SoFi Technologies just posted various milestone performances across its lending business, but shares of the financial-technology company were tumbling 12% as the company declined to raise its full-year forecast.
The neobanking company logged a record $12.2 billion in total loan originations, up by almost $1.7 billion from the prior quarter. Student-loan originations more than doubled to a record $2.6 billion and home loans saw similar levels of growth, reaching $1.2 billion in originations with strong contributions from home-equity loans.
SoFi $(SOFI)$ recorded $8.3 billion in personal-loan originations, constituting another record. The credit performance of personal loans improved, with annualized net charge-offs down 28 basis points relative to a year before.
The lending momentum helped contribute to $1.09 billion in overall adjusted net revenue for SoFi, up 41% from a year before and above the $1.05 billion FactSet consensus.
Investors may quibble with some aspects of SoFi's outlook. For the second quarter, the company expects adjusted net revenue growth of about 30%, while the FactSet consensus implied expectations for nearly 31% growth.
Additionally, SoFi disclosed that it "maintains its strong outlook" for the full year. That calls for, among other things, approximately $4.655 billion in adjusted net revenue. Some investors may have wanted to see a boost to the full-year forecast in light of various beats registered in the latest quarter.
SoFi's business goes beyond lending. During the first quarter, the company started minting a stablecoin called SoFiUSD and enhanced its broader settlement capabilities within the cryptocurrency market.
"Our strategic entry into new areas like digital assets alongside the strong growth in our existing businesses are strengthening and diversifying our platform," CEO Anthony Noto said in a release.
Those growth avenues mean SoFi will "keep investing in better products and experiences" as the company looks to compound its performance, Noto added.
Comments