Prosper Releases Third Quarter 2017 Results: Loan Originations Up 164% Year-Over-Year

On Monday, leading peer-to-peer lending platform for consumer loans, Prosperreported growth in both transaction revenue and loan originations for the third quarter of 2017. The online lender claimed that the continued demand for personal loan product resulted in $822 million in loan originations through its platform, up 6% quarter-over-quarter and 164% year-over-year. Prosper also grew transaction fee revenue 5% quarter-over-quarter and 164% year-over-year and has completed $1.5 billion of securitization this year alone. While sharing more details about the third quarter results, CEO of Prosper, David Kimball, stated:

“We continued to see growth during the third quarter as people turned to Prosper’s personal loan product to refinance high-interest debt, pay for medical expenses, and finance home improvement projects. As we look to the end of the year and 2018, our ability to consistently generate positive operating cash flow along with the $50 million capital raise in the third quarter will help drive strategic investments in the company’s platform and products.”

Prosper recently closed the third securitization from the Prosper Marketplace Issuance Trust, Series 2017-3, with approximately $500 million of notes issued. Usama Ashraf, CFO of Prosper, then commented:

“We are very pleased with the success of the Prosper securitization program this year, which included three deals totaling $1.5 billion and over 45 unique investors participating.”

Prosper released the third quarter result summary:

Highlights include:

  • Prosper facilitated $822 million in loan originations through its platform, up 6% quarter-over-quarter and 164% year-over-year, driven by strong demand for its personal loan product.
  • Transaction fee revenue rose to $37.2 million, up 5% quarter-over-quarter and 164% year-over-year.
  • The company reported a Net Loss of $26.9 million in the third quarter of 2017, which included $28.1 million in non-cash charges related to warrants to purchase preferred stock that was issued to a consortium of investors and a third party in connection with a settlement agreement.
  • Prosper generated $9.9 million of Net Cash from Operating Activities and Adjusted EBITDA of $7.3 million in the third quarter of 2017.
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