SoFi Technologies, Inc.

Good afternoon, and thank you for attending today's SoFi Q4 2021 earnings conference call. My name is Sam, and I will be your moderator for today's call. All lines will be muted during the presentation portion of the call, with an opportunity for questions and answers at the end. If you would like to ask a question, please press star 1 on your telephone keypad. At this time, I would now like to turn the conference over to our host, Andrea Prochniak. VP of Investor Relations. Andrea, please proceed.

Thank you, Operator, and thank you all for joining us today for SoFi's fourth 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 fourth quarter and full year 2021 financial results. Our discussion of our results today is complementary 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. and will be available as a replay for 30 days, beginning about one hour after the conclusion of this call. There's also an accompanying investor presentation on our IR page. 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 could cause actual outcomes to differ materially from those included in the statements. We discussed these factors in our SEC filings, including our 2021 Form 10-K, which can soon be found on the IR page of our website and 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 to the IR page of our website. Today's discussion will focus on both the fourth quarter and full year 2021 results. As always, 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 good afternoon, everyone. Before beginning my prepared remarks, I wanted to take a moment to recognize the unacceptable tragedy that is currently taking place in Ukraine. It's been truly difficult to watch this series of events unfold over these past few weeks and escalate in recent days. No one should have to live in fear or under the threat of violence, which has now become a reality. Our hearts go out to everyone directly or indirectly affected by this tragic situation. Now on to our results. We had another strong quarter, hitting new highs across our key financial and operating metrics and finishing 2021 with record annual results. Today, we are in our best position ever to achieve our long-term strategic goal, to be the digital one-stop shop for the major financial decisions in our members' lives in all the moments in between. Here are some of the highlights. Record fourth quarter adjusted net revenue of $280 million was up 54% year over year and increased sequentially from a very strong third quarter, despite the unexpected federal student loan moratorium extension at quarter end. All three of our business segments achieved higher year over year growth. We delivered record full-year revenue of just over $1 billion at the high end of our guidance, which we increased on our third quarter earnings call. We achieved our sixth consecutive quarter of positive adjusted EBITDA at $5 million and delivered on our goal of positive full-year EBITDA. We had an amazing quarter for member growth. We added 523,000 new members in the fourth quarter, a record in absolute number terms, and impressively up 39% versus the amount added in the third quarter. As a result, we ended 2021 with 3.5 million members, an increase of 1.6 million, up 87% year-over-year, and well above the 3 million member target set in January of 21. We also set another record with new product ads of $906,000 in the fourth quarter, up an incredible 51% versus the number of third quarter ads. We finished 2021 at 5.2 million total products, more than double the 2.5 million we had at year-end 2020. And at Galileo, we grew enabled accounts 67% year-over-year to 100 million. We were able to achieve these milestones in 2021 and get to such a position of strength today for three main reasons. First, we continue to drive strong growth through great execution across our three diverse businesses, which reflects our ability to capitalize on changing macro conditions. Second, the success of SoFi's unique financial services productivity loop strategy accelerated as we scaled our business in 21. which allowed us to exceed our original 2021 member growth target by 40%, and importantly, still hit our EBITDA target. And third, we took a giant step forward in 2021 in achieving our goal of becoming a household brand name via our SoFi Stadium affiliation, the success of our integrated multimedia campaigns, and the virality of the influencers we partnered with. I'll take these points one by one, starting with number one, how we drove strong growth through great execution across our three diverse businesses. In lending, we grew segment revenues by 30% year-over-year in the fourth quarter and 42% for the full year, even with the unexpected extension of the federal student loan payment moratorium in late December. Fourth quarter personal loan originations were a record of $1.7 billion, of 168% year-over-year and more than double fourth quarter 2019's pre-pandemic total. Full year originations were more than $5.3 billion versus $2.6 billion in 2020 and $3.7 billion in 2019. Personal loans outperformed as a result of our improved execution, enhancements to our technology and credit models, and the quality of our loans. And through our lending and service partnership with Pagaya, we added nearly 7,700 referred loans across a broader audience while maintaining our credit criteria. In home loans, we met our 2021 goals to diversify into purchase loans from predominantly refinanced loans and to reenter the jumbo loan market. By the fourth quarter, we had increased purchase home loans from low single digits to low double digits as a percentage of SoFi's total home loan buy-in. And we relaunched jumbo loans in the second half of the year. This diversification will help drive continued growth in a rising rate environment. In student loans, we saw accelerating demand in the fourth quarter ahead of the January federal student loan payment moratorium deadline and anticipated rate increases in 2022. We originated nearly $1.5 billion in loans, up more than 50% sequentially, even with the surprise late December extension to May 22, which caused a reduction in demand during the final week of the quarter. Looking ahead, we expect continued strong growth in lending, driven by our ongoing momentum in personal loans, the end of the student loan payment moratorium, better positioning in home loans, and the many opportunities our new bank license presents. In financial services, we