Digital finance company SoFi Technologies (NASDAQ: SOFI) dropped more than 10% the day after releasing its earnings for the second quarter of 2021. The company disappointed investors with a large miss on earnings per share from analysts' estimates, and management failed to raise its full-year guidance. But looking closer, there are three major positives to take from this quarter that should have investors eyeing up the stock on this dip.
SoFi started as a student loan lending business but has evolved into a finance "super-app" under current CEO Anthony Noto. Users of SoFi's app can manage and transfer cash, invest, trade crypto, obtain a credit card, and take out a variety of loans. Its vision is to bring all of a consumer's personal finance needs under one roof.
SoFi's user base must grow to make this business model profitable, and in 2021 Q2, user counts grew 113% year over year to 2.6 million. This is the eighth consecutive quarter in which membership growth has accelerated, a sign that the app resonates with consumers.
Source Fool.com