SoFi’s growth in products and membership is continuing to be a major driver of its quarterly revenue.
Total members increased by 96% year over year, and the number of products more than doubled to 4.3 million from 2.1 million.
The company’s growth is driven primarily by its Lending Segment, which is seeing a more than 50% increase in revenue. And, with the student loan moratorium slated to end on May 1 of this year, SoFi is expected to see an additional $30 to $35 million in loss.
SoFi’s numbers were mixed, with adjusted revenue rising 54% year over year to almost $280 million. However, losses were wider than a quarter ago, while pre-tax operating profits increased for the sixth straight quarter.
The company attributed its growth to increased sales across the board, with a boost from its Galileo technology platform and its lending segment. The results are encouraging, but investors need to be aware of the risks associated with the company’s aggressive growth plans.
Meanwhile, the financial services segment continues to gain momentum. Its number of money accounts grew by 523,000 in the fourth quarter, and its ‘Invest’ segment grew by a staggering 900,000 during the quarter.
As a result, financial service revenue increased by 440% and total revenue for the year up to $1.34 billion. These results are particularly impressive because SoFi sees its money accounts as its primary entry point into the financial services segment.
The company has a diversified product portfolio that allows it to cross-sell multiple products and services to a rapidly growing user base.
Overall, SoFi has become a top-tier enterprise with a best-in-class consumer and small business lending segment.
The company also plans to focus on expanding its presence in the small business market. SoFi is growing rapidly in this space, thanks to its strategic vision. The company has partnered with over 60 partners, which makes it a strong choice for enterprise customers. And the synergies are good for SoFi’s customers as well.
Despite the continued competition in the financial services market, SoFi’s growth is impressive. The company added 523,000 new customers, and 900 thousand of them became SoFi product accounts.
Its revenue per user has increased by more than fivefold since the start of the year. But the growth in the financial services industry has been fueled by the success of startups. This is the first time that a major fintech has managed to achieve such impressive scale.
SoFi has continued to make progress and added 523,000 new customers in Q4 2022. It has 900,000 product accounts and 5.2 million customer accounts.
And it has continued to innovate. It has also launched several products and services. And it is now ranked as #1 in its category by Tip Ranks. These are all good signs for the future of the company.