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2021-08-18

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SoFi Technologies: Why The Market Got It All Wrong<blockquote>SoFi Technologies：为什么市场完全错了</blockquote>

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The 15% drop in shares is a clear overreaction.</li> </ul> <img src=\"https://static.tigerbbs.com/fe3e6f7bf5e8cff3ceb162bee495437a\" tg-width=\"1536\" tg-height=\"910\" width=\"100%\" height=\"auto\">ipopba/iStock via Getty Images<blockquote><ul><li>SoFi刚刚公布了强劲的2021年第二季度财务业绩，其使用指标加速增长，其中大部分增长超过100%。</li><li>该季度调整后收入同比增长74%，基于SoFi三个核心业务部门的多元化收入组合。</li><li>然而，投资者对本季度超过1.5亿美元的净亏损以及2021年下半年的温和指引感到震惊。</li><li>管理层明确表示，净亏损受到伽利略递延税负债的影响，同时尽管CARES法案延期带来了4000万美元的阻力，但仍重申了指引。</li><li>SoFi正在实现业务多元化，并在多产品采用方面取得了重大进展，这将是未来增长的关键。股价下跌15%显然是过度反应。</li></ul>ipopba/iStock来自Getty Images</blockquote> Summary<blockquote>总结</blockquote> SoFi Technologies (SOFI) is a fintech company that offers a multitude of digital financial services to customers under its three key business segments, i.e.:<blockquote>SoFi Technologies(SOFI)是一家金融科技公司，在其三个关键业务部门下为客户提供多种数字金融服务，即：</blockquote> 1) Lending, which includes personal, home, and student loans;<blockquote>1)贷款，包括个人贷款、住房贷款和学生贷款；</blockquote> 2) Financial Services, including savings, spending, investment accounts, as well as various debit and credit card services;<blockquote>2）金融服务，包括储蓄、消费、投资账户，以及各种借记卡和信用卡服务；</blockquote> 3) Financial technology, which primarily consists of Galileo, a market-leading financial technology infrastructure provider thatSoFi acquired in May 2020.<blockquote>3)金融科技，主要由SoFi于2020年5月收购的市场领先的金融科技基础设施提供商Galileo组成。</blockquote> The company aims to become a one-stop-shop for digital financial services and is well on its way to do so.<blockquote>该公司的目标是成为数字金融服务的一站式商店，并且正在顺利实现这一目标。</blockquote> SoFi just reported its first set of financial results since becoming a public company, and results were quite strong for the Q2 2021 quarter:<blockquote>SoFi刚刚公布了自成为上市公司以来的第一组财务业绩，2021年第二季度的业绩相当强劲：</blockquote> <ul> <li>The company showed accelerating growth across its usage metrics, most of which grew by &gt;100%;</li> <li>Revenues also grew triple-digits at 101% year over year (YoY) to $231.3 million, while adjusted net revenue for the quarter climbed 74% YoY and came in well above guidance of between 58 to 61% YoY growth;</li> <li>Growth in members and products accelerated as well, all growing by triple-digit percentages, and marking the 8th consecutive quarter of accelerating YoY growth in total members forSoFi.</li> <li>In addition, the company generated $61 million of positive EBITDA over the past 12 months, a significant improvement from the $149 million of losses experienced for the full year of 2019.</li> </ul> But these numbers were not enough to satisfy investor appetite. In fact, investors rushed out of the stock and shares ofSoFi plunged as much as 15% after the release of results. The stock is now down around -37% over the past 6 months at a market capitalization of around $12 billion.<blockquote><ul><li>该公司在其使用指标上显示出加速增长，其中大部分增长超过100%；</li><li>收入也实现了三位数增长，同比增长101%，达到2.313亿美元，而本季度调整后净收入同比增长74%，远高于同比增长58%至61%的指导；</li><li>会员和产品的增长也在加速，均以三位数的百分比增长，这是SoFi会员总数连续第八个季度同比加速增长。</li><li>此外，该公司在过去12个月中实现了6100万美元的正EBITDA，较2019年全年1.49亿美元的亏损有了显着改善。</li></ul>但这些数字不足以满足投资者的胃口。事实上，业绩发布后，投资者纷纷抛售该股，SoFi股价暴跌15%。该股目前在过去6个月内下跌了约-37%，市值约为120亿美元。</blockquote> <img src=\"https://static.tigerbbs.com/3534b25722128f58c73322ad0b9b2001\" tg-width=\"635\" tg-height=\"417\" width=\"100%\" height=\"auto\">Data by YCharts<blockquote>数据来自YCharts</blockquote> Seemingly, most of the negative reaction to the Q2 results was based on the fact that the company's net loss increased significantly during the quarter. In addition, the company issued guidance for the second half of 2021 that was&nbsp;below what analysts had predicted.<blockquote>似乎，对第二季度业绩的大部分负面反应都是基于该公司本季度净亏损大幅增加的事实。此外，该公司发布的2021年下半年指引低于分析师的预测。</blockquote> We believe the market's reaction toSoFi's numbers is well overblown as both factors, the net loss, as well as the guidance can be attributed to one-time impacts or non-cash items, which we'll explain in more detail below.SoFi's CEO Anthony Noto made it clear on the conference call that the company is accelerating its business across almost every metric. And while it may take some time for investors to understandSoFi's competitive advantage and growth runway, we believe that at current levelsSoFi shares are way oversold.<blockquote>我们认为市场对SoFi数据的反应被夸大了，因为净亏损和指引这两个因素都可以归因于一次性影响或非现金项目，我们将在下面更详细地解释这一点。SoFi首席执行官Anthony Noto在电话会议上明确表示，该公司正在几乎所有指标上加速其业务。虽然投资者可能需要一些时间才能了解SOFi的竞争优势和增长跑道，但我们认为，在目前的水平上，SOFi股价已经严重超卖。</blockquote> This article won't focus on a detailed description of the business, but will highlight the most recent financial results. For a deep-dive into the company's business model, opportunities and risks, go visit&nbsp;our previous article&nbsp;on SoFi.<blockquote>本文不会重点介绍业务的详细描述，但会重点介绍最近的财务业绩。要深入了解该公司的商业模式、机遇和风险，请访问我们之前关于SoFi的文章。</blockquote> The Numbers<blockquote>数字</blockquote> SoFi reported very strong Q2 financial results:<blockquote>SoFi报告了非常强劲的第二季度财务业绩：</blockquote> Adjusted Revenue for the quarter climbed 74% YoY, way above management's initial guidance of between 58 to 61% growth, and well above analyst expectations. Furthermore, the company had another quarter of positive EBITDA, which reached $11 million for the quarter, up $35 million YoY from negative ($24) million in Q2 2020.<blockquote>该季度调整后收入同比增长74%，远高于管理层最初指导的58%至61%的增长，也远高于分析师的预期。此外，该公司又有一个季度的正EBITDA，本季度达到1100万美元，比2020年Q2的负（2400万美元）同比增长3500万美元。</blockquote> <img src=\"https://static.tigerbbs.com/f2326005d2400bf2a6257b4b187d2bc8\" tg-width=\"640\" tg-height=\"284\" width=\"100%\" height=\"auto\">Source:SoFi<blockquote>资料来源：SoFi</blockquote> On an annualized basis,SoFi achieved to bring in $852 million in adjusted net revenue and $61 million in adjusted EBITDA, despite some one-time headwinds in the quarter and alongside aggressive investments in the future growth of the company.<blockquote>按年计算，尽管本季度遇到了一些一次性阻力，并且对公司未来增长进行了积极投资，但SoFi仍实现了8.52亿美元的调整后净收入和6100万美元的调整后EBITDA。</blockquote> <img src=\"https://static.tigerbbs.com/dad9c230f84bb4059516cd54c4a45f45\" tg-width=\"640\" tg-height=\"283\" width=\"100%\" height=\"auto\">Source:SoFi<blockquote>资料来源：SoFi</blockquote> Most importantly, activity onSoFi's platform is accelerating across all areas.SoFi reported the 8th consecutive quarter of accelerating YoY growth for their total members, which reached 2.56 million for the quarter, up from 1.2 million in the Q2 2020 quarter (representing growth of 113%), and up 12% sequentially from Q1.<blockquote>最重要的是，SoFi平台上所有领域的活动都在加速。SoFi报告称，其会员总数连续第八个季度同比加速增长，本季度会员总数达到256万人，高于2020年第二季度的120万人（增长113%）），较第一季度环比增长12%。</blockquote> <img src=\"https://static.tigerbbs.com/0fb7e3b27b52cca163a823c883e4af0a\" tg-width=\"640\" tg-height=\"304\" width=\"100%\" height=\"auto\">Source:SoFi<blockquote>资料来源：SoFi</blockquote> The quarter also showed continued accelerating YoY growth in Products, which were up 123% to reach 3.7 million.SoFi added more than +2 million products on a YoY comparison, representing 123% YoY growth.<blockquote>本季度产品数量同比增长持续加速，增长123%，达到370万件。SoFi同比增加超过200万件产品，同比增长123%。</blockquote> <img src=\"https://static.tigerbbs.com/024d45093cab2fb40cba8ab7d9bd4744\" tg-width=\"640\" tg-height=\"297\" width=\"100%\" height=\"auto\">Source:SoFi<blockquote>资料来源：SoFi</blockquote> Galileo, their financial technology platform, reached 79 million accounts, up from 36 million, representing growth of 119% in the quarter as the company added 42.9 million new accounts to their financial technology offering.<blockquote>他们的金融技术平台Galileo的账户数量从3600万增加到7900万，本季度增长了119%，该公司的金融技术产品增加了4290万个新账户。</blockquote> Galileo now posted greater than 100% YoY growth for the last four quarters for Galileo. The platform is a key cornerstone forSoFi's future growth and the fact that they are growing triple-digits and, for the first time, crossed $100 billion of annualized payment volume in July, shows that the business not only has significant scale already but also has a real competitive advantage as reflected by the YoY growth.<blockquote>伽利略目前公布过去四个季度的同比增长超过100%。该平台是SoFi未来增长的关键基石，事实上，他们正在以三位数的速度增长，并在7月份首次突破1000亿美元的年化支付量，这表明该业务不仅已经拥有巨大的规模，而且还具有同比增长所反映的真正竞争优势。</blockquote> <img src=\"https://static.tigerbbs.com/a1b72ef771e256023ab2cc56f48f9a10\" tg-width=\"640\" tg-height=\"281\" width=\"100%\" height=\"auto\">Source:SoFi<blockquote>资料来源：SoFi</blockquote> Lastly,SoFi's business is diversifying in a significant way. Overall member growth for the business was driven by significant expansion in the Financial Services segment, withSoFi Invest andSoFi Money more than tripling the number of Financial Services segment products, to nearly 2.7 million, up from approximately 783,000 vs. Q2 2020. In the most recent quarter Financial Services segment products were nearly three times the number of Lending Products which shows how strongly the business is diversifying away from its initial lending arm (notwithstanding that loan originations still increased by a very strong 66% YoY). The 3x greater scale supported to drive a 1.7x increase in the number of products that were cross-bought by members already active on the platform in comparison to Q2 2020, as noted by the CEO during the conference call.