SoFi (SOFI) 29 Oct 242024 Q3 Earnings call transcript

Good morning or good afternoon all. 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 Q3 2024 Earnings Conference Call. [Operator Instructions] With that, you may begin your conference.

Thank you, and good morning. Quarter Earnings Third Call. Sulfides to of Conference XXXX Welcome

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

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

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

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

Factors based I'd today. that that information our described subsequent results make the of to we result XX-Q. including differ no and in assumptions with We made materially as Form the these SEC, now are on new this call update could are to on of cause And undertake these like filings statements our release events. statements today's as to forward-looking obligation Anthony. press a upcoming over to turn or future call Any

today. for Thanks their in in thrilled want for team joining SoFi. delivering great thank I grit to our another us and strongest for I'm was quarter. put morning. Good results history. to share quarter members our thank our to continuing QX, which to for clients our the And trust their absolute

is than consistently far reflect more XX how just growth. achieving durable days They SoFi results Our work. of show

on topics our operating Our handing our and we and Chris, how financial brand to I'll improving strong innovation are before share these ever results. will before to platform are than and X building and over clients touch members more it who attracting delivering and returns.

outlook company. pace on from plan last a first quarter end the half X-year and XXXX, SoFi's we durable exceed toward of another momentum built on We of our to track QX on year. and record First, putting the firmly on shared the significantly strong at XXXX as was performance the Sofie. us for growth

$XXX Here Adjusted to the are highlights. quarter, a some net XX% of acceleration in growth reached year-over-year versus XX% QX. a million in record revenue in

financial makes of our The prior from million in X/X first of QX, total year. up services more XXX% up revenue the $XXX recorded the For time, segment revenue. than

be unpredictable how launching scaled it's improving over the XXX% environment and frankly, $X I could not tumultuous we've profitability. since X. And a segment business revenue past and billion be over now of products strong prouder this to years through these annualized X a day with still growing

$XXX XX% nearly net year. from up prior to grew in million platform revenue, tech the Our

strong continue XX% that our their and a XX% segments XX%. to pipeline And Combined, grew are business. modernize year-over-year striving driving We XX% up total revenue, year a a of see make from company's overall important non-lending ago, growth partners record of the of our now an they drove of platforms. up potential to diversification

members. tremendous recorded up the a million in as also drivers, growth revenue We in members quarter. members, XX% We added new QX, key total of product in well products that's to XXX,XXX per year-over-year as X.X revenue

products segment XX% crypto of quarter our in that's in the XX% those products, over year-over-year The services million XX.X X up XXXX. grew to XXX,XXX transfer digital We excluding by Financial to related accounts products. when new of Services asset or million drove

ago. year up was $XX, per revenue XX%, a product from Importantly, $XX a

and both monetization. We there remains substantial product upside growth believe in

cross-buying by shop attract behavior our continues great one-stop to Our members.

developed. a our first of the SoFi opened in products XX% members flywheel XX% existing This days. the power their and we product opened fact, second new is members were new of In XX by of have

$XXX sources. Combined, XX% million million capital-light more or we our lower-risk making year-over-year. of made and shift total that's accounts, fee-based, platform, XXX we're tech towards adjusted up net our in QX. revenue Overall, in In X/X revenue incredible up reached over fee-based our progress revenue

progress On by year-over-year This million million year-over-year. by that's an our in up nearly interchange, This than revenue. and in grew is $XXX well totaled business is more XX% growth fee-based a basis, driven Xx revenue as loan as record year-over-year. Xx $XX up platform was strong annualized which which revenue quarter in in

and rate in adjusted more We areas volume environment capital-light or all and revenue, performance Chris seized up this details high billion our will and fee-based share achieve on lending strong On million in of record to in on products base all $X.X we moments. the grew a improving improving revenue, across in net few credit our a quarter of return on to lending diversify year-over-year. work $XXX equity the of loan QX. trends to these segment top XX% also revenue

the made it's the back years, over SoFi progress at past Looking say we've that tested. is to fair several battle

should company the total the and barely the Given It profitability we largest growth scale, XXXX recorded now and sustained can SoFi clear crystal growth lending be in for that growing. most drive cycle. across our profitable business have with

We've achieved to largest damage through our lender our rate and in neighborhood. finance a XXX in face quarters basis revenue rates of of venerable financial XX institutions record to recession, basis profitable pandemic, collapse most a XX point drop and only the XXX point of student increase a business,

XX% excluding our revenue, high to or more grow accounts driven XX% are The our ROE non-lending capital products well by year-over-year, members as XXXX. for to consecutive which and scale asset transferred revenue our have as total have than more quarters year-over-year enabled both and grow digital XX by innovations in us light we

into faced conditions of with declining future. strong confidence our Our the performance our the history. Today, We're years times a most favorable economy. and hard in XXXX the last point stable me is than gives with heading in X what we rates any fewer headwinds the in

drive business services for poorly With durable massive ever that our our brings market financial building the serve ecosystem that served. and had most than ever to in topic, more historically This with their second innovation needs the diverse and members is brand my more and The growth. before. products me we've consumer

found savings number similar Mintel just markets, year, those report are in for to checking new U.S. loans, looking personal X for delivered accounts, of this for adults Those year-over-year. Meeting Buy person's needs A X and new digitally Pay been in have account. grew not new that us a credit mention seamlessly with looking accounts, cards. the market massive A all all and in mortgages a new investment products financial now Later, a new place world-class gives advantage. one new

unaided a This hear trusted it's we household that not brand is a you'll awareness to become is matter it's so, of a institution. getting do for the The we often critical we people name. generate effective To become me a to say, financial product. if top absolutely XX when, awareness try highly why SoFi brand build at

generates After needs. over acquisition invest a another. reliably into more time buy product and created to costs member, to in that product others. becoming even we've we than recommend They cross that can down another of new This our drives they members' profits sofie flywheel serve innovations

