SoFi Indicates Continued Growth with Positive Earnings and Favorable Alternative Data Trends

January 30, 11:48 am

Financial technology, or fintech, has been one of the most rapidly growing industries in recent years. With the rise of online banking and mobile apps, people are increasingly seeking convenient and efficient ways to manage their finances.

In this context, SoFi has emerged as a major player in the fintech world. This was especially true during the pandemic as investors flocked to the company, pushing it to $25 a share. Since then, as the market has cooled down, SoFi has dropped almost 75% but, as the company's latest earnings report suggests, it may be poised for great success in the years to come.

SoFi recently announced its 2023 forecast, and their outlook is quite positive. The company reports adjusted Ebitda of $70.1 million, beating the consensus estimate of $43 million. Similarly, its adjusted net revenue came in at a record $443.42 million, exceeding analysts' expectations of $425.6 million. These numbers indicate that SoFi's financial performance is on the rise.

The upward trend above also aligns with our alternative data analysis.
Alternative data, such as web traffic, social media activity, job posts, and more, can provide valuable insights into a company's performance, helping investors make informed decisions. This is why we created Dillibits.

To use SoFi as a case study example, you could see their customer sentiment continued trend up, and December web traffic was reaching all-time highs well before earnings (and this 10%+ up move as we write this). Additionally, app downloads have risen by almost 25% in the past couple of months, showing that people are becoming increasingly interested in SoFi's offerings. Lastly, it is important to note their steady development in job postings. Unlike many of its industry peers, SoFi has not experienced any major drops in job postings. This steady growth in employment suggests that the company is expanding and will continue to do so in the coming years.

In conclusion, following traditional information such as earnings and financial remains extremely important, but combining it with alternative data can be powerful and get you ahead of major up or down moves or at the very least keep you informed on trends. This is clearly outlined with SoFi and others we track on Dillibits.com. As always, this is not financial advice and always do your own research.

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