SoFi (SOFI) 30 Oct 232023 Q3 Earnings call transcript

Good morning, and thank you for attending SoFi's Third Quarter 2023 Earnings Conference Call. [Operator Instructions] At this time, I'd now like to turn the conference over to our host, Maura Cyr from SoFi Investor Relations. Maura, please go ahead.

Thank you, and good morning. Welcome to SoFi's Third Quarter 2023 Earnings Conference Call.

talk CEO; results and to are recent today Noto, Anthony Christopher 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 advantage and products based risks and macroeconomic involve financial but conditions our statements These our forward-looking to,

Our from forward-looking actual those contemplated statements. may differ results materially by these

could statements as today. with Factors no Commission filed Exchange are our We new result SEC, based the with press make these most Any that upcoming in and this made and on Securities XX-Q. statements as are cause undertake information materially well of future including results our these to on release a as the Form described as as update differ that we recent assumptions our events. XX-K of Form or to filings today's forward-looking obligation call subsequent

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

you, morning, and Thank everyone. good

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quarter to our results. With that, let's third turn

record segments. revenue consecutive and business our improved quarter across with of quarter three of adjusted delivered all margins growth strong and at SoFi record tenth our consecutive The We EBITDA. of third revenue fifth diversified quarter marked record

profitability we and adjusted high for while first, growth of our for consolidated new setting levels Among highlight our two our the profit milestones: to in invest our even are second, three segments compounding bolstering quarter, while the businesses, our net and ability come. in was achieved specifically segment maintaining all results the to Services goals our driven years Services operational time, achievements difficult continue making first also profitable want testament to and or by revenue environments financial overall Technology our changing major segments; XX% non-lending while in Financial Platform to financial continuously notable These reported records. contribution Financial aggressively positive rapidly dollars absolute to I overall ability for of a outperform mission and but deliver to and on discipline our the

about quarter's revenue consolidated include third I'm incremental record year-over-year. $XXX rose a notable XX% a net excited represented of XX% diversify from record and million, to million, this share adjusted few achievements. we revenue achievements three quarter margin the margin. continue composition. EBITDA XX% financial Adjusted $XX importantly, And the and revenue all key more recorded A to of segments

last of million quarter. a profit XX% at $X.X positive $X million margin Services Financial Our contribution versus ago quarter loss segment million a loss year the achieved a in $XX and

in a and segment ago XX% QX contribution of the XX% in margin had Our Platform versus XX% quarter. Technology year

to Xx than Xx of expenses. expenses points XXX is grew net million, XX% greater nearly XX%. was year-over-year lending segment, attributable basis now revenue directly $XXX In million. to by That's our to net XX% $XXX net income, contribution our more margin our improved our Segment nearly interest adjusted interest nearly Lending of say than sequentially income which

year a margin items, share. was versus in and Earnings goodwill $XX.X in $XX $XX just million per last GAAP per of net million the loss, onetime impact At impairment the of the loss resulted excluding income company quarter share quarter. of XX% a $X.XX ago million incremental excluding loss level, loss

income margin, million XX.X% follow. for GAAP QX the the remain overall in SoFi $XX.X GAAP of reported We net on representing profitability at company on XX% Bank for well by track a tangible years and annualized equity. that turn

a From billion by nearly quarter our proposition record we total continues in billion perspective, in sheet $X.X of balance deposits to high-quality ended that unique the fuel SoFi and increased value deposits. with a sequentially, $XX.X

deposits more are from XX% sticky customers, XX% of than are our consumer direct deposits insured. of Importantly, deposit and our

excluding Our restricted at our liquidity cash strong cash, remained equivalents, $X.X position. billion, healthy and cash reinforcing

the XX-month growth. added of tangible XXX,XXX tangible grew level. to X From record We we QX value value product new trailing million bringing book On year-over-year $XXX quarter at consolidated a and we in by in in growth. generated members members up a nearly total $XX million, basis, acceleration 'XX, for book perspective, and a consecutive member the third million XX%

per XX% products up reinforcing and existing Services products Financial by ever at end, in at million growing of quarter $XX.X with the total acceleration of by Even growth end an year-over-year, members. new grew X.X products quarter Services. $X of appeal X.Xx, members, year-over-year additions rapid both this at million quarter while in highest year-over-year. record XX% Our of by adoption our Lending of member products multiproduct were Financial overall million to remains products over product with in and also QX brought XX% million Lending suite robust X.X product

I a progress am these incredibly proud march name. achieved accomplishments on household to brand SoFi of making the our and

of and money executing continues as key to helping grow the truly customer right. brand viral improving at native events campaigns, Our successfully a marketing result get driving SoFi Stadium, by bolstered their of us result awareness people satisfaction, word-of-mouth

XX% XXXX. the its like increasing continued a originations payments environment some total The challenging Within of of QX and revenue net loans, year-over-year. as up origination Lending ahead purchase to QX $XXX up expected, grew level year-over-year million maintained record on and 'XX. quarter from XX% in spend results refi. originations adjusted highest of demand loans, segment Student loans XX% for some despite home student time touching since rate resumption and personal loan business I'd were the our the saw both of XX% Now sequentially with trends. marking strength quarter