QX accomplishments cycle. in demonstrate virtuous of the this power Our

year-over-year with continue we brand name. all SoFi of household First, highest nearly QX establish up to time, awareness as X%. our to XX% trusted We unaided average a ended

continues Our engage reach audiences. to highly marketing and engine effective new

of kickoff Stadium. the QX saw SoFi example, the the new season For award-winning at NFL

quarterback L.A. ambitions. Herbert campaign brand inspiring reach new most important to people Justin their Chargers' with a unveiled We financial

presented Zandre-Sheffley Venous Los January Clark, across Roy and like exciting Woods, Tennis PGA new Wyndham tech-infused SoFi, TGL league Sparks' Maroy, format golf Williams. And with an Tour play Brink partnerships Forward and few. with We also Angeles match of Tiger to in top name coming that new Champion, Thomas, a just by arena launched teams a golfers Justin Cameron

innovate to mutual In Invest, funds alternative private they Financial like past strong find estate and so reserved market continue people products, to starting interval seen driven by investment engagement value we're the when rolled providing with money SoFi credit, assets, use investors Main our we Second, funds year. Services the unique Street and venture. we've our out new segment. funds, for private historically over unique products private Overall, real access ultra-wealthy we've

approach through program, and to expanding IPOs. and offers equity robo our programs award-winning are new year. We a directed for we which later launched also share looking this modern capital We offering raise companies streamlined our to

members. Invest SoFi effectively existing to we business are are existing sign-ups of building the Importantly, cost XX% members. appealing by

in In and member deposits in annualized We QX. $X.X record highs billion deposits we $XX.X accounts, SoFi grew by and direct total deposit members. nearly reached debit billion Money, spend reached

improve transfers, self-serve soon which introducing further expand wire will our will Zelle movement money to similar We options. members'

team, savings products at appropriate we're diversified beta of goals. down an analyze beyond on a member their setting debt portfolio their cash, making yield getting whether expensive is fund, or emergency more and and savings paying for our optimize their ways in that offer a SoFi investments it's In to members' financial that product various cash across coach cash will their testing all new up

option premium on Over membership incremental SoFi We're of magic track the beta products. a launch to will fee-based deliver and to tier our our and Plus our strategy, subscription coming of value time, in testing unmatched the increasingly SoFi portfolio show also across our months. improvements Plus, new

rewards now In everyday enabling as spending cards, or whether credit. more funnel sofa into lending. earn a their the our which cards, the officially people it's to we started platform In now monetization has integrated building them credit just-in-time an launched credit and evolved what platform experience, Rewards Cash business, loan helping loan serve and essential needs, decline borrowing offers

loan platform volume. loan the year-over-year mainly business Xx personal QX, by record driven In grew

We to to towards sources continue business more fee-based, lower-risk of even this expect and revenue. shift we capital-light as grow

the X for so financial services over built complementing our our last insurance offering signed direct first we've X years. also comprehensive carriers Protect, We far

has billion $X.X platform third in our personal for loans, to on XX% In parties behalf of our volume, up helped our innovation $X record including year-over-year, segment. Turning business. generate Lending loan a originated billion

grew equity and we period. was volume loan volumes quarter total volume purchase In Home Home XX% to prior year XX% decline. home loan from million. the XX% to from the as prior loans, rates began $XXX up grew home refinancing year-over-year

since In the the volume was refinancing fact, second highest seen of we've XXXX. quarter home

deals Bancorp in of partnerships, services Mexico sponsored charter And tech payment our with we banks for new Cyber SoFi's deployment finally, processing program. and a several signed commercial X platform, new bank in including Galileo's

enhance prevention the efficiency. We transaction solutions, Galileo give which operational help launched as and additional clients call score, well as verification security instant their engine, we of G both which fraud risk

credit. clients customers secured stronger promotes funding new greater help financial to enables dynamic their build with inclusion Our credit and offering

we future. relentless with literacy brand spanning launched and quarters, into strong built focus in solutions. reliable On financial global our top lastly, of programs on and deliver scalable the clients cross-border payment returns payments, well building, signed we to prior And payouts, business innovation and this

$XXX of profitability when the in of incurred excluding prior nearly All achieved $XX prior a million improvement the achieved segments GAAP QX. million. XX% $XX $XXX record the or record EBITDA expense the year. in year-over-year year income contribution profit from to we a impairment record million, We operating net X million our reached quarter. in goodwill grew

life continue performance provided. within previously we've improve guidance to in credit and QX firmly of We loan the are

delinquencies As peaked Since continued improvements we've last to March on in of shared then, quarter-over-quarter. our we've call, see XXXX.

