LendingClub Corp (NYSE:LC) Posts Record Q3 2017 Revenue Of $154 Million


LendingClub Corp (NYSE:LC) issued financial report for the third quarter closed September 30, 2017 and released guidance for Q4 2017. The company recorded the highest revenue of $154 million in the firm’s history, a jump of 34% YoY. Annual growth in originations surged 24% to more than $2.44 billion, led by robust borrower demand. Net revenue in Q3 2017 came at $154 million, up 10% from Q2 2017 and up 34% over the comparable quarter last year, led mainly higher loan origination volumes.

The highlights

LendingClub reported that in Q3 2017 GAAP net loss narrowed by nearly $19 million from Q2 2017 to ($6.7) million. Adjusted EBITDA came at $20.9 million; about 5 times the level of the Q2 2017. On the operational front, the company recorded borrowers of more than 2 million on the marketplace. It introduced fifth-generation credit model, improving capabilities to provide borrowers responsible and fair access to credit. The company deployed the second self-sponsored securitization and backed directly for the first time, adding 10 new investors in the quarter.

Scott Sanborn, the CEO of LendingClub, expressed that the company’s record revenue and strong growth are clear indicators of their platform’s appeal to both investors and borrowers. Responsibly helping more folks acquire access to the credit they merit is why they exist as a business and achieving new milestones on both aspects of the marketplace is a proof to the power of their business model.

Tom Casey, the CFO of LendingClub, expressed that they are witnessing operating leverage as they continue to invest and scale in lowering friction and creating efficiency in their products. They closed their third quarter with adjusted EBITDA of $20.9 million, expanding the margin by more than 10 points. Loan originations in Q3 2017 came at $2.44 billion, up 14% from Q2 2017 and up 24% over the comparable quarter last year.

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