SoFi Technologies, Inc.

Welcome to today's SoFi Q3 2021 earnings conference call. My name is Jordan and I'll be coordinating your call today. If you'd like to register a question, you may do so by pressing star followed by one on your telephone keypad. I'm now going to hand over to Andrea Prochniak, VP of Investor Relations to begin. Andrea, please go ahead.

Thank you, Jordan, and thank you all for joining us today for SoFi's third quarter 2021 earnings call. Joining me today are Anthony Noto, SoFi's CEO, and Chris LaPointe, SoFi's CFO. They will share prepared remarks regarding the quarter's results and then take your questions at the end. Just after market closed today, we issued a press release announcing SoFi's third quarter 2021 financial results. Our discussion of our results today is complimentary to the press release, which is available on the investor relations page of our website, investors.sofi.com. This conference call is being webcast live with accompanying slides on our IR page as well, and will be available as a replay for 30 days, beginning about one hour after the conclusion of this call. During the course of this conference call, we may make forward-looking statements based on current expectations, forecasts, and projections as of today's date. Any forward-looking statements that we make are subject to various risks and uncertainties, and there are important factors that can cause actual outcomes to differ materially from those indicated in the statements. We discuss these factors in our filings with the FCC, including our upcoming Form 10-Q, which can be found on the IR page of our website or the SEC filings website, sec.gov forward slash EDGAR. As a reminder, we are not required to update our forward-looking statements. In our presentation today, unless otherwise noted, we will be discussing adjusted financial measures. which are non-GAAP measures that we believe are meaningful when evaluating the company's performance. For detailed disclosures on these measures and the GAAP reconciliations, you should refer to the financial data contained within our press release, which is also posted on the IR page of our website. While today's discussion will focus primarily on the third quarter results, We encourage you to evaluate SOFI's performance on an annual basis, as quarterly results can be affected by unexpected events that are outside our control. Now I'll turn the call over to Anthony.

