SoFi Technologies’ (NASDAQ:SOFI) shares went up early on Monday before the market opened. This happened because the company’s earnings in the last three months were better than what experts predicted. They not only did well in the last quarter but also shared that they expect to do even better for the whole year ahead.
In the third quarter of this year, SoFi had a net loss of $266.7 million, which means they spent more money than they earned. For every share they had, the loss was 29 cents. Last year, during the same time, they had a loss of $84.4 million, or 9 cents per share. Experts who study these things thought the loss would be 8 cents per share, but it was more.
SoFi said that if they don’t count certain expenses that don’t involve real money, their loss for each share would be 3 cents. They are confident that they will start making more money than they spend by the end of 2023.
In the past, before this good news, SoFi had earned $44 million by a certain measure called Ebitda. But this time, they earned $98 million, which is more than double. Experts thought they would earn $65 million, but they did much better than that.
SoFi also made a lot of money from loans. They gave out personal loans worth $3.9 billion, which is 38% more than last year. They also gave out home loans worth $355.7 million, which is 64% more. Their student loans also increased by a lot, going up by 101% to $919.3 million.
For the entire year, SoFi thinks they will make between $2.045 billion and $2.065 billion after taking away some expenses. This is more than what they thought before. They also think they will earn between $386 million and $396 million in a measure called adjusted EBITDA. Experts had guessed it would be $344 million, so this is better news than they expected.