Thanks for the thorough analysis. Great opening paragraph, with humorous reference to Sens. Sanders and Warren. It sucked me in like the intro to a Stephen King novel.
I don't understand the technical stuff well, and wondered if you'd explain just a couple things?
Q: The Revenue, Contributions, Profit, EBITDA chart: what is Contri…
Thanks for the thorough analysis. Great opening paragraph, with humorous reference to Sens. Sanders and Warren. It sucked me in like the intro to a Stephen King novel.
I don't understand the technical stuff well, and wondered if you'd explain just a couple things?
Q: The Revenue, Contributions, Profit, EBITDA chart: what is Contrib. Profit?
Q: The table about Incremental Revenues, and Incremental EBITDAs: are the units, millions?
The possibilities seem pretty awesome, with origination dollars maybe increasing 4x to 10x, and maybe beating 2024 revenue targets based on increased revenue from student loans alone!
I learned some things I didn't know. For example, that income from student loans finance deposit interest (my interpretation). And, SoFi can, and has, sell loans at cost and still have good GOSM because of their hedges. It seems, that's for both personal loans and student loans (I didn't know that either)?
I liked your observation of the student loan platform already being fully integrated into the in-house tech stack.
Finally, I also enjoy investing in businesses more than just stocks, although I do that also. Thanks again for the time and effort you put into this, and for sharing it with us.
Contribution profits is the amount they make after subtracting out the direct costs associated with that revenue.
Yes, the units on that table are in millions.
Glad you enjoyed the article and that it was helpful for you to learn a little more about the business. And yes, the hedges apply to all of their loan types including home loans and personal loans in addition to student loans and they have helped to bolster their gain on sale margins as rates have risen sharply..
Hi Chris,
Thanks for the thorough analysis. Great opening paragraph, with humorous reference to Sens. Sanders and Warren. It sucked me in like the intro to a Stephen King novel.
I don't understand the technical stuff well, and wondered if you'd explain just a couple things?
Q: The Revenue, Contributions, Profit, EBITDA chart: what is Contrib. Profit?
Q: The table about Incremental Revenues, and Incremental EBITDAs: are the units, millions?
The possibilities seem pretty awesome, with origination dollars maybe increasing 4x to 10x, and maybe beating 2024 revenue targets based on increased revenue from student loans alone!
I learned some things I didn't know. For example, that income from student loans finance deposit interest (my interpretation). And, SoFi can, and has, sell loans at cost and still have good GOSM because of their hedges. It seems, that's for both personal loans and student loans (I didn't know that either)?
I liked your observation of the student loan platform already being fully integrated into the in-house tech stack.
Finally, I also enjoy investing in businesses more than just stocks, although I do that also. Thanks again for the time and effort you put into this, and for sharing it with us.
Contribution profits is the amount they make after subtracting out the direct costs associated with that revenue.
Yes, the units on that table are in millions.
Glad you enjoyed the article and that it was helpful for you to learn a little more about the business. And yes, the hedges apply to all of their loan types including home loans and personal loans in addition to student loans and they have helped to bolster their gain on sale margins as rates have risen sharply..
Thank for ready and for the questions.