Thank you, Andrea, and thank you all for joining us for our third quarter earnings conference call. The results we're reporting today demonstrate three things. Our ability to continue to deliver record financial results, which is a testament to our diversified business mix and our ability to execute on our long-term strategy. Second, our commitment to consistently iterate and innovate to create products that are both best in breed on a standalone basis and work even better when used together. And third, our ability to leverage data and learnings to drive more effective marketing and brand building as we strive to make SoFi a trusted household brand name. Collectively, these things are driving strong continued growth in members, products, and cross-buy. Let's take these areas one by one. I've said many times that the benefit of a unique and diversified business model is that our three distinct business segments behave differently in varying economic and operating environments. This allows us to shift focus and resources as conditions evolve. Diversifying beyond our core student loan business into personal loans and home loans allowed us to weather the storm when the global pandemic cut industry-wide student loan origination volumes in half virtually overnight and for the last 20 months. Building out a broad suite of financial service offerings has created exciting new opportunities for us to help people get their money right across online investing and spending via SoFi Invest, SoFi Money, and SoFi Credit Card. And acquiring Galileo not only allows us to innovate faster on our products, but also positions us prominently among integrated tech platforms that service financial and non-financial institutions. Diversification across our platform has allowed us to achieve record financial results in the third quarter, even in a continued volatile environment. Our third quarter adjusted net revenue of $277 million marks another record, beating both our previous record of $237 million for Q2 2021 and the high end of our quarterly guidance. Even with the extension of the CARES Act, the lending segment adjusted net revenue hit a record of $215 million, driven primarily by record revenues from our personal loans business. Our technology platform segment contributed $50 million in the quarter, or 18% of total revenue, representing 29% year-over-year and 11% sequential growth. We achieved this despite difficult comparisons from last year's stimulus benefits. And in our financial services segment, third quarter revenue of $12.6 million nearly quadrupled from last year's $3.2 million, driven by meaningful contributions from five businesses. SoFi Invest, SoFi Money, Lantern by SoFi, Protect, and SoFi Credit Card. This broad-based revenue growth coupled with the benefits of cross-buying and our ongoing focus on realizing new operating efficiencies resulted in third quarter adjusted EBITDA of $10 million, our fifth consecutive quarter of positive EBITDA. Achieving record results allows us to invest in the new products and features necessary to position SoFi for long-term sustainable growth. We're sticking to our commitment to reinvest 70 cents of every incremental revenue dollar and drop 30 cents to the bottom line as we scale our business. Here are some new product improvements and features from the quarter that are already making an impact. In lending. We launched a next-generation underwriting model in student loan refinancing that drove an increase in approval rates within our risk parameters. In personal loans, we launched a new partnership with Pagaya to capture revenue opportunities from loan applicants we may not otherwise lend to. This allows us to serve a broader audience without additional credit risk and while maintaining our stringent approval guidelines. In home loans, we made additional investments in marketing and fulfillment capabilities to better capture purchase volumes. In financial services, we launched after-hours quotes in SoFi Invest and introduced seven new crypto coins, bringing our total to 28. That's up from five at the beginning of the year. We also earned recognition for our growing robo-advisor business from Barron's, which just named SoFi the best robo-advisor for 2021. And in credit card, we launched in-app balance transfers and implemented soft pull pre-approvals, which reduces credit score impact on denied applicants. At Galileo, our significant investment to build a new cloud-based modern card issuing and payment platform is resonating with both existing and prospective clients. Having the best offering is not enough. We need to market our products and the SoFi brand in ways that engage members in order to make SoFi a trusted household brand name. Our iteration on marketing efforts over the last four years is significantly improving the effectiveness of our brand building efforts. The third quarter was a game changer for SoFi's visibility and reach and the impact on our growth. Here are just a few examples of our success. In September, we launched our new SoFi Money Moves brand campaign during the U.S. Open Tennis Tournament and the start of the NFL regular season, leveraging television, social and digital influencers, along with TV commercials that aired during the nationally televised games from SoFi Stadium. The impact has been immediate and dramatic. SoFi TV spots drove more than 500 million impressions during the biggest moments in fall sports, and our unaided brand awareness doubled to a new high during the launch week. By working with some of the biggest digital influencers across social media, we've driven an additional 400 million impressions and 775,000 engagements with SoFi content. Our hashtag SoFi Money Moves campaign on TikTok has driven more than 8 billion views and more than 1 million uses of our branded hashtag so far. The reopening of SoFi Stadium to sold out crowds with great media coverage across the full array of sports and entertainment events has validated our decision to invest in naming this iconic destination for sports and live entertainment. Nationally televised NFL games from SoFi Stadium this season have averaged 20 million TV viewers per game. That compares with the 15 million total TV viewers we previously reached in an entire year between all of our SoFi sports sponsorships. As a result, when our TV ads run during SoFi Stadium NFL games, we consistently see a significant uptick in brand awareness, member and product growth, and SoFi app downloads. We're also getting better at leveraging our highly engaged member base to drive product adoption via cross-buy. Let me share three examples from the quarter. First, by iterating on referrals, continuing to scale our top of the funnel products, leveraging in-app communication and expanding our popular SoFi Personal Loans money bundle to 100% of our members, we drove a 65% sequential increase in cross-buy volume among SoFi Money First members. Second, we added eight new ways to earn points to our unique SoFi Rewards program, the only program that allows members to earn points for both transactions and responsible financial behaviors. bringing our total earn and redeem options across the SoFi platform to 33. SoFi rewards drove 15% of the quarter's new product growth. And third, we launched promotions around our new Refer the App and SoFi money referral programs, which drove 18% of member growth in the quarter and significantly increased our app downloads and our rank in app stores. Our product enhancements plus more effective marketing were instrumental in driving member, product, and cross-buy growth. The third quarter was our second highest ever for both member and product growth. Total members grew 96% year-over-year to 2.9 million. We added 377,000 new members, which is an amazing 35% increase versus the 279,000 new members we added in the second quarter. Total products grew 108% year-over-year to nearly 4.3 million. We added 600,000 new products, which is a 24% increase versus the 483,000 new products in the second quarter. The scale we're achieving in money, invest, and credit card, which are at the top of our product funnel, is having a dramatic impact on cross-buy volumes. The third quarter was a record for cross-buy products, with SoFi Money, SoFi Invest, and SoFi Credit Card First members accounting for 73% of total cross-buying. demonstrating that as the top of our funnel scale increases, so will cross-buying and the benefits of our financial services productivity loop strategy. As important, when a bottom of the funnel loan is cross-bought, the lifetime value of the member doubles from already industry-high levels to more than $1,600 versus just a loan-owning member. Our momentum continues at Galileo as well. We signed 13 new clients, bringing our year-to-date total to 35, and finished the quarter enabling our clients to serve 89 million accounts up 80% year-over-year. Today, we are in our strongest position ever to fund and execute on our ambitious long-term growth strategy. The $1.2 billion we raised in a zero-coupon convertible debt offering in October brought our total capital rates over the past year to $3.6 billion and our total capital to $4.6 billion. and our pending application for a bank license represents a potential new source of funding and flexibility for us. I am proud of this impressive list of accomplishments for the quarter, especially in a continuing volatile economic and financial markets environment. As we head into the final weeks of 2021 and turn our focus to 2022, I am awed and humbled by all the SoFi team has been able to accomplish this year. and I'm thrilled for our next chapter in 2022. Now I'll turn it over to Chris for a discussion of the quarter's financials.