You should check out SCNBillboardConstraint
Updated Code
let textGeometry = SCNText(string: "Hello, World!", extrusionDepth: 1.0)
textGeometry.font = UIFont(name: "Arial", size: 2)
textGeometry.firstMaterial!.diffuse.contents = UIColor.red
let textNode = SCNNode(geometry: textGeometry)
let (min, max) = textGeometry.boundingBox
let dx = min.x + 0.5 * (max.x - min.x)
let dy = min.y + 0.5 * (max.y - min.y)
let dz = min.z + 0.5 * (max.z - min.z)
textNode.pivot = SCNMatrix4MakeTranslation(dx, dy, dz)
textNode.scale = SCNVector3(0.01, 0.01, 0.01)
let plane = SCNPlane(width: 0.2, height: 0.2)
let blueMaterial = SCNMaterial()
blueMaterial.diffuse.contents = UIColor.blue
plane.firstMaterial = blueMaterial
let parentNode = SCNNode(geometry: plane)
let yFreeConstraint = SCNBillboardConstraint()
yFreeConstraint.freeAxes = .Y
parentNode.constraints = [yFreeConstraint]
parentNode.position = SCNVector3(0, 0, -0.5)
parentNode.addChildNode(textNode)
sceneView.scene.rootNode.addChildNode(parentNode)
It seems that applying billboard constraint directly to the text node resets its position and scale, so the text node gets huge and positioned at 0,0,0 relative to the camera. Don't know why :( But applying the constraint to the parent node works fine.