SoFi Technologies, Inc.

one to the SoFi Technologies Q4 and full-year 2024 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by number one on your telephone keypad. If you would like to withdraw your question, please press star followed by two. Thank you. With that, you may begin your conference.

Thank you and good morning. Welcome to SoFi's fourth quarter and full-year 2024 earnings conference call. Joining me today to talk about our results and recent events are Anthony Noto, CEO, and Chris LaPointe, CFO. You can find the presentation accompanying our earnings release on the investor relations section of our website. Unless otherwise stated, we'll be referring to adjusted results for the fourth quarter and full year of 2024 versus fourth quarter and full year of 2023. Our remarks today will include forward-looking statements, that are based on our current expectations and forecasts and involve risks and uncertainties. These statements include, but are not limited to, our competitive advantage and strategy, macroeconomic conditions and outlook, future products and services, and future business and financial performance. Our GAAP consolidated income statement and all reconciliations can be found in today's earnings release in the subsequent 10-K filing, which will be made available next month. Our actual results may differ materially from those contemplated by these forward-looking statements. Factors that could cause these results to differ materially are described in today's press release and our subsequent filings made with the SEC, including our upcoming form 10-K. Any forward-looking statements that we make on this call are based on assumptions as of today. We undertake no obligation to update these statements as a result of new information or future events. And now I'd like to turn the call over to Anthony.

