SoFi Technologies, Inc. (NASDAQ:SOFI) Q1 2023 Earnings Call Transcript

Anthony Noto: Yes. On the technology platform side, I think you’re asking a question about accounts and the growth of that being slower year-over-year and down sequentially. That just reflects a partner that moves off the platform and those accounts moving off. So it’s both new account growth offset by that partner that moved off in 2022 off the platform. In terms of the unemployment rate, I’ll give — I’ll hand over to Chris to talk about how we think about underwriting credit and the macroeconomic factors that we’re looking at.

Chris Lapointe: Yes. So our overall outlook on the macro hasn’t changed from our Q4 earnings call. What we have talked about during that is that, the rate was going to be consistent with where the forward curve was at the time and peaking around 5% to 5.25% and exiting the year at 4.5%. So that’s still contemplated in our current outlook. We assume that the unemployment rate would be 5%. So we’re holding with that as well. And we finally we assumed that there would be a 2.5% GDP contraction. And then finally, we did assume that credit spreads would remain elevated, but we have seen that over the course of the last several quarters and we expect that to persist heading into Q2, Q3 and Q4, but that’s all contemplated in our guide.

Anthony Noto: And let me finish here by saying that we’ve been in an all-out sprint over the last five years to build out our digital product suite to meet our member’s needs. For every major financial decision in their lives and all the days in between, thanks to the incredible grit and hard work of our team at SoFi. We’ve been able to do that consistently. That said, we’ve seen tectonic plate shift for the industry in each of the last five years and some years multiple times. But through that volatility and uncertainty, we continue to prevail and thrive hitting eight record quarters of revenue in a row and hitting strategic and financial inflection points all along the way. 2023 has proven to be as formidable in just three short months as any year and it’s just getting started.

We’re likely to see another multi tectonic plate shifting year. That said, SoFi will be ready. We’ll be ready because the benefits of our strategy to build a uniquely diversified business combined with the national banking license not only positions SoFi to be the winner takes most in the separate transition of financial services to digital, but also provide greater durability through a market cycle and the many other viable events that may occur. I’m excited about where we are today and even more excited about where we can go from here. With that, thank you for your interest in SoFi and we’ll talk to you in three short months.

Operator: Goodbye. This concludes SoFi’s Q1 2023 earnings call. I hope you have a wonderful rest of your day.