OnDeck Sets Q2 Earnings Date And…July 14, 2016 | By: Sean Murray
OnDeck has one thing going for it when it releases its Q2 earnings on August 8th, the fact that the market seems to be anticipating bad news at every turn for the marketplace lending industry right now. A large drop in Q2 origination volume, if that is in fact what they report, would probably just serve as a confirmation of what everyone is already expecting.
OnDeck has already stopped referring to themselves as a technology company, a classification that likely propelled their IPO. Back in January, company CEO Noah Breslow said in a CNBC interview that OnDeck was actually a “non-bank commercial lender.” And after their first truly disappointing quarter, the company’s stock price has come down to a more sober level. It closed at $5.29 on Wednesday, down 74% from the IPO price and down 80% from the all time high.
With a good deal of doubt presumably already priced in, investors may look for reasons to be optimistic in Q2 even if the results are unfavorable overall.
A report circulated by Compass Point’s Michael Tarkan last month said that, “credit is holding up well, and the OnDeck-as-a-Service platform opportunity remains attractive.” Though it also added “overall profitability remains distant and tangible book value should continue to move lower.”
The earnings call on August 8th will take place after the market closes.Last modified: July 14, 2016
Sean Murray is the founder of deBanked, an 11-year veteran of the merchant cash advance industry, a casual Lending Club and Prosper note investor, the co-founder of Daily Funder, an alternative lending speaker, consultant, writer, and enthusiast. Connect with me on LinkedIn or follow me on twitter.