<blockquote>最后，SoFi的业务正在显着多元化。该业务的整体会员增长是由金融服务领域的显着扩张推动的，SoFi Invest和SoFi Money的金融服务领域产品数量增加了两倍多，达到近270万件，高于2020年第二季度的约783,000件。在最近一个季度，金融服务部门的产品数量几乎是贷款产品数量的三倍，这表明该业务从最初的贷款部门多元化的力度有多大（尽管贷款发放仍同比增长了66%）。正如首席执行官在电话会议上指出的那样，与2020年第二季度相比，规模扩大了3倍，推动已活跃在平台上的会员交叉购买的产品数量增加了1.7倍。</blockquote> <img src=\"https://static.tigerbbs.com/cd0fb00ddf2b10ee7226b966df927eb7\" tg-width=\"640\" tg-height=\"271\" width=\"100%\" height=\"auto\">Source:SoFi<blockquote>资料来源：SoFi</blockquote> The Number That Spooked Investors<blockquote>令投资者感到恐慌的数字</blockquote> The one thing that let many investors to sell the stock ofSoFi after the earnings report was that the company reported a significant net loss of $165.3 million compared to a still positive net income of $7.8 million in the prior year quarter. However, as the company&nbsp;explained during the conference call, this was largely due to a one-time item in relation to the business combination with Galileo, as well as non-cash items like stock-based compensation (SBC):<blockquote>让许多投资者在财报发布后出售SoFi股票的一件事是，该公司报告净亏损1.653亿美元，而去年同期净利润仍为780万美元。然而，正如该公司在电话会议期间解释的那样，这主要是由于与伽利略业务合并相关的一次性项目，以及股票薪酬（SBC）等非现金项目：</blockquote> We remeasured our valuation allowance during 2020 as a result of the deferred tax liabilities recognized in connection with our acquisition of Galileo, which decreased the valuation allowance by $99.8 million. The absence of that tax benefit, together with significant non-cash stock-based compensation expenses and fair value changes in warrants primarily related to the fair market value ofSoFi stock, were the largest contributors to the current period net loss. <img src=\"https://static.tigerbbs.com/ae29dddc9bc00f8fa31eb7cbee8ca3d5\" tg-width=\"640\" tg-height=\"219\" width=\"100%\" height=\"auto\">Source:SoFi<blockquote>由于与收购Galileo相关的递延税项负债，我们在2020年重新计量了我们的估值拨备，这使估值拨备减少了9980万美元。缺乏该税收优惠，加上大量非现金股票补偿费用以及主要与SOFI股票公平市场价值相关的认股权证公允价值变化，是造成当期净亏损的最大原因。资料来源：SoFi</blockquote> In addition to management's remarks, investors should take a closer look atSoFi's income statement, where it becomes clearer what drove the net loss. The&nbsp;SEC filing&nbsp;shows that management's cost management is actually very prudent as non-interest expenses, including investments into technology and products, sales and marketing, as well as operating costs only increased by 45%, 48%, 46% respectively which is much lower than the company's +74% revenue growth. Only general and administrative expenses more than tripled during the quarter. Digging deeper into the SEC filing reveals that the big chunk of G&amp;A expenses came from aforementioned $99.8 million in deferred tax liabilities as a result of the acquisition of Galileo, and stock-based compensation as a result of being a public company (see items marked below).<blockquote>除了管理层的言论外，投资者还应该仔细看看SoFi的损益表，其中净亏损的原因变得更加清晰。SEC文件显示，管理层的成本管理实际上非常谨慎，因为非利息支出，包括对技术和产品、销售和营销的投资，以及运营成本分别仅增长了45%、48%、46%，远低于公司+74%的收入增长。本季度仅一般和管理费用就增加了两倍多。深入研究SEC文件发现，G&amp;A费用的很大一部分来自上述因收购Galileo而产生的9980万美元递延税负债，以及因成为上市公司而产生的基于股票的薪酬（见下面标记的项目）。</blockquote> <img src=\"https://static.tigerbbs.com/1d9473db3f6390b5bfb72b27246d0601\" tg-width=\"640\" tg-height=\"409\" referrerpolicy=\"no-referrer\" width=\"100%\" height=\"auto\"><blockquote></blockquote> <img src=\"https://static.tigerbbs.com/e0113b16a7131123dee0e6ebaf065ebb\" tg-width=\"640\" tg-height=\"215\" width=\"100%\" height=\"auto\">Source:SoFi<blockquote>资料来源：SoFi</blockquote> If you exclude the one-time item of deferred tax liabilities of $99.8 million, and adjust for three months of SBC with around half of the previous six months SBC expense, thenSoFi's net loss would have only been around negative $(20) million for the quarter (note that this is based on the author's rough estimates and should not be regarded as an accurate reflection of the actual numbers).<blockquote>如果您排除9980万美元的一次性递延税负债项目，并以前六个月SBC费用的一半左右对三个月的SBC进行调整，那么SoFi本季度的净亏损将仅为负(20)百万美元左右（请注意，这是基于作者的粗略估计，不应被视为实际数字的准确反映）。</blockquote> With that back-of-the-envelope calculation in mind, we are not particularly worried about the net loss that was reported for the quarter relative to the strong top-line growth thatSoFi reported.SoFi's numbers clearly indicate that the business is accelerating in growth, diversifying its services rapidly, while we see cross-selling activity ramping up within its customer-base which should provide some important efficiency gains in the future in terms of reduced customer acquisition costs and improved margins. This aspect becomes much clearer when we also take a look at the results from the individual business segments and the respective contribution profit metrics:<blockquote>考虑到这种粗略的计算，相对于SoFi报告的强劲营收增长，我们并不特别担心本季度报告的净亏损。SoFi的数据清楚地表明该业务正在加速增长，迅速实现服务多元化，同时我们看到其客户群内的交叉销售活动增加，这应该会在未来降低客户获取成本和提高利润率方面带来一些重要的效率收益。当我们还查看各个业务部门的结果以及各自的贡献利润指标时，这方面就变得更加清晰：</blockquote> 1) Lending Segment-SoFi generated adjusted net revenue of $172 million, growing 47% YoY, with a contribution profit of $89 million. The increase was largely driven by personal loan originations, which grew by 188% YoY. In addition, contribution profit (marked below) increased by 80% YoY and respective margins improved to 52% compared to a 42% margin in the prior year quarter - and that was alongside an incremental increase of investment into the business of +$15.3 million for the quarter. Margin improvement was driven by operating efficiencies (e.g. more than 50% of personal loans were fully automated vs. less than 30% one year ago) alongside prudent spending in marketing that has brought cost per funded loan down.<blockquote>1）贷款分部-SoFi调整后净收入为1.72亿美元，同比增长47%，贡献利润为8900万美元。这一增长主要是由个人贷款发放推动的，同比增长188%。此外，贡献利润（如下所示）同比增长80%，各自的利润率从去年同期的42%提高至52%，同时该业务的投资也增加了+1530万美元本季度。利润率的提高是由运营效率推动的（例如，超过50%的个人贷款是完全自动化的，而一年前这一比例不到30%），以及谨慎的营销支出，降低了每笔融资贷款的成本。</blockquote> SoFi highlighted in the conference call that growth in this segment was achieved despite noticeable headwinds in the student loans business from the government's CARES-act prolongation, with $859 million in origination volume in the quarter representing less than half of pre-CARES levels.<blockquote>SoFi在《电话会议》中强调，尽管政府延长CARES-act给学生贷款业务带来了明显阻力，但该领域仍实现了增长，本季度的发放额为8.59亿美元，不到CARES前水平的一半。</blockquote> <img src=\"https://static.tigerbbs.com/cf0b085e6372cd1774f4feac9ca4e2d0\" tg-width=\"640\" tg-height=\"289\" referrerpolicy=\"no-referrer\" width=\"100%\" height=\"auto\"><blockquote></blockquote> <img src=\"https://static.tigerbbs.com/3c4af0c2068e800edbbe1728761f863b\" tg-width=\"640\" tg-height=\"165\" referrerpolicy=\"no-referrer\" width=\"100%\" height=\"auto\"><blockquote></blockquote> <img src=\"https://static.tigerbbs.com/15729a0e43c025e7ab40d6017ff0f259\" tg-width=\"640\" tg-height=\"148\" width=\"100%\" height=\"auto\">Source:SoFi<blockquote>资料来源：SoFi</blockquote> 2) Financial Services Segment- net revenue for this segment for the 2nd quarter reached $17.0 million vs. $2.4 million in Q2 2020, representing growth of a mind-blowing 602% YoY. With a 6x growth rate there is not much doubt that the business is successfully attracting customers, while making significant progress also in terms of cross-selling and multi-product-adoption, which will be an important aspect in reducing customer acquisition costs and driving higher lifetime value per customer. Another important aspect is that the incremental YoY revenue increase is offsetting the increased costs attributable to the segment, which was a $8.5 million YoY increase in expenses vs. a $14.6 million increase in revenue vs. Q2 2020, resulting in an improved contribution metric where losses decreased by 20% YoY.<blockquote>2）金融服务板块-该部门第二季度的净收入达到1700万美元，而2020年第二季度为240万美元，同比增长602%，令人惊叹。凭借6倍的增长率，毫无疑问，该业务正在成功吸引客户，同时在交叉销售和多产品采用方面也取得了重大进展，这将是降低客户获取成本和推动每个客户更高终身价值的一个重要方面。另一个重要方面是，收入同比增长抵消了该部门成本的增加，与2020年第二季度相比，费用同比增加了850万美元，而收入增加了1,460万美元，从而改善了贡献指标，其中损失同比下降20%。</blockquote> The Financial Services Segment also showed strong product growth across all offerings as total products in this segment grew by 243% YoY.SoFi doesn't rest on its laurels as the company has just launched a new equity capital markets and advisory business in the second quarter, which will be interesting to watch.<blockquote>金融服务部门的所有产品也显示出强劲的产品增长，该部门的产品总数同比增长243%。SoFi并没有固步自封，因为该公司刚刚在第二季度推出了新的股权资本市场和咨询业务，这将是有趣的观看。</blockquote> <img src=\"https://static.tigerbbs.com/0049b49eeb97244d71a3c9e5e580b1bb\" tg-width=\"640\" tg-height=\"147\" referrerpolicy=\"no-referrer\" width=\"100%\" height=\"auto\"><blockquote></blockquote> <img src=\"https://static.tigerbbs.com/72aecb1a11aaee4636651095b20bd195\" tg-width=\"640\" tg-height=\"181\" width=\"100%\" height=\"auto\">Source:SoFi<blockquote>资料来源：SoFi</blockquote> 3) Technology Platform- this segment primarily reports results fromSoFi's financial technology offering Galileo, which saw total net revenue increase by 138% YoY reaching $45.3 million vs. $19 million in the prior year quarter. Total Galileo accounts reached 79 million accounts, up from 36 million, representing growth of 119% in the quarter. Galileo also just crossed $100 billion of annualized payment volume in July as noted during the&nbsp;conference call.<blockquote>3）技术平台-该部门主要报告SoFi金融技术产品Galileo的业绩，该产品的总净收入同比增长138%，达到4530万美元，而去年同期为1900万美元。伽利略账户总数从3600万增至7900万，本季度增长119%。正如电话会议期间指出的那样，伽利略7月份的年化支付额也刚刚突破1000亿美元。