5/28/2023 0 Comments Anthony noto salaryLast quarter, SoFi grew revenue by 49% on an adjusted basis to $321 million, with adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) just above breakeven at $8.7 million. While SoFi is looking more and more like a bank after receiving its charter, unlike most mature banks, it's growing fast but also losing money. This could, of course, change if the economy goes into a recession however, given the prime customer base, it's likely SoFi will be able to weather a downturn and make it to the other side. And as of the company's last earnings report, its charge-off rates remained very low. The average salary for its personal loans was $170,000, with an average FICO score of 775. SoFi's student loan customers now make an average of $160,000, with a FICO score of 746. In February, the company received a bank charter, allowing it to collect low-cost deposits and reduce regulatory costs. Since the company started as a student loan provider and refinancer, it has targeted mostly highly educated people in promising fields, and then cross-selling these well-off consumers with other products such as home loans, personal loans, brokerage and trading, and debit and credit cards. Fortunately, SoFi is targeting a fairly secure segment of the market. When assessing fintech stocks, investors need to know the segment of the population it's targeting. SoFi's business model could get it through a difficult economy After all, many technology software CEOs made large insider buys back in December, only to see unfortunate large declines in their stocks since that time. However, CEOs can also have blind spots about the macroeconomic picture and aren't always right. Moreover, these buys mark a significant amount of money, even by CEO standards. Insider buying is certainly a show of CEO confidence and could be a bullish sign - especially with the stock down so much. Also between those dates, board member Harvey Schwartz bought just under $400,000 worth of stock, a 24.1% increase to his stake, with most of it coming on Monday, June 13.
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