on in QX. better Cumulative originations fair buyers value percentage basis With all across in servicing, we've along loan adjustments, and see made and performed opportunities delinquencies marketing, an compelling with continue innovations all to SoFi's absolute portfolio. the

billion total almost the nearly an Loan XX balance into sheet, well $X our quarter heading $X.X in last sales with rate billion environment. finally, in we improving months. and are strong this capitalized And reached

XX.X%, capital Our well ratio minimums. is above regulatory total

hand heading momentum In and $X.X I proud just of be we've billion. look forward million of to help and of brand our growth, total I a the record delivering what incredible for more $XXX QX, for for store. innovation Chris. increased value In bright, and delivering up but steady for returns this building returns fired to members The in to over clients our that, book strong We durable QX, new With what I'll that and continued year. shareholders. building and not is accomplished closing, consistent couldn't and a am on improving into product tangible future it

XXXX versus going highlights stated, of referring for our I'll the adjusted outlook. quarter Unless Thanks, and Anthony. otherwise the financial be third to to walk quarter financial key of XXXX. third through I'm results

execution, results can increased today's products durable and fee-based in in of across found Our we are this and and our income subsequent testament continued achieved towards XX-Q a capital-light GAAP all with segments release will which reconciliations be quarter our record members, the available X clients filing, made be The growth revenue in diversification all next consolidated statement our earnings returns. month.

year-over-year This we XX% adjusted of across functions, margin. was accelerating quarter. For million, the margins points delivered $XXX operating of with up from year-over-year. quarter, improvement leverage decreasing a at XX% with to expense growth X record revenue $XXX million of represents margin nearly XX% year-over-year Adjusted net significant last EBITDA demonstrating our all

sales decreasing excluding decline the quarter by $XX a profitability year-over-year We net of we percentage a net improvement of year year-over-year. X the as adjusted incurred and GAAP marketing reaching consecutive points nearly our to $XXX when GAAP goodwill Importantly, million income continues million expense or impairment prior fourth million, in period. delivered revenue, $XX with

GAAP quarter. we $XXX On of generated per EPS in basis, million at past delivered the at share. per share $X.XX about over And we We XX-month trailing generated income. the GAAP EPS our $X.XX the sum of reported net when X quarters, looking a

XX.X more across Financial accounts. nearly and XX% Xx Now XX% year-over-year level record Services, on products saw segment segments. achieved the in crypto revenue, up We the million up contribution year-over-year. X revenue profit we performance, million reached $XXX quarter, to we with Starting excluding or in when where than all operating net

We continue moment. records platform with improve loan product prior Both quarter. businesses all-time SoFi in of across the spending which all and expansion member growth and in Money business, higher of describe up products QX. our I'll monetization This of year driven versus a in per by deposits revenue revenue significant year-over-year these XX% annualized to in $XX for $XX, was achieved

monetized monetizable We all We growth in saw these which Invest a growth well as in from opportunity robust credit new and spend. features SMB card also for as businesses see benefited PROTECT, and in significant under are today. SoFi

key driven was in refer growth quarter, The of growth deposits. and the million primarily nearly parties. revenue. we consumer annualized increased this our XX% income prequalified to origination in driver which which XXX% grew loans in noninterest interest where $XXX was of on quarter income year-over-year, partners platform loan borrowers to third million originate $XX income Noninterest by million $XXX business, behalf of Net represents

loan efficiently whom match respected buyers for demand month, markets. like demand the works this with a our loans the platform highly high-quality with earlier engine marketing members our with business product, business Here's platform how Fortress, shopping can capital loans effective best-in-class agreement announced $X loan billion network of and we the for in we of

originated a loan, gain all members to takes less becoming our else's along the This the loan When further out easy they shop, capital-intensive fee-based we someone and to serve a behalf. also member products more a of towards though other on enables access benefits member, of while in SoFi with one-stop potential revenue. of diversifying even SoFi more sources

third of In QX, we generated loans behalf $XX million in loan platform fees as driven originated by personal of $X referrals. as well billion parties on

cash We also our Lending in in generated recorded $X.X segment. million is servicing flows, which

platform loan to in million revenue. total adjusted business added our Our $XX net

even annualized and $XX interchange, for revenue, the in to total Services payback invest our profit addition with grow contribution in as a to opportunities new acquisition a healthy require across that in margin platform a XX% billion costs in up continue loan segment period $XXX quarter year-over-year our card. continue XXX% rapidly to growth Overall, we In a result and we segment innovation, at of nearly this see spend returns. was operating Financial as at money in record million the quarter attractive to credit

brands as growth strong to where new well like clients X% we record access Revenue movement. cases Tech and XX% by wage and in revenue contribution in quarter, with our consumer year-over-year driven growth sequentially. $XXX Shifting in up segment, America, U.S. innovative million and net of money earned from clients Platform Latin was delivered the nearly use as the

