LendingClub (LC) Misses Q2 EPS by 9c, Revenues Miss

August 4, 2020 5:33 PM EDT

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LendingClub (NYSE: LC) reported Q2 EPS of ($0.60), $0.09 worse than the analyst estimate of ($0.51). Revenue for the quarter came in at $43.9 million versus the consensus estimate of $58.22 million.

  • Net Revenue – Net Revenue in the second quarter of 2020 was $43.9 million, down 77% compared to the same quarter last year.
  • GAAP Consolidated Net Loss – GAAP Consolidated Net Loss was $(78.5) million for the second quarter of 2020, compared to $(10.6) million in the same quarter last year.
  • Adjusted EBITDA – Adjusted EBITDA was $(27.6) million in the second quarter of 2020, compared to $33.2 million in the same quarter last year.
  • Adjusted Net Loss – Adjusted Net Loss was $(54.3) million in the second quarter of 2020, compared to $(1.2) million in the same quarter last year.
  • Contribution – Contribution was $21.4 million in the second quarter of 2020, compared to $99.6 million in the same quarter last year, with Contribution Margin of 48.8% compared to 52.2% in the same quarter last year.
  • Earnings Per Share (EPS) – Basic and diluted EPS attributable to common stockholders was $(0.87) in the second quarter of 2020, compared to basic and diluted EPS attributable to common stockholders of $(0.12) in the same quarter last year.
  • Adjusted EPS – Adjusted EPS was $(0.60) in the second quarter of 2020, compared to Adjusted EPS of $(0.01) in the same quarter last year.
  • Net Cash and Other Financial Assets – As of June 30, 2020, Net Cash and Other Financial Assets totaled $564.1 million compared to $690.7 million as of June 30, 2019.

Commenting on the quarter, CEO Scott Sanborn said, "In the current challenging environment, we have remained focused on the things we can control and are successfully executing against our strategic priorities. We are pleased with our ability to maintain strong levels of liquidity, are encouraged by the payment behavior of our members and the resilience of the loan portfolio and remain focused on the acquisition of Radius Bank." He continued, "Approximately two-thirds of members who enrolled in our hardship plans have successfully exited the deferral period and resumed full payment. This demonstrates the willingness of our members to repay their loans and is supporting the early re-engagement of loan investors back onto the platform."

Second Quarter 2020 Financial Highlights

Commenting on financial results, Tom Casey, CFO of LendingClub, said: "As anticipated, origination levels decreased in line with our expectations, reflecting the economic impact of COVID-19 on our investors, our decision to tighten underwriting and our decision to pause capital markets activities to preserve liquidity as we work towards completing the Radius acquisition. We feel good about the actions we have taken to align our operating cash expenses with revenue, maintain our liquidity, and increase our cash position in the quarter."

For earnings history and earnings-related data on LendingClub (LC) click here.



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