Slide 1: Q2 2024 Summary Results
Q2 2024 Summary Results July 2024
Slide 2: Disclaimer
Disclaimer Use of Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures (including on a forward-looking basis) such as Adjusted Net Revenue, Adjusted EBITDA and Adjusted EBITDA Margin. These non-GAAP measures are in addition to, and not a substitute for or superi
Slide 3: Members
Members (20) New Member Additions of 643K in Q2, bringing total to nearly 8.8M Members (+41% YoY) (1) Members 8,774 in thousands 8,132 7,542 6,957 6,240 5,656 5,223 4,743 4,319 3,868 3,460 2,937 2,560 2,281 1,851 1,501 1,086 1,204 Q1’20 Q2’20 Q3’20 Q4’20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'
Slide 4: Products
Products (20) New Product Additions of 946K in Q2, bringing total to nearly 12.8M (+36%* YoY) (2) Products 12,776 in thousands 11,830 11,142 10,448 9,401 8,554 7,895 7,199 6,564 5,862 5,173 4,268 3,667 3,185 2,524 2,053 1,442 1,645 Q1’20 Q2’20 Q3’20 Q4’20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4
Slide 5: Galileo Accounts
Galileo Accounts Accounts total 158M (+23% YoY) (3)(15) Galileo Accounts 158 in millions 151 145 137 131 129 124 126 117 110 100 89 79 70 60 49 36 30 Q1’20 Q2’20 Q3’20 Q4’20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 YoY Growth 132% 119% 81% 67% 58% 48% 40% 3
Slide 6: Lending and Financial Services Products
Lending and Financial Services Products Growth in products & members driven by Financial Services products, which reached 11.0M (+39%* YoY) (2) (2) Lending Products (000s): +19% YoY to 1.8M Financial Services Products (000s): +39%* YoY to 11.0M 10,990 1,787 1,705 10,125 1,663 1,594 9,479 1,504 8,854
Slide 7: Financial Services Productivity Loop
Financial Services Productivity Loop FSPL continues to create marketing efficiencies and improves xBuy Ratio of Financial Services to Lending Products Q2'24 Total: 12,776K Q2'23 Total Fin Serv Products Total Lending Products Total: 9,401K 6.2x Money: 4,299K Money: 2,693K Relay: 3,934K 5.3x Invest: 2
Slide 8: NCL by Loan Vintage and % of Remaining UPB
NCL* by Loan Vintage and % of Remaining UPB** For Personal Loan Originations Comparison of 2017 vintage (last yearly vintage that approached 8% cumulative life of loan losses) and recent vintages which preceded meaningful credit cuts in mid-late 2022 10% At roughly 40% remaining unpaid principal, th
Slide 9: NCL by Loan Vintage and % of Remaining UPB
NCL by Loan Vintage and % of Remaining UPB For Personal Loan Originations Q1’20 - Q1’24 Origination & NCL Analysis Total Originations Q1’20 - Q1’24 $34.8B Remaining UPB on Total Of the $34.8B of 2020-Q1’24 principal Originations Q1’20-Q1’24 $15.4B originated, 44% remains outstanding % Remaining 44%
Slide 10: Q2 2024 Financial Review
Q2 2024 Financial Review
Slide 11: Quarterly Performance
Quarterly Performance Adjusted Net Revenue of $597M (22% YoY Growth) and Adjusted EBITDA of $138M (at 23% Margin) (4) (6) Quarterly Adjusted Net Revenue ($M) Quarterly Adjusted EBITDA ($M) $181 $594 $597 $581 $531 $489 $144 $460 $138 $443 $419 $356 $98 $76 $77 $70 $44 $20 Q2'22 Q3'22 Q4'22 Q1'23 Q2'
Slide 12: Q2 2024 Non-GAAP Results vs Guidance
Q2 2024 Non-GAAP Results vs Guidance Q2 Adj. Net Revenue was $597M vs guidance of $555-565M, representing a $32M beat at the high end Adj. EBITDA was $138M vs guidance of $115-125M, representing an $13M beat at the high end Q2'24 GUIDANCE VARIANCE TO GUIDANCE $ in millions Q2'24 Low High Low High (4
Slide 13: Q3 2024 Guidance
Q3 2024 Guidance We expect to deliver $625-645M in Adjusted Net Revenue, $160-165M in Adjusted EBITDA, $40-45M in Net Income and $0.04 cents in EPS. Q3'24 Low Q3'24 High $ in millions (4) Adjusted net revenue $625 $645 YoY Growth 18% 22% (6) Adjusted EBITDA $160 $165 Adjusted EBITDA Margin 26% 26% G
Slide 14: FY 2024 Guidance
FY 2024 Guidance We expect to deliver: • Financial Services net revenue growth of more than 80% versus 2023 levels • Lending adjusted net revenue of at least 95% of 2023 levels • Tech Platform net revenue percent growth of mid to high teens versus 2023 levels • GAAP Net Income of $175 - $185 million
