Lending Club Q1 Operating Revenue Up 109% Year over Year

Renaud Laplanche Lendit 2015Lending Club (NYSE: LC), the largest p2p lender in the US, has released its Q1 operating numbers and simultaneoulsy raised its outlook for the entire year.

Loan originations jumped 107% versus year prior from $791.3 million to $1.635.1 million for Q1 2015. Operating revenue experienced a similar increase as Q1 2015 hit $81 million in contrast to the $38.7 million year prior – ahead of previous expectations.  Adjusted EBITDA saw a more pronounced increase going to $10.6 million from just $1.9 million in 2014.  This was  458% increase.

Lending Club founder and CEO Renaud Laplanche commented on the results;

“We continued to benefit from strong network effects this quarter, and took that opportunity to grow faster than we had planned,” said Laplanche. “Our investments in channel diversification helped us cost-efficiently grow borrower acquisitions, our diversified investor base helped us deliver affordable credit to a wide spectrum of borrowers, our leadership position helped us secure the most coveted partnerships, and our exceptional customer satisfaction rate continued to fuel our growth. These successes give us the confidence to raise our target for the full year.”

Lending Club Moving MainstreamLending Club also increased their guidance for Q2 and fiscal 2015. Total Revenues in the range of $385 million to $392 million for the year has been increased from $370 million to $380 million previously.

“The strong momentum from the fourth quarter carried into the first quarter, and we continue to execute on our strategy of fast yet disciplined growth,” said Carrie Dolan, CFO. “We experienced improving sales and marketing efficiency compared to first quarter last year, even with expected seasonality. The benefits we are seeing from the investments we are making in product development, engineering, marketing channels, sales force expansion, process automation and back office continue to bolster our confidence in our current investment strategy and long term growth opportunity.”


 

Net Loss – GAAP net loss was $6.4 million for the first quarter of 2015, compared to a net loss of $7.3 million in the same period last year. Lending Club’s GAAP net loss included $11.6 million of stock-based compensation expense during the first quarter of 2015, compared to $7.0 million in the first quarter of 2014.

Loss Per Share (EPS) – Basic and diluted loss per share was ($0.02) for the first quarter of 2015 compared to EPS of ($0.13) in the same period last year.

Adjusted EPS(2)– Adjusted EPS was $0.02 for the first quarter of 2015 compared to $0.00 in the same period last year.

Cash and Cash Equivalents – As of March 31, 2015, cash and cash equivalents totaled $874 million, with no outstanding debt.

Based on the information available as of May 5, 2015, Lending Club has provided the following outlook:

Second Quarter 2015 

Operating Revenues in the range of $90 million to $92 million.
Adjusted EBITDA(2) in the range of $8.5 million to $10.5 million.

Fiscal Year 2015

Total Revenues in the range of $385 million to $392 million, up from $370 million to $380 million previously.
Adjusted EBITDA(2) in the range of $40 million to $46 million, up from $33 million to $42 million previously.


 

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