SOFI - SoFi Plunged 10% Following Its Earnings. Here Are 3 Things Investors Need to Know.
2024-05-03 06:42:00 ET
On Monday, SoFi (NASDAQ: SOFI) reported earnings, beating analysts' estimates and raising its annual earnings guidance. However, that didn't stop the stock from falling over 10% after its announcement. The fintech's quarterly growth was solid, but there were concerns about the slowing growth rate along with a disappointing forecast for the second quarter. Here what investors need to know about SoFi today.
In the first quarter, SoFi's total revenue grew 27% to $645 million, while its net income of $88 million represented its second consecutive profitable quarter. The company brought in a net income of $48 million in the fourth quarter.
The company saw slow growth from its lending segment, where total revenue fell 2%. However, it did get a strong boost from its technology platform and financial services segment. Its technology segment, which provides back-end banking infrastructure for fintechs and neobanks, has become an increasingly important part of the business. This segment's revenue was up 21% to $94 million, while its contribution profit more than doubled from last year.
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SoFi Plunged 10% Following Its Earnings. Here Are 3 Things Investors Need to Know.