NYSE$LC

LendingClub Corporation · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

LendingClub's Q4 2020 results were announced, marked by increased loan originations and a reduced net loss.

LendingClub reported a net loss of $26.7 million for Q4 2020, an improvement from the previous quarter. Loan originations increased by 56% quarter-over-quarter, exceeding guidance, and the acquisition of Radius Bancorp was completed.

  • GAAP Consolidated Net Loss improved to $(26.7) million from the third quarter of 2020.
  • Origination volume increased by 56% quarter-over-quarter to $912 million, exceeding the high end of guidance.
  • Net Revenue was $75.9 million, down 60% compared to the same quarter last year and improving 2% sequentially.
  • Cash and cash equivalents totaled $525.0 million as of December 31, 2020.

Headline financials

Total Revenue

$75.9M

Previous: $188M-59.7%
EPS (adj)

-$0.24

Previous: $0.08-400.0%
Total loan originations

$912M

Previous: $3.08B-70.4%
Net Income

-$26.7M

Previous: $234K-11491.0%
Operating Income

-$27M

No prior period
Cash & Equivalents

$525M

Previous: $244M+115.3%

Revenue & EPS history

LendingClub · Revenue · Quarterly

$75.9M

Q4 2020-59.7%vs Q4 2019
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Revenue by segment

LendingClub · $60.9M total across 1 segment · Q3 2023

  • Marketplace revenue
    $60.9M

Forward guidance

LendingClub provided earnings guidance for Q1 2021 and Full Year 2021.

Tailwinds

  • Loan Originations: $1.2B to $1.3B (+45% YoY)
  • Net Revenue: $87M to $95M (+55% YoY)
  • Loan volumes and revenue reflecting continued growth

Headwinds

  • GAAP Consolidated Net Loss (Q1 2021): ($75M) to ($85M)
  • GAAP Consolidated Net Loss (FY 2021): ($175M) to ($200M)
  • Impacted by deferral of origination fees for loans held for investment due to accounting conventions
  • Impacted primarily by timing of earnings recognition due to growth in consumer loans held for investment (deferral of origination fees and current expected credit loss (CECL) provisions), as well as one-time acquisition costs
  • Impacted primarily by timing of earnings recognition due to growth in consumer loans held for investment (deferral of origination fees and current expected credit loss (CECL) provisions), as well as one-time acquisition costs

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 Q4 2020

Historical avgQ4 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

Earnings price reactions
QuarterReport dateReaction (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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