Brilliant article, easy to follow, and always appreciate you giving a conservative/bearish POV/scenario to balance the bullish POV, but in this case still reads bullish for the company regardless given the great execution by management. Also love the comparison to Nike, Starbucks, Disney, etc to give readers a full appreciation for the challenges SoFi has overcome. Nailed it as always!
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..
1st became aware of you through the SOFI weekly and appreciate your data diving. New subscriber and member. Thank you for all your hard work.
I'm very grateful, I'll strive to make it worth your while.
Brilliant article, easy to follow, and always appreciate you giving a conservative/bearish POV/scenario to balance the bullish POV, but in this case still reads bullish for the company regardless given the great execution by management. Also love the comparison to Nike, Starbucks, Disney, etc to give readers a full appreciation for the challenges SoFi has overcome. Nailed it as always!
Such great analysis as always. Thanks for the deep dive! I’m looking forward to the article you mentioned you may write about hedging!
Thorough, insightful and easy to follow. Learn a ton about the business and how to evaluate it. Thank you for your generosity in sharing.
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.