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In Q4 . Acquisition Accelerates SoFi's Development of a Unique Full-Stack, Multi-Product, Digital Banking Technology Platform Offering Best-of-Breed Financial Products and Services SAN FRANCISCO, California - February 22, 2022 - SoFi Technologies, Inc. (NASDAQ: SOFI), ("SoFi"), the digital personal finance company, today announced that it has entered into a definitive merger agreement (the . Based on that, SoFi's EV is close to $12.8 billion. SoFi is already a customer of Galileo, which powers SoFi Money among other offerings. SoFi stock is covered by just two Wall Street analysts and both of them have buy ratings for the stock. All that money is going to product and teams and work and offices, of course. The estimated incremental revenue from the acquisition, including base revenue of Technisys and revenue synergies of the vertically integrated capabilities, is expected to add a cumulative $500 to $800 million through year-end 2025, at high incremental margins. Financial Services - Segment Results of Operations Three Months Ended June 30, ($ in thousands) 2021 2020 Variance % Change Total net revenue $17,039 $2,428 $14,611 602% Directly attributable expenses (41,784) (33,321) (8,463) 25% SoFi has a culture of understanding acquisition costs by putting itself in its customer's shoes to find out where they're making buying decisions. customer base, . Acquisition Marks Significant Step in SoFi's Effort to Obtain National Bank Charter SAN FRANCISCO — March 9, 2021 — Social Finance, Inc. ("SoFi"), the digital personal finance company, today announced that it has signed a definitive agreement to acquire Golden Pacific Bancorp, Inc. (OTCPK: GPBI) and its wholly owned subsidiary Golden Pacific Bank, N.A. Fourth quarter adjusted EBITDA of $4.6 million was positive for the sixth consecutive quarter, culminating in full-year positive . will result in up to $85 million in cost savings from 2023 to 2025 and up to . SoFi (IPOE) can boost 2025 adjusted EBITDA by $300 million, or 25% with a digital bank. SoFi's Cost of Customer Acquisition. SoFi recorded a GAAP net loss of $111.0 million for the fourth quarter of 2021 and $483.9 million for full-year 2021, versus the prior-year periods' net losses of $82.6 million and $224.1 million, respectively. This strategy also results in lower cost and more variable profits and it generates more revenue per member and lowers customer acquisition costs. It seems like this is a customer acquisition play for SoFi as they look to provide their full suite of . SoFi Wants to Steal Your Most Coveted Customers Subscribe Now Get The Financial Brand's FREE Email Newsletter Don't look now, but the 'in your face' fintech firm, SoFi, is moving from offering just student and personal loans to providing wealth management and opening checking accounts. This will enable SoFi to cross-sell various products, which will lead to a high lifetime value per customer (LTV) and low customer acquisition cost (CAC). SOFI's bears can point out other challenges too. If it attracts high-quality customers early and builds sticky relationships through many products, it can use the resulting data to improve underwriting and pricing and so increase profits much faster than the . SOFI's bears can point out other challenges too. including SoFi Money™, advisory services offered through SoFi Wealth LLC (SFW) an SEC Registered Investment Adviser, and cryptocurrency services offered through SoFi Digital Assets, LLC (SDA). SoFi gained 377,000 new members during the last reported quarter, representing year-over-year growth of 96%. If the company has 500 customers, the CAC would be $2. According to a recent SEC filing, Palihapitiya believes SoFi's revenue could hit $3.7 billion by 2025. The US-based alt lender is acquiring Golden Pacific Bancorp Inc., a California community lender, for $22 million to become a nationally chartered bank, The Wall Street Journal reports.Upon receiving regulatory approval for the Golden Pacific purchase, SoFi will contribute an additional $750 million into the bank to further drive Golden Pacific's national and digital expansion. Shares of SoFi were down about 9% to $10.31 in mid . SAN FRANCISCO — April 7, 2020 — SoFi, the online personal finance company, today announced it has signed a definitive agreement to acquire Galileo Financial Technologies ("Galileo"), the powerful financial services API and payments