Prosper Releases 2018 Second Quarter Results

Online lender Prosper announced earlier this week the release of its 2018 second quarter results. According to Prosper, year-over-year loan originations increased 12% to $867 million, Net Loss decreased 70% to ($12.6) million and Adjusted EBITDA has also increased 31% to $8.8 million. Highlights of the second quarter results are the following:

  • Total Net Revenue, including the non-cash impact related to warrants to purchase preferred stock, was flat year-over-year at $31.7 million
  • Core Revenue, excluding the non-cash impact related to warrants to purchase preferred stock, increased $4.0 million or 8% year-over-year to $52.3 million
  • Net Loss decreased by $28.8 million or 70% to ($12.6) million
  • Adjusted EBITDA increased $2.1 million or 31% to $8.8 million

Prosper also reported it upsized its committed revolving warehouse facility to $200 million during the quarter. Speaking about the quarter’s report, David Kimball, CEO of Prosper, stated:

“Throughout 2018, Prosper has been raising interest rates and significantly tightening credit in order to ensure that we continue to provide a fair price for borrowers and a solid risk-adjusted return for investors.”

The release of the second quarter results comes just weeks after Prosper reported it topped one million in loans, representing more than $13 billion of loans has been originated since its inception in 2006. At the time of the news, the online lender revealed:

“Since we launched in 2006 as the first peer-to-peer lending company in the US, we have been committed to bringing together people who want access to credit at an affordable rate with people and institutions who want to invest in the solid returns offered by this asset class. Driven by our mission to advance financial well-being, we believe that better-priced credit gives our borrowers the opportunity to refinance high-interest debt or pay for large purchases like home improvement with a fixed-rate, fixed-term loan. We have thousands of stories that tell us how we are delivering on this mission.”

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