</blockquote> <img src=\"https://static.tigerbbs.com/c567a3c581104d33cb959ebe63c33606\" tg-width=\"640\" tg-height=\"148\" width=\"100%\" height=\"auto\">Source:SoFi<blockquote>资料来源：SoFi</blockquote> SoFi is aggressively investing to position Galileo for strong future growth, e.g. by moving operations from on-premise to the cloud, while nearly doubling its headcount and expanding into new geographies. Management mentioned that they are nearing completion of building out a new cloud computing environment for Galileo which is supposed to replace the on premises environment, including the preparation of migrating existing clients to the cloud in Q3. While this contributed to a significant increase in expenses and impacted the resulting contribution profit for this segment,SoFi was still able to show YoY growth in contribution profit of 8%. It is important to see that management is pursuing all efforts to continue to accelerate growth in one of their key differentiating business segments, which Galileo clearly represents. What Amazon did for retail or the cloud with pioneering its AWS offering, could be replicated through Galileo as they are on track to position it as the leading financial technology offering and backbone to the global financial technology industry.<blockquote>SoFi正在积极投资，为Galileo未来的强劲增长做好准备，例如通过将运营从内部转移到云端，同时将员工人数增加近一倍并扩展到新的地区。管理层提到，他们即将完成为Galileo构建新的云计算环境，该环境将取代内部环境，包括准备在第三季度将现有客户端迁移到云。尽管这导致费用大幅增加并影响了该部门的贡献利润，但SoFi的贡献利润仍同比增长8%。重要的是要看到，管理层正在尽一切努力继续加速其关键差异化业务领域之一的增长，伽利略清楚地代表了这一点。亚马逊在零售或云领域率先推出AWS产品所做的事情可以通过Galileo复制，因为他们有望将其定位为领先的金融技术产品和全球金融技术行业的支柱。</blockquote> Management Guidance<blockquote>管理指导</blockquote> For the third quarter of 2021SoFi's management expects adjusted net revenue of $245 million to $255 million, representing only around 15% growth vs. the prior year quarter, which is markedly lower than the $270.2M&nbsp;average estimate from two analysts. Adjusted EBITDA is expected to come in between negative $(7) million to positive $3 million. The expected top-line growth seems to be quite conservative but has surprised many investors who expected much higher growth rates, especially afterSoFi just reported a +74% growth in the most recent quarter.<blockquote>SoFi管理层预计2021年第三季度调整后净收入为2.45亿美元至2.55亿美元，与去年同期相比仅增长15%左右，明显低于两位分析师2.702亿美元的平均预期。调整后EBITDA预计将在负(7)百万美元至正300万美元之间。预期的营收增长似乎相当保守，但令许多预期增长率高得多的投资者感到惊讶，尤其是在SoFi刚刚报告最近一个季度增长了74%之后。</blockquote> While the guidance was a significant factor contributing to the sell-off inSoFi's shares, we believe that investors shouldn't put too much focus on the headlines of „missed\" guidance. The fact thatSoFi is sticking to its initial guidance of adjusted net revenue of $980 million and adjusted EBITDA of positive $27 million is the most important take-away.Management was able to reiterate its guidance despite a significant negative expected planning impact on student loan refinancing revenues of negative $40M following the government's extension of the CARES Act moratorium&nbsp;on student loan payments from Sept. 30, 2021 to Jan. 31, 2022. The company now expects a rebound in the student loan refinancing business early next year while, so far, management had planned for the CARES Act to end on September 30 in its initial guidance. In addition, the company also expects a smaller negative impact from the reduced Technology Platform revenue estimate of $12 million based on the minority stake in APEX thatSoFi bought bac (contribution from the investment ended in January 2021).<blockquote>虽然该指引是导致SoFi股票抛售的一个重要因素，但我们认为投资者不应过多关注“错过”指引的头条新闻。事实上，SoFi坚持其调整后净收入9.8亿美元和调整后EBITDA为正2700万美元的初始指引，这是最重要的收获。尽管政府延长CARES法案暂停期后，预期规划对学生贷款再融资收入产生了重大负面影响，为负4000万美元，但管理层仍能够重申其指导意见2021年9月30日至2022年1月31日期间的学生贷款支付情况。该公司目前预计学生贷款再融资业务将在明年初反弹，而到目前为止，管理层在其初步指导中计划CARES法案将于9月30日结束。此外，该公司还预计，基于SoFi收购bac的APEX少数股权（投资贡献于2021年1月结束），技术平台收入预计减少1200万美元的负面影响较小。</blockquote> Even despite this significant $40 million negative revenue impact toSoFi's original guidance, plus the originally included $12 million of expected 2021 revenue from the equity investment in APEX, the company did not lower its guidance but was able to reassure investors that the other business segments can outweigh these headwinds, which is a strong validation ofSoFi's diversified business, which will enable the company to maneuver through even difficult periods that may affect one of its business segments from time to time.<blockquote>尽管对SoFi最初的指引产生了4000万美元的重大负面收入影响，再加上最初包含的来自APEX股权投资的2021年预期收入1200万美元，但该公司并没有降低指引，而是能够向投资者保证其他业务部门可以超过这些阻力，这是对SoFi多元化业务的有力验证，这将使公司能够度过可能不时影响其业务部门之一的困难时期。</blockquote> Lastly, management pointed out a clear cost management strategy relative to its growth prospects which should re-assure investors that at some point the company will be back to positive net income alongside robust topline growth:<blockquote>最后，管理层指出了相对于其增长前景的明确成本管理战略，这应该会向投资者再次保证，在某个时候，公司将在营收强劲增长的同时恢复正净利润：</blockquote> ...we continue invest aggressively in our business to fuel compounding growth, while still delivering profitability to our shareholders. This combination is not easy, but we are committed to contributing around 30% of incremental revenue to the bottom line and reinvest the remaining 70% in bolstering our product innovation to drive decades of compounding growth. Even as we invest aggressively in technology, marketing and people, we continue to realize cost efficiencies, which is beginning to drive real operating leverage. By leveraging cross buying and better gaining realization and targeting we've reduced sales and marketing as a percentage of revenue and customer acquisition cost meaningfully year-over-year. Lastly, investors were also keen to hear any updates on the anticipated Bank Charter thatSoFi is pursuing. CEO Anthony Noto mentioned during the conference call that the company is working closely with the Federal Reserve Bank and the OCC in a „constructive process\", but they also reiterated that there's not a definitive timeline to the process itself - so we are still waiting for an update on the bank charter. As previously reported,SoFi filed for a banking charter&nbsp;in July 2020.SoFi's career postings suggest they are building out senior management and teams for the much-anticipated banking division, includingrecent job postingsin compliance, software engineering or auditing.<blockquote>......我们继续积极投资于我们的业务，以推动复合增长，同时仍然为我们的股东提供盈利能力。这种组合并不容易，但我们致力于为利润贡献约30%的增量收入，并将剩余的70%再投资于支持我们的产品创新，以推动数十年的复合增长。尽管我们在技术、营销和人员方面进行了积极投资，但我们仍在继续实现成本效率，这开始推动真正的运营杠杆。通过利用交叉购买以及更好地实现和定位，我们同比大幅降低了销售和营销占收入的百分比以及客户获取成本。最后，投资者还渴望听到有关SoFi正在寻求的预期银行牌照的任何最新消息。首席执行官Anthony Noto在电话会议上提到，该公司正在与美联储银行和OCC在一个“建设性的过程”中密切合作，但他们也重申，该过程本身没有明确的时间表，因此我们仍在等待银行章程的更新。正如之前报道的那样，SoFi于2020年7月申请了银行执照。SoFi的招聘信息表明，他们正在为备受期待的银行部门组建高级管理层和团队，包括合规、软件工程或审计方面的最新招聘信息。</blockquote> Conclusion<blockquote>结论</blockquote> There was a lot to like inSoFi's first quarterly report as a public company. We believe the sell-off in the company's shares is an overreaction. The muted guidance, or to put it more positively, the fact that management was able to reiterate its initial guidance for FY 2021 despite the significant negative $40 million impact from the prolongation of the CARES act as management no longer expects a tick-up in the student loan financing business in 2021, should actually be seen as a positive sign that the company's business is building up an important diversification of its business as the other business segments can compensate for these headwinds. While there is a risk that the government may continue to prolong the CARES act moratorium, which would negatively impactSoFi's student loan business, the company is now well diversified to outweigh any negative impact, and the set-up also creates some opportunity for upside surprises as we head into 2022, where the company now expects the tick-up in student loan refinancing to happen.<blockquote>inSoFi作为上市公司的第一份季度报告有很多值得喜欢的地方。我们认为该公司股票的抛售是过度反应。温和的指导，或者更积极地说，尽管CARES法案的延长产生了4000万美元的重大负面影响，但管理层仍能够重申其对2021财年的初步指导，因为管理层不再预计2021财年的学生贷款融资业务实际上应该被视为一个积极迹象，表明该公司的业务正在建立重要的业务多元化，因为其他业务部门可以弥补这些不利因素。虽然政府可能会继续延长CARES法案暂停期，这将对SoFi的学生贷款业务产生负面影响，但该公司现在已经实现了良好的多元化，足以抵消任何负面影响，而且随着我们进入2022年，该公司现在预计学生贷款再融资将会增加。</blockquote> In conclusion,SoFi is diversifying its business and is making significant progress in terms of cross-selling and multi-product-adoption amongst its customer base, which will be an important aspect in reducing customer acquisition costs, better margins and driving higher lifetime value per customer. We are encouraged to see how short-term headwinds are compensated by other fast-growing business segments. We remain long the stock.<blockquote>总之，SoFi正在实现业务多元化，并在客户群的交叉销售和多产品采用方面取得了重大进展，这将是降低客户获取成本、提高利润率和提高每个客户终身价值的重要方面。我们很高兴看到其他快速增长的业务部门如何弥补短期阻力。我们仍然做多该股。</blockquote>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>SoFi Technologies: Why The Market Got It All Wrong<blockquote>SoFi Technologies：为什么市场完全错了</blockquote></title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 12.5px; color: #7E829C; margin: 0;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSoFi Technologies: Why The Market Got It All Wrong<blockquote>SoFi Technologies：为什么市场完全错了</blockquote>\n</h2>\n<h4 class=\"meta\">\n\nseekingalpha2021-08-18 11:10\n\n</h4>\n</header>\n<article>\nSummary<blockquote>总结</blockquote> <ul> <li>SoFi just reported strong Q2 2021 financial results with accelerating growth across its usage metrics, most of which grew by &gt;100%.