April 29, 2025 • 7 mins
SoFi CEO Anthony Noto discusses the company's quarterly earnings. Noto spoke with Bloomberg's Caroline Hyde and Ed Ludlow.
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Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news.
Speaker 2 (00:07):
Shares of so Far are higher after the fintech company
raised its full year forecast. So Far CEO Anthony Nodo
is here with us. Good morning to you, mister Noto.
You know, I think there was a lot of focus
in the quarter on the momentum from the loan platform business,
particularly the interest and demand from private credit. Talk to
me more about that, Anthony, and where you see that
(00:30):
business going forward.
Speaker 3 (00:32):
Sure, we had a tremendous quarter in a great start
to twenty twenty five, with thirty three percent year of
your growth in total revenue to seven hundred and seventy
one million dollars, and that was up thirty three percent,
our fastest growth in five quarters.
Speaker 1 (00:45):
The loan platform.
Speaker 3 (00:46):
Business, as you mentioned, was a key driver of that
very strong results there.
Speaker 1 (00:51):
We basically get paid a fee by these.
Speaker 3 (00:53):
Acid buyers that want us to underwrite loans against the
specific credit box that they outline. We our underwriting capabilities,
our marketing capabilities, and our servicing capabilities.
Speaker 1 (01:04):
And we get paid a fee for that. It's something
we started about a year ago.
Speaker 3 (01:08):
We've already originated six billion dollars of loans in that
particular business and in the quarter is about ninety six
million dollars of revenue, so it's almost four million dollars
on an analyzed basis, We expected to be over a
billion dollars or third billion dollar business over the course
of time as the demand for that product continues to increase.
Speaker 1 (01:26):
One area that we haven't tapped into.
Speaker 3 (01:28):
Yet but that we will is taking some of the
loans that we decline. We decline about one hundred billion
dollars of loans a year and making those available through
the loan platform business as well for those that want
a near prime type of credit asset.
Speaker 2 (01:45):
The other area you want to tap is crypto, right
You alluded to entering into stable coin markets tell us moll.
Speaker 1 (01:51):
Yeah.
Speaker 3 (01:52):
We're very fortunate in that we've built. This is another
record quarter for member growth. We're at eleven million members now.
We had an eight one thousand members in the quarter
and one point two million products up thirty four percent,
up thirty five percent, respectively. We want to continue to
give our members a full suite of financial services products,
(02:12):
so Ifi Money is the largest product that we have today.
It was up forty one percent. The posits are up
fifty two percent. Our this business are an acceleration up
twenty one percent, and we expect that acceleration to continue.
Speaker 1 (02:24):
Crypto would be.
Speaker 3 (02:24):
Another asset class to add to the invest business, allowing
people to buy, sell, and hold crypto coins. It's something
we used to do and it was eliminated because of
our bank license. But now the OCCS put out an
interpretive letter that allows that business to be part of
a bank again. So we'll continue to evaluate the landscape
for changing regulatory environment. But we'd like to not just
(02:46):
only offer crypto for buy, sell and hold, but also
have it transcend all of our businesses. So using blockchaining,
crypto and the lending area, the spending area, in addition
to our third party technology platform, Service is offering those
types of infrastructure services to financial service companies.
Speaker 4 (03:05):
Anthony, you've got a really optimistic tone, and of course
you be, and you raised this on a day when
consumer sentiment is basically the lowest in five years. How
do you have that confidence that consumers are going to
continue to be of demand for you.
Speaker 3 (03:19):
Yeah, we're seeing really strong demand for our goods and services.
Our customer is a higher end customer than the typical
average American, about one hundred fifty thousand dollars in household
and income and a credit score on average at seven
hundred and fifty. From a FICO standpoint, we're taking share
from the five largest banks in the country, so we're
not as dependent on the cyclical environment for our growth
(03:42):
because we're really a secular grower.
Speaker 1 (03:44):
That said, you know, our credit.
Speaker 3 (03:45):
Performance has also been very strong, which is subject to
the macroeconomic environment. But we saw in our fifth quarter
in a row of improvement in ninety data delinquencies. We
saw continued improvement in our net charge offs. So overall,
the consumers looking quite strong as it relates to credit
and the demand for our other products like Sofi Money
and Sofi invest I.
Speaker 1 (04:05):
Mentioned depositork quite.
Speaker 3 (04:07):
Meaningfully as well. The last data point is debit spending.
We're anualizing about fourteen billion dollars of debit spending now
from our installed base and that's been quite strong also.
Speaker 4 (04:17):
So you raise your guidance, but really only reflecting the
beat in this court are just gone, So why not
raise more broadly? Are you being conservative here?
Speaker 1 (04:27):
Yeah?
Speaker 3 (04:28):
Well, we raised not just for what we beat, we
also raise for the full year and our guidance for
Q two is above consensus on both revenue and profitability.
Speaker 1 (04:37):
You know, we have really strong momentum where we set
it on.
Speaker 3 (04:40):
The call that we're going to step on the gas
and accelerate our rate of product introductions and the iteration
on our existing products. We feel like our competitive position
is so strong and the opportunity is so significant in
front of us that we should accelerate our level of
investment and rate of innovation. So we feel great about it,
and we want to make sure we can get a
compound that these great growth rates of over thirty percent
(05:02):
for a.