fintechs been The a Recent pipeline investments than strategy revenue. is of opportunity. a consumer the telling discussed margin. banks, spot offer greatly $XXX segment in but million, million. larger durable it's this expanded how have before profit grew $XX in stronger BXB, pipeline pipeline more ever and wins working. market are early, the XX% We've contribution segment and spans across accounts the strength made to a and signs which brands delivered representing record The Galileo is and and XX% of year-over-year the

record were margin. We adjusted adjusted net XX% income, record Moving Lending. million on XX% million income contribution interest growth at results of a in noninterest These year-over-year. X% while $XXX of adjusted year-over-year profit to by of with net revenue by achieved driven $XXX decreased a

net average driven XX interest-earning assets, in slightly average in in a margin offset of income an year-over-year in yields. a interest average This Growth increase by by interest the basis year-over-year decrease XX% for X.X% was point resulted quarter. net

over behalf parties of quarter billion, with personal $X.X by billion platform were sequentially driven In third QX terms record $X of year-over-year to a to on grew loan noninterest originations and XX% for business. XX% originations, loan which billion in $X.X originated income, year-over-year grew XX% our and

Our $XXX XX% XXXX. quarter since our grow X% sequentially year-over-year million, volume origination year-over-year $XXX XX% best to and loans QX our Home quarter volume to student saw sequentially by business and XXXX. loans million, XX% grew best since

quarter, secured loan, personal third and our of we the In loan totaling $X.X sold a billion. portfolios home portion loan senior

terms we and million loan contractual with These personal approximately similar proceeds sales fees at premium form recent of are an near in and $XXX other of capitalized. had consisting whole the the servicing loans of personal execution majority closed cash to loan or In of sales, XXX.X%. of that loan par structures

we a sales assumption our held would loans. that of loss relative share losses and the the above These to immaterial provision otherwise is exposure base included we have small if

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

million loans late-stage quarter. $XX the sold in personal delinquent we Additionally, of

charged a typically As time delinquent such we've not they have loans that past, noted are off. we in sold until the

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

senior of par secured loans million execution. $XXX sold we Finally, a at

for on of with was with These sheet. at $XXX is the $XXX our million $XXX senior our longer the prepaid million refinanced the large our sequentially. loans than transactions on balance loans senior these another so secured of issuance secured borrower secured loans our support balance refinance period inclusive of market Net-net, by clear more loan with no demonstrate one market prepaid million loans million value more of and could and addition, sold outstanding decreased rates. new $XXX bank borrower senior in of marks the principal In by secured at and attractive another

of to our credit and profile the the performance. Turning overall borrower

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

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

we loans. After continued peak have personal trends improvement seeing in credit in seen QX,

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

X.XX% delinquencies, the personal loans XX and from including late-stage that net we annualized X.X% days we quarter. of sold delinquent, in had loan charge-off recoveries have rate not to originations impact the delinquency including personal annualized of rate an sales, the between new these X.XX% estimate XXX sale in quarter. Our decreased QX, and last asset X.X% versus charge-off for approximately we all-in would Had

our our The points. was our assumptions sheet charge-off underwriting while X% rate on-balance XX XX-day at in flat continues basis basis remained rate loans, data loans delinquency for For X% loss maximum to XX with line quarter-over-quarter life-of-loan points, annualized our tolerance. support personal student our to

analysis to a analysis provide our we're unlikely presentation. last quarter, to Since Page Similar vintage window XX longer only a the into term. we've same loan loan partial portfolio, investor our of provides this provided on

vintage of this helpful as life the performing vintages that loan illustration we our against losses is are recent X.XX%. last how approached However, it's X% time XXXX of a at collectively

unpaid XXXX percentage losses in a can significant recent and for improvement cumulative remaining XXXX see given net vintages. principal You of more at

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

been unpaid net that newer at remains has the QX the XX% paid cohort in of through seen you the the curve we've of already cumulative only down, between widened XXXX gap XXXX curve balance will XXXX XX% cohort principal XX quarter-over-quarter. Among our from originations. principal QX that Furthermore, looking investor losses. and in The notice presentation, slightly X% Page

on cumulative X% of a For unpaid cohort losses life this rate more of loans reach XX%. remaining than to entire charge to loan off of losses at the mean principal net would

after further Past have this loss the in in point below curve, improving meaningfully vintages our performed achieving seasoning X%. better rates confidence

marks and key Now turning assumptions. to our fair value

driven Our widening. personal spread X.XX%, a at This XX in are basis the drop driven XXX points higher directly discount basis to points rates marked benchmark by basis point XX basis XXX by quarter-over-quarter. the offset rate by and was points a decrease loans by XXX.X%, of in which was

constant XX trends rate credit by or also default I observed The highlighted. points, with basis is decreased consistent CDR, which just the

XX by our due student fair point by mark basis widening. loan For decrease X.XX% XX XXX.X%. points an in rate point to offset the value XX was the decrease to increased in basis portfolio, discount This basis by rates, XXX to basis a spread but driven of points

by originations. The The and weighted than quarter net Net-net, the and average the impact new points. spreads hedge negative by see basis of the change not widening. in positive revenue impact value the the coupon reported a increased XX portfolio offset losses were gains marks, hedge more significantly also did on from we losses in fair from our in

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

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

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

interest annualized deposits and base. size pay savings interest more deposit million stack. interest use we parts continue we between deposits of the of $XXX $XXX XXX Currently, to as higher by cost translates a deposits brokered we which our million on than there is points the our the reduced to expense given consumer difference warehouse We pay funding our on replace in basis lines, to the

advantageous benefits our drawn. $X.X on exited continues to debt option interest billion collecting in of when X.X%, the holding balance interest margin just loans underscoring with difference the support of of sheet having income. warehouse net We quarter This net of the

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

In our regulatory regulatory terms ratios, above comfortably of remains of our of minimum capital XX.X% total ratio capital the XX.X%.

