Title: LC Announces Q1 2017 Earnings
Post by: Rob L on May 04, 2017, 11:00:00 PM
Post by: Rob L on May 04, 2017, 11:00:00 PM
Interesting that LC announced its Q1 2017 earnings after market close yesterday and not a single mention here on the forum. That seems odd, but there were no surprises. Earnings (Losses) were (0.07) per share and in line with expectations. Originations fell slightly and have been flat for the past 4 quarters. Earnings dropped 5% quarter over quarter. The stock dropped about 5% on the news to $5.80 at 12:40 today 5/5/2017.
Their presentation is here: http://ir.lendingclub.com/file.aspx?iid=4213397&fid=1001223617
And the SEC filing is here: https://www.sec.gov/Archives/edgar/data/1409970/000140997017000544/q117exhibit991er.htm
LC's cash and equivalents on hand have dropped from $868 mm to $781 mm ($87 mm or 10%) over the past year. They dropped $22 mm over the past quarter. Pretty much all that cash on hand is a result of the LC IPO in Dec 2014.
Their presentation is here: http://ir.lendingclub.com/file.aspx?iid=4213397&fid=1001223617
And the SEC filing is here: https://www.sec.gov/Archives/edgar/data/1409970/000140997017000544/q117exhibit991er.htm
LC's cash and equivalents on hand have dropped from $868 mm to $781 mm ($87 mm or 10%) over the past year. They dropped $22 mm over the past quarter. Pretty much all that cash on hand is a result of the LC IPO in Dec 2014.
Title: LC Announces Q1 2017 Earnings
Post by: dr.everett on May 04, 2017, 11:00:00 PM
Post by: dr.everett on May 04, 2017, 11:00:00 PM
I own a chunk of LC stock- was thinking about selling off before the announcement, but a 5% swing for me isn't enough to worry about. I got in around $4 a share so there's still a nice profit for me.
Given how it seems to pretty predictably cycle I may need to start playing that aspect of it.
Given how it seems to pretty predictably cycle I may need to start playing that aspect of it.
Title: LC Announces Q1 2017 Earnings
Post by: jz451 on May 04, 2017, 11:00:00 PM
Post by: jz451 on May 04, 2017, 11:00:00 PM
After looking at the filing I find it striking that the engineering/product development costs have risen and that G&A have gone up as well. If they stayed flat year-over-year they could have saved $17 million.Makes you wonder what they are spending money to develop/engineer and where the administrative costs are going.
Title: LC Announces Q1 2017 Earnings
Post by: BruiserB on May 04, 2017, 11:00:00 PM
Post by: BruiserB on May 04, 2017, 11:00:00 PM
Title: LC Announces Q1 2017 Earnings
Post by: Fred93 on May 04, 2017, 11:00:00 PM
Post by: Fred93 on May 04, 2017, 11:00:00 PM
Title: LC Announces Q1 2017 Earnings
Post by: TravelingPennies on May 04, 2017, 11:00:00 PM
Post by: TravelingPennies on May 04, 2017, 11:00:00 PM
The cost LC pays to acquire customers seems to be rising.
The ratio of Sales and Marketing to Originations was 1.96% in 2014, 2.05% in 2015, 2.5% in 2016 and 2.8% this past quarter.
This might seem small but basis points count when talking about a couple billions of dollars.
The increase in this ratio over the past quarter alone cost the company about $5.8 mm (0.3% of $1,959 mm).
Note to nonattender: this post has no charts
The ratio of Sales and Marketing to Originations was 1.96% in 2014, 2.05% in 2015, 2.5% in 2016 and 2.8% this past quarter.
This might seem small but basis points count when talking about a couple billions of dollars.
The increase in this ratio over the past quarter alone cost the company about $5.8 mm (0.3% of $1,959 mm).
Note to nonattender: this post has no charts