OnDeck Sets Q2 Earnings Date And…

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.

Sean Murray is the President and Chief Editor of deBanked and the founder of the Broker Fair Conference. Connect with me on LinkedIn or follow me on twitter. You can view all future deBanked events here.