LendingClub Reports Net Income Of $27.2 Million...
LendingClub Reports Net Income Of $27.2 Million... >>> https://urlca.com/2tCXqP
Shares of LendingClub Corp. LC, +0.94% were falling more than 15% in after-hours trading Wednesday after the financial services and lending company topped expectations with the results from its latest quarter but delivered a downbeat outlook. The company posted net income of $43.2 million, or 41 cents a share, up from $27.2 million, or 26 cents a share, in the year-earlier period. The FactSet consensus was for 33 cents a share in earnings. Total net revenue increased to $304.9 million from $246.2 million, while analysts had been expecting $294.8 million. \"As we anticipated, marketplace volumes were impacted by higher funding costs for certain loan investors, driven by rapidly increasing interest rates,\" Chief Executive Scott Sanborn said in a release. \"Over time, as rates stabilize and we continue to reprice personal loans, we expect this impact to gradually moderate.\" For the fourth quarter, LendingClub executives expect $255 million to $265 million in revenue as well as $15 million to $25 million in net income. The FactSet consensus was for $280 million in revenue along with $32 million in net income.
As we continue to help our members over time, their loyalty also creates attractive economics for us, which in turn helps us deliver more savings to them, creating a virtuous cycle. This is especially true given our data advantages vertically integrated model and strong member loyalty, which enables us to capture more of the economics. All other expenses were roughly flat with last quarter. We're also pleased to see the operating leverage of our new business model reflected in our core earnings results. Net income for the quarter was $27.2 million, was up roughly 3 times sequentially. We believe that our investment in the digital bank that started almost three years ago and the financial performance we produced to date in 2021 is a great example of the power that smart investments could have on a business. We also know that it's critical for us to continue to innovate and build upon our leadership position. As such, we want to capitalize on the powerful economics of our business model and strong capital generation to invest in three areas of the business: first, building our consumer loan portfolio to grow and diversify our revenue; second, investing in marketing to drive new member and acquisitions; and three, further investing in our technology and infrastructure to build new products and services for our members. We'll provide updates as we make progress on each of these initiatives over the coming quarters. Next, let's turn to our financial outlook. Our guidance assumes continued but moderating economic growth and normal seasonality we typically see in the fourth quarter and the first quarter of each year. 781b155fdc