SoFi (SOFI) 30 Jul 242024 Q2 Earnings call transcript

Good morning, and my name is Adam, and I will be your conference operator today. At this time, I would like to welcome everyone to the SoFi Technologies Q2 2024 Earnings Conference Call. [Operator Instructions] With that, you may begin your conference.

Thank you, and good morning. Welcome to SoFi's Second Quarter of 2024 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 call statements or Factors Any SEC, XX-Q. are our based as information of as future are these including press undertake these subsequent that in and new this Form upcoming forward-looking cause on obligation a materially assumptions statements results to release to We the of events. update our today. described that differ filings we result no with made on today's make

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

morning, Thank and good you, everyone.

second and one-stop shop exceptional Our to a at a amazing financial before and services I'll X leadership digital grit financial topics deeper and demonstrate the SoFi's for cover quarter our turning continue our for operating as team. to performance. Chris were of look results

to our growth First, continues drive profitability strategy diversified strong returns.

and Second, growth profit and significant member our outlook. are are building our innovation continuous revenue long-term and key product fueling brand product to growth, which

turning Third, results. to our segment

becoming fintech, delivering a advantages us and progress making our finally, not Services positions despite financial to services Financial Tech rates lending only on the down. is returns but Our sustained quickly in Fourth, value move generated come rising of our once to this demonstrates structural towards journey clear and AWS has rates our good members. broadly. the leadership And Platform agility segment and

the topic, one-stop first shop the our of strategy. success to Turning

adjusted million, XX% QX, increase. a $XXX new of a revenue record net reached For year-over-year

lending. growth total XX% Our revenue in XX% quarter and up rapid up and revenue, tech platform X% revenue net just year X grew even possible, in XX% adjusted of Combined, revenue diversification adjusted financial record net year-over-year with makes from ago. made services now a

lending I To just X of when nearly revenue adjusted now and years stands in of XX% net put ago. than our ago that compared X revenue of joined revenue to just XX% accomplishment XX% context, years at more

growth year-over-year million We a We $XX to XX% even recorded also loss of quarter. third quarter of delivered million grew greater QX income net consecutive in profitability GAAP $XXX versus in and million. of XXXX. EBITDA profitability, our GAAP the with in $XX

than peaked expected adjustments as percentage along fair cumulative document basis. delinquencies Credit better an from performance loans and with value was on in absolute March

details by exposure credit curves We ability to older personal the share our the our X% range. and in lethal on confidence through recent to peaking servicing. are on collections Chris team's stringent really vintages, will prudent show of underscoring bend performance prior around encouraged X% guidance vintages, losses loan underwriting, versus which improving improvements in and our the limiting clear our

buyers of execution to continue second at billion sales increasingly topic. my $X.X quarter set this in with X and to Our the loan attractive quarters. $X.X with an sales diversified scale me brings trailing billion This levels total in

future. product the the are number of growth. Our results the they member pace and more in are they of importantly, and leading of base impact our of revenue indicators growth But significant building our and today. the innovation we're rapid fueling growing reporting brand and member profitability The products potential size use

opened new in $XXX,XXX XX% crypto by members in products XX% to existing XXX,XXX of year. we $X.X That's last from now up that's QX, have products $XX.X up our SoFi adjusting all Nearly quarter In exit total members. added total. in million for the in QX were XX% grew year-over-year. year-over-year, and by million We

We also in shop immediate of first of XX opened demonstrating the new strategy. our members product value nearly that second see the days one-stop XX% a

XXth member XX% and our of base the years doubled greater quarter the number and We've consecutive growth. a past of products than was QX in X

Because drive members in is for come end financial growth shared outlook innovation always growth offer direct X-year focus and our of across X obvious. that magnitude and many our only or relentless X a Our products our for categories to is products at this X, result will All a innovation. basis fintechs is on not years we to the compared XXXX. of the financial offer the of growth

we highlights. to I'd shipped what the in share breadth a I'll much few of quarter, cover As the love just full as the of

our with adds quarter. business, drove of the XX% start Financial product which in Services new I'll our

better getting day. is offering invest Our every

In funds, ETFs and fact, IPOs. and other real venture alternative private any product assets private offers of robo with self-directed that credit, private side-by-side I don't like know fractional investing estate shares,

the Our management interval in We innovations Fund, from leading that includes X-click checkout out increase asset Templeton they results, like, all this brought individual several largely transfers members by the business to generated which and Franklin of was mutual private we're well-known Venture from flows. and our fully QX, over net flows assets the the technology well. We funds last assets XX% their in under would assets year during Invest seeing ARC and way second to leaders rolled our now assets concept and Carlyle, including to net consolidate innovation as KKR, funds, Alternative are companies. driving financial XX% year-over-year enabling quarter. starting in accelerate of benefits alternative driven a in

order participation fees, to going customers, this new scale partners. and can IPO. With in to public way at entrain an employees turnkey their without people directed now balances anyone share program, open and participate in an in account are to We a to extend or companies in minutes speaking order finalizing IPOs their funding for minimum

which in money on much ensuring product quarter, our better when SoFi to our critical requested were the X X used together we products mass. The launched unit, our larger Turning movement innovations most In Money. element Zelle, business are reaching member and features focuses pipeline. of of our

