LendingClub Corporation (LC - Snapshot Report) was up nearly 6% following the release of second-quarter 2015 results on Aug 4, after the market closed. Adjusted earnings of 3 cents per share significantly outpaced the Zacks Consensus Estimate of a loss of 2 cents. Moreover, earnings came in substantially above the prior-year quarter figure of 1 cent.
Results benefited from considerable growth in revenues, partly offset by escalating costs. Also, a surge in loan origination acted as a tailwind.
Net loss, on a GAAP basis, was $4.1 million or 1 cent per share compared with loss of $9.2 million or 16 cents per share in the year-ago quarter.
Performance in Detail
Total operating revenue jumped 98% year over year to $96.1 million. The rise was attributable to a drastic increase in all revenue components. Further, this compared favorably with the Zacks Consensus Estimate of $90.0 million.
Total operating expenses surged 77% year over year to $100.7 million. The upswing was caused by a rise in all expense components.
Adjusted earnings before interest, taxes, depreciation, and amortization (“EBITDAâ€) totaled $13.4 million, up significantly from $4.0 million in the prior-year quarter. Further, adjusted EBITDA margin came in at 13.9%, up from 8.2% in the year-ago quarter.
In the reported quarter, loan originations were $1.91 billion, up 90% from $1.01 billion recorded a year ago.
As of Jun 30, 2015, cash and cash equivalents were $888 million, up from $69 million as of Jun 30, 2014. Notably, the company had no outstanding debt as of Jun 30, 2015.
Further, loans grew 56% year over year to $3.64 billion as of Jun 30, 2015. Total stockholders’ equity summed $996 million, up from $137 million as of Jun 30, 2014.]
Other Developments