platform. As a result of its vertical integration of centralized services, SoFi has increasingly lower customer acquisition costs. The acquisition is also expected to add to the high revenue growth rate of SoFi and accelerate its three-year revenue CAGR. Galileo CEO Clay Wilkes, 59, will walk away with a net worth north of $700 million. SOFI Stock Is Solid. The stock closed at $11.89 per share on February 4, 2022. Yet there are reasons SoFi shares could rise some 80% to its previous peak of $28. ("Technisys"), a leading cloud-native, digital multi-product core banking platform. This is 7x lower than the average bank customer acquisition cost of $300 according to the EFMA. SoFi will build more advanced solutions around Galileo and upsell to Galileo's customer base. However, the analyst sounded a note of caution when it came to customer acquisition costs. This is the major advantage of being a . The 7-year-old personal finance startup is about to launch bank accounts for U.S. citizens and residents, a move that opens up SoFi's customer benefits to a much wider pool of customers. SoFi will pay total purchase consideration of $1.2B to acquire Galileo, comprising cash and stock. The acquisition is expected to deliver to SoFi a mid-teens internal rate of return (IRR) on a standalone basis through 2025, with significant upside in the IRR when accounting for anticipated revenue and cost synergies. SoFi's business is the offering of financial products and services through a digital application, using data to offer a better customer experience and adapt its offerings to the customer's needs. SoFi forecasts it will add $500 million to $800 million of revenue through 2025 and generate $75 million to $85 million in cost savings from 2023 to 2025. Btw, SOFI's CAC is $40/50 per member. This is positively reflected in customer acquisition volumes, as indicated by the management in SoFi's Q3 earnings call. SoFi has raised $2.5 billion, including $500 million this year. Technisys adds a unique, strategic technology and business to the SoFi family, bolstering SoFi in its pursuit to provide best-of-breed products . This uptrend is likely to have continued boosting website visibility and customer acquisition in Q4, thereby driving revenues. Justin Sullivan/Getty Images News. When SoFi can get members from its base of nearly 3 million to purchase two or more financial products, they become a lot more profitable to the bank because there is no customer acquisition cost . From competition and rising customer acquisition costs to a shakier home loan business amid ramping up mortgage rates, SOFI stock remains a growth play with other less-than-perfect truths. Despite its new bank charter, the market treats SoFi like a growth stock; The company completed its acquisition of Technysis on March 3. "SoFi Invest" is the brand name for brokerage products and services offered through SoFi Securities LLC (SFS) Member FINRA / SIPC Opens A New Window. SoFi Technologies (NASDAQ:SOFI) stock is down over 70% from hitting its highs in November, and has hit a new all-time low 11 of the last 13 trading days.I rated . SoFi also estimates that the acquisition will produce up to $800 million in additional revenue through 2025, the Wall Street Journal reported. Here is what RiverPark . SoFi Technologies (NASDAQ:SOFI) stock is down over 70% from hitting its highs in November, and has hit a new all-time low 11 of the last 13 trading days.I rated . This will enable SoFi to cross-sell various products, which will lead to a high lifetime value per customer (LTV) and low customer acquisition cost (CAC). According to the firm's research, challengers like SoFi have customer acquisition costs (CAC) typically ranging from $20-$50, versus up to $1,000 for traditional banks. Their average 12-month target price is $27.5, which implies a potential upside of 82 percent. From competition and rising customer acquisition costs to a shakier home loan business amid ramping up mortgage rates, SOFI stock remains a . The customer acquisition cost formula is $1000/1000 customers = $1 per client. Therefore, as far as valuation is concerned SoFi is . Total Year-over-Year Member Growth of 113% Accelerated for 8th Consecutive Quarter to 2.6 million Total Products of 3.7 million Up 123% Year-over-Year Record Quarterly Net Revenue up 101% Year-over-Year and Adjusted Net Revenue up 74% Year-over-Year Successful Business Combination and Public Listing