What drove SOFI's earnings growth in 2024?

SOFI's earnings growth in 2024 was driven by several key factors:

1. **Revenue Growth**: SOFI's total revenue increased to $2.67 billion by the end of 2024, up from the previous year. This growth was primarily driven by strong performance in the Financial Services and Tech Platform segments.
2. **Financial Services Segment Expansion**: The Financial Services segment saw significant growth, with revenue increasing by 80% year-over-year to $176 million. This was due to record origination volumes in personal and student loans, as well as a substantial increase in home loan originations.
3. **Tech Platform Segment Contribution**: The Tech Platform segment also contributed positively, reporting a 9% year-over-year increase in revenue, totaling $95 million. This growth was supported by increased deposits, with consumer deposits alone rising by $2.2 billion from the previous quarter.
4. **Member and Product Growth**: SOFI experienced substantial member growth, adding 643,000 members to reach a total of 8.8 million, a 41% increase year-over-year. Concurrently, the company added 946,000 products, bringing the total to 12.8 million, a 43% increase year-over-year.
5. **Adjusted Net Revenue and EBITDA**: SOFI achieved record adjusted net revenue of $597 million, a 22% year-over-year increase. The company's EBITDA also saw a significant boost, growing by 80% year-over-year to $138 million.
6. **Guidance and Forecast**: SOFI provided guidance for Q3 2024, anticipating adjusted net revenue between $625 million and $645 million, adjusted EBITDA between $160 million and $165 million, and GAAP net income between $40 million and $45 million. These projections reflect confidence in continued growth and profitability.
7. **Macroeconomic Factors**: Despite a more conservative approach in light of macroeconomic uncertainty, SOFI's diversified segments, particularly the Financial Services and Tech Platform, combined to grow by 54% and represent a record 42% of consolidated adjusted net revenue. This diversification has been a key factor in the company's resilience and growth.

In summary, SOFI's 2024 earnings growth was driven by robust revenue expansion, particularly in its Financial Services and Tech Platform segments, combined with strategic member and product growth initiatives, and a favorable market environment that supported origination volume increases.