BlackRock, Inc., the world’s largest asset manager, has reported a highly successful third quarter for 2024, marked by strong financial growth. The firm’s total assets under management (AUM) surged to a record $11.5 trillion, driven by $221 billion in net inflows during the quarter. This represents a significant year-over-year increase of $2.4 trillion in AUM, showcasing BlackRock's continued leadership in the asset management industry.
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SoFi Technologies Triumphs in Q1 2024 with Robust Revenue Growth and Profitability
SAN FRANCISCO, Calif., April 29, 2024 – SoFi Technologies, Inc. (NASDAQ: SOFI) today reported a successful first quarter ended March 31, 2024, with substantial growth in revenue and profitability, signaling a positive trajectory for the digital financial services provider.
Q1 2024 Financial Performance Highlights
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Overall Growth: SoFi Technologies showcased a total GAAP net revenue of $645 million, marking a significant increase of 37% compared to the previous year. The company reported a net income of $88 million, a remarkable turnaround from a net loss in the same period last year.
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Segment Performance: Revenue from the Tech Platform and Financial Services segments surged by 54%, contributing to 42% of the company's consolidated adjusted net revenue. This growth was pivotal in offsetting the flat revenue performance in the Lending segment, which faced conservative adjustments due to macroeconomic uncertainties.
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Profitability and Efficiency: The adjusted EBITDA reached $144 million, a staggering 91% increase year-over-year, with an EBITDA margin of 25%. This improvement reflects SoFi's effective cost management and operational efficiency across all segments.
Strategic Financial Movements and Enhanced Balance Sheet
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Strengthening Financials: SoFi strengthened its balance sheet significantly, increasing its tangible book value by $608 million to $4.1 billion. The tangible book value per share also rose by 16% sequentially to $3.92.
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Debt Management: The company executed key financial maneuvers including issuing $862.5 million of convertible notes and exchanging $600.0 million of older convertible notes for common stock. These actions are intended to reduce financing costs and improve balance sheet resilience.
Record Growth in Deposits and Member Engagement
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Deposit and Membership Increase: Total deposits soared by $3.0 billion to $21.6 billion, with a significant portion coming from direct deposit members. The first quarter also saw a median FICO score of 744 for new direct deposit accounts, indicating a high-quality customer base.
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Product Expansion: SoFi reported a year-over-year increase of 35% in both total members and total products, reflecting the company's robust strategy in enhancing service offerings and improving member acquisition.
Raised Guidance for FY 2024
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Updated Revenue and Profit Expectations: Following the strong performance in Q1, SoFi has raised its guidance for FY 2024. The company now expects adjusted net revenue to range between $2.39 billion to $2.43 billion and adjusted EBITDA to be between $590 million to $600 million.
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Earnings Outlook: GAAP net income is projected to be between $165 million to $175 million, with EPS estimated at $0.08 to $0.09. This updated guidance reflects confidence in ongoing growth and profitability.
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