Homepage / Technology / Anthony Noto's first shareholder letter as SoFi CEO outlines company values, growth areas
Leaders of two Koreas hold surprise meeting as Trump revives hopes of summit with North Ireland set to end abortion ban as exit polls signal landslide vote Billionaire entrepreneur Richard Branson says he's 'neck and neck' with Bezos in the space race South Korea relieved about Trump-Kim summit revival efforts Top VC deals: Kroger buys Home Chef, PayPal buys iZettle and Rover raises $155 million Next time you buy a TV at Best Buy, you may be offered health care, too MVP robots won't take football players' jobs, but they may just save their legs The government could save $1 billion by combining its 12,062 data centers — but it's behind plan Elon Musk may actually be making a website to rate journalists for credibility and 'core truth' Bank of America outlines tips investors can use to beat the market Silicon Valley investors explain why they're scared of China YouTube Music is really good, but probably not enough to pull you away from Spotify Trump administration is telling Congress it has an agreement to save China's ZTE: New York Times No recession until late 2020, so keep buying stocks, Credit Suisse says Moody's warns of 'particularly large' wave of junk bond defaults ahead Cryptocurrency stunt to climb Mount Everest reportedly turns deadly Chinese police take down gang of inventive online reputation cleaners Italy's Conte struggles to form team; markets tumble Cramer: Foot Locker's stellar earnings show the 'mall is still not dead' yet Roku shares jump after short-seller reverses call, says he doesn't want to bet against cord-cutting Wyoming's plan to diversify its economy from fossil fuels … to blockchain Facebook, Google face complaints worth $8 billion over alleged breach of new EU data law Apple's self-driving partnership is the next phase of 'Apple as a service,' Gene Munster says Consumers expect smaller gains in income than a year ago, May sentiment survey finds Herbalife shares plunge after Carl Icahn said he is lowering his stake in the company South Africa's ailing state-owned firms set to invest billions in dramatic reform program Why you're suddenly getting lots of emails from sites you haven't visited in years 'Fortnite': This is how a free video game might make $3.5 billion White House official: Trump could take a harder line on trade with China now that the Kim Jong Un summit is off Stocks making the biggest moves premarket: FL, HIBB, BKE, GPS, DECK, ADSK, ROST, AZN & more Apple blocks Steam's plan to extend its video games to iPhones Foot Locker shares are jumping 15% after a blowout earnings report PayPal upgraded by Stifel because of its addition of new financial services Samsonite slides for a 2nd day after a short-seller attack, but some analysts are unfazed US Commerce Secretary Wilbur Ross to visit China for trade talks in early June A specialty retailer up 118% in one year could have more room to run after earnings Gold is back: The rise in geopolitical tensions boosts precious metal prices The 'Meghan Markle Effect' is boosting gold jewelry sales US media websites down in Europe after a huge data law shakeup Tencent's WeChat drops 'sugar daddy' dating website Autodesk forecasts second-quarter profit below estimates Turkey's leadership scrambles to regain investor confidence in its monetary policy Italy's Enel accuses Spain's Iberdrola of 'aggressive' tactics in Brazilian power struggle Sanctioned tycoon Deripaska resigns as director of his firm Rusal The battle for the biggest prize in soccer, worth $370 million, is taking place this weekend One of the biggest names in advertising thinks you're going to get paid for sharing your data European markets seen higher after Trump scraps US-North Korea summit US jury awards Apple $539 million in Samsung patent retrial How Europe’s new privacy law called GDPR is creating big business opportunities Trump can take some lessons from the failed summit with North Korea, says a former US ambassador A Trump-Kim meeting could still take place down the road China's box office recently beat the US, and is now on the cusp of a 'new growth cycle' Steve Cohen's Point72 is bullish on Asia — and they like these sectors The crackdown on cryptocurrencies is a good thing, say traders Read the full statement from South Korean President Moon Jae In here Asian stocks poised to slide after Trump cancels North Korea summit Cramer Remix: Don’t let this buying opportunity pass again Indigo Agriculture CEO wants to change economics for farmers with a 'revolution in agriculture' The phone company founded by Android creator Andy Rubin is reportedly for sale US bill would force tech companies to disclose foreign software probes Nutanix falls on a wider-than-expected quarterly loss Google employees are spending heavily to elect Democrats in California and to flip the House How to send your Twitter feed back 10 years and see early, silly tweets Facebook shows once again that it does not understand or value journalism Whip yourself into shape by using this Apple Watch feature to compete against friends and family Trump and Europe are entering a 'game of chicken' over Iran nuclear deal sanctions New Boeing 777 will have folding wings Facebook and Twitter announce stricter political ad guidelines ahead of midterms Here is the federal labor complaint the United Auto Workers just filed against Tesla Elon Musk has a history of wild ideas — some of them have worked out Netflix passes Disney and is now biggest pure media company in the world by market value Zuckerberg says Facebook has 'always shared' the values of Europe's new data law Best Buy’s big sell-off could soon be a buying opportunity, says market watcher Iran's Supreme Leader just made 5 tough demands for Europe to save the nuclear deal Ray Dalio said last year gold was good protection because of Trump and North Korea 'playing chicken' Classic dividend stocks are tanking, but think before you make the mistake of selling Watch Facebook's Mark Zuckerberg speak at Viva Tech 2018 as concerns over data protection heighten North Korea summit cancellation part of 'downside risks' for the economy, Fed's Bostic says Spain economy minister says he's not concerned about Italian bond market contagion Art Cashin: Stock drop reflects mistaken assumption Trump would do everything to make North Korea summit work Uber ‘moving in the right direction’ and will hopefully keep London license, exec says Labour laws in 104 countries reserve some jobs for men only Dear oil helps some emerging economies and harms others Tailor shops are a thriving pocket of enterprise in Pyongyang Why it makes sense to invest in Treasury bonds Why even bears about the government-bond market can find merit in Treasuries Who will be the main loser from Europe’s new data-privacy law? What is an audit for? As Tesla’s share price falls, it becomes an inviting takeover target How kidnapping insurance keeps a lid on ransom inflation CEO says Crowdstrike's security platform could someday attract Amazon, Google Cisco CEO Chuck Robbins speaks at VivaTech 2018 amid heightened cybersecurity concerns South Korean stocks ETF tumbles after Trump cancels meeting with North Korea's Kim Jong Un Cramer: Trump's investigation into auto imports in the name of national security is a 'stretch' Existing home sales drop 2.5% in April Gold jumps after Trump cancels North Korea summit as global investors seek safety Uber's self-driving SUV saw pedestrian in fatal accident but didn't brake, officials say Trump cancels Singapore nuclear summit with North Korean leader Kim Jong Un JP Morgan: Charts show new market highs are coming soon, led by bank stocks GE doesn't plan to cut dividend again, sources say


