our in refinancing and expect in some in student then growth loan muted the business We and loans. personal

the the billion off to and only balance The I $X we bank. year at as being bank are only of in the parent is would terms that well. we've in thing coming capital, over to of add We're of that grow deployed sheet XXXX $X.X billion of able a sufficiently other raising capitalized of

and that to. So the we if we have liquidity excess could sufficient capitalize further we wanted bank grow it

side yesterday But and at cash you And $XXX a were when the balance on that that at something look the of as about add year $X.X look we trend, thing What's million sheet cash you would and of the cash only I is look of a you doesn't number our finished at not lot attention. and equivalents, billion team cash asset is and that we our talking at the to of in cash. restricted approvals. get

some the there. And a have there's of you on deploy we speaks somewhat we'll continuing need confidence to loans or equity increase, either line loans investment of and put of what that the give more that liquidity of that And in measures the funding bank which to more trend securities well we the grow we that we to has $XXX if one treasuries can government only or combination important able fund continue against is not -- of as been bank. to funding about to it's which being equity level said, then we have to a a million. but that the as The securities,

million period, federal I Thank an to so of time end the receiving unprecedented humbling five-year it's to public adjusted billion a and want EBITDA, X.X bank anniversary of becoming and couple members members such comments. SoFi, negative million Great. capital, dialing a billion million very marks just in, of $XXX less $X.X end $X.X revenue for plus EBITDA at we've my license. XXX,XXX during of raising at company in than a to $XXX XXXX, you and what from to with growing February achieved

another, near potential done zero is To of a a the recession, pandemic, two cost XX-year rate in significant incredibly through for and have with cycles, global remarkable interest five-year all that to capital environment an access of high a a with at run. inflation competitive

relates those of very our of lies for have full though, political And ahead people factors that our resolve without background, shareholders, ahead, outcome strongest But extraordinary. this, Board regulatory simply that that it done nothing the unrelenting are to control, Reaching out the steadfastly the to of Many takes the background can achieve. company, on as in be uncertain. what be what a the what my lies and team future. persistent of I of SoFi faith focused about we prognosticate rates, best economy, our view, our None exogenous and what short remain sector continues the is we financial but winner positioned digital control. services the of to will in the the belief and state happens the and my remain interest to most

talk you. results. Thank quarter With as that, thank you as our you full quarter. year for to fourth calling next in XXXX and results our listening to We'll well

day call. a today's great and Ladies ahead. gentlemen, concludes Goodbye. that Have

You may now disconnect your lines.