SoFi (NYSE: SOFI) stock is trading sharply higher in US premarket price action today as markets give a thumbs up to its Q4 2022 earnings. Futures meanwhile point to a down opening for the wider markets today.

The company posted revenues of $457 million in Q4 2022 which was 60% higher than the corresponding quarter last year and ahead of the $423 million that analysts expected. The company’s revenues surged to a record in the quarter and all three of its business segments posted record revenues.

In 2022, SoFi’s revenues rose 60% YoY and hit $1.57 billion. It was the first time in the company’s history that its revenues surpassed $1.5 billion in a year. Its revenues have hit a new record for seven straight quarters now.

The company added 480,000 members in the quarter. At the end of 2022, it had 5.2 million members which is 51% higher than what it had at the end of 2021.

SoFi’s adjusted EBITDA rose 15.3x to $70 million in the December quarter. It posted a net loss per share of 5 cents which was almost half of what analysts were expecting.

In the full year, the company posted an adjusted EBITDA of $143 million, a new record and up 5x from 2021.

Commenting on the earnings, SoFi said, “We finished a remarkable year with another quarter of record financial results and continued strength in member and product adds, as well as cross-buy momentum.”

SoFi Beat Q4 Earnings and Provided Strong Guidance

Along with posting earnings beat in the fourth quarter, SoFi also impressed markets with its guidance. While its Q1 2023 adjusted EBITDA guidance of $40-$45 million was slightly below estimates, in the full year it called for an adjusted EBITDA between $260-$280 million which is ahead of the $246 million that analysts were expecting.

The company said, “Our continued strong growth and significant improvement in GAAP net income margin position us very well in 2023 for another year of significant revenue and EBITDA growth and for reaching GAAP net income profitability in the fourth quarter.”

Notably, while many companies have been reluctant to provide guidance beyond a quarter due to economic uncertainty, SoFi sounds quite optimistic about its outlook for 2023.

Last year, SoFi received permission to set up a bank that is helping it improve its NIMs (net interest margins). The bank generated a net income of $30 million in Q4 at a margin of 11%.

The company’s personal loan originations rose almost 50% to $2.5 billion in the quarter. Commenting on the steep rise, it said, “This strong performance was aided by years of investment in technology to automate and accelerate the application-to-approval process for qualified borrowers and frequent testing of risk controls and underwriting models to maintain our high standard of credit quality.”

Fintech Stocks Crashed in 2022

Fintech stocks crashed in 2022 and even PayPal shed over 60%. It was among the bottom 10 S&P 500 stocks of 2022. The valuations of startup and privately held fintechs like Klarna and Stripe have also come down.

Meanwhile, many analysts find fintech stocks undervalued after the crash. There is a list of companies that could be undervalued.

Coming back to SoFi, it has rebounded from its 2022 lows and is up sharply in premarkets today also.

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