We're example, our other up options, have redemption using expanding and a For rewards economy into and members products, services, we're and broad-based creating for rewards program. stocks, including SoFi's app our including rewards savings cash travel. million across X signed for for

members. achieved Plus, we SoFi X For million

people that SoFi familiar with not For enable are available our Plus, is deposit. tier who it those to membership premium direct

we've up a much And on also I'm rewards SoFi value cash X.X%. SoFi reward Plus discount banking more which on deposit X.X% very to API provide back and loan that to to the SoFi foundation to to excited to Xx on in only credit includes highest more. includes our is today not up It points, rates balances, spending up credit subscription laid members, but driving Plus, direct personal share iteration and back improved and direct acquisition SoFi in learning monthly prefer also results. that innovation paid positive XX% this for shown deposit. a our for for We members test subscription-based that to intend drive SoFi later We're have option option boost to those over cards. new capabilities cash who this also product a year. We've introduced

spending need share members' members credit better cash X card rewards And that for new fees. with One a no-frills week, our needs. testing no for also everyday we'll who begin this back categories card cards high serve on to surprise I'm excited X and to

apply for growth, and and small Turning lending offer per environment for brokering a revenue now our rate home loans the This future dramatically loan. especially increased a Notably, improves. members our medium we of can of home as secured to equity In members the close lending. and potential home lending. cost higher loan out. rates approved now partners. unsecured a offers can We've position borrowing that can at in launched compared principal business, from loans In get us for to lower them new capabilities SoFi products in we're loans, now instead in equity

capabilities course, and as of risk center Pay AI-driven for platform expanded our extended comprehensive our innovation and We Now, transactional wire offering. add a capabilities non-processing our new And our Buy product to to already partners. the post-purchases. of capabilities platform and We later is added tech payment we

ensure service and needs the fintechs managed financial and alike. global advanced digital continue We to of layer These brands, to introduced will improvements cloud security modern platform the also XDS, in of card institutions our transactions. adds which quality the of another serve our cloud-based

XX household brand trusted products factor our necessary becoming world-class a it's a in by We unaided this is but institution, not become top measure financial a Having name. must also We awareness. brand enough.

in range, which world-class a unaided X% stands of up Our has team XXXX. Xx marketing year-over-year about brand X% since work to amazing and to XX% Their awareness increased is category the one.

its continues its Our our as brand than footprint punches way its to bigger make above foot. way team

results. segment our into diving Now

$XXX of our in ago drive In segment, million structural proposition. $XX we We from reported seeing of XX% that Services segment benefits the the record revenue Financial continued leading value up year quarter. million are advantages

contribution drove $XX of earlier. profit a loss million to year of Importantly, million compared X this $X

in $XXX,XXX the to XX% grew crypto substantial monetization our up products is believe Services from the quarter-over-quarter our year-over-year. there for Revenue of and services X% product last upside per Financial XX% grew financial year. exit products. year-over-year, quarter, We adjusting

achieved quarter relationships. tied to account $X.X totaled and deposits previous this by deposit records billion openings $XX remain XX% our Money XXX,XXX new quarter deposits sticky grew up of the from So ending billion with as deposits consumer direct

Debit spend and increase year-over-year billion. pace now $X XXX% annualizing a rapid up to at about also continues at

them $XXX business, XX% profit. annualized by XXXX credit in averages. invest a roughly money delinquency follow contribution and mode losses card our and and rates rates from In similar to profit achieving roll million to nearly we card credit piece Our investment businesses but expect in remain of entry with in improved path variable

and past topic, lending. uncertainty. over a my point given our results across posture fourth strong Turning years the reported in to despite macro rates basis X increase benchmark now conservative strong our leadership XXX continued We

Importantly, all-time ago. ago XX% years XX% X high $XXX revenue or net million lending an and of interest reached X versus of XX% income year

revenue. Net interest cash is income

me net revenue. Let is say again, cash interest income that

revenue. and revenue Notably, and is spreads XX% negative largely rates discount of unchanged our cash. in lending impact So letting had aggregate on a slight were

a billion, its record pricing throughout the Our and our to of on underwriting while grip marketing consistently standards by sticking $X.X stringent personal quarter. loan iterating originations as team demonstrated reached

loan were XX% highest home XX highest growing in since Our XX% quarters. their quarter-over-quarter interest and XXXX, of originations level despite at rates QX their year-over-year

we grew strongest which to XX% exemplifies environmental our longer financing continuous our into factors QX originations volume by drive to origination private in financing, volume rates with expansion to and loans that, from loan ever, by home our down, loans, and home expect into lending, home of year-over-year. benefit QX XXX% our XXXX volume nearly in the Once improvement X come years team iterating business. to XX% and quarter drove respond was our drive generated throughout top to loan the year-over-year. highest already Student from purchase purchased The On products of ability equity X growing QX results.

