SoFi Technologies Stock Falls 10% Following Weak Guidance

Fintech Firm Sees 2024 as a 'Transitional Year'

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Bill McColl
Bill McColl
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Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the most notable news stories of the time.

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Published April 29, 2024
SoFi logo on a mobile phone screen

Jaap Arriens / NurPhoto / Getty Images

Key Takeaways

  • Sofi Technologies gave lower-than-expected current quarter guidance as it sees 2024 as a "transitional year."
  • The fintech firm will rely more on profits from its Tech and Financial Services platforms and less on lending.
  • The news offset solid profit and sales in the first quarter, and a higher full-year outlook.

SoFi Technologies (SOFI) shares plunged Monday after the financial tech (fintech) firm gave worse-than-expected current quarter guidance and called 2024 a period of change.

SoFi fell 10.48% to close Monday at $7.05, pushing its year-to-date decline to nearly 30%.

SoFi stock year-to-date chart

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The company said it sees second-quarter revenue in the range of $555 million to $565 million, and net income of $5 million to $10 million. Both were well short of estimates. 

SoFi explained 2024 would be “a transitional year,” with the Tech and Financial Services platforms driving growth, “and increase from 38% of total adjusted net revenue in 2023 to approximately 50%.” It added that Lending revenue will be 92% to 95% of last year’s total.

Guidance Offsets Solid Q1 Results

The guidance offset SoFi’s solid first-quarter results. The company reported its second-straight profitable quarter, with adjusted earnings per share (EPS) of $0.02, basically in line with forecasts. Revenue soared 37% to $645 million, ahead of expectations.

In addition, SoFi raised its 2024 sales outlook to $2.39 billion to $2.43 billion, up from the previous $2.365 billion to $2.405 billion. 

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  1. Sofi Technologies. "SoFi Technologies Reports Q1 2024 Net Revenue of $645 Million and Net Income of $88 Million, Marking Second Consecutive Quarter of GAAP Profitability."

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