The deck, embedded below, is largely a rehash of LendingClub’s Q1 report which took place the first week of May.
There is an added emphasis regarding executive management as well as Board participation. LendingClub states it has experienced “strong momentum under the current executive team.” The online lender points to the fact it has demonstrated “responsiveness to stockholders” and compensation is tied to performance. The company asks for shareholders support at the 2019 annual meeting.
Regarding performance, revenue continues to rise alongside loan originations as the marketplace lender pursues profitability. It is expected that LendingClub will turn the profitability corner soon.
The biggest challenge for LendingClub is its share price which currently hovers around $3 and change. Since its initial public offering (IPO) several years ago, the valuation of the Fintech has tanked from over $8 billion to just $1.36 billion today representing a spectacular loss of value. Two of the rockstar board members, Mary Meeker and John Mack, recently announced they would be stepping down from the board. Meeker went on to sell a good number of the LC shares she managed. Some industry insiders believe the pursuit of a public listing was too soon for the young company.
The Fintech world is challenging as models must adapt and innovate at a blistering pace. New features must be launched as competition emerges from various sectors including traditional finance. Perhaps even more challenging is the fickle nature of Wall Street. One day they love you the next day they love another.
Lending Club Shareholder Outreach June 5 2019