Platform journey And Tech XX% my to progress not We good but recorded of of fourth only margin. become services broadly. revenue and profit million, the X% fifth represents topic, $XX XX% on the consecutive $XX fintech, our its a is segment of This segment million, year-over-year margin. up more up financial at XX% of making over year-over-year contribution quarter of AWS

Our more BXB limited but including customer Card diverse, have not Secure and partners. wins been to,

institutions interest pipeline remains consumer robust U.S. financial brands. major along with commercial of and includes Our and and international

As enterprise bases and longer larger months are take revenue cycles complexity. have not their to partnerships and customer we have durable noted, more partnerships we even for pursuing to size multiple win opportunities. due integration quarters, existing These with

Combining times. diversified cannot was exceptional Suffice to growth I've my X continue a the and strong inflation the product and what our to our achieve not performance to be of high in we unemployment quarter of best of The benchmark our member lower closing, I our X% and our wait goodies confident better it say, was a economy In rates, ambitions. innovation uncertain growth in I achieved team X%, to more we even stable leaders at stable climate. seen here. in see to in with demonstrate the could years ability record a

I'll deeper for at the turn a look results. it that, Chris over to With

Anthony. Thanks,

and business model found outlook. was XX-Q of referring our XXXX of will be to quarter strong of increased through how month. SoFi's highlights all second today's can and available durability Unless The release our by our to long-term key XXXX. be and profitability going consolidated in statement reconciliations drives the walk continued subsequent otherwise growth income differentiated evidence -- the be I'll I'm which potential. stated, execution, and adjusted and The underscored financial quarter earnings diversification, second quarter second next made filing, results versus GAAP for financial

over million delivered at For revenue margin X the Adjusted of This points million, improvement, grew adjusted quarter, was we significant a $XXX margin. record XX% of EBITDA demonstrating represented leverage. XX% year-over-year. which $XXX net operating year-over-year

as We our $XX by GAAP $XX.X net year share. income percentage of net points In with adjusted per third quarter. million, profitability fact, of to revenue a $X.XX and reaching ago EPS improvement declined the of relative X sales GAAP year-over-year marketing and GAAP quarter a million delivered

X basis planned. Growth was for average resulted average margin in year-over-year interest-earning assets achieved driven Now increase was net increase net on in These $XXX in income, while contribution with a by In XX% lending, a up to of year-over-year a interest interest adjusted in $XXX XX% performance. point net points the net profit noninterest million basis revenue we results as were segment level interest at margin. income yields. by million quarter, XX of driven income XX% in growth year-over-year average year-over-year. down This and the XX% an of X.XX%

XX% In in originations, $X.X terms personal driven year-over-year a record and billion sequentially to XX% were QX year-over-year grew which of loan and to $X.X billion. originations quarter noninterest by XX% grew income,

to Our million. volume grew year-over-year by XX% student year-over-year our decline sequentially million. business saw sequentially and $XXX XX% loans XX% loans with slight grew origination Home to $XXX a X%

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

weighted Our sold we the personal income average nearly totaling In and borrowers of student quarter, billion. portions loan is score portfolios our $X.X XXX. a of weighted loan average with $XXX,XXX loan home second FICO

share with the sales in personal par $X.X cash principal we structures a personal of sales line with or of other blended billion terms proceeds similar a sales, to above to In with loan recent we loans. a if of premium have closed our XXX.X%. that loan to at par the otherwise execution These the had small and These majority losses relative consisting of premium exposure assumption loss of provision and is deals the the base that fee execution held contractual servicing immaterial a we is of capitalized. included would small

Our execution of $XXX blended XXX.X%. loan of at million a sales home was sold

million in until not of such loans Additionally, have quarter we that We $XX are off. quarter. personal last noted sold charged the delinquent typically loans late-stage that we time delinquent sold they

been However, value servicing. off they to after positive maintaining recovery incremental both we in and improved from sales able have relative charge our selling to these capabilities generate by

Finally, for we structure underlying and the These balance $XXX of against equivalent loans fixed to show investment assets same at detailed investment-grade you financing bonds, were collateral. million a amortized costs. as executed secured if up the have which secured on loans will pool secured held sheet a therefore, to term senior our do of senior for are securitization

loans these margin similar only additional which In of addition, sheet, priced an which interest at diversify of our market rates, loans, the funding return a above also unsecured. to cost but net provides to not yield and are helps are our balance our

performance. credit to Turning

rate is Our QX, from was on-balance which sheet decrease loan in quarter, XX-day delinquency in XX surpassing points personal peak. basis a basis evidence the points a of XX

