NYSE$LC
LendingClub Corporation · Q3 2020 earnings
Q3 2020 earnings · · Investor relations
Briefing
LendingClub's Q3 2020 results reflected an increase in origination volume and related transaction fees, alongside improved cost efficiency. The company grew cash and cash equivalents and significantly reduced leverage.
LendingClub reported a GAAP Consolidated Net Loss of $(34.3) million for Q3 2020, an improvement of $44.2 million compared to the previous quarter. Loan originations increased by 79% sequentially, and net revenue improved by 70% sequentially.
- Loan originations of $584.1 million, up 79% sequentially.
- Net Revenue of $74.7 million, up 70% sequentially.
- GAAP Consolidated Net Loss of $(34.3) million ($(0.38) per share attributable to common stockholders).
- Adjusted EBITDA of $4.3 million, up 116% sequentially.
Headline financials
Revenue & EPS history
LendingClub · Revenue · Quarterly
$74.7M
Revenue by segment
LendingClub · $7.74M total across 1 segment · Q3 2020
- Gain on sales of loans$7.74M—100.0%
Forward guidance
LendingClub is focused on long-term success by strengthening its business post-COVID. The acquisition of Radius Bank remains a top strategic priority.
Tailwinds
- Employees remain engaged and they continue to serve our members effectively.
- We grew cash and cash equivalents to $445.2 million from $338.4 million at the end of the second quarter through a combination of cash flows from operations and additional loan sales.
- During the third quarter, we also fully paid off our $70.0 million revolving credit facility and paid down other debt facilities by approximately $290 million, significantly reducing leverage and further strengthening our balance sheet.
- Delinquencies are coming in lower than we had anticipated, and the strong performance of our loans is contributing to increased investor demand.
- Early data on our post-COVID vintages indicates IRRs of 5 to 6% reflecting our focus on marketing to our large base of existing members, tighter underwriting and increased loan pricing.
Headwinds
- There is uncertainty about the economic outlook in the near-term.
- GAAP Consolidated Net Loss of $(34.3) million primarily reflected an 83% year-over-year decrease in loan origination volumes
- This primarily drove an 85% decline in transaction fees year over year.
- Net interest income decreased due to loan sales.
- Adjusted EBITDA Margin of 5.8%, down 13.7 percentage points year-over-year
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q3 2020
+0.6%
Avg return
Earnings day
+3.3%
Avg return
5 days after
+1.9%
Avg return
30 days after
51%
23 / 45 earnings
Positive
+50.7%
Q2 2021
Best reaction
-42.3%
Q1 2016
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -1.8% | -0.7% | -0.9% | |
| Q4 2025 | -16.2% | -17.7% | -23.8% | |
| Q3 2025 | +9.7% | +9.1% | -1.3% | |
| Q1 2025 | -11.3% | -6.4% | -8.9% | |
| Q4 2024 | -14.3% | -23.0% | -24.0% | |
| Q3 2024 | +11.5% | +14.8% | +34.9% | |
| Q2 2024 | +12.4% | -4.4% | +8.9% | |
| Q1 2024 | +15.2% | +18.8% | +13.3% | |
| Q4 2023 | +0.2% | +0.4% | -9.9% | |
| Q3 2023 | -5.8% | -4.7% | +5.5% | |
| Q2 2023 | -20.6% | -17.1% | -32.5% | |
| Q1 2023 | -0.6% | +2.4% | +13.7% | |
| Q4 2022 | -10.4% | +9.1% | +6.5% | |
| Q3 2022 | -10.5% | -9.7% | -10.4% | |
| Q2 2022 | -2.6% | -2.2% | -2.9% | |
| Q1 2022 | +17.9% | +13.4% | +13.0% | |
| Q4 2021 | -26.1% | -12.9% | -12.9% | |
| Q3 2021 | +21.2% | +37.2% | +2.8% | |
| Q2 2021 | +50.7% | +61.9% | +80.3% | |
| Q1 2021 | +6.9% | +0.8% | +2.1% | |
| Q4 2020 | +14.6% | +53.3% | +41.4% | |
| Q3 2020 | +3.7% | +5.0% | +65.1% | |
| Q2 2020 | +5.2% | +7.8% | +5.4% | |
| Q1 2020 | -17.5% | -16.7% | -13.7% | |
| Q4 2019 | -1.4% | -1.1% | -28.2% | |
| Q3 2019 | +7.4% | +7.6% | -7.1% | |
| Q2 2019 | +9.4% | +12.5% | +0.4% | |
| Q1 2019 | +7.7% | +6.3% | -11.9% | |
| Q4 2018 | -5.3% | -12.1% | -15.7% | |
| Q3 2018 | +5.7% | -0.6% | -9.2% | |
| Q2 2018 | -7.1% | -6.8% | -8.1% | |
| Q1 2018 | +24.5% | +21.6% | +28.6% | |
| Q4 2017 | -1.3% | -15.2% | -8.4% | |
| Q3 2017 | -21.5% | -26.5% | -38.6% | |
| Q2 2017 | +23.8% | +11.3% | +17.9% | |
| Q1 2017 | -4.8% | -2.5% | -7.3% | |
| Q4 2016 | -5.8% | -15.7% | -17.8% | |
| Q3 2016 | +12.3% | +19.7% | +14.2% | |
| Q2 2016 | +0.8% | +13.7% | +13.9% | |
| Q1 2016 | -42.3% | — | — | |
| Q4 2015 | +8.1% | — | — | |
| Q3 2015 | +1.3% | — | — | |
| Q2 2015 | +0.4% | — | — | |
| Q1 2015 | -1.0% | — | — | |
| Q4 2014 | -13.7% | — | — | |
| Q3 2014 | — | — | — | |
| Q2 2014 | — | — | — | |
| Q1 2014 | — | — | — | |
| Q4 2013 | — | — | — | |
| Q3 2013 | — | — | — | |
| Q2 2013 | — | — | — | |
| Q1 2013 | — | — | — | |
| Q4 2012 | — | — | — |
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