Yesterday, OnDeck released their Q4 and FY 2015 earnings. 2015 was the first full year as a public company for OnDeck, who went public in December 2014. They continue to grow originations, something that is likely to continue as the partnership with JPMorgan Chase begins to ramp up.
OnDeck originated $1.9 billion in 2015 across their operations in the U.S. Canada and Australia, up from $1.1 billion in 2014. In total, they have now originated over $4 billion to over 45,000 small businesses. Fourth quarter total originations came in at $557 million, up 51% year over year.
Other financial highlights include:
- Gross revenue of $67.6 million for Q4 2015, up 34% from the prior year period.
- Q4 Adjusted EBITDA of $0.3 million compared to $0.6 million in the prior year period.
- GAAP net loss of $4.6 million ($0.07 per share) for Q4 2015, down from a net loss of $7.3 million ($0.13 per share) from the same prior year period.
Despite OnDeck’s strong origination growth, the market is not responding favorably to their latest earnings. At time of writing, the stock is down 25% and currently trades at $6.60, approaching an all time low of $6.51 per share. OnDeck’s guidance for gross revenue is between $66 and $69 million for Q1 2016, which may be one of the concerns for investors. As a comparison, gross revenue was $67.6 million in Q4 2015. Gross revenue guidance for full year 2015 is between $320 and $328 million. Full year 2015 gross revenue was $254 million. [Read more…]