We fully grown. of our cost drive interest resulted to leverage and Services and net on both our net Lending This interest sheet deposits bank continue in benefits Financial strong sequential our greater expansion has lower income license in economics have businesses. to as margin balance the

cost deposits by and were $X.X net the As were of of billion the essential in of loan originations deposits, of quarter $X.X most XX% in in growth in raised loans funding end of and $X.X total our QX, over billion our new billion funded effectively. our the

remains $X.X $XX billion capacity billion needs, of $X liquidity total of with capacity. includes equity over in and loans to deposits, which fund capacity capital of Our warehouse over billion robust lending and meet $XX.X our billion

as the average led in growth even bank account to balances increased. products, to contributes spend of SoFi high-quality Money This has Lastly, great higher deposits has strong and engagement. average levels

products year-over-year SoFi increased to XX% Money have accounts. nearly X.X million

the a with $X more year-over-year a billion billion accounts this X.Xx represents deposit And XXX on which day deposit transactions for and quality direct setting up in ample had debit than Given impact volume. FICO expected, our members has annualized $X of significant account exceeded direct XX. as spending, volume, by portfolio, up debit Money than newly primacy, opportunity are quarterly transaction see median these of funded cross we for XX% More SoFi of of buy.

segment year-over-year Chris still grew spending Services is broadly, to continued in sequentially Financial Financial despite within by which impressive the detail and the we $X.X credit net in Within million, revenue strong profit across invest. What more XX% cover in driven Services reached XXX% most is card million more and contribution money, monetization $XXX significantly segment will later. that

invest significant over at run $XXX are in million annually. of well still rate Moreover, investment the credit mode, card and generating a businesses losses heavy

to As profitability, see they order will positive to with contribution SoFi they we achieve similar scale eventually acquisition Money. in how delivered profit variable

products. our of key across of differentiation one is points our Selection

During level investment unthinkable, were we help X these to such field including to member our IPOs base. investors working to onto in which high the IPO IPO. members bring Providing once IPO, at the initial Oddity IPO QX, are people retail and was we Arm while access is offerings in Instacart awareness our playing just demand quality increasing our way brand helps for differentiation public delighted members. the another growth and offerings, and see participate platform prices, the enabled We growth. to the This more in member

For of growth Platform, million of full $XX.X X% year-over-year. revenue in our Technology slight segment saw acceleration a

into existing from products a customer traditional and streams rate growth continue in greater vertical QX segments with existing among focus along and growth Importantly, partners product Technology as as with with contribution on to the expect new noted prospects. accelerate to the platform large year-over-year previously, diversified institutions, includes durable overall partners. Tech financial more BXB and increased growth geographies new revenue revenue we Platform growth in Platform's the strategy bases and with partners adoption such to

QX, made In of against an generation revenue growing this Technisys customer significant to majority strategy offerings startup, existing of portfolios, signed along bringing with Tech which time Galileo new expanded customer clients to and the much Platform joint a and base. into compared bases with combined faster drives strides a opportunities pipeline selling

from traditional we've that new financial robust demand most the seen. The and institutions is categories

envisioned in and it the long, playing and months, integrations modern real not While quarters, processing their lead are transition modern winning would. the many is RFPs way in time measured for out we times ensuing to cores

On sectors. account side, solution, with launched introducing to a expense and in products the ship credit We to designed nonfinancial a credit product and financial limit. a single multiple modernize we build a of diverse is both continue central corporations corporate for range by which management

now, their innovative expanded And it clients, addition, card Galileo to form loans to offer of the joint the offering great a third, debit of allows In program example for Galileo business that Technisys lenders capital credit small users allow working later scores. we've pay powered launch and an of a improve capabilities. experienced buy as to our

geographic our a received to certification provide payment perspective, we in countries. and X From services cards LatAm processing new Mastercard

see Galileo AI-driven partners SoFi. contacts well clients and which and as digital great assistant, well the services our intelligent per ecosystem we entire Risk just products product to as new existing has financial been as our for language recently in stand-alone updates customer such Additionally, faster our not contacts continued as customer reduced launched have Payment Platform product, natural Konecta, to provides as resolution of which

by X how to I'll finish of your year, critical blessed one-stop shop a in all an team's such ability making members million needs being for our great and been vision X our have more amazing that become reality. I to than persevere in feel could relentless of first importantly, not services more so execute the record ability the I our and the results. financial but financial not industry volatility am the proud of deliver through the just disruption saying of by to quarters team's here

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

the strong through industry macro highlights Thanks, to financial key we great quarter a achieved walk across adjusted on headwinds. Anthony. share for our and rapidly with you Overall, services revenue with the growth going quarter had We record business. some color entire EBITDA evolving despite a and operating financial in notable I'm trends financial backdrop some then outlook.