</li> <li>Adjusted revenue for the quarter climbed 74% YoY and was based on a diverse revenue mix from SoFi’s three core business segments.</li> <li>However, investors got spooked by a net loss of &gt;$150 million for the quarter and a muted guidance for H2 2021.</li> <li>Management made it clear that net loss was impacted by a deferred tax liability from Galileo, while guidance was reiterated despite a $40M headwind from the CARES Act prolongation.</li> <li>SoFi is diversifying its business and makes significant progress in terms of multi-product adoption, which will be key for future growth. The 15% drop in shares is a clear overreaction.</li> </ul> <img src=\"https://static.tigerbbs.com/fe3e6f7bf5e8cff3ceb162bee495437a\" tg-width=\"1536\" tg-height=\"910\" width=\"100%\" height=\"auto\">ipopba/iStock via Getty Images<blockquote><ul><li>SoFi刚刚公布了强劲的2021年第二季度财务业绩，其使用指标加速增长，其中大部分增长超过100%。</li><li>该季度调整后收入同比增长74%，基于SoFi三个核心业务部门的多元化收入组合。</li><li>然而，投资者对本季度超过1.5亿美元的净亏损以及2021年下半年的温和指引感到震惊。</li><li>管理层明确表示，净亏损受到伽利略递延税负债的影响，同时尽管CARES法案延期带来了4000万美元的阻力，但仍重申了指引。</li><li>SoFi正在实现业务多元化，并在多产品采用方面取得了重大进展，这将是未来增长的关键。股价下跌15%显然是过度反应。</li></ul>ipopba/iStock来自Getty Images</blockquote> Summary<blockquote>总结</blockquote> SoFi Technologies (SOFI) is a fintech company that offers a multitude of digital financial services to customers under its three key business segments, i.e.:<blockquote>SoFi Technologies(SOFI)是一家金融科技公司，在其三个关键业务部门下为客户提供多种数字金融服务，即：</blockquote> 1) Lending, which includes personal, home, and student loans;<blockquote>1)贷款，包括个人贷款、住房贷款和学生贷款；</blockquote> 2) Financial Services, including savings, spending, investment accounts, as well as various debit and credit card services;<blockquote>2）金融服务，包括储蓄、消费、投资账户，以及各种借记卡和信用卡服务；</blockquote> 3) Financial technology, which primarily consists of Galileo, a market-leading financial technology infrastructure provider thatSoFi acquired in May 2020.<blockquote>3)金融科技，主要由SoFi于2020年5月收购的市场领先的金融科技基础设施提供商Galileo组成。</blockquote> The company aims to become a one-stop-shop for digital financial services and is well on its way to do so.<blockquote>该公司的目标是成为数字金融服务的一站式商店，并且正在顺利实现这一目标。</blockquote> SoFi just reported its first set of financial results since becoming a public company, and results were quite strong for the Q2 2021 quarter:<blockquote>SoFi刚刚公布了自成为上市公司以来的第一组财务业绩，2021年第二季度的业绩相当强劲：</blockquote> <ul> <li>The company showed accelerating growth across its usage metrics, most of which grew by &gt;100%;</li> <li>Revenues also grew triple-digits at 101% year over year (YoY) to $231.3 million, while adjusted net revenue for the quarter climbed 74% YoY and came in well above guidance of between 58 to 61% YoY growth;</li> <li>Growth in members and products accelerated as well, all growing by triple-digit percentages, and marking the 8th consecutive quarter of accelerating YoY growth in total members forSoFi.</li> <li>In addition, the company generated $61 million of positive EBITDA over the past 12 months, a significant improvement from the $149 million of losses experienced for the full year of 2019.</li> </ul> But these numbers were not enough to satisfy investor appetite. In fact, investors rushed out of the stock and shares ofSoFi plunged as much as 15% after the release of results. The stock is now down around -37% over the past 6 months at a market capitalization of around $12 billion.<blockquote><ul><li>该公司在其使用指标上显示出加速增长，其中大部分增长超过100%；</li><li>收入也实现了三位数增长，同比增长101%，达到2.313亿美元，而本季度调整后净收入同比增长74%，远高于同比增长58%至61%的指导；</li><li>会员和产品的增长也在加速，均以三位数的百分比增长，这是SoFi会员总数连续第八个季度同比加速增长。</li><li>此外，该公司在过去12个月中实现了6100万美元的正EBITDA，较2019年全年1.49亿美元的亏损有了显着改善。</li></ul>但这些数字不足以满足投资者的胃口。事实上，业绩发布后，投资者纷纷抛售该股，SoFi股价暴跌15%。该股目前在过去6个月内下跌了约-37%，市值约为120亿美元。</blockquote> <img src=\"https://static.tigerbbs.com/3534b25722128f58c73322ad0b9b2001\" tg-width=\"635\" tg-height=\"417\" width=\"100%\" height=\"auto\">Data by YCharts<blockquote>数据来自YCharts</blockquote> Seemingly, most of the negative reaction to the Q2 results was based on the fact that the company's net loss increased significantly during the quarter. In addition, the company issued guidance for the second half of 2021 that was&nbsp;below what analysts had predicted.<blockquote>似乎，对第二季度业绩的大部分负面反应都是基于该公司本季度净亏损大幅增加的事实。此外，该公司发布的2021年下半年指引低于分析师的预测。</blockquote> We believe the market's reaction toSoFi's numbers is well overblown as both factors, the net loss, as well as the guidance can be attributed to one-time impacts or non-cash items, which we'll explain in more detail below.SoFi's CEO Anthony Noto made it clear on the conference call that the company is accelerating its business across almost every metric. And while it may take some time for investors to understandSoFi's competitive advantage and growth runway, we believe that at current levelsSoFi shares are way oversold.<blockquote>我们认为市场对SoFi数据的反应被夸大了，因为净亏损和指引这两个因素都可以归因于一次性影响或非现金项目，我们将在下面更详细地解释这一点。SoFi首席执行官Anthony Noto在电话会议上明确表示，该公司正在几乎所有指标上加速其业务。虽然投资者可能需要一些时间才能了解SOFi的竞争优势和增长跑道，但我们认为，在目前的水平上，SOFi股价已经严重超卖。</blockquote> This article won't focus on a detailed description of the business, but will highlight the most recent financial results. For a deep-dive into the company's business model, opportunities and risks, go visit&nbsp;our previous article&nbsp;on SoFi.<blockquote>本文不会重点介绍业务的详细描述，但会重点介绍最近的财务业绩。要深入了解该公司的商业模式、机遇和风险，请访问我们之前关于SoFi的文章。</blockquote> The Numbers<blockquote>数字</blockquote> SoFi reported very strong Q2 financial results:<blockquote>SoFi报告了非常强劲的第二季度财务业绩：</blockquote> Adjusted Revenue for the quarter climbed 74% YoY, way above management's initial guidance of between 58 to 61% growth, and well above analyst expectations. Furthermore, the company had another quarter of positive EBITDA, which reached $11 million for the quarter, up $35 million YoY from negative ($24) million in Q2 2020.<blockquote>该季度调整后收入同比增长74%，远高于管理层最初指导的58%至61%的增长，也远高于分析师的预期。此外，该公司又有一个季度的正EBITDA，本季度达到1100万美元，比2020年Q2的负（2400万美元）同比增长3500万美元。</blockquote> <img src=\"https://static.tigerbbs.com/f2326005d2400bf2a6257b4b187d2bc8\" tg-width=\"640\" tg-height=\"284\" width=\"100%\" height=\"auto\">Source:SoFi<blockquote>资料来源：SoFi</blockquote> On an annualized basis,SoFi achieved to bring in $852 million in adjusted net revenue and $61 million in adjusted EBITDA, despite some one-time headwinds in the quarter and alongside aggressive investments in the future growth of the company.<blockquote>按年计算，尽管本季度遇到了一些一次性阻力，并且对公司未来增长进行了积极投资，但SoFi仍实现了8.52亿美元的调整后净收入和6100万美元的调整后EBITDA。</blockquote> <img src=\"https://static.tigerbbs.com/dad9c230f84bb4059516cd54c4a45f45\" tg-width=\"640\" tg-height=\"283\" width=\"100%\" height=\"auto\">Source:SoFi<blockquote>资料来源：SoFi</blockquote> Most importantly, activity onSoFi's platform is accelerating across all areas.SoFi reported the 8th consecutive quarter of accelerating YoY growth for their total members, which reached 2.56 million for the quarter, up from 1.2 million in the Q2 2020 quarter (representing growth of 113%), and up 12% sequentially from Q1.<blockquote>最重要的是，SoFi平台上所有领域的活动都在加速。SoFi报告称，其会员总数连续第八个季度同比加速增长，本季度会员总数达到256万人，高于2020年第二季度的120万人（增长113%）），较第一季度环比增长12%。</blockquote> <img src=\"https://static.tigerbbs.com/0fb7e3b27b52cca163a823c883e4af0a\" tg-width=\"640\" tg-height=\"304\" width=\"100%\" height=\"auto\">Source:SoFi<blockquote>资料来源：SoFi</blockquote> The quarter also showed continued accelerating YoY growth in Products, which were up 123% to reach 3.7 million.SoFi added more than +2 million products on a YoY comparison, representing 123% YoY growth.<blockquote>本季度产品数量同比增长持续加速，增长123%，达到370万件。SoFi同比增加超过200万件产品，同比增长123%。</blockquote> <img src=\"https://static.tigerbbs.com/024d45093cab2fb40cba8ab7d9bd4744\" tg-width=\"640\" tg-height=\"297\" width=\"100%\" height=\"auto\">Source:SoFi<blockquote>资料来源：SoFi</blockquote> Galileo, their financial technology platform, reached 79 million accounts, up from 36 million, representing growth of 119% in the quarter as the company added 42.9 million new accounts to their financial technology offering.<blockquote>他们的金融技术平台Galileo的账户数量从3600万增加到7900万，本季度增长了119%，该公司的金融技术产品增加了4290万个新账户。</blockquote> Galileo now posted greater than 100% YoY growth for the last four quarters for Galileo. The platform is a key cornerstone forSoFi's future growth and the fact that they are growing triple-digits and, for the first time, crossed $100 billion of annualized payment volume in July, shows that the business not only has significant scale already but also has a real competitive advantage as reflected by the YoY growth.<blockquote>伽利略目前公布过去四个季度的同比增长超过100%。该平台是SoFi未来增长的关键基石，事实上，他们正在以三位数的速度增长，并在7月份首次突破1000亿美元的年化支付量，这表明该业务不仅已经拥有巨大的规模，而且还具有同比增长所反映的真正竞争优势。</blockquote> <img src=\"https://static.tigerbbs.com/a1b72ef771e256023ab2cc56f48f9a10\" tg-width=\"640\" tg-height=\"281\" width=\"100%\" height=\"auto\">Source:SoFi<blockquote>资料来源：SoFi</blockquote> Lastly,SoFi's business is diversifying in a significant way. Overall member growth for the business was driven by significant expansion in the Financial Services segment, withSoFi Invest andSoFi Money more than tripling the number of Financial Services segment products, to nearly 2.7 million, up from approximately 783,000 vs. Q2 2020. In the most recent quarter Financial Services segment products were nearly three times the number of Lending Products which shows how strongly the business is diversifying away from its initial lending arm (notwithstanding that loan originations still increased by a very strong 66% YoY). The 3x greater scale supported to drive a 1.7x increase in the number of products that were cross-bought by members already active on the platform in comparison to Q2 2020, as noted by the CEO during the conference call.