SoFi Surges as Robust Member Additions Bring New Guidance

This post was originally published on this site – SoFi Technologies stock (NASDAQ:SOFI) climbed more than 16% in Thursday’s premarket trading as the company raised its annual guidance after recording its second-best quarter for member growth.

The fintech platform now expects its annual adjusted revenue to top $1 billion, up from its previous guidance of $980 million. By the close of the third quarter, the company had exceeded $1 billion in annualized runrate revenue.

Total members on the platform grew 96% year-over-year to 2.9 million, with new additions at approximately 377,000. It had added around 279,000 new members in the second quarter.

SoFi also raised its outlook for adjusted earnings before interest, taxes, depreciation and amortization by $2.5 million to $29.5 million.

Total net revenue jumped 35% in the third quarter to $272 million and comfortably beat estimates. Lending volumes rose across all loan types year-over-year in the third quarter, with personal and student loans the largest drivers of the overall 15% increase.

SoFi’s net loss narrowed by more than expected to $30 million from nearly $43 million in the same quarter of 2020.

SoFi said it continues to look for opportunities beyond lending. EV-maker Rivian (NASDAQ:RIVN) set aside 0.4% of its IPO shares for users of SoFi’s trading platform, letting them invest at the offer price of $78 before public trading started. The shares rose 29% on their debut on Wednesday.