XXXX, including X.XX% increased originations the delinquency loan in sale quarter. QX and annualized the in from asset sales, to new rate the impact personal X.XX% charge-off Our of

sold including we for had between would delinquencies, net that recoveries loans late-stage all-in of charge-off XXX have not XX X.X%. we and days approximately these personal we delinquent estimate an Had annualized

how at our look loss this point loans, brings maximum our X% our tolerance. rate an in-depth important in our several vintages sheet was points charge-off basis an That points X% loan on underscores cumulative our me life while underwriting For line basis personal on-balance XX delinquency student to was versus net in our last of XX of with points. rate quarter, to XX annualized XX-day loan losses assumptions and loan comfort basis

at our last following: on investor in of vintage approached life loan improvement X point, analysis Page X.XX%, starting a percentage you a losses the cumulative presentation, of X% net is more vintage at can loan XXXX for principal XXXX as recent losses unpaid using of you see and given significant vintages. remaining a this indicates as that can see the XXXX our As

Specifically after XXXX principal that the material in balance. are net of principal looking credit, roughly at XX% XX% of X.XX% at to at remaining observed we vintage the vintage, QX the point remaining soon of below made same well unpaid cumulative losses cuts XXXX X.XX%

better recent performing you remaining loans This XXXX is are will gives QX can as the see to that as unpaid important to and line in at principal. than confidence In comparison addition, than perform of or tail similar us more vintages this levels lines. well critically that loans our analysis continue our better

XX% of XX% paid seen the in that been X from principal Page originations. of notice only looking remains losses. cumulative only has net the Among you unpaid will our QX we've already principal Furthermore, XXXX at presentation, QX down, through that of X% XXXX investor

loan reach after the a remaining cumulative losses, vintages this in entire rate of X% in on off XX%. charge have seasoning loss of rates this meaningfully at principal the in further unpaid performed would X%. to life losses below to confidence improving loans our cohort For Past achieving of better need point curve, net

marks Now key turning value our to assumptions. fair and

at negligible marked XXX.X%, rate. are loans a in personal points quarter-over-quarter X discount basis with Our higher the change

our For a a basis discount loan the discount rates value rising basis fair rates XX spread. XX.X%, to by on while points X.XX% points rate wider spreads Overall, negative mark to XX had portfolio, rose due in impact and by changes sequential decreased and to student revenue. reported the

as member revenue spending where continues Hedge Services, of invest high all-time management card. of and and within money, spend. Money net SoFi continued year-over-year assets driven Fund business growth $XXX monetizable interest million XX% features consumer up levels income $XX, of growth versus from under credit by $XX million contributions Card and year-over-year, Investment increased deposits. is XX% platform for Financial with our nearly Credit annualized loan year-over-year robust well and primarily monetization product increased in Net in driven to XX% to SoFi improve on per This Moving revenue SoFi SoFi new revenue $XXX with as was which in QX in by greater deposits in higher sulfide Overall XXXX.

$XXX as was in to we quarter, this platform income approximately of our a total even business, profit result of annualized as over returns. noninterest the spend million $XX in annualized $XX driven XX% XX% in billion attractive as the rapidly year-over-year new operating grew the referrals in revenue. which This period. from million interchange grew represents to Importantly, XX% continue $XX and versus million growth invest with by loan well reached Contribution opportunities for to as grow which segment prior at a our margin year quarter innovation XX%

sequentially. we the Lastly, in year-over-year services Money, X.X million Platform existing of quarter, SoFi platform. segment, driven we $XX up strong growth our Revenue financial where million clients XXX,XXX on products last our reached XX which delivered XX% in quarter. along strong of nearly net in with the in X.X Shifting with million in is and year-over-year X.X We new reached quarter, was million X% X% in clients onboarded over Relay. the Tech to products quarters, by and products million Invest performance new SoFi the from monetization revenue up X

$XXX margin. accounts contribution grew of profit XX% a year-over-year XX% Galileo delivered representing million, The segment to a million. $XX

Tech as continue of Platform the investments durable We going made leverage to to higher we for segment growth diversified rates in forward. position continue

and and the to durable As and major with revenue commercial brands, a cycles complexity. longer along larger mentioned size of due and spans with financial opportunities more integration sales representing consumer strong pipeline institutions and interest earlier,

our balance capitalized. well where sheet, to remain we Shifting very

cash, result equivalents decrease billion approximately cash billion grew loans in a growth $X.X Assets investment by of and and in securities. $XXX as million $X.X of

by deposits to member On overall billion. while deposits $XX $X.X billion, increased side, to the billion liability grew $XX

deposits by we debt warehouse of We deposits with million our $XXX also quarter billion use consumer to cost and stack, to continue reduced brokered the exited the replace as funding higher we $X.X parts our drawn. of

option pay on to there a the translates on in point is million savings the we advantageous This income. base. pay deposit of and benefits our XXX $XXX difference annualized which interest continues and loans our margin, Currently, the also of having the basis about interest interest on support difference warehouse given the we interest collecting balance expense of when interest between underscoring holding net sheet net lines, deposits to size

the with above mix and Overall, to we lending healthy a for benefit along sustain deposit X% funding, healthy future our ability maintain interest net from toward margin foreseeable to deposit the betas. continued expect versus

by quarter regulatory points XX decreased basis capital our above and last our regulatory of ratios, XX.X% capital from terms of total ratio of minimum In approximately the remains XX.X% comfortably XX.X%.

