SoFi Technologies Inc. doubled revenue in its latest quarter, but issued an earnings outlook for the current period that came up lighter than what analysts were anticipating.
The company reported a second-quarter net loss of $165.3 million, or 48 cents a share, whereas it recorded net income of $7.8 million a year earlier. Analysts tracked by FactSet were anticipating a 6-cent loss per share.
revenue rose to $231.3 million from $115.0 million, while analysts were expecting $218.6 million.
Shares of SoFi were off nearly 12% in after-hours trading Thursday following the report, which was SoFi’s first since going public in June through a merger with a special-purpose acquisition company.
The company’s total member base grew to 2.6 million, up from 1.2 million a year earlier, while total products reached 3.7 million, up from 1.6 million a year ago. Both growth figures reflected expansion in SoFi’s product offerings, the company said in its earnings report.
Looking ahead to the third quarter, SoFi expects adjusted net revenue of $245 million to $255 million. It also expects earnings before interest, taxes, depreciation and amortization in the range of a $7 million loss to $3 million in earnings. Analysts tracked by FactSet were expecting positive Ebitda of $11.8 million.
In the latest quarter, SoFi generated total net revenue of $166.3 million in its lending business, up from $95.9 million a year prior. It saw 981,440 product originations in the lending business, including 18,102 home loans, 544,068 personal loans and 419,270 student loans.
The company’s financial services segment recorded $17.0 million in revenue, up from $2.4 million a year earlier. The segment saw directly attributable expenses of $41.8 million, which brought the contribution loss to $24.7 million. A year earlier, SoFi recognized directly attributable expenses of $33.3 million that brought the contribution loss to $30.9 million.
SoFi saw growth in its technology business, which mainly consists of the Galileo Financial Technologies operations that it acquired in May 2020. Galileo provides services to neobanks. It had 78.9 million accounts as of the second quarter, up from 36.0 million a year prior.
Revenue from this segment increased to $45.3 million from $19.0 million. The company noted that it has engaged in heavy investments to migrate the technology operations to the cloud, expand geographically, and nearly double headcount for this part of the business.