SoFi Reports Solid End to 2022 as Rapid Deposit Growth More Than Offsets Uninspiring Loan Volume

No-moat-rated SoFi Technologies reported solid fourth-quarter results as the benefit of its impressive deposit growth was partially offset by slower loan origination and weak growth in its technology platform segment. SoFi’s net revenue grew 60% from last year and 7.7% sequentially to $456.7 million. While the company remains unprofitable, its net loss did narrow to $0.05 per share from $0.15 last year, and SoFi now expects to reach profitability by the end of 2023. As we incorporate these results, we maintain our $14.50 fair value estimate and see the shares as undervalued.