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

Now on guidance. to

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

Financial grow million. expect grow now deliver to year-over-year. This more a of guidance XX% million million of EBITDA Services teens low $XXX EBITDA platform upper XX% will prior our than We adjusted $XXX adjusted percent represents in above to tech $XXX $XXX million, year-over-year to to will margin.

to expect now share tangible continue million or full million prior expect expect to with $XXX the $X.XX $X.XX $X EPS share. to GAAP prior approximately ratio capital of to $XXX billion $X.XX and at $XXX above guidance above and above now million, guidance to billion a growth $XXX of year in of of book year to million total per end $X.XX value of per XX%. We GAAP income We net to $X.XX

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

this demonstrate reflected continue our strong story, durable position a as in which results. to quarter's is We growth

more top returns maintained money conditions, unpredictable towards a get in journey on continue clear operating we've members opportunities be strategy, becoming their focus us helping as financial we our executing excited and cannot macro about right. We Despite the driving ahead institution. our of our

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

today Dan Dolev from [Operator Mizuho. from question Instructions] And our comes first

results how color this Great loan here? more quarters? platform give how from make the us money deals some do prior differ always. does you only Can you And like as on the

Sure. Thanks, Dan.

transfer referral before. more great is meaningful do taking revenue fee-based to time this been upfront or the serve and We're sheet overall, generating at capital-light and pace fees cash risk. we're at than source of more able a We're so able a needs balance not we've us. of for So members rapid to

certainly that we business, several since So in has we decline on monetization there are which ways evolved within the started XXXX. revenue focusing make

First via we qualified we and a borrowers the takes borrower our out marketplace, send to if platform a Lantern partners receive referral is fee loan.

box engine receive partners we of make into underwriting fee, we partner money our servicing. and our platform shortly way can behalf embed retained upfront credit with and originate second those after of origination loans on transfer occurring we partners also we is to that, cash the specific of an The the the for those

for we're an cash of also that investor quarter way is fee platform characteristic of originate asset or we The and specific based business, received third what's new origination. after this shortly upfront that a servicing. able transferred retain with fee and to and profile This We on is third-party on investors behalf other loans return that days within week. a

are way do money, other parties. a then now we of doing assets that balance make few but And quarters not we is we the been sheets service and third can held on that can for we've fourth the this originate

of at given our of all fees risk I servicing credit is and would partnerships. in not of including: number less or with that no any first, consistent commitments finally, strategy these we not are that characteristics in capital with then important which directly our is say loss these the may align. portfolio; to the would is I we other these originations; The are that, current regular with have our last What share wouldn't allocation of profile contracted there any thing second, be align may those assets financing associated that are and point receive capitalized. time assets, For and otherwise not due reasons not underwritten may agreements cases, appetite deals here a or own say

Dan, the personal I this only of but and SoFi. loan to And lot and XX% applicants would other the may by known add, a not XX% people, be between thing declined of we

of there there's potential, potential And better. them service so lot to a latent

we initiatives make before offer. the demand try else aware exists in And of so that of to or incremental generating number terms that other that's even business people this in we can to a do anything big products

Ma The question comes from next Barclays. from Terry

of probably originations than and it's improving and our the increased your of to ahead this in So came less a earlier year. this bit seems clearer expectations, year. be each credit quarter macro, little sequentially

So for for do own some versus maybe partnerships? how think I and you growth forward, of about originations originating going sheet lending balance your guess your

on for on do changed. What balance in is would modest and into growth sheet the will or growth dollar expect Yes. sheet not outlook originations say the We at least I overall QX. continue year-over-year, our balance that has terms

happy the are sheet amount with balance net have size of we're the interest that of income and we today generating. We that the

seeing side as and our the we've investor for well expansion We able on loan personal platform and successfully demand borrower fulfill excess of navigate the to unsecured our are been side loan through loans business. the as that both demand

where quarter we see we So for a strong as PL our business, we you well as we demand will student where expect a our best meaningfully really environment, had would into refinancing since are XXXX. quarter balance the had is migrate would to sheet where an in grow our we rate uptick loan in home business, loans not quarter this from lower where today.

from comes question Jefferies. next The from John Hecht

current to assumptions you Congratulations. and I'm performing that or all like return XXXX slide capital the better on more contribution I that your do well? prepayments to recent think the ones. the vintage. credit of appreciate how versus about like impact on guys how the the payment It trend performance are vintage than wondering looks 'XX as vintages the this outcome just the information about

Yes. Thanks, John.

