LendingClub Reports 22% Revenue Growth While Net Loss Grows

LendingClub (NYSE: LC), the largest marketplace lending platform in the US, has just released their Q1 earnings report while providing guidance for the full year.

According to LendingClub, revenue increased 22% to $151.7 for the quarter with originations growing 18%. Total lending has now topped $2.3 billion. Net consolidated loss (GAAP) stood at $31.2 million, including expenses related to legacy charges and ongoing legal fees.

“We feel good about how we’ve kicked off the year and the fundamentals of our business continue to be strong. Our strategic initiatives are working on both sides of our marketplace and we’ll keep innovating to help more Americans on their journey to financial success,” commented LendingClub CEO Scott Sanborn.

Additionally, LendingClub reported;

  • Improved Contribution Margin to 49.1% from 42.7% in the same quarter last year
  • Delivered Adjusted EBITDA of $15.3 million, or a 10.1% Adjusted EBITDA margin, compared to an Adjusted EBITDA of $0.2 million, or a 0.1% Adjusted EBITDA margin, in the same quarter last year
  • LendingClub has now served 2.4 million borrowers
  • Earnings Per Share (EPS) – Basic and diluted EPS attributable to LendingClub was $(0.07) for the first quarter of 2018, compared to basic and diluted EPS attributable to LendingClub of $(0.07) in the same quarter last year and $(0.22) in the fourth quarter of 2017.

LendingClub provided the following guidance:

Second Quarter 2018

  • Total Net Revenue in the range of $162 million to $172 million
  • Net Income (Loss) (3) in the range of $(20) million to $(10) million
  • Adjusted EBITDA(2)(3) in the range of $12 million to $22 million
  • Reconciling Items between GAAP Consolidated Net Loss and non-GAAP Adjusted EBITDA consisting of stock-based compensation of approximately $20 million, and depreciation, impairment, amortization and other net adjustments of approximately $12 million. Outstanding legacy issues are not forecasted in GAAP Net Income (Loss) or Adjusted EBITDA.

Full Year 2018

  • Total Net Revenue in the range of $680 million to $705 million
  • Net Income (Loss) (3) in the range of $(70) million to $(55) million
  • Adjusted EBITDA(2)(3) in the range of $75 million to $90 million
  • Reconciling Items between GAAP Consolidated Net Loss and non-GAAP Adjusted EBITDA consisting of stock-based compensation of approximately $77 million, expenses related to outstanding legacy issues of $17 million that were recognized in the first quarter of 2018, and depreciation, impairment, amortization and other net adjustments of approximately $51 million.

The LendingClub 8-K is available here.

The LendingClub analyst call starts at 5PM ET;

A live webcast of the call will be available at http://ir.lendingclub.com under the Events & Presentations menu. To access the call please dial +1 (888) 317-6003 or outside the U.S. +1 (412) 317-6061 with conference ID 4537166 ten minutes prior to 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time).

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