<blockquote>最后，SoFi的业务正在显着多元化。该业务的整体会员增长是由金融服务领域的显着扩张推动的，SoFi Invest和SoFi Money的金融服务领域产品数量增加了两倍多，达到近270万件，高于2020年第二季度的约783,000件。在最近一个季度，金融服务部门的产品数量几乎是贷款产品数量的三倍，这表明该业务从最初的贷款部门多元化的力度有多大（尽管贷款发放仍同比增长了66%）。正如首席执行官在电话会议上指出的那样，与2020年第二季度相比，规模扩大了3倍，推动已活跃在平台上的会员交叉购买的产品数量增加了1.7倍。</blockquote> <img src=\"https://static.tigerbbs.com/cd0fb00ddf2b10ee7226b966df927eb7\" tg-width=\"640\" tg-height=\"271\" width=\"100%\" height=\"auto\">Source:SoFi<blockquote>资料来源：SoFi</blockquote> The Number That Spooked Investors<blockquote>令投资者感到恐慌的数字</blockquote> The one thing that let many investors to sell the stock ofSoFi after the earnings report was that the company reported a significant net loss of $165.3 million compared to a still positive net income of $7.8 million in the prior year quarter. However, as the company&nbsp;explained during the conference call, this was largely due to a one-time item in relation to the business combination with Galileo, as well as non-cash items like stock-based compensation (SBC):<blockquote>让许多投资者在财报发布后出售SoFi股票的一件事是，该公司报告净亏损1.653亿美元，而去年同期净利润仍为780万美元。然而，正如该公司在电话会议期间解释的那样，这主要是由于与伽利略业务合并相关的一次性项目，以及股票薪酬（SBC）等非现金项目：</blockquote> We remeasured our valuation allowance during 2020 as a result of the deferred tax liabilities recognized in connection with our acquisition of Galileo, which decreased the valuation allowance by $99.8 million. The absence of that tax benefit, together with significant non-cash stock-based compensation expenses and fair value changes in warrants primarily related to the fair market value ofSoFi stock, were the largest contributors to the current period net loss. <img src=\"https://static.tigerbbs.com/ae29dddc9bc00f8fa31eb7cbee8ca3d5\" tg-width=\"640\" tg-height=\"219\" width=\"100%\" height=\"auto\">Source:SoFi<blockquote>由于与收购Galileo相关的递延税项负债，我们在2020年重新计量了我们的估值拨备，这使估值拨备减少了9980万美元。缺乏该税收优惠，加上大量非现金股票补偿费用以及主要与SOFI股票公平市场价值相关的认股权证公允价值变化，是造成当期净亏损的最大原因。资料来源：SoFi</blockquote> In addition to management's remarks, investors should take a closer look atSoFi's income statement, where it becomes clearer what drove the net loss. The&nbsp;SEC filing&nbsp;shows that management's cost management is actually very prudent as non-interest expenses, including investments into technology and products, sales and marketing, as well as operating costs only increased by 45%, 48%, 46% respectively which is much lower than the company's +74% revenue growth. Only general and administrative expenses more than tripled during the quarter. Digging deeper into the SEC filing reveals that the big chunk of G&amp;A expenses came from aforementioned $99.8 million in deferred tax liabilities as a result of the acquisition of Galileo, and stock-based compensation as a result of being a public company (see items marked below).<blockquote>除了管理层的言论外，投资者还应该仔细看看SoFi的损益表，其中净亏损的原因变得更加清晰。SEC文件显示，管理层的成本管理实际上非常谨慎，因为非利息支出，包括对技术和产品、销售和营销的投资，以及运营成本分别仅增长了45%、48%、46%，远低于公司+74%的收入增长。本季度仅一般和管理费用就增加了两倍多。深入研究SEC文件发现，G&amp;A费用的很大一部分来自上述因收购Galileo而产生的9980万美元递延税负债，以及因成为上市公司而产生的基于股票的薪酬（见下面标记的项目）。</blockquote> <img src=\"https://static.tigerbbs.com/1d9473db3f6390b5bfb72b27246d0601\" tg-width=\"640\" tg-height=\"409\" referrerpolicy=\"no-referrer\" width=\"100%\" height=\"auto\"><blockquote></blockquote> <img src=\"https://static.tigerbbs.com/e0113b16a7131123dee0e6ebaf065ebb\" tg-width=\"640\" tg-height=\"215\" width=\"100%\" height=\"auto\">Source:SoFi<blockquote>资料来源：SoFi</blockquote> If you exclude the one-time item of deferred tax liabilities of $99.8 million, and adjust for three months of SBC with around half of the previous six months SBC expense, thenSoFi's net loss would have only been around negative $(20) million for the quarter (note that this is based on the author's rough estimates and should not be regarded as an accurate reflection of the actual numbers).<blockquote>如果您排除9980万美元的一次性递延税负债项目，并以前六个月SBC费用的一半左右对三个月的SBC进行调整，那么SoFi本季度的净亏损将仅为负(20)百万美元左右（请注意，这是基于作者的粗略估计，不应被视为实际数字的准确反映）。</blockquote> With that back-of-the-envelope calculation in mind, we are not particularly worried about the net loss that was reported for the quarter relative to the strong top-line growth thatSoFi reported.SoFi's numbers clearly indicate that the business is accelerating in growth, diversifying its services rapidly, while we see cross-selling activity ramping up within its customer-base which should provide some important efficiency gains in the future in terms of reduced customer acquisition costs and improved margins. This aspect becomes much clearer when we also take a look at the results from the individual business segments and the respective contribution profit metrics:<blockquote>考虑到这种粗略的计算，相对于SoFi报告的强劲营收增长，我们并不特别担心本季度报告的净亏损。SoFi的数据清楚地表明该业务正在加速增长，迅速实现服务多元化，同时我们看到其客户群内的交叉销售活动增加，这应该会在未来降低客户获取成本和提高利润率方面带来一些重要的效率收益。当我们还查看各个业务部门的结果以及各自的贡献利润指标时，这方面就变得更加清晰：</blockquote> 1) Lending Segment-SoFi generated adjusted net revenue of $172 million, growing 47% YoY, with a contribution profit of $89 million. The increase was largely driven by personal loan originations, which grew by 188% YoY. In addition, contribution profit (marked below) increased by 80% YoY and respective margins improved to 52% compared to a 42% margin in the prior year quarter - and that was alongside an incremental increase of investment into the business of +$15.3 million for the quarter. Margin improvement was driven by operating efficiencies (e.g. more than 50% of personal loans were fully automated vs. less than 30% one year ago) alongside prudent spending in marketing that has brought cost per funded loan down.<blockquote>1）贷款分部-SoFi调整后净收入为1.72亿美元，同比增长47%，贡献利润为8900万美元。这一增长主要是由个人贷款发放推动的，同比增长188%。此外，贡献利润（如下所示）同比增长80%，各自的利润率从去年同期的42%提高至52%，同时该业务的投资也增加了+1530万美元本季度。利润率的提高是由运营效率推动的（例如，超过50%的个人贷款是完全自动化的，而一年前这一比例不到30%），以及谨慎的营销支出，降低了每笔融资贷款的成本。</blockquote> SoFi highlighted in the conference call that growth in this segment was achieved despite noticeable headwinds in the student loans business from the government's CARES-act prolongation, with $859 million in origination volume in the quarter representing less than half of pre-CARES levels.<blockquote>SoFi在《电话会议》中强调，尽管政府延长CARES-act给学生贷款业务带来了明显阻力，但该领域仍实现了增长，本季度的发放额为8.59亿美元，不到CARES前水平的一半。</blockquote> <img src=\"https://static.tigerbbs.com/cf0b085e6372cd1774f4feac9ca4e2d0\" tg-width=\"640\" tg-height=\"289\" referrerpolicy=\"no-referrer\" width=\"100%\" height=\"auto\"><blockquote></blockquote> <img src=\"https://static.tigerbbs.com/3c4af0c2068e800edbbe1728761f863b\" tg-width=\"640\" tg-height=\"165\" referrerpolicy=\"no-referrer\" width=\"100%\" height=\"auto\"><blockquote></blockquote> <img src=\"https://static.tigerbbs.com/15729a0e43c025e7ab40d6017ff0f259\" tg-width=\"640\" tg-height=\"148\" width=\"100%\" height=\"auto\">Source:SoFi<blockquote>资料来源：SoFi</blockquote> 2) Financial Services Segment- net revenue for this segment for the 2nd quarter reached $17.0 million vs. $2.4 million in Q2 2020, representing growth of a mind-blowing 602% YoY. With a 6x growth rate there is not much doubt that the business is successfully attracting customers, while making significant progress also in terms of cross-selling and multi-product-adoption, which will be an important aspect in reducing customer acquisition costs and driving higher lifetime value per customer. Another important aspect is that the incremental YoY revenue increase is offsetting the increased costs attributable to the segment, which was a $8.5 million YoY increase in expenses vs. a $14.6 million increase in revenue vs. Q2 2020, resulting in an improved contribution metric where losses decreased by 20% YoY.<blockquote>2）金融服务板块-该部门第二季度的净收入达到1700万美元，而2020年第二季度为240万美元，同比增长602%，令人惊叹。凭借6倍的增长率，毫无疑问，该业务正在成功吸引客户，同时在交叉销售和多产品采用方面也取得了重大进展，这将是降低客户获取成本和推动每个客户更高终身价值的一个重要方面。另一个重要方面是，收入同比增长抵消了该部门成本的增加，与2020年第二季度相比，费用同比增加了850万美元，而收入增加了1,460万美元，从而改善了贡献指标，其中损失同比下降20%。</blockquote> The Financial Services Segment also showed strong product growth across all offerings as total products in this segment grew by 243% YoY.SoFi doesn't rest on its laurels as the company has just launched a new equity capital markets and advisory business in the second quarter, which will be interesting to watch.<blockquote>金融服务部门的所有产品也显示出强劲的产品增长，该部门的产品总数同比增长243%。SoFi并没有固步自封，因为该公司刚刚在第二季度推出了新的股权资本市场和咨询业务，这将是有趣的观看。</blockquote> <img src=\"https://static.tigerbbs.com/0049b49eeb97244d71a3c9e5e580b1bb\" tg-width=\"640\" tg-height=\"147\" referrerpolicy=\"no-referrer\" width=\"100%\" height=\"auto\"><blockquote></blockquote> <img src=\"https://static.tigerbbs.com/72aecb1a11aaee4636651095b20bd195\" tg-width=\"640\" tg-height=\"181\" width=\"100%\" height=\"auto\">Source:SoFi<blockquote>资料来源：SoFi</blockquote> 3) Technology Platform- this segment primarily reports results fromSoFi's financial technology offering Galileo, which saw total net revenue increase by 138% YoY reaching $45.3 million vs. $19 million in the prior year quarter. Total Galileo accounts reached 79 million accounts, up from 36 million, representing growth of 119% in the quarter. Galileo also just crossed $100 billion of annualized payment volume in July as noted during the&nbsp;conference call.