What happened
Shares of SoFi Technologies (NASDAQ:SOFI) jumped 28% on Wednesday after the digital financial services provider issued an upbeat profit forecast.
So what
SoFi's net revenue surged 57% year over year to $363 million in the second quarter. The fintech company gained more than 450,000 members during the quarter, bringing its total membership to over 4.3 million. That's up 69% compared to the second quarter of 2021.
Those members are also using more of SoFi's financial products and services. Its total products at quarter-end were up 79% to 6.6 million.
With annual percentage yields of up to 1.8%, its online checking and savings accounts are proving popular among consumers. SoFi's deposits leaped 135% to $2.7 billion. This growing deposit base is serving as a stable and relatively low-cost funding source for SoFi's loan business, boosting its net interest margin in the process.
All told, SoFi's net loss narrowed to $95.8 million from $165.3 million in the year-ago period. Better still, its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 81% to $20.3 million.
Now what
These positive trends prompted SoFi to boost its full-year earnings guidance. Management now projects adjusted EBITDA of $104 million to $109 million in 2022, up from its previous estimate of $100 million to $105 million.
"While the political, fiscal, and economic landscapes continue to shift around us, we have maintained strong and consistent momentum in our business," CEO Anthony Noto said in a press release. "We built our products and services to provide durable growth and profitability, and that is what we are delivering."
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Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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