target, of of which base. talk loan quality obviously So underwriting life an to underwriting we loss strength our reflects our and high the borrower about of X% the often

loan of of losses life while X However, tolerance. variables, adhering to in underwriting our drive which represents decisions combination credit just our return on several actually equity and to risk designed maximize pricing

the to how vintages Xx with average returns of coupon talking costs meaningfully weighted past origination a those XXXX than some weighted losses, is really life greater the returns the of all-in recent on minus I'm things. as multiplied terms fees our levered. versus produce average ROEs increases funding and plus a of in on vintages higher of we and here newer vintages number about our and annual In driving then produce are ROE XX%. defining returns. I'm projected recent costs What's returns by expected other think more function versus And above operational to

life First is we expected lower presentation rates of as loan loss Page on in XX. our show investor

the rising the of over to throughout good pricing a years. able And beta to rate pricing we've in maintain environment the We've quality environment few rate able time been that coupon We both also we've and were weighted increasing the to portfolio product. again last maintain really course higher down of across in our the products demonstrated successful due been rate Second time in betas. increase cycles. average is

last the the now had our we've is origination member cost way replacing funding. high efficiencies we're fees of funding in third And origination million introduced higher course to The given success deposits cost close we've warehouse plus in and deposits and then $XXX growing fees year reliance annually. generating over on direct and fourth,

increase prepayment offsetting in of these combination these in we're in reduction cohorts. drivers and the than more weighted average speeds that lower the observing of the So lives some is

to provide these is more full talking we're what going life Going because say I of return forward, loan often losses would about the metrics be don't view.

just has able a increased been more despite uncertain period. that have high is broadly, emphasize, the that the other very John, achieve rates economy to been I shareholders would thing more during the time. we've ROE returns of been period And vintages significantly fact of time in somewhat and types in recent these short the And that

we are particular we're standpoint on such relative returns. to opportunity across As improve reasons sheet that economy, the of into prudent stable risk level these a believe And in class a we of return we as the have what we we XXXX it's loans. balance is from in a we set a a asset think personal one only rate declining leveraging why different can and the look environment all businesses

So think a better there's it from gets we and only of here. upside lot

Morgan Stanley. Adelson The next Jeff from question comes from

I you continue how can numbers the the expectations loan meaningful rate. today, said grow from bit expect the here? to $X little just this expect about growing. billion at how more become? that Could a look like we But you run platform already that it's a know talk can you've Seems for if business, at

that. me it's relationship, which, correct I'm to wrong, if Fortress the got You've additive

So bit we bit the versus in that's platform a rate X.X% business to maybe here? the take as curious, reported $X prioritize to about last billion came I maybe the based thinking this be loan a billion. from deemphasize already close $X lower the X going you little you more just I'm the And should as economics little for the revenues quarters on mean, loan And quarter? from million $XXX at sales here? are the you it a then

overall of terms chime period, earlier we I So we come that in portion Fortress of Anthony growth that Jeff, can quarter. in ever. is, part billion of say what start originations in, expectations, the the a from I'll transaction in did, the that announced would did But of as $X and that the

$X So it's but to to of It's we segment. inclusive do the that. additive rate. growth strong continued run your in not see billion expect

who $X that that Fortress deliver I very for at QX agreement have other few partners. we're return as partners of investors as well characteristics say XXXX one the would assets seeking. with What can We with commitments with scale profile several are billion and the is and

borrowers strong deemphasizing is the happy it's a we're is as business. of In What mentioned other and I terms questions say fulfill say of through expecting few But from of in had of I over expecting been favor as I are growth sheet the the demand ABS would with what we that excess is Like months. balance sales modest transactions, next course LPB before. both this. ever is ago, the that demand investors the and size to the way and a demand and X we're seeing that that would

and say see underwriting to take originated credit take sell terms partner. compare this is not are you're to of what rate allocation our capabilities, that given oranges appetite and they what originated would capabilities trying others own the you contracted risk as and at behalf apples we're What In looking depending and overall These platform of would the capabilities, is and well fee when capital the to and we're the strategy. our platform of characteristics our have operational a rate, that overall are originate and as loans I been in asset receiving business. on loans on less our the general fee for marketing to, vary will

is are we but just a or the loan in recent which partners opposed incremental ABS percentage platform to And They're a have. to loan buyers of quarter. not that as typically One of points in them couple I most partners incremental, loans the the think emphasize. of new all the are many business, large on buyers including wholesale

addition couple contract. are times, originated originate loans In to wouldn't have when only a have and who of actually we Chris that, these has otherwise a mentioned we

So it's It's of pretty is and the in XXXX into articulated. not as zero-sum incremental, a excess what we for game. go outlook significant you

billion period. our sales. quarter QX, $XXX months -- in I we've X would as last across of terms million mentioned in the done already well. course billion over across of over of thing billion all $X The in the close We you say overall to had the and in sales products XX products loan Quarter-to-date, other in only sales $X did done

So the demand is certainly there.

purely able to behalf fulfill Anthony mentioned, to of on We as on will ends. But us. being continue both to others incremental originate is

from Next Needham Kyle Peterson question comes Co. from &

and ask nice results. question to on as wanted deposits. Thanks, a I Great.

are of guys trends the there. you seeing Some

You rates really you growth just have member gone a took down guys down. the the on I bit deposits probably nice rate paid there, as had -- believe

things to on just the pretty have rate or you in customer of receptive guys you've average the on balances any changes made cycle. So early some changes deposit whether been rates any have color in on seen behavior cut or

we We need mention really not one standpoint, ranking course, way of not of other Money interest more We're marketplace coming API resonate give the maintained place. in position. charge obviously our proud the market of Yes. continues rates benefits, product to the down the in an We've SoFi to a maintained our share broadly. do despite We've the in rate, all functionality including number high fees.

