Bloomberg Audio Studios, podcasts, radio news. SOFI shares, like the rest of the market, slumping today, in fact, having its worst day since March of last year. The fintech lender publishing perhaps a forecast that seems to be below where the marketer wanted to see. We've got a broad tech route, of course, linked to deep Seat more broadly in general, to AI over in China. But here to discuss the earning,
SOFI CEO Anthony Noto, a tough day to report earnings. Anthony, and I ask you about the forecast, because look, your revenue was at record rates. Adjusted revenue up twenty four percent for the fourth quarter. But you're pushing us forward in a forecast that isn't as high as the market wanted.
Why well, I think two things.
One. Twenty twenty four, we took a pretty conservative approach to the year in terms of our growth and our profitability. We really wanted to make sure that we were able to drive strong profitability in twenty four to achieve gap profitability, to ensure we reinforced our balance sheet and a capital cushion,
and we did just that. Prior to twenty twenty four, we had committed to a balanced approach to growth and profitability where we would reinvest seventy cents of every incremental revenue dollar and we call that thirty percent incremental eb down margins. So we took our revenue forecast for twenty five up and we're in the best position we've been since I've been here, at so far for the last
seven years. We're calling for twenty five percent revenue growth, strong margins at twenty six percent, just not an expansion in the margins because we want to invest in the massive opportunity that still sits in front of us. And so we took revenue guidance up and it's about ten percent higher than the street, but that will require more investment and it will help us ensure we have growth
beyond twenty five. And we also took our revenue guidance for twenty twenty three to twenty twenty six on a compound in a growth rate basis higher as well.
So the profitability the business is there.
We could drive more to the bottom line, but we think that's not the prudent thing to do because we just see massive growth in front of us and the ability for us to keep driving member growth and product growth of more than thirty percent, which we've done, and revenue growth of more than twenty five percent. Is you know what we're calling for through twenty twenty six.
Anthony, the investment that you just describe, what portion of it will you be putting toward artificial intelligence? It's the topic at the top of everybody's minds, and people are watching how companies are deploying it. Do you see, for instance, an agent driven service? Perhaps at so far, At some point.
The vast majority of our investment going into twenty twenty five and twenty six will be in building unaided bread awareness, becoming a trusted household brand name.
We have great products.
The reason why we're driving such strong product and member growth is because the products are very differentiated, and when we make people aware of them and they use the products, they not just use the first one and they gain trust with us, they use the second and third one. Thirty percent of our product growth in the quarter of thirty four percent was or existing members. About forty percent of our members take out a second product within thirty days,
So we'll continue to invest in differentiating the product. So Ife Money is a great product that has a high apy you can do person to person payments. You could do Zell auto pay two day early paycheck, and so we'll be investing in that. We'll be investing in our invest product to expand the selection for invest in addition to other product categories like insurance and credit card and small medium business lending.
You want to be able to offer crypto again, and that's something the administration's talked a lot about. Look on a day where we see such volatility that engulfs crypto too because of deep seek, is that really a product priacement that you want to get into again?
If the regulation has changed so that cryptocurrency is permissible by bank holding companies, we would absolutely provide not just what we used to provide, which was the ability to safely and securely trade bitcoin and other cryptocurrencies, but we'll also go into other areas like custing and clearing in addition to asset back lending, et cetera. But that all be gated by the regulators, which we think should be coming over the next twenty four months, and we'll be ready.
When it does.
Ultimately, are you feeling more risk on in this environment the new administration a way in which to develop your business? Maybe M and a because it doesn't feel like a risk on day today.
We are definitely leaning into twenty twenty five. Twenty twenty four was a record breaking year. We had record revenue, profits, returns, member growth, product growth. Couldn't be happier. The year that we had the most product's been at the company since I've been here. But I think twenty twenty five will be even better. We think the outlook is the best
environment we've operated in over the last seven years. Our business is bigger, stronger, and more well known than it's ever been, and we have more resources to go after the opportunities. So we love our competitive positioning. We like the macro backdrop. It's a very different outlook than when we came in to twenty twenty four, and we're definitely being more aggressive in innovation and driving durable growth and strong returns.
Anthony, back to the regular Tory side of things, What is the one thing, one hurdle that you would like to see the new administration and Congress is clear for you.
The biggest question is what what will bank holding companies be allowed to do with cryptocurrency? What will be permissible? And that clarity is really critically important. The interest rate cycle I think has pretty good visibility and transparency to that. I think the economy also has really strong economic indicators.
The big question is how much can we innovate?
How much can we invest in these different asset classes that our members want to reinforce their ability to not just borrow better and save better and protect better, but to invest better. Investing is critical to reaching their long term financial goals. We want to be there for every one of the major financial decisions our members making their lives, and all the days in between. The key is spending
less than you make in investing the rest. So the more opportunities we can give our members to invest, the faster they'll get to their financial outcomes.
Anthony notos So, if I see you in the day of your earnings, great to have you on. Thank you so much.