Anthony Noto's first shareholder letter as SoFi CEO outlines company values, growth areas

SoFi CEO Anthony Noto, who left Twitter earlier this year to take over the online lender, has just sent his first quarterly letter to shareholders.

While he didn’t address the sexual harassment allegations that led to the ouster last year of co-founder Mike Cagney, Noto did broadly discuss the establishment of “our mission and our company values.”

But it’s the growth of new products at SoFi that will most likely attract the attention of investors, as the company tries to justify its $4.4 billion private market valuation.

CNBC obtained the letter, which is dated May 11, from a source, and SoFi confirmed it is authentic.

In the letter, Noto said the SoFi at Work program, which partners with companies to help their employees pay off student loans and other debt, expanded its funded loan volume by 118 percent from a year earlier. The program, used by over 700 businesses, was launched in September 2016, so the growth is coming off a small base from last year at this time.

SoFi at Work added 30 partner institutions in the quarter, Noto wrote, “to offer student loan benefits (including employer contribution programs) and other financial wellness products to their employees and association members.”

Another new market where SoFi is gaining some traction is in wealth management, an offering announced last year to invest members’ money in low-cost exchange-traded funds. SoFi said its assets rose by 31 percent over the fourth quarter, with a 39 percent increase in new accounts.

But SoFi, which ranked 45th on CNBC’s 2017 Disruptor list, is still a tiny player in that market. According to its latest SEC filing, SoFi Wealth has $43.5 million under management, compared to over $10 billion at robo-advisor firm Wealthfront and $6.5 billion at Personal Capital.

Noto said the plan this year is to expand beyond robo-advisor services “to include access to individual securities as well as other asset classes.”

In total, SoFi originated $3.6 billion in loans in the first quarter, up 27 percent from a year earlier, a number it first disclosed last month. The company said in the letter that it added about 59,000 members — primarily borrowers — in the quarter, bringing the total number close to 500,000.

Noto, who was head of finance and then operations at Twitter during his three-and-a-half-year stint at the company, joined SoFi during a period of rapid growth but internal crisis. Cagney, who co-founded SoFi in 2011, stepped down in September, following sexual harassment allegations by a former employee and reports of a toxic culture and years of improper treatment of women by top executives.

Nino Fanlo, who had been SoFi’s finance chief, left earlier in the year to join a biotech start-up, but he was also named in stories about the company’s culture. Both Cagney and Fanlo have denied any wrongdoing, and Cagney launched a new fintech start-up this year.

Under Noto’s leadership, SoFi brought in credit expert Michelle Gill as CFO and Rich Garside, a former Citibank executive, as global head of operations.

At the end of the letter, Noto said the company established a set of 11 values, including to “embrace diversity” and “take care of other people and help them grow.”

“We have changed the leadership team to set the example amongst their teams and to help us devise the programs and practices that will reinforce these values in our everyday life at the company,” he wrote.

While Noto inherited a big and growing loan portfolio, he’s also had to take on some business challenges, like high marketing costs. Fast Company reported in March that in 2017 the company spent an average of $756 to acquire each customer, or close to twice what other online lenders like LendingClub spend.

Noto has to reel in expenses to get the company in a position to go public, especially as rising interest rates lead to a higher cost of capital for SoFi. In the letter, he listed “balancing growth vs. profitability” as one of his five key priorities for 2018.

Source: Tech CNBC
Anthony Noto's first shareholder letter as SoFi CEO outlines company values, growth areas

Comments are closed.