- SoFi Technologie stock rallied 14%+ on upbeat Q3 results.
- The digital bank grew its customer base and sales in Q3.
- The bank also saw a surge in customer deposits.
The SoFi Technologies Inc (NASDAQ: SOFI) stock price rallied 13.97%+ after releasing its Q3 results showing that its net revenues had risen 56% to $424 Million, with its pretax earnings soaring 332% to $44 million.
The company added 424,000 new customers, representing a 61% increase to last year’s numbers while bringing its total members to over 4.7 million. In addition, the company sold 635,000 new products, bringing its product sales to nearly 7.2 million. The high product sales indicate that many customers bought more than one product.
Also read: The Best Financial Stocks To Buy Right Now.
Investors were pleased to see the digital financial services company continue thriving despite the challenging economic environment across the United States as consumers deal with record-high inflation and the rising cost of living.
Anthony Noto, SoFi Technologies CEO, said: “We delivered another quarter of record financial results with robust growth in members, products, and cross-buy. We generated our sixth consecutive quarter of record adjusted net revenue, which was up 51% year-over-year. We also generated record adjusted EBITDA, which more than doubled sequentially for the second consecutive quarter,”
“Strength across all three of our business segments — Lending, Technology Platform and Financial Services — drove our record third quarter adjusted net revenue of $419 million and record adjusted EBITDA of over $44 million.”
The CEO cited the award of a bank charter as a crucial milestone, which allowed it to expand its product offerings and compete more effectively with traditional banks. The digital bank’s total deposits grew 86% to $5.0 billion during the quarter. The bank further noted that 85% of its SoFi Money deposits were from its members.
Investors were happy to see the company record significant growth in deposits despite the challenging economic climate that has left most consumers with less disposable income for savings and other non-essential activities.
So, would I buy SOFI stock? The short answer is yes. The digital bank’s performance is a good reason why and the fact that it is trading near a long-term support zone is another reason.
*This is not investment advice.
SOFI stock price.
The SoFi Technologies stock price rallied 13.97% to trade at $6.20, rising from Tuesday’s closing price of $5.44.