On Deck Capital (ONDK) Misses Q4 EPS by 4c, Revenues Miss; Provides Q1 & FY20 Revenue Outlook

On Deck Capital (NYSE: ONDK) reported Q4 EPS of $0.05, $0.04 worse than the analyst estimate of $0.09. Revenue for the quarter came in at $111.7 million versus the consensus estimate of $112.06 million.

"Our fourth quarter closed out a year of significant progress at OnDeck, highlighted by solid growth in US lending, advancement of our strategic initiatives and improved capital efficiency," said Noah Breslow, chief executive officer. "In 2019, we grew average loans and finance receivables 15%, expanded ODX, our platform-as-a-service business, combined with a leading on-line small business lender in Canada and repurchased 14% of our outstanding shares. We enter 2020 well-positioned to further expand the core US lending business, scale our international operations to profitability, drive value in the ODX platform and advance our efforts to obtain a bank charter, while increasing earnings per share and return on shareholders' equity."

GUIDANCE:

On Deck Capital sees Q1 2020 revenue of $110-115 million, versus the consensus of $113.72 million.

On Deck Capital sees FY2020 revenue of $465-485 million, versus the consensus of $468.09 million.

OnDeck provided the following financial guidance for full-year 2020:

• Gross revenue of $465 million to $485 million,
• Net income of $25 million to $35 million,
• Adjusted Net Income of $25 million to $35 million.

Full-year 2020 financial guidance assumes the following trends relative to full-year 2019:

• Low-teens portfolio growth rate,
• Slight compression in Net Interest Margin reflecting a lower Portfolio Yield and increased leverage partially offset by a lower cost of funds,
• Higher Provision for credit losses driven by portfolio growth,
• Improved operating leverage,
• An Effective Tax Rate of approximately 30%, excluding an estimated $10 million valuation allowance release in the fourth quarter of 2020, and
• The repurchase of approximately $30 million of our common stock spread evenly over the year.

Additionally, OnDeck provided the following financial guidance for the first quarter of 2020:

• Gross revenue of $110 million to $115 million,
• Net Income of $1 million to $5 million, and
• Adjusted Net Income of $3 million to $7 million.

The financial guidance for 2020 assumes the macro-economic, small business lending and capital market environments remain steady throughout the year, with mild US economic softening commencing in 2021.

For earnings history and earnings-related data on On Deck Capital (ONDK) click here.

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• JD.com (JD) Reiterated at Buy by Benchmark Amid Earnings Recovery
• Silexion Therapeutics (SLXN) Tops Q2 EPS by 793c