Thank you and good morning everyone. 2024 was undoubtedly SoFi's best year ever. Our ability to consistently deliver durable growth and strong returns was once again the direct result of our relentless focus on innovation and brand building. I'll begin by covering our key results for 2024 which significantly exceeded our expectations heading into the year, starting with our durable growth. Members and products are leading drivers of our performance, and we achieved record growth on both fronts. SoFi now has more than 10 million members. That's up 34% year over year and up 10x over the past five years. We had another record quarter of new member ads in the fourth quarter at 785,000 new members. In Q4, we also had another record quarter of new product ads at 1.1 million new products, resulting in 32% year-over-year growth to over 14.7 million. Financial services products drove over 89% of our total product growth. This reflects the deliberate diversification of our business towards more capital-light, fee-based revenue sources, which we expect to continue in 2025. Our strong member and product growth powered record revenue growth in 2024. Adjusted net revenue was $2.6 billion, up 26% year-over-year. Together, our financial services and technology platform segments generated $1.2 billion of revenue, up 54% year-over-year. These two segments accounted for 47% of our adjusted net revenue, up from 38% last year. It's safe to say SoFi is not just a lender anymore. and we continue to see significant growth opportunity across our financial services and technology platform segments. In our lending segment, adjusted net revenue grew 11% to nearly $1.5 billion, well ahead of our initial expectations of being flat to down. This strong growth was driven by record originations of over $23 billion, up 33% from the prior year. Our total fee-based revenue across our business was a record $970 million for the year, up 74% from the prior year. This was driven by strong performance from our origination fees, loan platform business, referrals, as well as interchange and brokerage. Importantly, improved monetization continues its strong contribution to growth. Financial services revenue per product increased from $59 in the fourth quarter of 23 to $81 in the fourth quarter of 24. That's up 37%. and we see continued upside as our newer products mature. In addition to delivering durable growth, we delivered strong returns and profitability. In 2024, adjusted EBITDA was a record at over $665 million. All three of our segments achieved record contribution profit at strong margins. In fact, financial services posted its first full year of profitability, and we are still just scratching the surface of the massive opportunity that exists. Our EBITDA margin for the year was 26% up nearly 500 basis points year over year. This improvement was driven by an incremental EBITDA margin of 44%, well above our target of around 30%. Net income was $499 million or $227 million excluding non-recurring benefits related to deferred taxes, which Chris will discuss momentarily. Even without these benefits, 2024 was our first full year of GAAP profitability, and we have now delivered five consecutive profitable quarters. While we remain focused on achieving our long-term aspirations, we continue to deliver strong performance each day in each quarter. Earnings per share were 39 cents or 15 cents when excluding non-recurring benefits related to deferred taxes. Intangible book value ended the year at $4.9 billion, a year-over-year increase of nearly $1.4 billion. This includes $271 million from non-recurring benefits related to deferred taxes. Our strong financial performance is the direct result of our investments in innovation and brand building. These investments attract new members and clients into our ecosystem and lead them to adopt more products over time. This fuels our growth and ultimately our returns as we scale. Looking ahead, our opportunity to scale remains massive And it feels like it's day one of our journey. People want innovative solutions delivered seamlessly and digitally. Yet most traditional financial services firms are encumbered by physical locations, internal bureaucracy, and outdated technology. They've struggled to evolve. Since day one, technology and innovation have been part of our DNA. It's how we built and scaled products more rapidly, creating the digital one-stop shop for financial services in just seven years. Our members often come to us for a specific product, then adopt others over time. As satisfied members do more with us, it creates a flywheel that we call our financial services productivity loop. Here's how we know it's working. In 2024, 30% of new products were opened by existing SoFi members, and nearly 40% of new members opened a second product in the first 30 days. More recent cohorts are taking a second product even faster than what we've seen in the past. This performance is a clear indication of our success in getting members to the right product and a validation of our one-stop shop model. Bringing new members into our productivity loop starts by having a trusted household brand name. A key part of our marketing strategy is working with like-minded partners that help us reach new audiences and build awareness of how we help our members get their money right. For example, we recently unveiled a first of its kind partnership where our brand is presented side by side with a sports league's brand in TGL presented by SoFi, a new tech-driven golf league broadcasted live on ESPN from the new state-of-the-art SoFi Center in South Florida. Given SoFi is part of the league's brand, we get millions of impressions everywhere the TGL brand goes, allowing us to reach a broader audience over and over. Overall, our brand building efforts are yielding strong results. In 2024, our unaided brand awareness reached its highest ever level at over 7% of nearly 170 basis points from last year. We are also innovating to strengthen and diversify our business so we can serve more members with less balance sheet risk, supporting both our growth and returns over the long term. Our loan platform business, or LPB, is one example. Over the years, we've built a powerful lending platform with strong member acquisition, underwriting, and servicing capabilities. But prior to 2024, we had two options. Hold loans on our balance sheet to generate net interest income, or to sell loans to manage our balance sheet size, risk, and capital. This past year, we created greater optionality to meet the strong demands from our members and capital markets buyers through LPB. Here's how it works. We partner with buyers like Fortress to originate loans fitting their predefined criteria, and we earn fee income as we fill the orders. These loans are originated on the buyer's behalf, so they don't sit on our balance sheet. And importantly, we keep the servicing rights. This model is a game changer. It allows us to serve more members, including people that we might have otherwise declined for a variety of factors without taking on incremental risk or capital. It further diversifies our revenue with additional fee-based income, and because we keep the relationship, we have the opportunity to provide the members with additional products and services. In 2024, we originated $2.1 billion of loans through LPB, which brought our total company loan originations to $23 billion. Beyond LPB, we've continued to build and enhance products in our financial services segments. In just a few weeks, we'll introduce a variety of new benefits across our one-stop shop and a new fee-based subscription option for SoFi+. Our premium membership tier, SoFi+, has been incredibly popular, but only available to members who enroll on direct deposit. For the first time, members can access our highest APY, a 1% match on recurring invest deposits, extra cash back on SoFi travel, interest rate discounts, and more for a low monthly fee. We will provide SoFi Plus members with more than $1,000 of value annually unlocked by paying a monthly subscription or doing a monthly direct deposit. In Q4, our investments expanded access to alternative investments through partnerships with three new private market funds, including the Templum Cosmos Fund, which offers sole exposure to SpaceX, and through our new robo-advisor platform developed in partnership with BlackRock. Having access to alternative investments is a top priority for many retail investors, and one way we're helping our members achieve their ambitions. SoFi now has 2.5 million invest products, with 70% of the growth coming from existing SoFi members. We continue to iterate on the value proposition, which is driving two dimensions of growth, engagement and monetization, both of which we believe will double in the intermediate term. In credit card, we continue to thoughtfully position our business for future growth. We improved our underwriting and rolled out two new products tailored to our members' needs. the everyday cash rewards and essential credit cards, helping more members earn rewards and build their credit. Our financial services segment also operates as a marketplace where we connect members to third parties and collect referral fees. For example, we make loan and banking referrals for borrowers we don't currently serve, including small and medium-sized businesses. We also refer members to partner insurance carriers through our Protect product. While still small in the context of SoFi, These referral revenue streams that are high margin grew significantly in 2024. That takes me to SoFi Money, our most successful financial services product, which serves as an example of what these other businesses can become. Since 2020, money has scaled significantly. Products grew from 646,000 to 5.1 million products today and increased 51% just this year. Money helped drive nearly a 9X increase in revenue per product for financial services overall. Since acquiring our bank license in 2022, we've grown our deposits to $26 billion by iterating, learning, and iterating to make our product, marketing, and service better every day. For example, we know that frictionless money movement is top of mind for our members, so in 2024, we introduced Zelle and improved our self-service wire transfers. We believe Invest is the next business to follow the footsteps of money, and we plan to allocate greater resources in 2025 to scale this business. Turning now to Tech Platform, another feed-based segment. Our Tech Platform gives a broad range of clients, from banks to fintechs to consumer brands, the ability to create, launch, and run financial products. In 2024, Tech Platform reached 168 million total accounts, up 15% year-over-year. Entering 2025, we are seeing strong demand from new potential partners. Let me give a few examples from the past few months that demonstrate the diversity of our client base and the strength of our offering. First, we recently were selected by the U.S. Department of Treasury for DirectXpress, a prepaid debit card program that approximately 3.4 million people use to access their federal benefits. This is a testament to our tech platform's differentiated offering, as well as our strength and reliability. We're excited about the integration that will take place in 2025 and the financial impact that we will see in 2026. Second, we just signed a large US-based financial services provider that offers short-term consumer loans, card services, check cashing, and other financial products. They've built a large, loyal, and highly active debit card portfolio over the past two decades and will now rely on our technology to power existing and new capabilities. Once they fully transition to our platform in early 2026, they will be a top 10 client on a revenue basis. Third, we've signed a partnership with a leading hotel rewards brand for a co-branded debit card program launching in the first half of 25. This is a new differentiated offering that will expand our footprint among consumer brands. These deals represent more predictable revenue from larger established brands with notably higher average deal sizes. We're excited about these wins It would note that the implementation and the integration cycles will be gradual and the revenue impacts will most likely be felt in 2026. As you can see, 2024 was a tremendous year overall. Our record revenue, profit, members, products, and returns all demonstrate the success of our innovation and brand building and are a testament to the absolute grit of our team. I have never been prouder of a year-long performance than I am of 2024. Even with how great 2024 was, the future has never been brighter for SoFi than it is in 2025. The operating environment is the strongest it has been since I joined with lower interest rates, strong employment, active capital markets, and we have a vibrant brand and the only digital one-stop shop offering in the U.S., resulting in a diversified business model that is well-positioned to capture the opportunity ahead. With that, let me turn the call over to Chris. provide more detail about the quarter and year and to share our detailed guidance for 25.