<blockquote>3）技术平台-该部门主要报告SoFi金融技术产品Galileo的业绩，该产品的总净收入同比增长138%，达到4530万美元，而去年同期为1900万美元。伽利略账户总数从3600万增至7900万，本季度增长119%。正如电话会议期间指出的那样，伽利略7月份的年化支付额也刚刚突破1000亿美元。</blockquote> <img src=\"https://static.tigerbbs.com/c567a3c581104d33cb959ebe63c33606\" tg-width=\"640\" tg-height=\"148\" width=\"100%\" height=\"auto\">Source:SoFi<blockquote>资料来源：SoFi</blockquote> SoFi is aggressively investing to position Galileo for strong future growth, e.g. by moving operations from on-premise to the cloud, while nearly doubling its headcount and expanding into new geographies. Management mentioned that they are nearing completion of building out a new cloud computing environment for Galileo which is supposed to replace the on premises environment, including the preparation of migrating existing clients to the cloud in Q3. While this contributed to a significant increase in expenses and impacted the resulting contribution profit for this segment,SoFi was still able to show YoY growth in contribution profit of 8%. It is important to see that management is pursuing all efforts to continue to accelerate growth in one of their key differentiating business segments, which Galileo clearly represents. What Amazon did for retail or the cloud with pioneering its AWS offering, could be replicated through Galileo as they are on track to position it as the leading financial technology offering and backbone to the global financial technology industry.<blockquote>SoFi正在积极投资，为Galileo未来的强劲增长做好准备，例如通过将运营从内部转移到云端，同时将员工人数增加近一倍并扩展到新的地区。管理层提到，他们即将完成为Galileo构建新的云计算环境，该环境将取代内部环境，包括准备在第三季度将现有客户端迁移到云。尽管这导致费用大幅增加并影响了该部门的贡献利润，但SoFi的贡献利润仍同比增长8%。重要的是要看到，管理层正在尽一切努力继续加速其关键差异化业务领域之一的增长，伽利略清楚地代表了这一点。亚马逊在零售或云领域率先推出AWS产品所做的事情可以通过Galileo复制，因为他们有望将其定位为领先的金融技术产品和全球金融技术行业的支柱。</blockquote> Management Guidance<blockquote>管理指导</blockquote> For the third quarter of 2021SoFi's management expects adjusted net revenue of $245 million to $255 million, representing only around 15% growth vs. the prior year quarter, which is markedly lower than the $270.2M&nbsp;average estimate from two analysts. Adjusted EBITDA is expected to come in between negative $(7) million to positive $3 million. The expected top-line growth seems to be quite conservative but has surprised many investors who expected much higher growth rates, especially afterSoFi just reported a +74% growth in the most recent quarter.<blockquote>SoFi管理层预计2021年第三季度调整后净收入为2.45亿美元至2.55亿美元，与去年同期相比仅增长15%左右，明显低于两位分析师2.702亿美元的平均预期。调整后EBITDA预计将在负(7)百万美元至正300万美元之间。预期的营收增长似乎相当保守，但令许多预期增长率高得多的投资者感到惊讶，尤其是在SoFi刚刚报告最近一个季度增长了74%之后。</blockquote> While the guidance was a significant factor contributing to the sell-off inSoFi's shares, we believe that investors shouldn't put too much focus on the headlines of „missed\" guidance. The fact thatSoFi is sticking to its initial guidance of adjusted net revenue of $980 million and adjusted EBITDA of positive $27 million is the most important take-away.Management was able to reiterate its guidance despite a significant negative expected planning impact on student loan refinancing revenues of negative $40M following the government's extension of the CARES Act moratorium&nbsp;on student loan payments from Sept. 30, 2021 to Jan. 31, 2022. The company now expects a rebound in the student loan refinancing business early next year while, so far, management had planned for the CARES Act to end on September 30 in its initial guidance. In addition, the company also expects a smaller negative impact from the reduced Technology Platform revenue estimate of $12 million based on the minority stake in APEX thatSoFi bought bac (contribution from the investment ended in January 2021).<blockquote>虽然该指引是导致SoFi股票抛售的一个重要因素，但我们认为投资者不应过多关注“错过”指引的头条新闻。事实上，SoFi坚持其调整后净收入9.8亿美元和调整后EBITDA为正2700万美元的初始指引，这是最重要的收获。尽管政府延长CARES法案暂停期后，预期规划对学生贷款再融资收入产生了重大负面影响，为负4000万美元，但管理层仍能够重申其指导意见2021年9月30日至2022年1月31日期间的学生贷款支付情况。该公司目前预计学生贷款再融资业务将在明年初反弹，而到目前为止，管理层在其初步指导中计划CARES法案将于9月30日结束。此外，该公司还预计，基于SoFi收购bac的APEX少数股权（投资贡献于2021年1月结束），技术平台收入预计减少1200万美元的负面影响较小。</blockquote> Even despite this significant $40 million negative revenue impact toSoFi's original guidance, plus the originally included $12 million of expected 2021 revenue from the equity investment in APEX, the company did not lower its guidance but was able to reassure investors that the other business segments can outweigh these headwinds, which is a strong validation ofSoFi's diversified business, which will enable the company to maneuver through even difficult periods that may affect one of its business segments from time to time.<blockquote>尽管对SoFi最初的指引产生了4000万美元的重大负面收入影响，再加上最初包含的来自APEX股权投资的2021年预期收入1200万美元，但该公司并没有降低指引，而是能够向投资者保证其他业务部门可以超过这些阻力，这是对SoFi多元化业务的有力验证，这将使公司能够度过可能不时影响其业务部门之一的困难时期。</blockquote> Lastly, management pointed out a clear cost management strategy relative to its growth prospects which should re-assure investors that at some point the company will be back to positive net income alongside robust topline growth:<blockquote>最后，管理层指出了相对于其增长前景的明确成本管理战略，这应该会向投资者再次保证，在某个时候，公司将在营收强劲增长的同时恢复正净利润：</blockquote> ...we continue invest aggressively in our business to fuel compounding growth, while still delivering profitability to our shareholders. This combination is not easy, but we are committed to contributing around 30% of incremental revenue to the bottom line and reinvest the remaining 70% in bolstering our product innovation to drive decades of compounding growth. Even as we invest aggressively in technology, marketing and people, we continue to realize cost efficiencies, which is beginning to drive real operating leverage. By leveraging cross buying and better gaining realization and targeting we've reduced sales and marketing as a percentage of revenue and customer acquisition cost meaningfully year-over-year. Lastly, investors were also keen to hear any updates on the anticipated Bank Charter thatSoFi is pursuing. CEO Anthony Noto mentioned during the conference call that the company is working closely with the Federal Reserve Bank and the OCC in a „constructive process\", but they also reiterated that there's not a definitive timeline to the process itself - so we are still waiting for an update on the bank charter. As previously reported,SoFi filed for a banking charter&nbsp;in July 2020.SoFi's career postings suggest they are building out senior management and teams for the much-anticipated banking division, includingrecent job postingsin compliance, software engineering or auditing.<blockquote>......我们继续积极投资于我们的业务，以推动复合增长，同时仍然为我们的股东提供盈利能力。这种组合并不容易，但我们致力于为利润贡献约30%的增量收入，并将剩余的70%再投资于支持我们的产品创新，以推动数十年的复合增长。尽管我们在技术、营销和人员方面进行了积极投资，但我们仍在继续实现成本效率，这开始推动真正的运营杠杆。通过利用交叉购买以及更好地实现和定位，我们同比大幅降低了销售和营销占收入的百分比以及客户获取成本。最后，投资者还渴望听到有关SoFi正在寻求的预期银行牌照的任何最新消息。首席执行官Anthony Noto在电话会议上提到，该公司正在与美联储银行和OCC在一个“建设性的过程”中密切合作，但他们也重申，该过程本身没有明确的时间表，因此我们仍在等待银行章程的更新。正如之前报道的那样，SoFi于2020年7月申请了银行执照。SoFi的招聘信息表明，他们正在为备受期待的银行部门组建高级管理层和团队，包括合规、软件工程或审计方面的最新招聘信息。</blockquote> Conclusion<blockquote>结论</blockquote> There was a lot to like inSoFi's first quarterly report as a public company. We believe the sell-off in the company's shares is an overreaction. The muted guidance, or to put it more positively, the fact that management was able to reiterate its initial guidance for FY 2021 despite the significant negative $40 million impact from the prolongation of the CARES act as management no longer expects a tick-up in the student loan financing business in 2021, should actually be seen as a positive sign that the company's business is building up an important diversification of its business as the other business segments can compensate for these headwinds. While there is a risk that the government may continue to prolong the CARES act moratorium, which would negatively impactSoFi's student loan business, the company is now well diversified to outweigh any negative impact, and the set-up also creates some opportunity for upside surprises as we head into 2022, where the company now expects the tick-up in student loan refinancing to happen.<blockquote>inSoFi作为上市公司的第一份季度报告有很多值得喜欢的地方。我们认为该公司股票的抛售是过度反应。温和的指导，或者更积极地说，尽管CARES法案的延长产生了4000万美元的重大负面影响，但管理层仍能够重申其对2021财年的初步指导，因为管理层不再预计2021财年的学生贷款融资业务实际上应该被视为一个积极迹象，表明该公司的业务正在建立重要的业务多元化，因为其他业务部门可以弥补这些不利因素。虽然政府可能会继续延长CARES法案暂停期，这将对SoFi的学生贷款业务产生负面影响，但该公司现在已经实现了良好的多元化，足以抵消任何负面影响，而且随着我们进入2022年，该公司现在预计学生贷款再融资将会增加。</blockquote> In conclusion,SoFi is diversifying its business and is making significant progress in terms of cross-selling and multi-product-adoption amongst its customer base, which will be an important aspect in reducing customer acquisition costs, better margins and driving higher lifetime value per customer. We are encouraged to see how short-term headwinds are compensated by other fast-growing business segments. We remain long the stock.<blockquote>总之，SoFi正在实现业务多元化，并在客户群的交叉销售和多产品采用方面取得了重大进展，这将是降低客户获取成本、提高利润率和提高每个客户终身价值的重要方面。我们很高兴看到其他快速增长的业务部门如何弥补短期阻力。我们仍然做多该股。</blockquote>\n<div class=\"bt-text\">\n\n\n 来源：<a href=\"https://seekingalpha.com/article/4450048-sofi-technologies-market-got-it-wrong\">seekingalpha</a>\n为提升您的阅读体验，我们对本页面进行了排版优化\n\n\n</div>\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SOFI":"SoFi Technologies Inc."