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Dec 31, 2020
LendingClub Q4 2020 Earnings Report
LendingClub's Q4 2020 results were announced, marked by increased loan originations and a reduced net loss.
Key Takeaways
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.
Forward Guidance
LendingClub provided earnings guidance for Q1 2021 and Full Year 2021.
Positive Outlook
- Loan Originations: $1.2B to $1.3B (+45% YoY)
- Net Revenue: $87M to $95M (+55% YoY)
- Loan volumes and revenue reflecting continued growth
Challenges Ahead
- 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
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Avg. Return Before/After Earnings
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