SoFi announced its first-quarter financial results for the period ending March 31, 2022 on Tuesday. The company reported non-GAAP revenue of $321.7 million, up 49% from a year ago. , and a profit loss of 14 cents. Plus, new investment features are coming soon.
According to SoFi CEO Anthony Noto, extended trading hours will be launched in the coming weeks as the company seeks to have trading options available by the end of the year. Additionally, Noto said the company is considering adding additional cryptocurrency products to its investment platform to provide greater value to SoFi customers.
Noto also took time out of the company’s earnings call to highlight the company’s continued vision. SoFi is committed to creating a suite of digital financial products to help customers with key lifelong financial decisions and to build a deeper, more meaningful relationship with customers.
“We do this through a vertically integrated model in order to have the best products from a consumer perspective, but also the best unit economies of breed, and that will allow us to have a competitive advantage. And as we go As we build that vertical integration, we build technologies that we turn into businesses like we did with Galileo and Technisys,” Noto said on the earnings call.
Additionally, the company will continue to invest in digital technologies to capitalize on growing consumer demand for digital payments instead of physical payments.
Additionally, the company addressed the recent interest rate hike by the Fed to fight inflation. According to SoFi chief financial officer Chris Lapointe, the company expects seven more rate hikes by the end of the year. However, the company has factored this into its forward-looking revenue projections for the remainder of 2022.
“For full year 2022, we are raising our guidance and now expect to generate adjusted net revenue of $1.505 billion to $1.510 billion, beating our full year guidance of $1.47 billion. recently provided, and we expect to generate adjusted EBITDA of $100 million to $105 million above our recently provided guidance of $100 million,” Lapointe said on the call.
Noto also said the company has put in place a warning framework in case the economy deteriorates further, such as if the economy were to fall into recession. However, he said that for now, indicators show that demand for products and services remains strong as well as a relatively stable economy.
“As we approach the halfway point of 2022, there is no shortage of challenges ahead, but there has been no shortage of challenges every year since we arrived in February 2018,” Noto said in his closing remarks.
“With each set of unique challenges, we wrote on a case-by-case basis. I can’t predict the future, but I can assure you that we have the best strategy across the most diverse set of companies that have provided consistently superior financial performance that delivers both strong revenue growth and strong earnings, as measured by earnings before interest, taxes, depreciation and amortization (EBITDA).”