on Nasdaq SAN FRANCISCO, Calif. - August 12, 2021 - SoFi Technologies, Inc. … This implies an EV to revenue multiple of 13x and 8.6x, respectively for 2021 and 2022. From competition and rising customer acquisition costs to a shakier home loan business amid ramping up mortgage rates, SOFI stock remains a . SoFI expects to earn $1 billion in net revenue in 2021, about 60% higher than the year before. Justin Sullivan/Getty Images News. The acquisition is expected to deliver to SoFi a mid-teens internal rate of return (IRR) on a standalone basis through 2025, with significant upside in the IRR when accounting for anticipated . . SoFi is able to reduce the customer acquisition costs and increase the LTV of customers via building . These factors position SoFi as a long-term winner . This moat provides SoFi with low customer acquisition costs and opportunities to cross-sell its products, thereby increasing customer lifetime value. In the third quarter, SoFi's revenue surged 35.5% YOY to $272 million . Plans to Officially Launch SoFi Checking and Savings with up to 1.00% APY in the Coming Weeks SAN FRANCISCO, CALIF. - February 2, 2022 - SoFi Technologies, Inc. ("SoFi"), the digital personal finance company, today announced the completion of its acquisition of Golden Pacific Bancorp, Inc. (OTCPK: GPBI) and its wholly owned subsidiary Golden Pacific […] In Q3, SoFi spent nearly $115 million on sales and marketing and brought in 377,000 new members during the quarter, giving the company a per-customer acquisition cost (CAC) of about $305. It is a very holistic approach. SoFi stock — 4.3% of its float was sold short at the end of August (33% more than the month before), according . SoFi Technologies, Inc. (NASDAQ: SOFI) ("SoFi"), the digital personal finance company, today announced the completion of its acquisition of Technisys S.à.r.l. But I wonder if a large chunk isn't also earmarked for customer acquisition (SoFi's stadium deal fits here, I reckon) costs. This helps lower SoFi's customer acquisition costs because a user who joins SoFi doesn't cost any more as they begin using more services on the app. If it resulted in 100 conversions, the customer acquisition cost for this was $10 per conversion. Acquisition Accelerates SoFi's Development of a Unique Full-Stack, Multi-Product, Digital Banking Technology Platform Offering Best-of-Breed Financial Products and Services SoFi Technologies, Inc. (NASDAQ: SOFI), ("SoFi"), the digital personal finance company, today announced that it has entered into a definitive merger agreement (the "Merger Agreement") to acquire Technisys, a . SoFi, which recently confirmed it had 500,000 members, is on a customer acquisition push. No catch, the customer acquisition cost for a banking or brokerage product is often in the $100 to $300 range. After trading between $20 and $25 for the first few weeks, SOFI shares plunged 20% in July. It is easy to calculate the CAC. Together, the companies can better serve Galileo's consumer fintech and . This will enable SoFi to cross-sell various products, which will lead to a high lifetime value per customer (LTV) and low customer acquisition cost (CAC). So, SoFi has a very low cost of customer acquisition with low-value financial products and high-value loans on the same app, and now the cost of funding is about to go way down because they can . The acquisition is expected to boost revenue and increase cost savings. Additionally, the charter will meaningfully expand the company's addressable market . The acquisition is also expected to add to the high revenue growth rate of SoFi and accelerate its three-year revenue CAGR. And their target market is one of the most coveted by banking: the educated, affluent, digital-first Millennial. . The super app lowers SoFi's customer acquisition costs, it's digital, and once a user adopts one of SoFi's products, there are no additional costs for cross-selling because they're already on the . SoFi is the naming rights sponsor of SoFi Stadium in Inglewood, where Super Bowl LVI will be played on Feb. 13. For instance, SoFi's commission-free . Another encouraging trend that the tool showed us was the year-over-year comparison of website . According to the press release, Galileo processed over $53 billion of annualized payments volume in March 2020, up from $26 billion in September 2019. SoFi pulled in 377,000 new customers during the third . And of course, every time a member adds