OnDeck Delivers Q4 Results. Beats Expectations but Guides Lower

OnDeck (NYSE:ONDK) reported 4th quarter and full year results after the bell today.  The online lender beat expectations by $0.01 but guided lower than market consensus.

According to the release, OnDeck loaned more than $1.9 billion to SMEs for  2015, increasing gross revenue by 61% versus year prior.

Gross revenue for Q4 jumped by 34% or to $67.6 million versus same quarter year prior. Net revenue registered $42.3 million. Adjusted EBITDA was $0.3 million for Q4, a decline versus prior year that came in at $0.6 million. Adjusted net loss was $1.1 million for the quarter compared to $0.8 million last year.

Origination volume rose over 50% to $557 million in comparison to Q4 2014.  Originations grew sequentially 15%. The average APR of loans originated in  Q4 was 41.4% in comparison to 51.2% in 2014.

noah breslowNoah Breslow, CEO of OnDeck, described Q4 as delivering a strong performance;

“In the fourth quarter total originations grew 51% year-over-year, powered by continued momentum in our Direct and Strategic Partner channels and demonstrating the appeal of OnDeck’s complete credit solution and loyalty benefits to qualified small businesses. Also during the fourth quarter, OnDeck announced a strategic relationship with JPMorgan Chase, through which the OnDeck Score and OnDeck’s integrated technology platform will help underwrite and service loans to qualified Chase small business customers. We believe these achievements validate OnDeck’s expertise in online small business lending, reinforce our market leadership and position our company well for continued high-quality growth in the years to come.”

Guidance for Q1 of 2016 was as follows:

  • Gross revenue between $66 million to $69 million
  • Adjusted EBITDA between negative $3 million to negative $5 million

For the full year guidance was given as follows:

  • Gross revenue between $320 million to $328 million
  • Adjusted EBITDA between $10 million and $14 million

OnDeck has originated over $4 billion in loans since its founding. It currently provides service in the US, Canada and Australia.


The earnings conference call is available here.

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