Lending Club held its first earnings call announcing Q4 2014 earnings results. The stock has had incredible swings since the original IPO price of $15. The stock opened 56% higher on its debut and eventually reached a high of $29.29, only to eventually fall to a low of $18.30. It closed today at $23.65 before earnings.
Beating analysts predictions, Lending Club announced Q4 2014 revenue of $69.6 million and an adjusted EPS of .01. An average of revenue estimates were projected to be $66.67 million with an EPS of .01. Lending Club originated $1.415 billion worth of loans, compared to $698 million last year. This is an increase of 103% year-over-year. Q3 originations were $1.165 billion, which shows Lending Club’s consistent origination growth we’ve been accustomed to seeing.
The theme of this earnings call is that they are investing heavily in the company. They have solid EBITDA margins, but Renaud stated that long term margins could reach 40%. Below shows their EBITDA margins over time.
Lending Club provided the below information regarding the standard program originations by investor type and originations by program. I believe institutional investors are being under represented since standard program originations don’t include investors in the custom program loans. These loans are not available directly on the marketplace. Custom program loans make up 22% of the loan volume as of December 31, 2014 and would include products such as small business loans, medical loans and their super-prime loans. [Read more…]