value to with book million share per book tangible to $X.X value we by Lastly, at in sequentially billion $X.XX. tangible billion $X.X $XX book grew value

XX having underwriting capital, of as the to we multiple months, of high focus cost-efficient leverage demonstrated streams diversified on business. last of Throughout operating the credit we a of key and on have sources Now high-growth guidance. a set scale benefit the revenue a degree high-quality

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

to adjusted we and QX, of EBITDA million million, million $XXX For net share. of $XXX $XX revenue adjusted million deliver to million $XX EPS to expect of $XXX per of income $X.XX million to $XXX

deliver year of to adjusted higher XX% billion, guidance which expect now to $X.XXX $X.XX XX% our For million previously. implies annual This range to the XXXX, revenue XX% billion. $XX full is to versus of prior billion growth $X.XXX $X.XX XX% to net billion than we

of percent will will more assumes to year-over-year. grow lending tech will least Services at be in teens upper XXXX XX% platform than This revenue Financial guidance grow levels. now mid- year-over-year XX%

growth this lower this While guidance for XX% feel as tech in this our confident platform, for still multiyear we guidance than business. is original view and our transitory

XX% share. $XXX million to $X.XX We $X.XX of $XXX GAAP $X.XX per guidance above of our of to represents a prior now and EBITDA $XXX of to EPS million $XXX We share now full million, prior net income above year adjusted margin. to $XXX expect per million of to guidance $XXX million. GAAP adjusted to $XXX EBITDA above million, $XXX deliver of to million million guidance expect prior This $X.XX

total with million end We continue continue billion of capital ratio to XX%. expect to expect to year $X growth a of $XXX in value the to north tangible and approximately book

Overall, add couldn't million new continue least XXXX, XX% in we results. proud of expect our to members growth. represents X.X more to which QX be We at

$XXX delivered revenue make we net making continue of long-term a to remain and and top $XXX our to adjusted adjusted Having pursue our progress capitalized goal ultimate EBITDA, very to sulfide great growth against institution. objectives million well of million continue financial of

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

question from The John Jefferies. comes first from Hecht Instructions] [Operator

the I have to in incremental The the kind think appreciate losses XX%, think, disclosure in to above all is, that deck. question of there. of like reach I said your assumptions would to for underwriting. would scenario to What your or kind of kind XX% you go X% of cumulative you dots I rates that connect entail and in rates just payment terms delinquency the

Thanks Sure, Yes. for John. the question.

extremely said, we and line like with to of loan X% confident assumption. expectations, in is remain in credit life So we loss X% our performing

X% in XXXX had at got through only net only we've XX% when XX% Just QX my I of all prepared reiterate what remarks, experienced cumulative that originations down, losses. to of remain. from XXXX, paid Of looking mentioned those the

XX% need reach losses remaining to order in would on So cumulative pool, charge off X% XX%. to entire the the at

I from as something to So even with sit, never have similar vintages remaining losses levels UPB materially in XX%. to order would close X% to prior hit experienced change where have of

corner, performing is up half the the more you cuts started vintage turn we're the making showing confidence bending highlight to our indicator delinquencies which second has and for XXXX better the our analyses back are to addition of even which was really vintages that, that last X%. X what the than close In in us cohort, how the to since we ended recent leading materially curve. that come is gives even losses, to Furthermore, credit

adjustments QX in personal UPB. surpassing cumulative principal also not dollar So value and we our but a up in loans percentage peak only ended business, fair on

even perspective, dollar principal those delinquencies And XX in were in a was in at in XXX-day points throughout having value basis in $XX in QX. what's adjustment from we ended up million than then the quarter that, versus are QX. continuing From quarter to basis, million fair weeks versus million trends QX XX percentage XX versus basis first a UPB QX. basis, the XXX QX. $XX of more And So points these a important $XX from several cumulative that back the of

comes from question Ma next from The Terry Barclays.

So need is line and you It encouraging to to environment showed you metrics but vintage your bit little see in from talk just in kind just -- pretty of like implied maybe about stance of in the reconcile commentary, everything grow kind charge-off your sounds maybe the more a some maybe what again conservative portfolio?

the We're by Thank really to we're able of growth, trends fact you the year. back of barely incremental that credit, the the of for half encouraged XX% revenue with with in go record opportunities I the say seeing Chris achieve proud as areas year-over-year question. We're mentioned. we're as the really lending growing. into we would

in this had rate a shouldn't be doing see loans, well product interest in really Home refinancing, also environment also proud to the growth year-over-year really strong rate home loans, growth. loan student that

of the Friday. we're conservative personal assets unemployment. trends see balance relatively On big to ending number our compared the going there, out to stay year primarily to side, because we how loan coming terms on want a There's sheet in

