SoFi Technologies Stock Falls 10% Following Weak Guidance (2024)

SoFi Technologies (SOFI) shares plunged Monday after the financial tech (fintech) firm gave worse-than-expected current quarter guidance and called 2024 a period of change.

SoFi fell 10.48% to close Monday at $7.05, pushing its year-to-date decline to nearly 30%.

The company said it sees second-quarter revenue in the range of $555 million to $565 million, and net income of $5 million to $10 million. Both were well short of estimates.

SoFi explained 2024 would be “a transitional year,” with the Tech and Financial Services platforms driving growth, “and increase from 38% of total adjusted net revenue in 2023 to approximately 50%.” It added that Lending revenue will be 92% to 95% of last year’s total.

Guidance Offsets Solid Q1 Results

The guidance offset SoFi’s solid first-quarter results. The company reported its second-straight profitable quarter, with adjusted earnings per share (EPS) of $0.02, basically in line with forecasts. Revenue soared 37% to $645 million, ahead of expectations.

In addition, SoFi raised its 2024 sales outlook to $2.39 billion to $2.43 billion, up from the previous $2.365 billion to $2.405 billion.

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