Why did SOFI's Q3 earnings exceed forecasts?

SOFI's Q3 earnings exceeded forecasts due to robust revenue growth and strategic business segments: 1. **Revenue Surge**: SOFI achieved total net revenue of $697 million in Q3 2024, surpassing analyst estimates of $632.33 million. This marked a 30% increase year-over-year. 2. **Financial Services and Tech Platform Growth**: The Financial Services and Tech Platform segments contributed 49% to adjusted net revenue, with a combined growth of 64% year-over-year. Member growth, product innovation, and brand building were key drivers behind this surge. 3. **Diversification and Business Model Shift**: SOFI's diversification into financial services and banking, along with its technology platform, has become a significant revenue contributor. The company's shift towards capital-light, fee-based revenue streams from a traditional lending model has boosted efficiency and profitability. In summary, SOFI's Q3 earnings exceeded expectations due to robust revenue growth, particularly in its Financial Services and Tech Platform segments, and strategic business diversification.