X.X% move to a and could X.X% at recession. We're signal

stance. personal without year-over-year to us while originate getting so able aggressive lot not are improvements, loans. strong too more we're growth We're loan could personal our have pretty been factors there cause changing that in to And side. on a achieve the There

near-term more we the opportunity loans, be aggressive the cause of terms see home refinancing. us I more thing is loans you greater-than-expected tell sales. rate and if to In in in have growth will personal loan I that would student

that, a positive. But they all, better all accelerate we've continued in quite In start changes benchmark addition growth. addition rates, more in than already to lot that improvement seen, to to trends which if in in credit our we is have

faster balances specifically. limiting growth, the and wanted stance why we if much durable, to diversified our drive we a and loan was grow could but that want personal to, took we reason We

attractive thing to diversification other obviously could as more rates, would which of doing home We're principal rates. as and loans. an opposed secured further agent. that sheet drive a loans be They're The balance loan growth, lending than personal equity the home now attractive equity is

greater a on drive also be could there'll there. performance that, that So better emphasis

business, getting as purposely. for a why pretty not conservative be overly like So relates would we're feel lending paid at of to opportunities view it delivering, point. don't lot the I'm we're so quite a sure frankly this aggressive I the I we're taking results

is Dilation. from Dan next The question

Great appreciate question. a asking I us results here. really letting

are you Like do little it you So obviously, income Chris, grown how you -- growing the keep you bit a expect do much. that you've can grow how talk if What now? future. to so how interest to Financial mean Services? deposits grown Anthony, near-term about like I expect you've -- given

Well, interest really the a achieve Financial XX%. driving was The had we revenues driven that growth, deposits diversification. segment product XX% first, the XX% as It net on Dan. only drives was income. up able at because up million, by record our know, It to you up also by way we're $XXX incredible record a Thanks, job year-over-year. driven did Services

XX% I opportunity It that non-net we nicely, grew million interestingly reported think item. in more is very income. the year-over-year. $XX growth have We interest line in

a number, of about you the drivers of couple million. there's If $XXX annualize it's And that.

That XX% will product We First, services growth growth. continue to of be had in driver X drive strong products. growth. increased financial

per revenue or monetization increased is product. second The

platform here? per just we is in the was the think We up half benefits Interchange and revenue increased see well. from AUM, benchmark we which XX% then AUM saw is, Protect brokerage, product home, as strong business. drives mid-XXs from forward also We'll auto life SoFi call continue of in insurance, up year-over-year. it What going driving growth what was dollar loan our and about but not in growth, XX% monetization for AUM which year-over-year.

we quarter. a product, that product our growing that's this will a drive monetization it's in upside of growth has up revenue per So is more think significant And to which different is continued then after a probably XX% which those everyone, XX%. already lot combination vehicles something visible

So dual-pronged drive of growth dimensions of there. diversification should to upon continue growth increased

from comes question next Company. from Peterson The Needham Kyle

the deposit of with wanted how ongoing in think I But core kind brokered on the nice funding? outlook Great here that the to any of runoff for touch about see continue deposits. counterbalances Obviously, with to members. growth we of how and some should base

Chris it macro go we entering maintain let in high will of a I'll will origination And sort competition. we think is relative platform of other higher we're many that broader to competitive platform, us And an to a ask relates allows environment competitors We to down the the trends a given high origination don't the But are we about lot people rate Yes. our the big future. rates a you have in answer picture, an quarter. as that rate? maintain have have fund APY where origination the the than obviously talk a to us, likely such platform. a advantage specific

So the tool businesses work in tandem.

can down, will go up, just a That competitive and mean means our value change generally of leverage loans APY. rates equal, drive be differentiated it As all superior go to may not advantage. we and maintain value It it. so our the else our we proposition superior doesn't

relates it to our X differentiation. rate As deposits specifically, element of more is

charge. to not do get no start services. differentiation with We our other The fees. require balances of minimum We don't elements

get a APY average amount. a of certain do if you an or deposit You do you monthly direct do deposit higher

attractive we'll in to be for per gain launch mentioned higher we which which Plus, actually fee SoFi will fee. rate the interest pay you relative amount when of you the you month, call, will that quite that could As give a

person-to-person an In a unique is phone requested or ability to recently do that, to among highly fintechs, the very product. number. e-mail to address addition which is which a We payments the launched we have

and brokerage into our to more capabilities In broadly. addition movement that, seamless provide money we business

value So it's member strong we deposit offer in to back broader to we of of important the us allow will the that growth growth on X that drive continue money. the strong think but drive in APY element proposition is deposits,