Speaker 2 (05:02):
While, anthy, I like to check out what you're saying
on social media as much as what you said in
the Earningschooled transcript, And you always use the phrase rapid innovation.
Where is the rapid innovations And is that something you
guys are focused on doing in house or is EM
and A going to be a part of your toolkit
for the balance of the year.
Speaker 3 (05:21):
All of our products, we want them to be the fastest,
We want them to be the most convenient, to have
the best selection and the best content.
Speaker 1 (05:27):
So we're continuously iterating.
Speaker 3 (05:29):
On each one of our products against those four dimensions.
In addition, to making the products better when they're used together.
As an example of that, we introduced a subscription product
called Sofi Plus. It's the best value in America for
a financial subscription product at over one thousand dollars of value.
You pay ten dollars a month for it, and it
gives you access to a number of different benefits that
(05:51):
you would now otherwise get if you didn't use that product.
Ninety percent of our existing members have signed up. Of
those that have signed up for the product, ninety percent
or from our existing member base, which says people want
to use more of our products that we offer, and
this product makes it more accessible for them to be
able to get those great benefits and using our products together.
So a really encouraging sign. And against the people that
(06:13):
are already our members that are taking out so Fi Plus,
it's actually triggering them taking out a third product thirty
percent of the time. So pretty strong performance from that
new product, which is an iteration that we're constantly trying
to drive across the five dimensions that I mentioned.
Speaker 2 (06:29):
Finally, what's your interpretation of how this administration is looking
at regulation, looking at supporting the crypto industry as it
relates to you, but I think fintech broadly is a
bit more under the microscope, Anthony.
Speaker 3 (06:42):
The early signs in the first one hundred days is
that it is a more favorable environment from a regulatory standpoint.
It's really critical that we can tinue to provide a
safe and secure way for our members to use our
financial services products, and that is our priority, regardless of regulation.
So we want to have great NPS scores, We want
to be a trusted household brand name. But it does
(07:02):
feel like the regulatory environment's going to allow us to
offer more products to our members that they need, you know.
As an example, you know, we'd love to be able
to do secure lending off the cryptocurrency, which I believe
it would be a great product, lower cost of debt
for our members, you know, in addition to that, potentially
being able to offer a stable coin that could have
some type of interest bearing element to it and being
(07:25):
used for payments.
Speaker 2 (07:27):
Anthony Notto, So far ceo. Good to have you back
with us here in Bloomberg Technology.
Speaker 1 (07:31):
Thank you very much.
Bloomberg Audio Studios, podcasts, radio news.
Speaker 2 (00:07):
Shares of so Far are higher after the fintech company
raised its full year forecast. So Far CEO Anthony Nodo
is here with us. Good morning to you, mister Noto.
You know, I think there was a lot of focus
in the quarter on the momentum from the loan platform business,
particularly the interest and demand from private credit. Talk to
me more about that, Anthony, and where you see that
(00:30):
business going forward.
Speaker 3 (00:32):
Sure, we had a tremendous quarter in a great start
to twenty twenty five, with thirty three percent year of
your growth in total revenue to seven hundred and seventy
one million dollars, and that was up thirty three percent,
our fastest growth in five quarters.
Speaker 1 (00:45):
The loan platform.
Speaker 3 (00:46):
Business, as you mentioned, was a key driver of that
very strong results there.
Speaker 1 (00:51):
We basically get paid a fee by these.
Speaker 3 (00:53):
Acid buyers that want us to underwrite loans against the
specific credit box that they outline. We our underwriting capabilities,
our marketing capabilities, and our servicing capabilities.
Speaker 1 (01:04):
And we get paid a fee for that. It's something
we started about a year ago.
Speaker 3 (01:08):
We've already originated six billion dollars of loans in that
particular business and in the quarter is about ninety six
million dollars of revenue, so it's almost four million dollars
on an analyzed basis, We expected to be over a
billion dollars or third billion dollar business over the course
of time as the demand for that product continues to increase.
Speaker 1 (01:26):
One area that we haven't tapped into.
Speaker 3 (01:28):
Yet but that we will is taking some of the
loans that we decline. We decline about one hundred billion
dollars of loans a year and making those available through
the loan platform business as well for those that want
a near prime type of credit asset.
Speaker 2 (01:45):
The other area you want to tap is crypto, right
You alluded to entering into stable coin markets tell us moll.
Speaker 1 (01:51):
Yeah.
Speaker 3 (01:52):
We're very fortunate in that we've built. This is another
record quarter for member growth. We're at eleven million members now.
We had an eight one thousand members in the quarter
and one point two million products up thirty four percent,
up thirty five percent, respectively. We want to continue to
give our members a full suite of financial services products,
(02:12):
so Ifi Money is the largest product that we have today.
It was up forty one percent. The posits are up
fifty two percent. Our this business are an acceleration up
twenty one percent, and we expect that acceleration to continue.
Speaker 1 (02:24):
Crypto would be.