to be results Unless third quarter of of referring the adjusted otherwise quarter third versus XXXX XXXX. stated, for I'll

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

from of of For the was XX% lines. strong record up across we of delivered revenue $XX leverage the sequential million margin remained million, quarter, X all and at of record XX% sequentially $XXX top also margin, Adjusted prior adjusted year-over-year as EBITDA the $XX at significant record improvement, expense net over million. and year-over-year second X nearly This $XXX quarter's line million. demonstrating X% operating ahead of represented points functional quarter an points growth

with XX% sales fourth declined In QX lower revenue percentage marketing points margin basis year-over-year. this in resulted net a a 'XX. the quarter of marketing incremental intensity for adjusted fact, Overall, adjusted relative XXX to and as consecutive EBITDA

is This increased XX% made expense efficiency a success you a decline in as productivity all versus base last function quarter year-ago monetization decline of well member, per this at marketing new investments quarter Financial saw segments and If marketing of and our and a the versus member XX% loop. Services of our as continued our operating in of quarter. look improvement

this losses were million Our GAAP quarter. net $XXX

stock-based impairment million, onetime $XXX is saw compensation $XX.X revenue in million improvement net would in We year-over-year to versus been XX% period. which the million, expense SBC notable Excluding dropping $XX adjusted prior year-over-year. of XX% year a have leverage net losses the with of

noncash onetime to book the grew quarter, GAAP to XX% value, in income $XX $X.X achieving GAAP is margin incremental net charge have on We expense. Our billion. tangible a income This excluding net that remain XXXX. has been committed profitability goodwill impact million for by which would QX impairment the no

$X.XX of In a when terms EPS, impairment of in to to our equate onetime loss of would adjusted $X.XX. GAAP reported exclude loss expense the

Growth versus average XXX a increase X.XX% resulting basis Now all net interest asset net quarter interest three a margin where growth in expand interest-earning XXX% average income segment net interest point by million. the in by level XXXX. year-over-year segments. we net growth expansion was net in revenue XX-basis-point average performance, on grew saw driven of in to our across was quarter, income, and year-over-year a year-over-year XX-basis-point driven Lending, to year-over-year QX the XX%. a is XX% assets year-over-year strong third were year-over-year while down which a Results XX% In in importantly, interest and for income yields, increase $XXX an

our highlight the on I'd balance deposit balance period-over-period. sheet in growth has interest to and net margin of a of resulted between XXX our advantage cost $X.X billion collecting compared net $X.X With and this our holding points sheet the has facilities, our of on net deposits savings and the loan underscored loans meaningful interest billion to benefit the the warehouse of quarter also growth basis income. in

pass very funding rate will XX%; result maintain deposit on move continue north expect healthy originations. mix we for as continue which margin We funding, a benchmark the things: to loan of first, to to new of second, interest increases currently net toward is and two will of

to which unrelenting and XX% On grew personal year-over-year the strong to of underwriting against by $X.X record our year-over-year noninterest XX% our focus three were driven from all stringent side, QX billion, even products, business originations billion. income we X% volumes standards. $X.X in and our We performance loans as sequentially credit saw grew continued

tech ahead saw of basis XX% grew and sequential resumption to student origination $XXX year-over-year Our and of member grew the continued has into Capital, despite of Wyndham this the year-over-year of deep allowed loans growth double headwinds loans expertise payments. us to our And Home early stack stems business fulfillment current XX% from million volume benefits which a the and add fulfill on notably from demand. integration rate the sequentially. environment, by better

loans portions of quarter, personal our and portfolio. third the sold loan home In we

XXX.X% an sold we weighted of of we a at In execution home execution loans sold in-period loans sales terms levels, level average at personal XXX.X%. execution of level and

XXX.X% In personal and of purchased a addition, similar $X levels. flow for same terms million last billion week, the that execution partner we who to executed a we $XXX execution to partner sale in QX, personal agreement loans forward at loans agreed at a with same

is securitization to with in execution discussions BlackRock also are including mid-November. million managed and We funds and in respect with the accounts by a $XXX at market, favorable to that close levels, expected

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

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

below levels. Our rates charge-off and and healthy still are rates pre-COVID delinquency on-balance remain sheet

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

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

million We a delivered represented industry a $XXX XX% million from levels. continue which to business a contribution year to $XXX of broader margin, XX% healthy up very The performance expect profit ago, margin. at relative Lending

margin, primarily our made the integrate in million, of was to account Technisys position Tech and growth as in The quarter-over-quarter to by X% quarter, to to growth X% $XX record of and contribution for rates we a delivered $XXX net Annual Shifting and million XX% delivered revenue year-over-year investments total. going representing Platform, profit up up sequentially. higher Galileo revenue million the durable $XX Galileo we where leverage significantly diversified segment segment a of growth forward. driven

revenue the prior leverage QX as an expect segment strong Platform We we in see margins Technology investments. ongoing to acceleration with

