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This statistic highlights SoFi’s Revenue by Segment, split across Financial Services, Lending, and Technology Platform, reported on a quarterly basis from Q1 2020 onwards.
|Revenue by Segment||Q3 2020||Q2 2021||Q3 2021||Contribution in Q3 2021|
(All figures are in millions, except percentages)
The total revenue generated by the company has been increasing every quarter. The revenue increased by 19.47% on a quarter-on-quarter basis, from $228.61 million in Q2 2021 to $273.13 million in Q3 2021. The year-on-year growth was 33.79% when compared to Q3 2020, where the revenue generated was $204.15 million.
SoFi’s revenue can be further bifurcated into the following segments:
SoFi Money, SoFi Invest, SoFi Credit Card (launched in Q3 2020), SoFi Relay personal finance management product, and other financial services, such as equity capital markets and advisory services, lead generation, and content for other financial services institutions and the company’s members, are all part of the Financial Services segment. SoFi Money offers members, a digital cash management experience, as well as interest income and the opportunity to categorize money amounts. SoFi Invest offers its customers investment features as well as financial planning services. Payment network fees on member transactions and pay for order flow, digital asset transaction fees, and share lending arrangements in SoFi Invest all contribute to the Financial Services segment’s revenue.
The total revenue generated from this segment grew by a massive 290.71% on a year-on-year basis, from $3.23 million in Q3 2020 to $12.62 million in Q3 2021. However, when compared to Q2 2021, where the revenue generated was $17.03 million, the decline in revenue was 25.90% on a quarterly basis. The contribution to the revenue mix also fell from 7.45% in Q2 2021 to 4.62% in Q3 2021.
Personal, student, and home loan products, as well as related servicing activities, as well as commercial loans are included in the Lending section. Sofi originates loans through each of the aforementioned channels to sell entire loans or securitize a pool of originated loans for sale to third-party buyers. Changes in the fair value of whole loans and securitization interests, gains or losses recognized on transfers that meet the true sale requirements under ASC 860, and servicing-related activities, which primarily consist of servicing fees and changes in our servicing assets over time, all contribute to revenues in the Lending segment.
The revenue generated from this segment has been increasing every quarter. It increased by 26.46% on a quarter-on-quarter basis, from $166.29 million in Q2 2021 to $210.29 million in Q3 2021. The year-on-year growth was 29.72%, when compared to Q3 2020, where the revenue generated was $162.11 million. However, the contribution declined from 79.40% in Q3 2020 to 76.99% in Q3 2021.
Technology Platform fees, which began with the acquisition of Galileo in May 2020, and equity method investment in Apex, which represented the portion of net earnings on clearing brokerage activities on the Apex platform in the 2020 periods, are included in the Technology Platform division. As of December 31, 2020, Apex was the company’s only major equity method investment. The seller of Apex stake exercised the Seller Call Option in January 2021, and as a result, the corporation does not report Apex equity investment income after the call date.
The revenue generated from this segment has been increasing over the quarters. When compared to $38.81 million in Q3 2020, there was a 29.40% year-on-year increase. The revenue increased by 10.89% on a quarterly basis, from $45.29 million in Q2 2021 to $50.22 million in Q3 2021. This segment contributed 18.39% of the total revenue in Q3 2021. Even though there was a year-on-year increase in revenue generated from the segment over the quarters, the contribution to revenue fell from 19.01% in Q3 2020 to 18.39% in Q3 2021.
SoFi Technologies Inc., established in the United States, is an online personal finance company. SoFi is a financial services company based in San Francisco that offers student loan refinancing, mortgages, personal loans, credit cards, investing, and banking through mobile and desktop apps. Sofi is a Cayman Islands exempted company that was formed on July 10, 2020. Its main purpose was effecting a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more enterprises. While the company may explore an initial Business Combination target in any industry or geographic region, it aims to concentrate its search on technology-related businesses.
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