By Josh Beckerman
LendingClub Corp., in its first earnings report after its
initial public offering, said it swung to a loss in the
fourth-quarter, revenue more than doubled and that it has strong
momentum for 2015.
The company's share price, however, fell sharply in late
trading.
LendingClub's online marketplace connects borrowers with lenders
for a fee. It doesn't lend any money itself.
LendingClub said loan originations were $1.415 billion, up from
$698 million a year earlier.
The company said 2015 "is going to be another investment year,
and we intend to continue growing originations and revenue at a
fast, yet deliberate pace."
It projected operating revenue of $370 million to $380 million
for the year. Analysts polled by Thomson Reuters expect $375
million.
The company went public in December at $15 a share, above an
estimated price range of $12 to $14. The shares closed at $23.43 on
their first day of trading. But on Tuesday, the stock was down 9.5%
to $21.40 in late trading.
For the period ended Dec. 31, LendingClub posted a loss of $9
million, or seven cents a share, compared with a profit of $2.9
million, or break-even on a per-share basis, a year earlier.
Excluding items, the company had a profit of one cent per share in
the latest reporting period. Revenue rose to $68.1 million from
$33.5 million.
Analysts polled by Thomson Reuters had projected earnings of one
cent a share on revenue of $67 million.
Nonbank lenders have drawn strong investor interest. OnDeck
Capital went public in December. Social Finance Inc., which is
expected to file for an IPO this year, recently added personal
loans to its product offerings of student-loan refinancing and
mortgages. Oportun Inc., a lender focused on Hispanic customers,
recently completed a $90 million financing round.
So far this year, LendingClub has announced partnerships with
two of the world's largest companies-- Google Inc. and Chinese
e-commerce giant Alibaba Group Holding Ltd.--as well as with
BancAlliance, a consortium of about 200 community banks.
Write to Josh Beckerman at josh.beckerman@wsj.com
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