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LendingClub Posts Third Straight Quarterly Loss

February 14, 2017

Online lending platform operator LendingClub reported its third straight quarterly loss, largely due to higher costs.

The company also forecast net revenue for the current quarter at between $117 million and $122 million. Analysts on average were expecting revenue of $132.29 million.

Shares of the company, which matches borrowers and lenders via an online marketplace, were down 5% in after-hours trading.

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Loan originations, a metric indicating the number of new loans processed, fell nearly 23% to $1.99 billion in the fourth quarter.

Up to Tuesday’s close, LendingClub’s (LC) shares fell nearly 6% since May, when its high-profile chief executive, Renaud Laplanch, resigned following an internal review that revealed a violation of the company’s business practices.

Since then, the company, which is already facing a weak investor appetite for its loans, has been trying to gain its share back in the market.

The Peer-to-Peer Lending Industry Doesn’t Look Good

Excluding items, the company posted a loss of 2 cents per share, a cent less than the average analyst expectation, according to Thomson Reuters.

The company reported a net loss of $32.27 million, or 8 cents per share, for the quarter ended Dec. 31, compared with a profit of $4.57 million, or 1 cent per share, a year earlier.

Total net operating revenue fell 3.9% to $129.20 million. Analysts on average had expected $121.90 million.