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Mar 31, 2021
LendingClub Q1 2021 Earnings Report
LendingClub's financial performance for Q1 2021 was reported, revealing substantial revenue growth and strategic advancements following the acquisition of Radius.
Key Takeaways
LendingClub Corporation reported a strong start to 2021, marked by a 40% sequential increase in total revenue and significant growth in loan originations. The acquisition of Radius, now LendingClub Bank, has begun to yield strategic and financial benefits, contributing to a new revenue stream and reduced funding costs.
Total revenue increased by 40% sequentially, driven by loan origination growth.
Net interest income reached $18.5 million, a significant rise from $2.9 million in the previous quarter.
LendingClub successfully transitioned all new personal loan originations through LendingClub Bank, reducing issuing fees.
The company retained $344 million of personal loans, creating a recurring revenue stream.
Forward Guidance
LendingClub raised its full year targets, expecting continued growth in loan originations and revenue.
Positive Outlook
- Loan originations are projected to be between $1.7 billion and $1.9 billion for the second quarter of 2021.
- Full year loan originations are expected to range from $6.8 billion to $7.3 billion.
- Total revenue is forecasted to be between $130 million and $140 million for the second quarter of 2021.
- Full year total revenue is anticipated to be between $500 million and $530 million.
- Consolidated net loss is projected to be between $40 million and $30 million for the second quarter of 2021.
Challenges Ahead
- Consolidated net loss is expected to be between $167 million and $142 million for the full year 2021.
- Uncertainty remains regarding the outcomes of governmental investigations and pending litigation.
- The company faces risks related to management changes and retaining key personnel.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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