as versus service. million year-over-year, continues Credit where Services, new revenue Money revenue Invest up all-time and high XX% member Financial Money, annualized to and $XXX and strong monetization on revenue $XX, and greater continued higher Overall SoFi increased and contributions lending improve, year-over-year SoFi per deposits in with Moving a to within of Card by for net in SoFi from with and spend. QX Card sequentially, SoFi spending of in stability driven $XX monetizable Invest features product SoFi up and AUM X% 'XX, levels nearly Credit XXX%

and SoFi X.X We Money, products Services in up X.X in million the X.X nearly in saw is which reached million million we XX% the record X adds, in product million Invest in Relay. SoFi segment. We products year-over-year, with new Financial hit XXX,XXX quarter, and products

time, million aggressively to 'XX to and we while reached attractive positive and For for opportunities segment in This segment we rapidly beyond. against to QX positive continue the this expect continue contribution $X.X first this the with operating at segment contribution the is returns. profit invest in ample grow quarter,

to we capitalized liquidity. very cash well with and ample balance remain sheet, Switching our where

ever, with than cost a billion $X.X and to Bank relative of strong us lower alternative growth flexibility assets both balance capital a our in of reinforces funding. SoFi result to loans. sources student by of access more provides Now and as personal In sheet grew QX, strong and more

liability $X.X billion of versus we reaching deposits, continued billion, $X.X the in strong sheet, the sequentially side growth quarter up $XX.X in balance prior million On $X.X the in QX. billion and

warehouse of highlights in other versus quarter strong This facilities. we billion particularly Because position $X reliance growth this that we warehouse are with loans exited the billion the efficient funding loan portion lower quarter, deposit $X.X by on as that of on liquidity of of consecutive deposits our third our for funded more in market. sources note this, growth and costs drawn to Important capital. lines a outpaced further resulting the ramp

capital last of demonstrated ratios, total regulatory our we In of regulatory of have the XX.X%. quarter months, the of terms of our XX.X% of the ratio the capital minimum comfortably end remains XX as Throughout as above sources high-growth we multiple scale focus underwriting the of high having high-quality leverage on the revenue a operating degree and a benefit credit, diversified cost-efficient streams, capital, business. a set of keen of

forward existing benefits of in those to the persist expect backdrop. light We macro going even

million expect $X.XXX of XXXX million, XXXX, prior of of above above to billion revenue full $X.XXX the $XXX to now $X.XXX billion of our year to billion, $XXX we $XXX year to $XXX full $X.XXX guidance and million. of prior our For million billion to guidance deliver EBITDA

full XX% growing incremental to XX% net represents XX%. For year, a expect this adjusted margin XX% XX% EBITDA XX% meaning the EBITDA to despite drop at more than revenue growth, the we line, bottom to and adjusted incremental margin, revenue all of adjusted

of stock-based quarter amortization terms single-digit relative In depreciation fourth expect and high results. to we the to and in expense, quarter increases mid- third the compensation percentage

let's that, Q&A. begin With the

[Operator Instructions] Truist. comes Our Jeffrey first question Andrew of today from

personal some you to arrive how sheet? marks wanted execution got the as I that those sell you loans Could sell. the decision to the loans to which quarter. or about for sort of on compare decision continue to balance loans, the great that ask you assumptions you the to you've the at in And hold

Yes, sure. the question. Thanks for

of originate opportunity still to more income is expenses are a costs what here Xx say and will the sheet nice loans. driving generating we to high-quality now up net segment interest high-quality continue directly that our balance and our credit built to lot would that see attributable cutting that's a of loans, quality So more despite that's I really nearly we've

plus optimal So the more point. I at mentioned, opportunity is the selling XXX.X%, these to this originate at attractive at that prices having

which portfolio basis despite the coupon book, on and the are at the execution how to down is XX marked where loans on sold terms quarter-over-quarter the overall is compares points average the In increasing. of we weighted marked book XXX.X%, XXX.X%, that the

next question Hecht from Jefferies. of Our comes John

the I'm about just sequences? bank at particularly student bank we I'm to student I'm over -- as kind you've few in lending got as lending the mix a too. growth do you're wondering, the growing quarters wondering, think of the NIM demand, reverses resumption still demand other the how -- of of normal next products, at and the the kind

best Yes, The hand based to we way in to the what's And a it's capital. favor. we're give play going I going going definitely is in allocate our us allocate about to it capital balanced returns. pretty good the have how think we on

As amount since the Chris really having covering last more net sheet than an bank, there. the our over mentioned, interest impressive it's years cost income. balance we've well grown generating of the It's X

growth In the in Financial the we nonlending, you that quarter, Tech from saw Services. drove from dollars of our XX% absolute and Platform from

