Social Finance, Inc. (SOFI), a finance company, has surged 12.39% during aftermarket trading session and consequently, SOFI is trading at $22.95 at the time of the writing. The surge could be attributed to the announcement of quarterly results by the company. On Wednesday, SOFI closed the day at $20.42 after declining 7.77% during regular trading hours.
SOFI Q3 2021 Financial Results
In the late hours of Wednesday, SOFI released the financial results for the third quarter of the fiscal year 2021. The quarter ended on 30th September 2021. The company generated a total interest income of $93.60 million during the quarter against $88.11 million for the same period of 2020. The total interest expense for the period was $21.22 million against $38.90 million for the same period of 2020. The company generated total net revenue of $272 million against $200.78 million for the same period of 2020. The net loss bore by the company during the period was $30.04 million (or $0.05 per basic and diluted share) against $42.87 million (or $0.70 per basic and diluted share) for the same period of 2020. The company had cash and cash equivalents of $533.52 million on 30th September 2021.
Alongside financial results, SOFI also updated the financial outlook for the upcoming quarter and full fiscal 2021. The company said that the third quarter’s net revenue of $277 million exceeded the company’s guidance of $245 million to $255 million by more than 13% and 9% respectively. The company now expects that there would be accelerated annual growth during the upcoming quarter. It hopes that the net revenue would stand between $272 million to $282 million. For the full year 2021, the company expects that it would exceed its original guidance with full-year net revenue of $1.002 billion to $1.012 billion.
Anthony Noto, CEO of SOFI, while commenting on the results said that via successful execution of its plans, the company has broadened its business profile which has resulted in another quarter with some outstanding quarterly results. He said that the company now has more flexibility to execute and fund its long-term strategic growth plans and make it a leader in financial technology.
What’s Ahead for SOFI?
During the last six months, SOFI has surged more than 35%. The prime reason for the increase is the positive news about the company related to its business expansion plans and stress upon innovation. Estimates suggest that the company’s policies have already started paying dividends and would continue to do so in the future as well.