SoFi Technologies (NASDAQ:SOFI) dropped more than 20% since yesterday’s Q1 earnings report. EPS came in at ($0.05), better than the Street estimate of ($0.08). Revenue was $460.16 million, beating the Street estimate of $441.12 million.
Although the company beat earnings estimates, the stock sold off as Galileo accounts declined for the first time leading to SoFi’s tech revenue dropping to $78 million, and on-balance-sheet loans continued to build up despite being designated for sale.
SoFi did not sell any whole loans in their personal lending portfolio, which raises concerns about their ability to offload these loans in the future.
For Q2/23, the company expects revenue in the range of $470-480 million, compared to the Street estimate of $473.39 million. For the full year, the company expects revenue of $1.955-2.02 billion, compared to the Street estimate of $1.99 billion.