I skewed of more think or you balanced that in expect trend type towards continue to that should nonlending. it's

to sheet As the a don't what reasons. quarter, in balance where slight particular, loan we think we trend student the I'd in originations we about been function that in the in is which a and we student we've exactly our saw in was about expect think the loans see say student of change business past. a relative We step for to bump loan couple expected

federal today. rate think savings a that the one doing I and of to rate higher lower for student at are a and rate, that lower getting they their we payment, student monthly borrowers than loan is their some then are loan current cost relative which to are others mentioned, X in are One, reasons -- actually specifically looking borrowers refinancing

as think we pay to climb steady a hit so be slow, having that And month people their will of bill. each

to loan effective that decisions. opportunity, before returns. prudent are to school capital home be very have be student allocate second then to that will driven The allocate to, student maximize loans. by in in loan And personal how school loans, refinancing loans, factors and the platforms We're now loans, capital X really it we going in being we

acceleration QX, of start tougher to It But and an the transition to as we that acceleration that I've in an months is most growth pipeline seen. the to and it's not and answer and the take RFPs, see see Platform. would anniversary, we'll made visible over is year we business The in other in integrate ago, will pretty well. quarters thing there I Technology comps that business mention partners. we'll The just in did that the robust a

Platform, Financial So really trends strong prospects in Tech in services. great

about as additive being So PL go 'XX. and we not SLR driver of the think growth to into growth,

And very are then a expecting the we bit we the healthy year, are but a specifically, only of add, in NIM throughout terms taking thing the to those remainder actual the would John, other I of margins remain of approach, that's in what's student of conservative loan as obviously, The for and and currently of various shift well strategies reason mix embedded guidance. result in pricing increases into a as our as a funds cost is that refinancing.

Our Mizuho. comes Dolev from next today question Dan of

Terrific one trends, results. fourth of a so end obviously health you terms your overall lot We're Really, about really October strong. everything I question. the on the into out you're of quarter? now. health, maybe sure comments Can at appreciate just in debate have talk lot some There's the I seeing consumer consumer. it, in of would you're I'm of that business. seeing overall the a of there

Sure.

secular existing our is share economic to taking cyclical at that fact caveat our businesses, with that are of majority relatively the cycles point. a comments as of secular or grower of not unique indication and opposed a growth growth the cycle, I'd market on we're are force. the the an but some us in to from this like my grower, driving economy we First, there vast to incumbents so Yes,

on a on spending because our also increased to We're continue our really Money, per-account new strong seeing adding basis, trends. we said, to That products strong not deposits. a just per-account consumer adding we're and balances accounts demand increase accounts. we're new really And for basis, just not see seeing SoFi

are those positive trends. so And X underlying

quality, of which direct diversified. they're deposits, not XX% our and insured strong. also of deposits remain the We've deposit our customers seen are means quality from they're high are just XX% but deposits

Invest our that, standpoint. base see overall member benefit to business continues to the cross nice trends our assets-under-management buying, from of there an and growth addition In from we and

relates obviously, we're for refinancing. we student loans, unprecedented an demand seeing loans. unsecured saw it As loan And to uptick in personal

we personal the to driven actual case for think student has I loans more the last report And will I same what can years. -- by that underwrite will the think decide trend which the for be X refinancing you the than been we say our demand. loan

We improve, quality. that willing we're higher credits to seeing strong and continue demand even in credits we're and reduce to higher the continued

And to would add that? Chris, anything so you

No.

Thank you, Dan.

is Bhatia question of of next Mihir Bank from Our America.

wanted contribution I to quarter. there. the the segment. saw of Technology margin questions a I this wanted to We couple a ask nice about ask there uptick in And

we trend? years? to segments profile And that A the the you Just be business get margin American difference over just between -- contribution modeling or margin some accounts Latin next in to Like grow in on done is should in more the the few account this big like drove as -- should this And in a a that what at revenue the then as you about account wanted period internationally, there details. U.S. segment uptick where is keeping what point? is this a a quarter? out in or investment Galileo side, mind we expect think

we Thank there which we're Chris of And and in trends demand in an couple terms overall we've will your you question. about I'll talk years. the are where cycle, of the investment that and the talk about talked in and leverage for getting about growth, account last

the would Strategically, Technology ago Platform a the within up years demand a we've that is robust as The have signing quarter each of away we of focusing on economic as be in through were market. in that to volume not private that survive just could could durable low also that high number from lack seen. the a cycle, and financing year, accounts larger the pivoted about X.X but financial -- durable more customers

that both with companies. we we BXC the BXB have, started as to customers build more serve to BXB are channel on durable, companies verticals focusing and out products In such addition larger that other the they

nonfinancial large In that have large addition get to that, much institutions customer and revenue customer to we but do focused time financial to bases faster. institutions have well that as on bases

but We'll that slope. be a on of XX anybody don't won't next start a number function. the to months. to steady nice steady there, step see the benefits it I nice, to a hit climb will be revenue want XX the It slowly, gradually over mislead

to in The well regional are dividends. strategic of And won of we're and next a We've months. incumbent piece the financial actually results switch business is financial that BXB. paying come of deal, over right really our both very will larger with a banks strong pipeline now, stages nonfinancial number institutions. bank as large the component institutions institutions, But one of their XX a RFP XX that's in as on

expecting there institutions so bigger growth as really are to their growth to to after upgrade a many we're And much prospects the under technology that started way new opportunities. in and pressure go through come