},"source_url":"https://seekingalpha.com/article/4450048-sofi-technologies-market-got-it-wrong","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1181607588","content_text":"Summary\n\nSoFi just reported strong Q2 2021 financial results with accelerating growth across its usage metrics, most of which grew by >100%.\nAdjusted revenue for the quarter climbed 74% YoY and was based on a diverse revenue mix from SoFi’s three core business segments.\nHowever, investors got spooked by a net loss of >$150 million for the quarter and a muted guidance for H2 2021.\nManagement made it clear that net loss was impacted by a deferred tax liability from Galileo, while guidance was reiterated despite a $40M headwind from the CARES Act prolongation.\nSoFi is diversifying its business and makes significant progress in terms of multi-product adoption, which will be key for future growth. The 15% drop in shares is a clear overreaction.\n\nipopba/iStock via Getty Images\nSummary\nSoFi Technologies (SOFI) is a fintech company that offers a multitude of digital financial services to customers under its three key business segments, i.e.:\n1) Lending, which includes personal, home, and student loans;\n2) Financial Services, including savings, spending, investment accounts, as well as various debit and credit card services;\n3) Financial technology, which primarily consists of Galileo, a market-leading financial technology infrastructure provider thatSoFi acquired in May 2020.\nThe company aims to become a one-stop-shop for digital financial services and is well on its way to do so.\nSoFi just reported its first set of financial results since becoming a public company, and results were quite strong for the Q2 2021 quarter:\n\nThe company showed accelerating growth across its usage metrics, most of which grew by >100%;\nRevenues also grew triple-digits at 101% year over year (YoY) to $231.3 million, while adjusted net revenue for the quarter climbed 74% YoY and came in well above guidance of between 58 to 61% YoY growth;\nGrowth in members and products accelerated as well, all growing by triple-digit percentages, and marking the 8th consecutive quarter of accelerating YoY growth in total members forSoFi.\nIn addition, the company generated $61 million of positive EBITDA over the past 12 months, a significant improvement from the $149 million of losses experienced for the full year of 2019.\n\nBut these numbers were not enough to satisfy investor appetite. In fact, investors rushed out of the stock and shares ofSoFi plunged as much as 15% after the release of results. The stock is now down around -37% over the past 6 months at a market capitalization of around $12 billion.\nData by YCharts\nSeemingly, most of the negative reaction to the Q2 results was based on the fact that the company's net loss increased significantly during the quarter. In addition, the company issued guidance for the second half of 2021 that was below what analysts had predicted.\nWe believe the market's reaction toSoFi's numbers is well overblown as both factors, the net loss, as well as the guidance can be attributed to one-time impacts or non-cash items, which we'll explain in more detail below.SoFi's CEO Anthony Noto made it clear on the conference call that the company is accelerating its business across almost every metric. And while it may take some time for investors to understandSoFi's competitive advantage and growth runway, we believe that at current levelsSoFi shares are way oversold.\nThis article won't focus on a detailed description of the business, but will highlight the most recent financial results. For a deep-dive into the company's business model, opportunities and risks, go visit our previous article on SoFi.\nThe Numbers\nSoFi reported very strong Q2 financial results:\nAdjusted Revenue for the quarter climbed 74% YoY, way above management's initial guidance of between 58 to 61% growth, and well above analyst expectations. Furthermore, the company had another quarter of positive EBITDA, which reached $11 million for the quarter, up $35 million YoY from negative ($24) million in Q2 2020.\nSource:SoFi\nOn an annualized basis,SoFi achieved to bring in $852 million in adjusted net revenue and $61 million in adjusted EBITDA, despite some one-time headwinds in the quarter and alongside aggressive investments in the future growth of the company.\nSource:SoFi\nMost importantly, activity onSoFi's platform is accelerating across all areas.SoFi reported the 8th consecutive quarter of accelerating YoY growth for their total members, which reached 2.56 million for the quarter, up from 1.2 million in the Q2 2020 quarter (representing growth of 113%), and up 12% sequentially from Q1.\nSource:SoFi\nThe quarter also showed continued accelerating YoY growth in Products, which were up 123% to reach 3.7 million.SoFi added more than +2 million products on a YoY comparison, representing 123% YoY growth.\nSource:SoFi\nGalileo, their financial technology platform, reached 79 million accounts, up from 36 million, representing growth of 119% in the quarter as the company added 42.9 million new accounts to their financial technology offering.\nGalileo now posted greater than 100% YoY growth for the last four quarters for Galileo. The platform is a key cornerstone forSoFi's future growth and the fact that they are growing triple-digits and, for the first time, crossed $100 billion of annualized payment volume in July, shows that the business not only has significant scale already but also has a real competitive advantage as reflected by the YoY growth.\nSource:SoFi\nLastly,SoFi's business is diversifying in a significant way. Overall member growth for the business was driven by significant expansion in the Financial Services segment, withSoFi Invest andSoFi Money more than tripling the number of Financial Services segment products, to nearly 2.7 million, up from approximately 783,000 vs. Q2 2020. In the most recent quarter Financial Services segment products were nearly three times the number of Lending Products which shows how strongly the business is diversifying away from its initial lending arm (notwithstanding that loan originations still increased by a very strong 66% YoY). The 3x greater scale supported to drive a 1.7x increase in the number of products that were cross-bought by members already active on the platform in comparison to Q2 2020, as noted by the CEO during the conference call.\nSource:SoFi\nThe Number That Spooked Investors\nThe one thing that let many investors to sell the stock ofSoFi after the earnings report was that the company reported a significant net loss of $165.3 million compared to a still positive net income of $7.8 million in the prior year quarter. However, as the company explained during the conference call, this was largely due to a one-time item in relation to the business combination with Galileo, as well as non-cash items like stock-based compensation (SBC):\n\n We remeasured our valuation allowance during 2020 as a result of the deferred tax liabilities recognized in connection with our acquisition of Galileo, which decreased the valuation allowance by $99.8 million. The absence of that tax benefit, together with significant non-cash stock-based compensation expenses and fair value changes in warrants primarily related to the fair market value ofSoFi stock, were the largest contributors to the current period net loss.\n\nSource:SoFi\nIn addition to management's remarks, investors should take a closer look atSoFi's income statement, where it becomes clearer what drove the net loss. The SEC filing shows that management's cost management is actually very prudent as non-interest expenses, including investments into technology and products, sales and marketing, as well as operating costs only increased by 45%, 48%, 46% respectively which is much lower than the company's +74% revenue growth. Only general and administrative expenses more than tripled during the quarter. Digging deeper into the SEC filing reveals that the big chunk of G&A expenses came from aforementioned $99.8 million in deferred tax liabilities as a result of the acquisition of Galileo, and stock-based compensation as a result of being a public company (see items marked below).\n\nSource:SoFi\nIf you exclude the one-time item of deferred tax liabilities of $99.8 million, and adjust for three months of SBC with around half of the previous six months SBC expense, thenSoFi's net loss would have only been around negative $(20) million for the quarter (note that this is based on the author's rough estimates and should not be regarded as an accurate reflection of the actual numbers).\nWith that back-of-the-envelope calculation in mind, we are not particularly worried about the net loss that was reported for the quarter relative to the strong top-line growth thatSoFi reported.SoFi's numbers clearly indicate that the business is accelerating in growth, diversifying its services rapidly, while we see cross-selling activity ramping up within its customer-base which should provide some important efficiency gains in the future in terms of reduced customer acquisition costs and improved margins. This aspect becomes much clearer when we also take a look at the results from the individual business segments and the respective contribution profit metrics:\n1) Lending Segment-SoFi generated adjusted net revenue of $172 million, growing 47% YoY, with a contribution profit of $89 million. The increase was largely driven by personal loan originations, which grew by 188% YoY. In addition, contribution profit (marked below) increased by 80% YoY and respective margins improved to 52% compared to a 42% margin in the prior year quarter - and that was alongside an incremental increase of investment into the business of +$15.3 million for the quarter. Margin improvement was driven by operating efficiencies (e.g. more than 50% of personal loans were fully automated vs. less than 30% one year ago) alongside prudent spending in marketing that has brought cost per funded loan down.