$X So in deposit billion of we've seen quarter. continued in the deposits member strong trends growth over

In we're have levels better the to addition been to on par where to that seeing are that, they historically. spending

tire indicators continuing getting And money. it so as we're business across relates positive SoFi the to to

basis, starts our when products meaningfully higher direct They have just at per compared the would is on that it's customers of thing other members. one where flywheel number the vintage And direct customers per you I points overall deposit this more engaged. to is The that of mention are of key than customer the number we average it report. better a products look average even the overall deposit are

that's can and year. next of continued national own being own its origination that own a one excited a bank which business the advantage as interest on to over and we've well an a competitive advantage both this loans destiny a competitive operated our set So it's It's and platform about proposition. value its been control rate year in as bank as able and in in quarter, a we're being having

from Bhatia question comes America.. Mihir of from next Bank The

is talk couple One to wanted a Services And I to there. of just the segment. segment again. I things Financial monetization stay about with just wanted about

be? I to also I card monetization like much now. you more broadly. credit And year is launched how can Like $XX your growth just targets on the up think out? the what can share to think Any then laid you SMB your next guess that, just next annually you this related in PROTECT mentioned targets that maybe that just that you remarks look time or that to X-year it's you what can achieve

surprise Like it where grew of think was is really what the about for quarter. us lot to next a I'm big sector, business next from. guess, asking what's that I business talk vector this lending that right? maybe how pretty materializing I people growth that in is a So much platform

So a... give . us

the You've hit Yes, head. in you. nail thank the

million of It's is I of be You've of $XX business a variables, long It's per nail product. to and The growth investment have revenue the while revenue per of where an product. head. the in to up conceptualize think And this that profitable are sort today can X as growing business, product it XXX% about amazing $X that still size, annualized members part could despite revenue, The generate growing that best hit our the profitable approaching the fast we're per mentioned, on member near the nowhere in you but business. it's mode. very meaningfully revenue number billion we those products product pretty business over to think of we where was exciting fact and how and term. go way growth, and quarter, we're

number In business, that to we're it half experience. by rate monetize can value time. about it take the start think course, relates invest adding we our of over we'll a monetizing we that we to XXXX, the steps incremental at to monetize better, of invest As where

we're invest is don't Invest. trying -- that just shop pay We on pioneered be one-stop in obviously Our within unique We to a fractional trades. product charge shares.

that new lower our that diversified ETFs but way. meet investors better would in to allowing own a our do created we price that, to cost beginning members addition point needs In averaging the dollar of our are and diversified,

get again, do really to and our That's But monetize us funds launched that then for monetization. see remain to that to us in but a not grow Street IPOs driving a We direct assets that also been alternate we robo just today those more evolve and behind and mutual XXXX in will monetize you'll to in classes we do prices. don't of have have more award-winning accounts, And continue something a vehicle. engagement. increase future. We access tailwind unique which IPO IPOs, and the investors product we asset monetization that we terms is

product have the it to the opportunity not growing. fast increase to XXX% that how normalize And remember, ago we have monetization business, fact are for were and invest do lost growth, invest transferred. to mention products we year per member Invest the the products a the you the that you members in just calculation when or crypto on So over had

as deposits to nice Money per spending opposed more will monetization more rate spending see we improve to deposits and continue there continue to business, se. the with and trends a in in SoFi and change

our In of credit that, addition card business is monetization source to another opportunity.

in monetization interchange. that to more members the have because we monetization revenue a that's more drive we'll increase, add to our debit higher interchange we there continue balances As the addition than that more

in mix a improvement you you'll in so there, mention see not see absolute monetization. an the to increase shift, And just monetization as

app. biggest And embed XXXX then initiative and as it scratching process surface. small so relates the take medium to it into far SoFi The in just the had we application business, to we're the was

the all it for a when to to comes loan a app, partner the demand So apply can relates native within and and to that get as lending. we they business for then small SoFi, medium be referred

would We more but also services which and do more that much not monetization point, we today, do there banking, walk to us there products that monetization some in to is mention could is continue want business, as time. and we run. doing you'll to ourselves relates we and early-stage crawl to and to before way. ultimately to it then greater it see It a do bigger we broader an at do like over drive