Chris let talk the expenses. I'll about

Yes.

of the as two expansion terms we've product the in we as and declining made businesses attributable this platforms. these saw to early development that and part realizing to benefits XX%, technological that at push of in due margin the the to costs is In investments well integrate

FX on as In addition, country-related maxing was other elevated a and in and of result few a as payroll a onetime taxes. QX from including few taxes out items, the of comp lower result and items. we for benefited benefits then a And year QX, onetime

in from be businesses with investments margin upper made looking as to to Overall, as term. performance continued the the streams. we're broader to to revenue entity far positioned integrate already we've margins the X can and demand so the profile clients mix near strong XX% in ahead, XXs expecting the combined leverage margin expect many durable you As of more a

comes question from Barker of Sandler. Kevin Piper next Our

also like equity sales. balance movements forward wanted grew some saw that. of but release the billion flow on just this will down bit, on it the And some up sheet, capital particularly of follow come loan a $XX the tangible million. ratios We agreement to $X seems I

factors, to if particularly over quarters, larger expect you given next drift flow agreements? sheet start the do to balance see loans of amount Just couple a capital of these off where ratios due we the to forward come

so XXX see you'll our Kevin, regulatory total disclosures is XX.X% above the basis our points ratio, capital that's XX.X%, minimum. in

will what a that in a specific providing bolster there outlook I is would ratios. currently aren't We tailwinds that of number are ratio, say help our capital but that

X QX. reach last we've row as in expect quarters value GAAP in -- to we book we going particularly have the forward, been a growing profitability a growing First, book value and for sustain

As value $XXX million of you months. the the XX of $XX last and book million course mentioned, growth past this quarter over tangible

have levels. demand that's we robust execution and Second, of pipeline solid buyers, a loan

prepared are in in execution. at forward selling And up have billion a we at my remarks, million As favorable we $X I execution. $XXX lined a favorable mentioned QX flow

in billion and And X, is amortization short personal relatively now. material was or basis then loans $X or Between billion book refinancing on business quarterly paydowns amortization the loan quite basis. size loans, an the on and in the third, our business student of the our particular, quarter personal a $X of loan duration annualized

while So healthy factors us to those going ratios. capital X to enable to loans combined originate maintaining high-quality continue are

mentioned our other fact that could we're as be conservative services we some well thing The to I I faster. way the mentioned a decide only that more within and they on and over the business that Kevin, of profitability I'd couple haven't of still add, call, businesses aggressive expense Financial in discretionary our the of businesses. yet the those losing some Money in segment. has million on in annualized an financial Services business is an of drive rescaled other That's $XXX to a are mode the basis, investing,

X us money underscore market own have their help a at based enough. to to member members a with we opportunity the just that them right needs in members our on meet additional that I significant have, scale products base we that bigger our to in really that and can't The now over way get million data their services and gives

So just X we path in need as down well. to from go is if an million opportunity annualized losses also $XXX that businesses more than that

question of comes Citigroup. from next Shirvaikar Ashwin Our

member Congratulations member the reacceleration Should I we've want driving quarter. to growth Was about to And get that. in level in long of commentary very seen Any a think, growth, that by member a I wanted combinations? particular ask down first expect that a growth. on this there? driven maybe sustenance into of now? member slightly time what's is, time we product higher the the

continuing effects and growth really of experience in with than efficient, more last compounding more marketing as the on word as better and been quarter, product more quarter's XXX,XXX as record brand performance of We've in and together We we're growth this member performance record our and set focused much -- X quarter product working product goes mentioned well member had up, the efficient. has marketing million in mouth. everything strong awareness of the rest to growth. the it's I time. to satisfaction, marketing across growth see as we unaided exceeded as and that driving see a call on starting at it our a that a over because for well first We we're makes

marketing year, that's as levels information, biggest is those second And increase of The been I'd your and maintain shift that we're say hopeful have thing greater data the you're this you dollars, you maintained spending, clearly, can factor. scale efficiency. and spending a but from that's as also marketing more we're more getting but is and money that efficiencies spent yield our what we we're

But our brand to the our drives overall performance one-stop XX% the building, then continues And against mentality. spending of very marketing. cross-buying shop native XX% efficiently team has brand to just done our reinforcing a which of allocating other positive, job awareness great be marketing and

say is average XXX,XXX have assuming the of growth, for to what for the we product in XXX,XXX or terms been members. start growth outlook averaging member we're I range and wouldn't largely In going XXX,XXX today. I'd over

keep how XXX,XXX-plus it quarter we're overall. see a and start quarter doing and you on in we'll and how with handle members could think it, the a I on X to focus goes