I that in to deposit higher in what new $XXX net certainly said perspective. million we've member deposits. now, add are that would of costs a QX. member billion of each deposits with about they $X.X did member to We CDs XX% relative did had that add of And it did QX to deposits $X is Yes. our we of funded. We are consistently Right as quarter. going We billion from again down we just north pay brokered over about

nearly about $X.X We billion still optimal to of and $X billion the prior deposits. at XX% with believe outstanding debt have our we mix consistent that's XX%. warehouse forward, brokered guidance Going about of is

we're optimize lower So overall going our sources and to funding costs. continue to

from from Reggie Smith JPMorgan. comes question next The

appreciate to curious, that find the million be business. I well X accounts users find slice fact or to than that. you a that it publish million I opportunity within ask continue of I and was about Card disclosure less at would I there's credit card targeted you on almost similar and really only look seem and customer money XXX,XXX to to codes, the base. really And your of this the could and been very Credit the and users asked kind hope low relay credits thing. guys X Kind and I've quarter program last about

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little keep and a of faster growing the the it grow. have So than to you on things it grows to color from maybe some opportunity how would that business appear

you thank on of saying start the portfolio have Credit Card. Reggie, I products. question pretty for diversified by we a would

means we start-up is say product have of of compounding we so some drive S-curves Our growth diversified years, and durable, . I often a businesses than series across the quicker goal businesses. invest which growth strong, for to some faster we'll that in internally, drive others.

per on late-stage growth unit sure we to XX those some basis, overall we Credit is have spent butt our the product economics the and market fit of want Series the businesses growth Card on really where businesses, mature businesses and We correct, A formula. we make have of working the like last early-stage we businesses. marketing Credit Card feel some X some that. a and that the correct. correct account right credit months our the We get

have built from ago, addition team. change team right before businesses. did that's the We in to about someone X.X bringing running we the business this scratch know actually years in I

very and total Credit themselves, our Card business. SoFi Credit long-term a for positive bigger is often could today. to in brokerage someday I outlook be have businesses than say we by So Card and want like to contribute

out that business And today, those investing business brokerage brokerage are very There and and $XXX the the and just small business. aggressively Card we are of Card are are the million. that big fact Credit the we're combined the business that pointed companies Credit in loss for in just are us, annualizing a

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time. you'll over using giving targeting continue to not product, start our value but members than just can us benefit from that more our and see do X to members more we for So

fixed move on not is lot money where in a relatively we're this give going somebody business the Card and you step too a to a continue to slowly loan day. you and it amount. today, lose gas can of unlike you every But because can hard a lose Credit It's

that ways big they utilized are in can losses. and In be really Credit Card, various you quite drive and have high the lines

we'll prudently, we past. So this we are we sure more a gas stepping to bit than on make but little the have in approach the continue

Morgan from The comes Jeff question Stanley. from next Adelson

maintaining on bit to of thought quarter on a it's year-over-year. -- did the you I I on originations like your just sort revenue little better circle this the you're we growth looks lending stance up a wanted origination back than growth. still and lending still X% know more cautious

the here just So certainty know with door? anything with in opportunities coming have you're talking And well. the in are from I I rate potential as guess does do you increase around maybe cuts? better unemployment to about look more rate seeing it forward

translate curve that. of the bending trying credit, all-in come as to the to just of also you charge-off well. the just when might in in into And So that of X.X% Chris, each lower rates starting square on terms quarter all comments then, wondering just think

And accelerated total and out business a sure to worked to So company. diversification high the is capital, an less on diversify on capital, less businesses valued the we overall, want continue business. our risky the environment well. don't to make get we year, high-risk to higher. objective lending overdependence first lending it's macroeconomic the This much our relative have quite business

want diversify to also We within lending.

lending, loans our As I which second secured diversification equity into secured be is mentioned, home product. will

student well, it to oldest is addition is a into is then In that's to be and to our we also think, and used product, come loan across where that, relative home loan refinancing And starting quite loans. a refinancing to vehicle. unsecured diversification personal can biggest do period also

to manage go we're the the just we As trying I think to the understand, through important overall it's year, growth company. of

it to that and We risky, less less outcome want diversified capital-intensive allocating allocate, of we're to much resources we businesses. have so drive

loans that that then grow we funnel to have personal allocate We more we top because Why? the to drive to the have drives don't more, more, actually just to it. wanted would money to we conversion. to actually to loans of Those we have marketing drives If more. decided spend happen underwrite underwrite capital

as money we're barely choosing despite still don't growing despite record that now, we're revenue. that XX% spend in Right loans. and trade-off, year-over-year driving to a areas that But revenue personal different drive much growth

loans, achieve If very means you reallocated to would ways. we in other not conscious effort reallocate we different Diversification a personal verification. to number a diversify of it's resources places. in So

Now what the happened in quarter?

