Lending Club Investor Day Presentation- Guides Q4 and FY128 revenues below consensus; Shares under early pressure as they decline to test $4 support (4.25)
- Long-term plan to drive top line growth by 15-20% while expanding EBITDA margin to approx ox 20%
- Sees its penetration rate is approx 3-4% of a $300-350 bln segment.
- Estimates a $75 mln per quarter origination volume lift.
- Investor related revenue expected to be in the range of $85-90 mln, 2018 $125-145 mln
- 2017 Adjusted EBITDA Margin expected to be 7.6% at the mid-point; 2018 is 11.9% at the mid point.
- Increasing revenue yield from Program Fees, Gain on Sale, and Net Interest Margin expanding total revenue yield in 2018.
- Q4 Guidance
- Net Revenue $155-160 mln, Capital IQ consensus $163 mln
- GAAP Net Income ($10 mln)-($6 mln)
- Adjusted EBITDA $16-20 mln
- Volumes in line now expect a ($3M) timing impact to both our Revenue & EBITDA from holding the residual from our recent securitization.
- 2018 Guidance
- Net Revenue in the range of $680-705 mln, Capital IQ consensus $734 mln
- GAAP Net Income ($53 mln)-($38 mln)
- Adjusted EBITDA $75-90 mln
- Adjusted EBITDA Margin 11.9% in mid range
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