SoFi Technologies Inc. recently reported their latest earnings, revealing details that have disappointed investors and led to a significant drop in their stock price. The company announced a total revenue of $456 million for the fourth quarter, surpassing analysts’ estimates of $447 million, yet the narrative shifted when it came to profitability. SoFi’s adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was reported at $50 million, missing the expected $55 million. The company’s net loss was reported to be $45 million, also under the consensus estimate of a $40 million loss. This news prompted a decrease in SoFi’s stock, which was down by 12% in after-hours trading following the announcement. CEO Anthony Noto expressed his disappointment but remained optimistic about the company’s growth potential, stating, “We are on an exciting growth trajectory and are committed to achieving profitability by 2024.” Analysts expressed concerns about SoFi’s profitability outlook amid increasing competition in the fintech sector. The company’s investments in technology and marketing are aimed at expanding its customer base, but the profitability concern looms as the stock drops following the earnings report. The stock previously reached a year high of $10.61, but analysts are now revising their forecasts as investors digest the implications of the recent earnings report.