happen and unit higher would driven, to money spending was a aggressive were efficient. more more driving more drive volume to, We demanded or economics otherwise advantage lending. demand costs more we could we in marketing The more otherwise were to choose businesses. in have Our upside set against amount be have other the have resources of would area. than That we if because that took we to of could resources allocate

is credit more or performing marketing the than is anticipated greater happen because That or we better we loans. efficiency the sell could

not isn't had losses. the relative specific Chris there. And growth question in I'll so we're capital choosing how our environment to the broader And because goals. let allocate you on about it's to the the talk this It's

factors, terms Yes. life that these with sticking is early to to NCO of in when as trends overall of guiding in portfolio, and of simple. specifically. X% of And The very rates on guidance importantly, age things. sales some a is the driven number the start of remains NCOs most such in in rate of we X% much we're function which and Reason being aren't different how period originations or a NCO by number for period, a the quite average show can our confident to in up be of losses, UPB the loan It's lumpy. will the

really So X% because X%, feel loan in not life of to expectation we our guiding to loss NCOs but lumpy. overall, confident of they're we're so

Next question Citigroup. from Christiansen today Peter comes from

but about kind for seeing just here risk if derisk wondering to asset forward risk future are in sales, was the I here, the you about are from and also strategy portfolio, for of further transfer it, opportunities talk that personal appetite if going portfolio, either the could your your transfer given demand you how there's loan in you portfolio. credit improvements particularly thinking from improvement

Yes, absolutely.

$X.X years. shape expectations business So billion in half continued strong the sales our next of demand driven rate the and the lower quarters. this overall, in buyers. in X.X% predominantly done course with as several well aggregate. last That's the by interest personal We've of in year the X we're second credit as seeing over from loan the curve of

for So risk we low and strong have profiles very yielding attractive very credit with assets buyers.

of cuts. buyers are any programs looking and interest locking into ahead Essentially, purchases rate

deal that, flexible but have are a we need structures really we balance to where sheet, they to offer meet to strong addition to be. buyers able In

money it ton a It allows It that work. investors bespoke of of a We participants want can allows long-term one-off doing buyers stability book of X asset one few to to transactions are versus them to work. versus the buyer require have in and allows size. buyers generation. have many, partner sell to that

would of lower buyers. demand demand we would So I'll from comments. the see who that continued that environment, X looking take increase sizable with to We'll more again, sheet close strong And question, credit that. few expect forward, balance a then and as leverage. only do can to rate buyers In of cost have X we those operator, folks expect a have declining we're

comes from question Stifel. Switzer final from The Tim

at at ROE How it on at balance selling. kind all? retain change would believe a change and have demand sheet return could the versus to a all environment talked about kind your you of guys the you rate lower to Do choosing management strengthen secondary loans of in market

our I would the loans with those lower need to attractive say to more origination generally they are that rates deploy. assets going platforms to have make

is Our case. type less weighted and the in be high, seen find We've for them past yield. becomes environment quite there's coupon that the average ROE to that places declines that attractive more of and as rate

have goals. attractive. We'd more do demand demand. the manage more and increase terms relative But believe values the favorable it financial would anticipate would would and we be the and own would to I be our production to So also our

wait that in but to the Great. We see have and past. that's we've what happen, seen

and in in environment such the of home are that well special XX% team. the as the XX% -- that to was gratitude this areas aren't fun there In rewarding the to ourselves say loans that current closing, had I time loan most we challenged at in some to better What in my our student it I had refinancing QX year-over-year. made on express be fun our most quarter, environment, was do to want volume supposed and most and increases I've SoFi. difficult that that

better not the and each or found be way month throughout way we because each entire was to week, team just only The frankly, table all continuously through day, finishing but ourselves strong a each pushed quarter, the the the reason literally quite as with we to resource than because great credit areas that results. hard to keep potential, fun less we wanted card, we iterating. now allocation seeing in XXXX doing growth are where decisions promising invest such in It in was meant also made

work of credit of immediate business worth large gains that so a can back from massive But and XX% our iteration important aren't areas is couple patients. and up the more. our and business, a less testament well AUM Our the with lot of be of In card will a hard accelerating today. time on and invest be of all they scale, with only

rapid fintech business transformed bluntly, can't their you inspiring not while you tell financial by XX-plus increasing risky, see. innovation. If a driving to massively revenue or any step company profitability do back, now, capital percent a that great to put of funding growth, be strong and intensive, take I feel I services while of pace still a it's less to all growth less has it user know still When

growing. XX% In we are year-over-year revenue in shows record of year-over-year volumes growth percentage XX% for provide comfortable that in our year-over-year XX% loan XX% Services We growth a and why personal record on absolute clearly loan XX% loss XX% with and volume we we in year-over-year that PL while million delinquencies year-over-year year-over-year revenue year-over-year loan XX% at interchange. segment refinancing declined student loan an products because lending hit year-over-year in XX% and basis vintage million, barely personal We analysis life-of-loan home grew lending, up we volume and on the in AUM Financial year-over-year achieved growth did $XXX with nearly of $XXX growth back despite XX% growth deposits, forecast.

in created. everyone. next at and talk but fits year-over-year. me building XX% the and ever, more EBITDA I grew for Thank I fine. gritty love those But we we culture you than your it it finally, to we who you stay Hard for the have built, are SoFi, And SoFi we is what just for with have love and not people interest quarter.

today's concludes much This Thank very call. your you attendance. for

You your lines. disconnect may now