Operator: Our next question comes from Terry Ma of Barclays. Your line is open.
Terry Ma: Hey, thanks. I just wanted to dig in a little bit more on the late-stage personnel loans,– delinquency personnel loan sales. Can you maybe just talk about the structure and execution around that and whether or not you plan on selling more?
Christopher Lapointe: Yes, absolutely. So in Q1, we ended-up selling $62.5 million of late-stage delinquent personal loans in the quarter. Typically, we do not sell delinquent loans until they’re charged-off. But we were able to generate an opportunity where we’re able to generate positive value relative to letting the loans charge-off and sell after the fact. So typically how it works at a high-level is, we would normally let a loan charge-off and then sell and release servicing to a debt settlement company or another investor for low double-digit pennies on the dollar. In this late-stage delinquency sales structure, we were able to retain servicing and portions of the recovery, which will result in nearly double the returns we would have otherwise been able to achieve.
Operator: Thank you. Our final question comes from Jill Shea of UBS. Jill, please go-ahead.
Jill Shea: Thanks, good morning. So I just wanted to touch on operating expenses. I’m just wondering if you could highlight any opportunities there in the largest efficiency gain areas? And then also how does continued brand awareness improvement impact your sales and marketing spend?
Christopher Lapointe: Yes. So I’ll hit on some of the operating expense lines. I’ll let Anthony hit on the brand awareness. But overall, we saw meaningful improvements across all functional expense line items. Sales and marketing specifically was down about 900 basis-points year-over-year as a result of, obviously, improvements in overall brand awareness, continued and elevated cross-buy. We’re close to 40% of all new products that were taken out in the period of work coming from existing members on the platform. And then we’re just getting much more efficient at being able to market it. In terms of other efficiencies, we continue to see efficiencies in R&D as a result of the migration from being on-prem to the cloud in our Tech platform business, as well as other investments that we’ve made over the course of the years that are starting to play-out.
On the operations side, we’re seeing meaningful leverage as a result of some of the automation efforts that we’ve invested in over the course of the last 24 months, which, again, are starting to play-out as we’re seeing better funnel conversion and improvement. And then in G&A, as you would expect, there’s meaningful operating leverage in the system as we continue to scale. We made significant investments as we became a public company and got our bank charter and also invested heavily in risk and second and third lines of defense and as those investments were made over the course of the last 12 to 24 months at scale. I’ll turn it over to Anthony to hit on the brand piece.
Anthony Noto: Yes, on the brand awareness side, we’re really pleased with just the continued improvement we have in unaided brand awareness. Our marketing team and our businesses have done a great job of putting together a very integrated multimedia strategy that leverages partnerships with big well-known brands that help us achieve unaided brand awareness to become a household brand name. That helps improve our overall performance marketing as well. The more people that know us, the more people that trust us, the better reaction we get from every offer we have in the marketplace are other ways that we connect with potential new members in addition to building their awareness of new products beyond their initial product. Our cross buying continues to remain really strong and we’re seeing good financial service productivity leverage in our customer acquisition costs.
So it’s been a great year and 2024 is off to a great start as it relates to the impact of unaided brand awareness from things like our recent partnership with the NBA the Official Bank of the National Basketball Association. With that, let me add some concluding remarks. I want to thank everyone for joining us today. We’re proud to kick-off 2024 with an exceptionally strong first quarter. Our 26% revenue growth driven by 54% growth in revenue from the combined tech platform and financial services, which now constitutes 42% of revenue, while no growth in lending gives us a very strong outlook for the year with 25% EBITDA margins in the quarter and for the full year. Record $3 billion of deposit growth and 16% growth in tangible book-value and 44% growth in members now totaling $8.1 million in total are a great testament to the success of our [Bold] (ph) strategy and ability to execute across an unprecedented set of financial conditions over the last six years.
Although we live in an unpredictable world, our team at SoFi is resolved to serve the needs of more than 8 million members and clients, while sustaining the growth, profitability and increasing the shareholder value that we’ve done so far. We thank you for your interest and look-forward to talking to you next quarter.
Maura Cyr: Good-bye.
Operator: This concludes today’s call. You may now disconnect.