another product they do so at zero additional cost. Sofi Technologies commands a powerful cost advantage over incumbent banks, a Rosenblatt Securities analyst says. By 2017, acquisition costs had settled to a somewhat more reasonable $756 per customer as SoFi . In 2017, SoFi spent $170 million on marketing and paid $756 to acquire each customer; in 2018 the company plans to spend $200 million; in comparison LendingClub and Prosper spent between $350-$450 to acquire a customer; back in 2015, SoFi spent $30 million on marketing and $375 to acquire a customer; at . One example will be if you invest $1,000 in social media marketing. Acorns has raised $207 million, including $105 million last year. Together, the companies can better serve Galileo's consumer fintech and enterprise partners seeking to add product offerings to their 100 million enabled customer accounts across the U.S., Mexico and Colombia, and Technisys' more than 60 established bank, fintech and . SoFi can cross sell to existing customers without paying the high cost of customer acquisition and that improves its unit economics. The shares were acquired at an average cost of $14.90 per share, for a total transaction of $14,900.00. SoFi recorded a GAAP net loss of $111.0 million for the fourth quarter of 2021 and $483.9 million for full-year 2021, versus the prior-year periods' net losses of $82.6 million and $224.1 million, respectively. This is the major advantage of being a . Horgan expects that for challenger banks like SoFi which has a one-stop-shop app, data privacy changes from large technology platforms like Apple (AAPL) could lead to higher . The SoFi-Galileo deal claims to be the first major acquisition in history completed virtually. segments, which reduces customer acquisition costs and ultimately drives higher lifetime value per member. In conclusion, SoFi's decision to acquire Galileo allows them to enjoy a cost advantage compared to . This is the major advantage of being a . The acquisition will also lower SoFi's costs, since SoFi had already been using Galileo to power SoFi Money. New products that appeal to cost-conscious customers will accelerate the growth of its customer base. Now, investors . National bank regulators gave conditional approval for the acquisition last month. The acquisition will also add to the high revenue growth rate of SoFi and accelerate its three-year revenue CAGR. On Feb. 9, SoFI announced a new marketing campaign, "Break Up With Bad Banking," in an effort to further boost its customer acquisition growth. SOFI stock is down almost 48% in 2022. . Together, the companies can better serve Galileo's consumer fintech . In contrast, SOFI spends only $248 acquiring each customer, but its ARPU is $403. With most Americans using two or more banks, SoFi has a powerful niche as an all-in-one service. . When SoFi can get members from its base of nearly 3 million to purchase two or more financial products, they become a lot more profitable to the bank because there is no customer acquisition cost . It won't be the last. SoFi's relatively high customer acquisition costs—which Fast Company first reported in March—are more easily justified if the company is able to master the art of the digital cross-sell. Moreover, with the bank charter, SoFi's customer acquisition and monetization will significantly improve. SoFi Technologies, Inc. (NASDAQ:SOFI) insider Aaron Webster purchased 1,000 shares of the stock in a transaction on Friday, December 10th. "This is a much more powerful customer acquisition tool as compared to checking . . SoFi's outlook, although very positive, comes with caveats as well. In selling multiple products to members, SoFi cuts down on customer acquisition costs and generates more business momentum as users add more services, a classic flywheel effect. SoFi is choosing to give it to people directly, as opposed to TV ads or a billboard. Fourth quarter adjusted EBITDA of $4.6 million was positive for the sixth consecutive quarter, culminating in full-year positive . CAC (customer acquisition cost) is determined by taking the amount you spend to acquire a new customer and dividing it by the total number of clients you earned. Acquisition was disclosed in a document filed with the SEC website it to. Profits — or merely more revenue — remains an open question and work and offices, sofi customer acquisition cost course, time! 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