\nSoFi highlighted in the conference call that growth in this segment was achieved despite noticeable headwinds in the student loans business from the government's CARES-act prolongation, with $859 million in origination volume in the quarter representing less than half of pre-CARES levels.\n\n\nSource:SoFi\n2) Financial Services Segment- net revenue for this segment for the 2nd quarter reached $17.0 million vs. $2.4 million in Q2 2020, representing growth of a mind-blowing 602% YoY. With a 6x growth rate there is not much doubt that the business is successfully attracting customers, while making significant progress also in terms of cross-selling and multi-product-adoption, which will be an important aspect in reducing customer acquisition costs and driving higher lifetime value per customer. Another important aspect is that the incremental YoY revenue increase is offsetting the increased costs attributable to the segment, which was a $8.5 million YoY increase in expenses vs. a $14.6 million increase in revenue vs. Q2 2020, resulting in an improved contribution metric where losses decreased by 20% YoY.\nThe Financial Services Segment also showed strong product growth across all offerings as total products in this segment grew by 243% YoY.SoFi doesn't rest on its laurels as the company has just launched a new equity capital markets and advisory business in the second quarter, which will be interesting to watch.\n\nSource:SoFi\n3) Technology Platform- this segment primarily reports results fromSoFi's financial technology offering Galileo, which saw total net revenue increase by 138% YoY reaching $45.3 million vs. $19 million in the prior year quarter. Total Galileo accounts reached 79 million accounts, up from 36 million, representing growth of 119% in the quarter. Galileo also just crossed $100 billion of annualized payment volume in July as noted during the conference call.\nSource:SoFi\nSoFi is aggressively investing to position Galileo for strong future growth, e.g. by moving operations from on-premise to the cloud, while nearly doubling its headcount and expanding into new geographies. Management mentioned that they are nearing completion of building out a new cloud computing environment for Galileo which is supposed to replace the on premises environment, including the preparation of migrating existing clients to the cloud in Q3. While this contributed to a significant increase in expenses and impacted the resulting contribution profit for this segment,SoFi was still able to show YoY growth in contribution profit of 8%. It is important to see that management is pursuing all efforts to continue to accelerate growth in one of their key differentiating business segments, which Galileo clearly represents. What Amazon did for retail or the cloud with pioneering its AWS offering, could be replicated through Galileo as they are on track to position it as the leading financial technology offering and backbone to the global financial technology industry.\nManagement Guidance\nFor the third quarter of 2021SoFi's management expects adjusted net revenue of $245 million to $255 million, representing only around 15% growth vs. the prior year quarter, which is markedly lower than the $270.2M average estimate from two analysts. Adjusted EBITDA is expected to come in between negative $(7) million to positive $3 million. The expected top-line growth seems to be quite conservative but has surprised many investors who expected much higher growth rates, especially afterSoFi just reported a +74% growth in the most recent quarter.\nWhile the guidance was a significant factor contributing to the sell-off inSoFi's shares, we believe that investors shouldn't put too much focus on the headlines of „missed\" guidance. The fact thatSoFi is sticking to its initial guidance of adjusted net revenue of $980 million and adjusted EBITDA of positive $27 million is the most important take-away.Management was able to reiterate its guidance despite a significant negative expected planning impact on student loan refinancing revenues of negative $40M following the government's extension of the CARES Act moratorium on student loan payments from Sept. 30, 2021 to Jan. 31, 2022. The company now expects a rebound in the student loan refinancing business early next year while, so far, management had planned for the CARES Act to end on September 30 in its initial guidance. In addition, the company also expects a smaller negative impact from the reduced Technology Platform revenue estimate of $12 million based on the minority stake in APEX thatSoFi bought bac (contribution from the investment ended in January 2021).\nEven despite this significant $40 million negative revenue impact toSoFi's original guidance, plus the originally included $12 million of expected 2021 revenue from the equity investment in APEX, the company did not lower its guidance but was able to reassure investors that the other business segments can outweigh these headwinds, which is a strong validation ofSoFi's diversified business, which will enable the company to maneuver through even difficult periods that may affect one of its business segments from time to time.\nLastly, management pointed out a clear cost management strategy relative to its growth prospects which should re-assure investors that at some point the company will be back to positive net income alongside robust topline growth:\n\n ...we continue invest aggressively in our business to fuel compounding growth, while still delivering profitability to our shareholders. This combination is not easy, but we are committed to contributing around 30% of incremental revenue to the bottom line and reinvest the remaining 70% in bolstering our product innovation to drive decades of compounding growth. Even as we invest aggressively in technology, marketing and people, we continue to realize cost efficiencies, which is beginning to drive real operating leverage. By leveraging cross buying and better gaining realization and targeting we've reduced sales and marketing as a percentage of revenue and customer acquisition cost meaningfully year-over-year.\n\nLastly, investors were also keen to hear any updates on the anticipated Bank Charter thatSoFi is pursuing. CEO Anthony Noto mentioned during the conference call that the company is working closely with the Federal Reserve Bank and the OCC in a „constructive process\", but they also reiterated that there's not a definitive timeline to the process itself - so we are still waiting for an update on the bank charter. As previously reported,SoFi filed for a banking charter in July 2020.SoFi's career postings suggest they are building out senior management and teams for the much-anticipated banking division, includingrecent job postingsin compliance, software engineering or auditing.\nConclusion\nThere was a lot to like inSoFi's first quarterly report as a public company. We believe the sell-off in the company's shares is an overreaction. The muted guidance, or to put it more positively, the fact that management was able to reiterate its initial guidance for FY 2021 despite the significant negative $40 million impact from the prolongation of the CARES act as management no longer expects a tick-up in the student loan financing business in 2021, should actually be seen as a positive sign that the company's business is building up an important diversification of its business as the other business segments can compensate for these headwinds. While there is a risk that the government may continue to prolong the CARES act moratorium, which would negatively impactSoFi's student loan business, the company is now well diversified to outweigh any negative impact, and the set-up also creates some opportunity for upside surprises as we head into 2022, where the company now expects the tick-up in student loan refinancing to happen.\nIn conclusion,SoFi is diversifying its business and is making significant progress in terms of cross-selling and multi-product-adoption amongst its customer base, which will be an important aspect in reducing customer acquisition costs, better margins and driving higher lifetime value per customer. We are encouraged to see how short-term headwinds are compensated by other fast-growing business segments. We remain long the stock.","news_type":1,"symbols_score_info":{"SOFI":0.9}},"isVote":1,"tweetType":1,"viewCount":2369,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":[],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":7,"xxTargetLangEnum":"ORIG"},"commentList":[],"isCommentEnd":true,"isTiger":false,"isWeiXinMini":false,"url":"/m/post/833420719"}