Lending Club got to experience one of the joys of being a public company today; the earnings conference call. Lending Club announced its Q4 results today, along with a forward looking statement sharing what they expect to earn going forward for 2015. The presentation below is the deck that was delivered alongside the call.
As with most earnings calls these days the most interesting part of the presentation has to do with the Q&A where analysts ask probing questions. Lending Club CEO and founder Renaud LaPlanche spent about half of the call answering questions. Some statements of note:
- We are just getting started and we have the opportunity to profoundly transform the banking industry
- LC estimates there is a $390 billion in credit card refinancing market opportunty
- The entry into small business lending has expanded the opportunity by $300 billion
- Add to the mix mortgages and lines of credit the total addressable market is $13 trillion
- They are “aggressively” investing in product development and engineering
- They will continue to focus on the US market in the near future but..
- By waiting they are de-risking market entry into new markets
- They are not really interested in getting ratings on their notes
- Long term EBITDA margins are 40 plus range
- Alliance partners relationship is a continuation of a strategy with banks to use the Lending Club platform to deliver credit to their partners
- Combining LC low cost of operations and local banks low cost of capital is powerful
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