So that the you'll business. see SMB in

monetization but penetration. increases our On increase deals we're doing also the there, the that the marketplace, insurance side, in

revenue in growth So the XXX% product. quarter per strong really driven over growth by the product and revenue

is is a we're pretty X great amount point sizable a J It anywhere make there And it's profitability on And you credit because card invest X X the just I in business. depending on money large to of to credit years in with from you'll forecast year. on business business able we the focused takes those business X get be losing measurements, to and the is that business The curve a X.X the return of last not longer. on profitability. still payback

losses profitability the that And masking So improved investment that's is would profitability there. there, of the the monetization. we're back added the number subtracted we before what's actually any bigger If that side. we've even be on the losing

from The next question from Christiansen Citigroup. is Peter

pipeline, what some alt over relates peers platform months? emerging theme, you certainly about bigger to And seeing discussions here. quarter? if curious, theme just have just as side benefited your this the tech you in was a to lending also XX, credit seeing I next talk larger as degree here. becoming trends versus decision picture, can credit In performance currently is can finally, marketplace pipeline, you're we Nice the of curious is talk a it of you're think delay the last XX then your

Yes.

for In buyers terms meaningfully. people, of investors, to quite from increased demand similar our or the demand has loans other

demand of business. own our evolution able by the to business continue being our platform the evolve at platform now better and for some of loan that from are to origination We loans meet

of number we we've their new similar an seeing buyers, with can. partners So now others, meet to existing able but that a before, from needs we're it of not but increase also been to

not So to our really putting initiatives excited a new the about loans, there. declining mention tailwind environment, rate behind

their have to a a on types the relates and have of switch. technology. had anything how that And reason. would reason we I those no regulatory that to to a transition. definitely They platform, institutions for but to have As decisions end we're are been But big that there's I have to of decisions on we've of doubt, been been on large XX made some with announced, financial deals decisions some over it they There's being of decisions to tell risk big why I just made the in have deals. any And the they really a have but will some technical with why of struggle there, would made. color the do just last by switch budget none would wins tech give to any the XX without haven't they you the think deals. of just the reason you more coming I process months. There confident that that there's say continue make we I'm

have an share demand . been but and specifically win think none to our have core yet. question to And so platform tech and a processing. decided there, it's when, for like going we'll tailwind deals we a and technology just be in it's inevitable in of of fair change our and the business I And

debit as a of that we've is similar partners from of decided signed BXB credit companies the that the the the and branded a big amount haven't RFPs of bases, of to agencies, over will business. large is credit those second on about direct-to-consumer demand type some a help white area to opportunity product. executed be The we something much continue businesses, through significant for absolutely installed continue past financial we and And to of then, And side to against, of that from they're the us there's for receive of in in months. today already surface there do which card and course, some talked business very coming types for companies outside of demand label which have the the demand government there's card services that

The next question from Shea UBS. comes from Jill

the future of the Can growth view card and the launched on early products? talk Rewards there Cash everyday early while You about just credit indications essential your days. the you and cards

Yes. the curve like years There's an It business. We is term. near of business really card expensive J long obviously that a X term. about endeavor in

that result that The world-class a X team have mentioned of We case type launched. wasn't are the performance second and We all of hoping direct we see. this We our test run with the done. team the That -- a the a we cards that when to has were business. you did came in done business first team before. saw that's this the work

for to helped I type general that's also availability performance as why say cards cards. have testing. just the will take very deliver And those to those opposed we in there business. capabilities will marketing a methodical Our approach card wanted of see us credit we the we to went

and have is it lot the great lose ROE business, to ability a also it money a of money While lose does day. every

individuals continue And on card probability can think get so to sure way, utilizing return in that we great market it that we a have a the we'll it. high and of that is we that, right to make something

the data to can them we'll to have do as well. platform, start we're model our that members with off that use to of starting use we We opportunities data to which our we'll decisions. make on continue So and

Services about a different Inside types think segments. of business, of Financial as the couple of

card. it are continue stage, have SoFi And We that that's that we methodically we and harvested it business very we feel Money, like overall this we're we grown businesses growing one in in time. is contributor. to are seeds make losing credit grow, the that have businesses businesses that and time will a will have investment make one we middle, very planting that in time fast and that do push that still that and early the the business, but then sure will to have of over be go-to-market are are too profitable money terms fast invest good growing And our confident over and do we're be like to but over hard offset we'll a not profitability on

over call like this turn time, remarks. At Noto closing the to to Anthony would I for back

everyone closing dialed I some that's operator, I you, for remarks call. and want thanks the share. to have Thank into

is quarter, we're achievements succinct list be cannot far, me too, right achieved at I great to where capture of mentioned here right better what feel I QX, As end the clear. of and now. we've let and every headed The about and so

available so a and environment environment. could is XX%-plus and grateful we just we innovation are many X in products, quarters and record our are members truly improving and face more advantageous seen of began SoFi. we tumultuous and a and I before. streams There environment of returns Today, most Despite profitability people members GAAP hopefully, to now lending stronger we've the march be capital of emerge be the clients. from of more SoFi: or more one-stop employees, products, reason be our we I more that ever such growth, building force And that Today, to the We not only to tumultuous is that we've revenue, growth revenue years, diverse our over consistent with since milestones. our relentless the one company, durable time reason other a joined reckoned world-class no prouder quarters XX and is people shop. brand the with. a as X delivered than more members, longer company. It have the past

capture to us the the our of ahead still company patient here: same best opportunities got absolute us the because undeniably that thing of are We massive people.

time great XXXX. have you, for heart. Thank everyone, we are people at Our your end hope today, and great a to you

today's call. conference concludes This

may You disconnect. now