Speaker 3 (02:24):
Another asset class to add to the invest business, allowing
people to buy, sell, and hold crypto coins. It's something
we used to do and it was eliminated because of
our bank license. But now the OCCS put out an
interpretive letter that allows that business to be part of
a bank again. So we'll continue to evaluate the landscape
for changing regulatory environment. But we'd like to not just
(02:46):
only offer crypto for buy, sell and hold, but also
have it transcend all of our businesses. So using blockchaining,
crypto and the lending area, the spending area, in addition
to our third party technology platform, Service is offering those
types of infrastructure services to financial service companies.
Speaker 4 (03:05):
Anthony, you've got a really optimistic tone, and of course
you be, and you raised this on a day when
consumer sentiment is basically the lowest in five years. How
do you have that confidence that consumers are going to
continue to be of demand for you.
Speaker 3 (03:19):
Yeah, we're seeing really strong demand for our goods and services.
Our customer is a higher end customer than the typical
average American, about one hundred fifty thousand dollars in household
and income and a credit score on average at seven
hundred and fifty. From a FICO standpoint, we're taking share
from the five largest banks in the country, so we're
not as dependent on the cyclical environment for our growth
(03:42):
because we're really a secular grower.
Speaker 1 (03:44):
That said, you know, our credit.
Speaker 3 (03:45):
Performance has also been very strong, which is subject to
the macroeconomic environment. But we saw in our fifth quarter
in a row of improvement in ninety data delinquencies. We
saw continued improvement in our net charge offs. So overall,
the consumers looking quite strong as it relates to credit
and the demand for our other products like Sofi Money
and Sofi invest I.
Speaker 1 (04:05):
Mentioned depositork quite.
Speaker 3 (04:07):
Meaningfully as well. The last data point is debit spending.
We're anualizing about fourteen billion dollars of debit spending now
from our installed base and that's been quite strong also.
Speaker 4 (04:17):
So you raise your guidance, but really only reflecting the
beat in this court are just gone, So why not
raise more broadly? Are you being conservative here?
Speaker 1 (04:27):
Yeah?
Speaker 3 (04:28):
Well, we raised not just for what we beat, we
also raise for the full year and our guidance for
Q two is above consensus on both revenue and profitability.
Speaker 1 (04:37):
You know, we have really strong momentum where we set
it on.
Speaker 3 (04:40):
The call that we're going to step on the gas
and accelerate our rate of product introductions and the iteration
on our existing products. We feel like our competitive position
is so strong and the opportunity is so significant in
front of us that we should accelerate our level of
investment and rate of innovation. So we feel great about it,
and we want to make sure we can get a
compound that these great growth rates of over thirty percent
(05:02):
for a.
Speaker 2 (05:02):
While, anthy, I like to check out what you're saying
on social media as much as what you said in
the Earningschooled transcript, And you always use the phrase rapid innovation.
Where is the rapid innovations And is that something you
guys are focused on doing in house or is EM
and A going to be a part of your toolkit
for the balance of the year.
Speaker 3 (05:21):
All of our products, we want them to be the fastest,
We want them to be the most convenient, to have
the best selection and the best content.
Speaker 1 (05:27):
So we're continuously iterating.
Speaker 3 (05:29):
On each one of our products against those four dimensions.
In addition, to making the products better when they're used together.
As an example of that, we introduced a subscription product
called Sofi Plus. It's the best value in America for
a financial subscription product at over one thousand dollars of value.
You pay ten dollars a month for it, and it
gives you access to a number of different benefits that
(05:51):
you would now otherwise get if you didn't use that product.
Ninety percent of our existing members have signed up. Of
those that have signed up for the product, ninety percent
or from our existing member base, which says people want
to use more of our products that we offer, and
this product makes it more accessible for them to be
able to get those great benefits and using our products together.
So a really encouraging sign. And against the people that
(06:13):
are already our members that are taking out so Fi Plus,
it's actually triggering them taking out a third product thirty
percent of the time. So pretty strong performance from that
new product, which is an iteration that we're constantly trying
to drive across the five dimensions that I mentioned.
Speaker 2 (06:29):
Finally, what's your interpretation of how this administration is looking
at regulation, looking at supporting the crypto industry as it
relates to you, but I think fintech broadly is a
bit more under the microscope, Anthony.
Speaker 3 (06:42):
The early signs in the first one hundred days is
that it is a more favorable environment from a regulatory standpoint.
It's really critical that we can tinue to provide a
safe and secure way for our members to use our
financial services products, and that is our priority, regardless of regulation.
So we want to have great NPS scores, We want
to be a trusted household brand name. But it does
(07:02):
feel like the regulatory environment's going to allow us to
offer more products to our members that they need, you know.
As an example, you know, we'd love to be able
to do secure lending off the cryptocurrency, which I believe
it would be a great product, lower cost of debt
for our members, you know, in addition to that, potentially
being able to offer a stable coin that could have
some type of interest bearing element to it and being
(07:25):
used for payments.
Speaker 2 (07:27):
Anthony Notto, So far ceo. Good to have you back
with us here in Bloomberg Technology.
Speaker 1 (07:31):
Thank you very much.
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