SoFi Earnings: Deposit Growth Drives Net Interest Income Higher, but Growth Slows Sequentially

No-moat-rated SoFi Technologies reported solid first-quarter earnings as the firm's impressive deposit growth and rising interest rates drove strong net interest income, though firmwide sequential revenue growth did slow meaningfully. Net revenue increased 43% year over year and 3.4% sequentially to $472 million. Revenue growth continues to outpace expenses, and the firm's net loss per share narrowed to $0.05 from $0.14 last year, giving more credence to SoFi's guidance for GAAP profitability by the end of 2023. As we incorporate these results, we are maintaining our $14 per share fair value estimate.