Stock

Today is The One Year Anniversary Of Lending Club’s IPO

We look back on the first year that Lending Club has been a public company.

December 11, 2015 By Ryan Lichtenwald Leave a Comment

Today marks the one year anniversary of Lending Club’s IPO. It was on December 11, 2014 that Lending Club went public in one of the most significant events ever for this industry. This IPO increased the profile for not just Lending Club but for all of marketplace lending and the industry has surged forward in 2015 partly as a result of this increased profile.

But it hasn’t all been smooth sailing for Lending Club in the past year. The actual stock performance hasn’t been good at all for equity investors. Lending Club’s stock still trades below the initial public offering price of $15 per share. Over the last year it has fallen to a low of $10.28 over the summer but has rebounded somewhat since then and currently trades at $13.74 as of writing.

Lending Club stock has fallen 41.49% in the last year. Source: Google Finance

Lending Club continues to focus on growth and recorded $2.2 billion of originations in the third quarter of 2015 as we outline in our Lending Club Q3 2015 earnings report. Our reports for the first and second quarter of 2015 can be found here and here respectively. In 2014, Lending Club originated nearly $4.4 billion total in loans in 2014 and we should see them surpass $8 billion for 2015. [Read more…]

Lending Club Releases a Very Solid Q3 Earnings Report

Lending Club announced an increase in quarterly originations to $2.2 billion in the third quarter along with strong financial results.

October 30, 2015 By Peter Renton 2 Comments

Lending Club Origination Volume Through Q3 2015

Image from Lending Club

Yesterday, Lending Club released their financial results for the third quarter. They continue to show rapid growth in originations as well as revenue and this quarter they also showed a solid profit. Their total loan originations for the quarter was just over $2.2 billion up from $1.9 billion last quarter.

I listened in on their earnings call where CEO Renaud Laplanche gave some prepared remarks as well as CFO Carrie Dolan. Here are some of the financial highlights:

Originations: $2.24 billion across 180,520 loans for an average loan size of $12,384.
Revenue – $115.1 million, up from $56.5 million in Q3 2014.
Adjusted EBITDA – $21.2 million resulting in an 18.4% profit margin.
Cash and equivalents: $918 million

Renaud said in his opening remarks, “This quarter was our best quarter so far”. Clearly Lending Club had a great quarter anyway you slice the numbers. There is no sign of this consistent 100% year over year growth slowing down even as we get into much larger numbers.

As always in these calls there were some interesting nuggets of new information. Here is a random assortment of some of the highlights: [Read more…]

Lending Club Earnings Results Review – Q2 2015

Lending Club reports it's second quarter earnings and announce originations of $1.9B in Q2 up 90% from the same period last year.

August 4, 2015 By Ryan Lichtenwald 5 Comments

Image from Lending Club

Lending Club held it’s Q2 2015 earnings call today and expenses continue to be on the minds of many investors. The stock has had a steady decline since last quarter. As I reported in the last earnings release, LC closed previously at $17.58. It has since fallen to close today at 13.84. Below are some of the highlights from their earnings release as well as a review of the questions that were asked during the question and answer session.

Loss per share came in at ($0.01) for the second quarter of 2015. This is compared to EPS of ($0.16) in the same period last year. Revenue growth remains strong with $96.1 million for 2015, up from $48.6 million in the same period last year. This is an increase of 98% year-over-year. Lending Club has a strong balance sheet with cash, cash equivalents and securities available for sale totaling $888 million, with no outstanding debt.

Image from Lending Club. Click for larger view.

[Read more…]

Lending Club Earnings Results Review – Q1 2015

May 5, 2015 By Ryan Lichtenwald 3 Comments

Today Lending Club announced their first quarter earnings for 2015. The big focus on Lending Club has been rising expenses which was addressed in the call. Sales and marketing expenses as a total of originations have decreased from 2.16% to 2.04% year over year due to channel efficiency. In Q1 2015, they crossed the $1.5 billion mark in originations with over $1.6 billion for the quarter. This is an increase of 107% year-over-year with last year coming in at $791 million for the same time period. Total loan originations are sitting at $9.2 billion, which means we will see them cross the $10 billion mark next quarter.