By Guglielmo de Stefano on 23rd February 2016
Originations grew to $557 million during the fourth quarter of 2015, up 51% from the comparable prior year period.
Online lender for small businesses OnDeck today announced its Q4 2015 and full year 2015 financial results. For the last quarter of last year, the company highlights record originations, record gross revenue and strong credit performance. Gross revenue was a record $67.6 million, up 34% from the prior year period. Net revenue was $42.3 million, up 67% from the same period last year. Adjusted EBITDA was $0.3 million, compared to $0.6 million in the prior year. Finally, adjusted net loss was $1.1 million, compared to $0.8 million in the same period last year.
Investors, however, do not seem satisfied with the company's performance and forward guidance. Shares were heavily sold in brisk trading with the stock closing down almost 20% on the day at $7.05. That is some 65% lower than the level at which the shares were priced at IPO in Decemeber 2014.
The company closed 2015 (twelve month ended December 31) with a net loss of $2.23 million, compared to a net loss of $18.71 million in the same period last year. OnDeck's CEO Noah Breslow commented:
"OnDeck delivered a strong performance during the fourth quarter of 2015, achieving several key strategic and financial milestones and wrapping up a year where we solidified our leadership in online small business lending and achieved record financial results,"
During Q4 2015, OnDeck announced a strategic relationship with JPMorgan Chase and signed an agreement which involves the platform helping the bank to address the needs of its c. 4 million small business customers through the use of the OnDeck Score and OnDeck's integrated technology platform.
“OnDeck announced a strategic relationship with JPMorgan Chase, through which the OnDeck Score and OnDeck's integrated technology platform will help underwrite and service loans to qualified Chase small business customers. We believe these achievements validate OnDeck's expertise in online small business lending, reinforce our market leadership and position our company well for continued high quality growth in the years to come."
2015 was a crucial year for the company, also because it started its operations in Australia, looking to provide Australian small businesses with the ability to access working capital quickly and easily. To highlight its commitment down under, OnDeck is the main sponsor of the inaugural AltFi Australasian Summit 2016 in Sydney on February 29th. At the event the OnDeck boss will be giving attendees an overview of key developments in the global and Australasian non-bank lending market and, will be exploring how online lending is likely to evolve in the foreseeable future.
OnDeck provided guidance for the three months ending March 31, 2016 and full year ending December 31, 2016. For the first quarter of 2016, gross revenues are expected between $66 million and $69 million, with adjusted EBITDA between negative $3 million and negative $5 million. Full year 2016 gross revenues are forecasted between $320 million and $328 million, assuming year-over-year growth in total originations of between 45% to 50% and marketplace sales between 35% and 45% of term loan originations. Total adjusted EBITDA is expected to be between $10 million and $14 million.
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.