achieved record growth in products adopted in the fourth quarter, and importantly, a large step up in monetization that drove record revenue up nearly 2x sequentially. We added 857,000 new financial services products in the fourth quarter, up 56% from the number of third quarter ads. For the year, we added nearly 2.5 million new financial services products, more than double the 1.2 million we added in 2020. Through better monetization, we produced a 5X year-over-year increase in our fourth quarter total financial services revenue of $22 million, as well as our full-year revenues of $58 million. Product improvements that drove the year's phenomenal growth include the following. In SoFi Invest, we gave members more selection and new features. We added 25 new cryptocurrencies, making SoFi a selection leader with 30 at year end. We offered two regular way IPOs to retail investors in the fourth quarter. The first was Rivian, the largest IPO since Facebook in 2012. And the second was Nubank, a leading fintech company in Brazil. we introduced stop limit trade orders in the fourth quarter and margin trading earlier this year. At SoFi Money, we introduced two-day early paycheck, auto save, cash back, and no fee overdraft protection. And with our launch of SoFi Checking and Savings, we now offer members 1% APY, 33 times the national average, plus no account fees or minimum balance, plus many of the free features members already enjoy. Our SoFi credit card, which includes the only rewards platform that gives points for both transactions and smart financial behaviors, really took off in its first full year. Quarterly spend, balances, and accounts grew at high double-digit rates, and we finished 2021 with 91,000 products and a debut NPS score in the mid-50s. Finishing with our tech platform, Gallo benefited throughout 2021 from growth in enabled accounts, transactions per account, and adoption of new products by existing partners, as well as the addition of diverse new partners. Fourth quarter segment revenues of $53 million was up 42% year-over-year, and acceleration versus the year-over-year growth in Q3 at 29%, And with the inclusion of a full year of Galileo results, 2021 revenue more than doubled to $195 million. Galileo added 11 million new end-user accounts in the quarter, a 67% year-over-year increase to 100 million at year-end, up from 60 million enabled accounts at the start of 2021. Galileo launched some clients and signed nine new ones in the fourth quarter, bringing total full-year ads to 44. We also grew Galileo's total B2B client base by 40% in 2021. We launched Toast last year and signed T. Rowe Price in the fourth quarter to serve as its future emergency savings program. And H&R Block just chose Galileo to power its new mobile banking app, Spruce. We acquired Galileo to leverage an owned and operated platform to drive rapid innovation with the benefit of a great business that further diversified our revenues. Now, as we announced last week, we're following the same playbook by acquiring Technasys, a leading cloud native multi-product core banking platform. Adding Technasys is the next step in vertically integrating SoFi's businesses to further accelerate the pace of innovation of our best of brief financial products. We expect Technasys to be a growth multiplier for both SoFi and Galileo, in addition to realizing its own enormous growth opportunities, which are further strengthened in partnership with Galileo. We are well on our way to building the AWS of FinTech. Now let's talk about point number two, the success of SoFi's unique financial services productivity loop strategy. Critical to the FSPL is creating best-of-breed products that build trust and reliability with members, which increases the likelihood they choose SoFi for a second or third product. When they do, we benefit from increased LTV per member by generating more revenue at little to no incremental customer acquisition costs. as a result our higher ltv allows us to invest in more differentiated products and services which in turn drives more demand and higher ltvs it's a true competitive advantage the fspl has had its biggest impact yet on 2021 results the scale of our top of the funnel products is now large enough that at the same cross-buy rates Fourth quarter crossed by volume more than tripled year-over-year to more than 380,000 products. And more than one-third of our new products were adopted by existing members in the quarter, contributing to the 17% decline in our customer acquisition costs in 2021. I mentioned that our total year-end members of 3.5 million exceeded our 2021 goal by 500,000. Our unique FSPL advantage not only helped us exceed this goal, we did so without notable associated marketing costs. Instead, these FSPL efficiencies allowed us to swiftly exceed our member and product goals, yet still achieve our EBITDA targets. This brings me to my third key success factor for 2021. Our ability to drive a dramatic increase in SoFi's unaided brand awareness be the unmatched reach of SoFi Stadium nationally televised games, the success of our various integrated multimedia campaigns, and the rally of the influencers we partner with. Here are a few remarkable stats. The five nationally televised regular season games at SoFi Stadium were seen by an average of more than 22 million households per game, resulting in a household reach of 110 million plus households in total. This visibility helped increase SoFi's unaided brand awareness by nearly 70% in 2021 to a new record in the fourth quarter. And that was before an estimated 106 million people tuned in to watch the Rams win the Super Bowl at SoFi Stadium. Before turning it over to Chris to talk through results, I wanted to share a few additional thoughts. In February, I celebrated my fourth anniversary as the CEO of SoFi. While I could not be more proud of all we've accomplished in such a short period of time, I am even more excited about what's ahead of us. We are just starting to reap the benefits from the enormous progress we have made on our strategic position, the breadth of our differentiated and diversified product suite, our tech platform that helps us serve the industry as we build the AWS of FinTech, our balance sheet of $4.7 billion in equity value, the exponential growth for our brand awareness, and of course, most importantly, our team. With that, let me turn it over to Chris for a review of the financials for the quarter and the year.