SOFI - SoFi Technologies Inc. (SOFI) Q4 2023 Earnings Call Transcript

2024-01-29 11:56:05 ET

SoFi Technologies, Inc. (SOFI)

Q4 2023 Earnings Conference Call

January 29, 2024 08:00 AM ET

Company Participants

Maura Cyr - IR

Anthony Noto - CEO

Christopher Lapointe - CFO

Conference Call Participants

John Hecht - Jefferies

Andrew Jeffrey - Truist

Reggie Smith - J.P. Morgan

Dan Dolev - Mizuho

Jeffrey Adelson - Morgan Stanley

Michael Ng - Goldman Sachs

Vincent Caintic - Stephens

Dominick Gabriele - Oppenheimer

Presentation

Operator

Good morning. My name is Daisy, and I'll be your conference operator today. At this time, I would like to welcome everyone to the SoFi Technologies Q4 2023 and Full Year 2023 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] Thank you.

With that, you may begin your conference.

Maura Cyr

Thank you, and good morning. Welcome to SoFi's fourth quarter and fiscal year 2023 earnings conference call. Joining me today to talk about our results and recent events are Anthony Noto, CEO; and Christopher Lapointe, CFO. You can find the presentation accompanying our earnings release on the Investor Relations section of our website.

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

Our actual results may differ materially from those contemplated by these forward-looking statements. Factors that could cause these results to differ materially are described in today's press release and our subsequent filings made with the SEC, including our upcoming Form 10-K. Any forward-looking statements that we make on this call are based on assumptions as of today. We undertake no obligation to update these statements as a result of new information or future events.

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

Anthony Noto

Thank you, and good morning, everyone. 2023 was a remarkable year for SoFi. We achieved multiple records and realized many of our aspirations despite seismic geopolitical and macroeconomic events. We demonstrated that we have built a business to thrive in a host of challenging environments, reacting swiftly to change, driving our business forward with standout financial performance, while continuing to serve our member's needs. Our 2023 results have reinforced my conviction in our long-term potential and our ability to achieve our aspiration to become a top 10 financial institution.

I'd like to highlight some of our notable achievements for the year. We reached GAAP net income profitability in the fourth quarter and are positioned to continue to drive positive GAAP net income in 2024. We grew adjusted net revenue by 35% for the year to a record of $2.1 billion, while adjusted EBITDA of $432 million increased 200% versus 2022. This represents a 54% incremental margin and a 21% consolidated EBITDA margin for the full year compared to our long-term margin target of 30%, which we achieved in the fourth quarter of 2023....

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