Another strong quarter for the US market’s largest marketplace Lender.
Loan originations were $2.24 billion, compared to $1.17 billion in the same period last year, an increase of 92% year-over-year. The company has extended $5.7 billion of loans in 2015, compared to $ 2.9 billion in the same period during 2014, a rise of 95%. Since inception, Lending Club has facilitated loans for over $13.4 billion.
Operating revenue was $115.1 million, compared to $56.5 million in the same period last year, an increase of 104%. Operating revenue as a percentage of origination was 5.15%, up from 4.85% in the previous year. Considering operating revenue from the beginning of the year, the company registered $292.2 million, an increase of 103% in the same period last year.
The announcement follows on from a number of recent developments at the platform: the release of a new business line of credit product; the launch of Lending Club Open Integration, a tool that facilitates investments in the platform; targeted retail investors in nine new states during last quarter.
“We had another spectacular quarter, with revenue growth re-accelerating from 98% to 104%, and EBITDA jumping 181% year-over-year to reach 18.4% margin. With over 1.2 million customers, continuously high customer satisfaction, strong credit performance, increased marketing efficiency and lower customer acquisition costs, we are continuing to observe tremendous network effects and benefits of scale.”
The future seems bright. According to the platform, operating revenues for Q4 2015 are expected to be in the range of $128 million to $130 million, up from the previous range of $122 million to $124 million. For the full year, they are forecasted in the range of $420 million to $422 million, up from the previous range of $405 million to $409 million. Adjusted EBITDA for the last quarter of the year will be in the range of $19 million to $21 million, up from the previous figures of $13 million to $15 million. For the whole 2015, adjusted EBITDA is expected in the range of $64 million to $66 million, up from $49 million to $53 million previously.
“Our results this quarter combined with our raised Q4 outlook lead us to forecast a near doubling of revenue again this year and look toward 2016 with high confidence.”
These figures fly in the face of the so-called “Madden vs. Midland” controversy. Without entering into too much detail, the Madden case may oblige non-bank lenders to comply with specific interest caps. Lending Club has stated that in a “worst-case scenario” around 12.5% of the platform’s loans may exceed the caps and might have to be repriced lower in the future. The controversy does not seem to have had any immediate impact on the platform’s performance, or to have hampered the confidence of its borrowing and lending community, but it will doubtless be carefully monitored going forward.
AltFi is returning to Amsterdam for its second annual Summit in the city. The inaugural event last year was a roaring success, with key figures from across Continental Europe's alternative finance and digital banking sectors highlighted. These included Jeroen Broekema, managing director of Funding Circle Netherlands, and Mieke van Engelen, head of innovative partnerships at ABN AMRO's standalone lending platform, New10.