We've haven't yet. set really we on we into been driving plans focused our And go profitability. to as XXXX,

new on wouldn't Yes, an quarter. this plan wouldn't this Can was level. I quarter? repeat it. I extraordinary a at set It but we So

the outlook for I So the members keep XXX,XXX for range now. in

Adelson question from Morgan next of comes The Stanley. today Jeff

XX% looking the it -- growth year. like exit at XQ a So looking looks like the just think it you're I for looks something for you're like revenue guidance full XX% the for 'XX, rate to year,

they about Or know shouldn't is thinking that where be thinking rates it's if next still, there is? stay any it year? levels, for I Just but it early reason good year, is where stay next through are number at to these a elevated

we the income, in Should a different continued maybe thinking the we seeing should Tech Platform? bit strength the more NII, little revenue about in be a fee And less components? little how be in

originations? ask could more were? really And seasoned maybe quick And million could number? I the you loans to on what that loans, XXX.X%. those speak then, or just an I think more Chris, Is Were or if at $XXX of they just quickly unhedged you said new you sold hedged

Thanks for the question.

say environment of thing What opportunity growth January. is the in markets we things we sit large given level function the fourth have growth can be for to get through grow of drive I'd first quarter our will compounding how the share. market these to choose drive We low significant. in XXXX The is years, and a and we where as are

we've year the report give So that an at do each year taken approach the and you we update beginning full QX, quarter. we'll that of then after so we guidance again we'll

as a to 'XX well decided lot don't the January. be into as I in details dig to left So there's because in XXXX want of

using any XX different even up that some that But significant, on so to points they're tough use rates us I are, the make of versus say, lot be suffice year. and are decisions growth to where front -- don't a we can want opportunities the levers growth. they Clearly, XX assumptions basis that in the new impact where where start Fed or as flat we could quite make, and of the that could drive are especially has year, to

one were we absolute I will from XX% in nonlending say earlier, into businesses. as I XXXX, what look revenue said The to in of dollars year-over-year growth thing reiterate

to of you the growth, loans loans will drivers should and student go As growth. personal you not that into XXXX, assume be additive

drivers segment Financial be Lending supplement Platform and Technology will on business and the we'll of that Services Our growth, the business our side.

to the committed in and for to that, fourth of quarter profitability we're addition XXXX. GAAP year the XXXX In full

are think X to those guideposts about. So

And value value XX-month my then on we're over on of started really the the driving focused growth last remarks I'd talked tangible In just growth, tangible there. about $XXX and then million book Chris', trailing we're we book say is basis. getting

So pillar could you that's about. another think

million $XXX about that of unhedged QX, Yes. at question your basis. And terms then, the in on in sale XXX.X% Jeff, was an

other the pool sales get loans call, I of that we'll specifically QX. relate But to quarterly had our of to In average, details actual as slightly as we more in next that they what on sold, loan inputs terms into well generally of pool it's average specific offsetting reflective would say than higher the weighted is This overall are coupons there it. portfolio. the but

sell. So loan talk we it's but a about we the pools blend, that don't specific

Sachs. The next Goldman Michael question of queue from in comes the Ng

two Anthony have one just for and for I questions, one Chris.

us effectiveness I marketing efficiency around you members sales up First, -- in question, and more to there? member, Anthony, wanted an Do on and per which drive opportunities about new efficiency that new become follow on terms how could point. just sales earlier Anything and was just marketing continuing to you see of tell like efficient?

last for ask for relative loans to quarter. student and wanted loans then the Chris, rate discount And to about I changes personal

of loans rates I in and other of think increase how there by the the have context any basis points. terms color factors? up PL discount by student went rate points, key went basis XX that up Any benchmark XX in changed

I'm are but and many there are detail. efficiency, more factors marketing big On There driving that just are focus side, to macro on are the factor. the others that sales going much

term, brand, native products also have and efficiency. we new as we we we're that that a brand household efficient. to people the name, have all higher click-through new and customers will conversion higher, Over brand our drive will brand money greater will awareness a do the the a promotions they more have trust rate, of spend the if we the long know If the be rest

And that those data will so algorithms cetera. and be going we native of and types and and have. in other there, brand have scale the factors and for other brand drivers. down and in as many the scale our intelligence additional be retargeting, business There awareness we scale awareness, channels macro artificial the biggest to is like et that factor technologies we the two But

movements of moves then SLR there. And rate hit I'll some PL and the terms the the underlying on inputs and and of our in both of marks specifically, discount

So PL from on XXX.X% the fair XXX.X%. market decreased QX, loans in mark our value to

discount So increasing points. basis XX was a basis the rate points. function it was down XX That of by

and discount those widened offset spread that then rates assumption XX-basis-point points, weighted and CPRs basis by assumptions were increase by that that's swap increased X-year then XX average had collectively, in the increasing, rate was about a in XX And Embedded a benchmark points. we coupon.

one QX in in The X.X% embedded an were to is loans note in CDR that's business the realized X.XX% thing the marks. actual that personal versus rates important our assumed

in of XXX what the observing XXX.X% basis or of actually actually we're the are loan is points basis what terms embedded points life in mark. over below losses means that year So the about XXX per

SLR, student rate basis XXX.X%, And then our that mark XXX.X% fair the And basis loans function decreased value points. was by increasing from the of discount XX to was of market that within XX points. down a

up decreasing points rates increased by offset in basis and and by This slightly. WACC spread a rates by points. widened benchmark about increase XX basis was about point then assumptions XX ended Our prepayment basis XX

