The Stock Of SOFI Climbs On Profit Promises

(CTN News) – SoFi (NASDAQ:SOFI) shares have increased significantly following the announcement of “beat-and-raise” first-quarter results by the company.

As of now, the lender continues to anticipate being profitable by the end of 2023.

Compared to the same period a year earlier, SoFi’s Q1 revenue jumped by 43% to $460 million in comparison to the same period a year ago, beating analysts’ average estimates by $23 million.

There was a per-share loss of 5 cents for the company, which was 3 cents higher than the average estimate.

The company generated an Adjusted EBITDA of $76 million, excluding some items, which was above the range of $40 million to $45 million that had been provided by its previous guidance.

At the end of the previous quarter, the firm’s cash and cash equivalents went from $1.4 billion to $2.5 billion, an increase of $1 billion over the previous quarter.

As previously stated, SoFi reiterated its belief that it will enter the black by the fourth quarter.

This forecast is higher than analysts’ mean estimate of $1.97 billion and above the company’s previous outlook of $1.925 billion to $2 billion for the full year, as the firm anticipates its top line to come in between $1.95 billion and $2 billion, compared to analysts’ mean estimate of $1.97 billion.

What Are Investors Watching When It Comes To SOFI Stocks?

Obviously, investors should determine whether SoFi will be able to continue delivering rapid growth and meet its guidance over the next few years.

Furthermore, they should take into consideration the fact that the company, which enables cryptocurrency trading and specializes in providing student loans, may be negatively affected by the near-term headwinds faced by crypto traders.

The issues that are at issue in this case are the continued regulatory crackdown on crypto, the possibility of forgiveness of student loan debts, as well as the decision to sue the administration of President Joe Biden over the suspension of student loan payments.

It is worth noting that SOFI shares have a trailing price-to-sales ratio of 3.4 at the moment. Earlier today, before the market opened, the stock prices had already jumped 35% this year. They are, however, down 1.6% over the last year, as compared with the previous year.

During the time of publication of this article, Larry Ramer did not hold (directly or indirectly) any positions in any of the securities mentioned in the article at the time of publication.

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