Slide 15: FY 2024 Guidance
FY 2024 Guidance We now expect to deliver $2.43-2.47 billion in Adjusted Net Revenue, $605-615 million in Adjusted EBITDA, $175-185 million in Net Income and $0.09-0.10 cents in EPS Prior 2024 Original $ in millions 2023 Actual 2024 Guidance Guidance Guidance (4) Adjusted net revenue $2,074 $2,425 -
Slide 16: Financial Supplement
Financial Supplement
Slide 17: Company Metrics
Company Metrics FY 2021 FY 2022 FY 2023 FY 2024 Year End Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 2021 2022 2023 Company Metrics (in 000’s) (1) Members 2,281 2,560 2,937 3,460 3,868 4,319 4,743 5,223 5,656 6,240 6,957 7,542 8,132 8,774 3,460 5,223 7,542 QoQ
Slide 18: Segment Financials
Segment Financials FY 2021 FY 2022 FY 2023 FY 2024 Year End Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 2021 2022 2023 Lending Segment (in 000’s) Student Loan Originations $ 1,004,685 $ 859,497 $ 967,939 $ 1,461,405 $ 983,804 $ 398,722 $ 457,184 $ 405,789 $ 52
Slide 19: Segment Financials
Segment Financials © 2024 Social Finance, Inc. Confidential Information. Do not copy or distribute. Advisory services offer through SoFi Wealth LLC. SoFi Money® is offered through SoFi Securities LLC. SoFi Lending Corp., CFL #6054612. NMLS # 1121636. 19
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures FY 2021 FY 2022 FY 2023 FY 2024 Year End Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 2021 2022 2023 Net Revenue (GAAP) $ 195,984 $ 231,274 $ 272,006 $ 285,608 $ 330,344 $ 362,527 $ 423,985 $ 456,679 $ 472,158 $ 498,018 $ 537,209 $ 6
Slide 21: Non-GAAP Reconciliations
Non-GAAP Reconciliations FY 2021 FY 2022 FY 2023 FY 2024 Year End Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 2021 2022 2023 Non-GAAP Reconciliations ($ in 000’s) Net Revenue (GAAP) $ 195,984 $ 231,274 $ 272,006 $ 285,608 $ 330,344 $ 362,527 $ 423,985 $ 456,67
Slide 22: Net Interest Margin Components
Net Interest Margin Components FY 2022 FY 2023 FY 2024 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Average Balances Total interest-earning assets $ 8,666,475 $ 9,374,928 $ 10,723,022 $ 14,103,767 $ 17,239,960 $ 20,357,082 $ 22,856,717 $ 25,698,397 $ 27,428,608 $ 28,484,764 Interest-b
Slide 23: Fair Value of Loans
Fair Value of Loans FY 2021 FY 2022 FY 2023 FY 2024 Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Personal Loans Unpaid principal $ 1,536,702 $ 1,705,269 $ 1,970,522 $ 2,188,773 $ 3,006,363 $ 3,943,768 $ 6,667,484 $ 8,283,400 $ 10,039,769 $ 12,171,935 $ 14,177,0
Slide 24: 90+ Day Delinquencies
90+ Day Delinquencies FY 2021 FY 2022 FY 2023 FY 2024 Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Personal Loans Total Unpaid principal $ 1,536,702 $ 1,705,269 $ 1,970,522 $ 2,188,773 $ 3,006,363 $ 3,943,768 $ 6,667,484 $ 8,283,400 $ 10,039,769 $ 12,171,935 $
Slide 25: Select Balance Sheet Information
Select Balance Sheet Information Assets Liabilities and Permanent Equity $ in thousands Q2'24 Q2'24 Cash & cash equivalents $ 2,334,589 Revolving credit facility $ 486,000 Restricted cash & cash equivalents 397,043 Personal loan warehouse facilities 325,309 Investment Securities 1,566,087 Student lo
Slide 26: Footnotes to Financial Statements
Footnotes to Financial Statements
Slide 27: Footnotes
Footnotes (1) We refer to our customers as “members”. We define a member as someone who has a lending relationship with us through origination and/or ongoing servicing, opened a financial services account, linked an external account to our platform, or signed up for our credit score monitoring servi
Slide 28: Footnotes
Footnotes (8) Reflects changes in fair value inputs and assumptions, including conditional prepayment, default rates and discount rates. When third parties finance our consolidated securitization variable interest entities through purchasing residual interests, we receive proceeds at the time of the