Gabriele have we queue, the of Dominick Oppenheimer. in from Next question a

we year. side current curious versus origination of the level is thinking given loans product, growth loans? was I where about ask about next roughly particular, quarter on because for like I student current today it how the personal if be the of just you could feels acceleration only way revenue an actually environment And stays went, the should your in it the level see of demand for the

products curious And you're rate and market the was products. that feeling your demand and you the for so about -- in level what how I just have current these penetration

given your need where all industry. these different you I all we that share of what growth could higher-for-longer, our think we revenue to in for to this is the appreciate can next how year, if under we realistic I means low accelerate absolutely market But scenario businesses. enthusiasm. have wanted be And for

higher notable the opportunity and from will are also lack about interest will I the for market we absolutely think our capture that hedge other financial can't participants. demand higher-for-longer, and pass as The risk that not to the unlike don't very pressure rates face ability because think benefiting we put strong. companies robust, SoFi, to think rate about that that you they higher-for-longer to SoFi, us or the have are be products will just growing and way we for mentioned, be other also either do on able to continue deposits to. But on they

important liabilities and And level. It really the down put real time micro financial other Higher-for-longer actually and marginally. points. do these and two us those to want loans manage to in assets student are very could grow and to loan at to environment, see it allows level we our conservative a be loans on a companies. all would in like lot at grow that more pressure And something not much personal

so around turmoil what balanced, not the that the And of think very us, us. we because because may but as think about is we in higher-for-longer, of about being of happen opportunity front

Platform about student hit additive allows step being of are and to Tech the businesses, point personal more and in capital-free. As even loans to growth. the think earlier, I on them. low capital I've Those the fact, us in also of nearly Financial profitability, as to being drive driver growth Services which gas said the and scale the segments loans

this business, segment and a in yet grow but Credit a SoFi easy were losses previously. product, of SoFi Services don't from we are was Relay, because call, over to gives it contribution progress work on million the Card, years Lantern a $X year businesses us that SoFi loss number about talked we X much in way basis not it of haven't million positive in which We absorb go Invest, it $XX license our over year, for to that the other an heavily Money, SoFi bigger the that ago a Financial profit of a we to way on last invested in our app a

profitability losing products we great really quite in the credit gas money and still card the investment drive to We're but scale given step a and on other on their modes can invest there. bit of

have very be to for especially us going side. the may believe But we'll actually So it's if But option to We're be still you to scenario, really on but for higher-for-longer center conservative. next great going have. year. balanced, a growth, we're the not be that's strong origination the

comes Stephens. Vincent Caintic Our from today final question of

reiteration it's GAAP to of net great hear And the positive the positive in fourth quarter. income

on that to we increased to from in make the efficiencies anticipate you'd the you've or and wondering, about there the look here? to else in should so of when and should Just meantime business, investments Or business that forward profitability how trend, the something that we expect continue accelerating revenues talked accelerate we profitability? actually like are

for quarter, generating first from earnings expecting XXXX. to for the We're fourth positive positive GAAP GAAP profitability generating earnings in not -- the go to increase since time. Obviously, Yes. of generating all we GAAP earnings committed the GAAP positive we're to

will growth We versus I talked standpoint, will earlier will focus net on as mode, line business. bottom think -- but incremental a that would the what XX% year the incremental this to GAAP we're income the we to an balance about investment XX% EBITDA about still investment. margins from we investment how and in margins in versus reinvest in have guiding factor much drop

XX% Obviously, this while still year, well of the incremental growth. been we've EBITDA maintaining ahead margin

in improvement as building say it, book find in as well I that's profitability to of funding fact, that a revenue deposit and addition driven mentioned. level base have in base while growth and value by is high-quality such tangible can't and another the I what level significant that base I'd and diversifying we growing member company product driving consistent the our In

balance that profitability for minimum. year, margin the net committed EBITDA incremental in sure year margin and XX% versus full We'll at we're that a income profitability continue to to GAAP next and GAAP we growth make XX%

Thank you.

We the have no queue. further questions in

over I'll remarks. the any Noto to closing back call So for turn Anthony

I challenge to your capabilities on end is for financial not digital our the the to of most to mobile daunting than company questions. that to the positioned the also financial offer better the suite products SoFi challenge, annual winner confident innovative following just services. remain most a takes Thank well-equipped rate scale and complete daunting for that you XX and of entrepreneurs. $X be technology all and no million most banks outlook. has the incumbent in want but for revenue Building with of institutions, I your in phone proven to our financial run over a support over be products transformation billion

it's resources to required Add getting is be the requirements prouder lives us financial conclude, thankful and whose and SoFi impact regulatory to our to and to X. more in members and that, this we team SoFi our could I every point for of capital million not a fair class sizable X than of day.

for addressing you forward your again Thank time, and look I quarter. to you next

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

now lines. may your You disconnect