SoFi Technologies, a leading online bank, has announced its financial results for the third quarter. Despite a loss of $276.9 million, the company’s revenue surged, driven by a significant increase in deposits.
Robust Revenue Growth
During the third quarter, SoFi Technologies reported a revenue of $537.2 million, marking a notable 27% increase compared to the same period last year. This surpassed analysts’ expectations, who estimated revenue to be around $511.3 million.
Improved Financials
After adjusting for one-time items such as goodwill impairment charges, SoFi recorded an adjusted loss of 3 cents per share. This outcome outperformed predictions from FactSet analysts, who anticipated a loss of 8 cents per share.
Surging Deposits
SoFi witnessed substantial growth in deposits, with numbers surging to a staggering $15.7 billion, more than double the figures from the previous year-end. This represents a remarkable 23% increase from the previous quarter. The online bank’s competitive interest rates on cash deposits continue to attract new customers seeking secure and rewarding banking options.
Strong Customer Profile
Anthony Noto, SoFi’s Chief Executive, emphasized that the median FICO score among new direct deposit accounts was 743. This demonstrates the online bank’s ability to appeal to a financially astute and creditworthy customer base.