By Dhirendra Tripathi
Investing.com – SoFi Technologies stock (NASDAQ:SOFI) slumped 14% Friday after a second quarter loss that was wider than expected.
The fintech reiterated its 2021 outlook. For the full-year, it forecasts adjusted net revenue of $980 million and adjusted earnings before interest, taxes, depreciation and amortization of $27 million.
The company has already logged $453.25 million in revenue in the first six months of the year.
Its second-quarter adjusted net revenue jumped 74% to $237.21 million as both members and products registered strong growth on the back of an expanded slate of offerings. Total members grew 113% year-over-year and total products grew 123%.
But the company’s bottom line came in red. Net loss came in at $165.31 million compared to a net income of $7.80 million.
The loss was attributed to adjustments related to its $1.2 billion cash and stock acquisition of payments platform Galileo Financial in April 2020.
Sofi remeasured its valuation allowance of 2020 as a result of the deferred tax liabilities recognized in connection with the Galileo acquisition. This decreased the valuation allowance by $99.8 million. The absence of that tax benefit was a key reason behind the company making losses in the second quarter.
There were also significant non-cash stock-based compensation expenses and fair value changes in warrants primarily related to the fair market value of SoFi stock.