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Author Topic: Prosper Files 10-Q for Q2-2013

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Prosper Files 10-Q for Q2-2013
OP: August 14, 2013, 11:00:00 PM
http://www.sec.gov/Archives/edgar/data/1416265/000114036113032671/form10q.htm

Q2 2009 - Loss before other income: $2,617,400
Q3 2009 - Loss before other income: $2,289,092
Q4 2009 - Loss before other income: $2,868,908
Q1 2010 - Loss before other income: $2,747,524
Q2 2010 - Loss before other income: $2,787,434
Q3 2010 - Loss before other income: $2,404,217
Q4 2010 - Loss before other income: $2,566,804
Q1 2011 - Loss before other income: $3,097,283
Q2 2011 - Loss before other income: $2,837,560
Q3 2011 - Loss before other income: $2,837,290
Q4 2011 - Loss before other income: $3,519,037
Q1 2012 - Loss before other income: $4,690,488
Q2 2012 - Loss before other income: $3,545,603
Q3 2012 - Loss before other income: $4,448,773
Q4 2012 - Loss before other income: $4,764,596
Q1 2013 - Loss before other income: $4,516,630
Q2 2013 - Loss before other income: $16,175,000 * and **

* = Prosper is recording the entire $10million class action lawsuit settlement cost in Q2 of 2013.
** = Prosper's quarterly operating loss (not counting the $10million settlement) is over $6million which is ~30% higher than their previous record for a quarterly loss.


Prosper currently has (as of June 30th, 2013) a combined "Cash and Cash Equivalents" of $10,515,000, but this is before having made any payments for the Class Action Lawsuit settlement.

- Prosper Assets: $208,617,000 ***
- Prosper Liabilities: $202,325,000 *** (including the $10million settlement)
------------------------------------------
- Prosper Net Worth: $6,292,000

*** = Note that both Prosper's Assets and Liabilities include the ~$187million in outstanding loans.


- Compensation increased by ~$765k (~30%) between Q1 and Q2.
- Marketing increased by ~$2.3million (~147%) between Q1 and Q2.



At Prosper's current cash level and burn rate (and taking into account the first payment they will need to make for the Settlement), Prosper only has 1-2 more quarters until they will require yet another venture capital cash infusion lest they declare bankruptcy.
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N
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Prosper Files 10-Q for Q2-2013
#1: August 14, 2013, 11:00:00 PM
I'm not on Prosper, and I don't follow Prospers problems as much as others.  Maybe they are in trouble, maybe they aren't.  I'll let Prosper investors who know more about it state their opinions.

Let's see, I log onto that Prosper.org site you list, and I get this message:
The content and members of this site are not necessarily neutral, or even sensible. There is a lot of value, but also a lot of junk.
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T
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Prosper Files 10-Q for Q2-2013
#2: August 25, 2013, 11:00:00 PM
http://www.sec.gov/Archives/edgar/data/1416265/000141626513000582/ps8d08d23d2013.htm

Prosper just filed an 8-K with the SEC stating that their CFO (Kenneth Niewald) has resigned and will be replaced by Joshua P. Hachadourian.
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r
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i
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Prosper Files 10-Q for Q2-2013
#4: August 25, 2013, 11:00:00 PM
They spent $2.3 million more on marketing and advertising in Q2 than in Q1, but their total revenue had increased only by $1.7 million. Obviously, their advertising campaign has not been very effective or not effective enough. 

Marketing and Advertising: from $1.57 million in Q1 to $3.88 million in Q2;
Total Revenue: from $1.7m Q1 to $3.4m in Q2.

http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=9282976-24576-162870&type=sect&TabIndex=2&companyid=760693&ppu=%252fdefault.aspx%253fcik%253d1416265

That is probably the reason why their CFO has resigned. 

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F
  • Posts: 282
Prosper Files 10-Q for Q2-2013
#5: August 25, 2013, 11:00:00 PM
It's a 6-week tenure as PMI CFO:

On July 17, 2013, Kenneth Niewald was appointed Chief Financial Officer of PMI.
(http://www.sec.gov/Archives/edgar/data/1416265/000114036113032671/form10q.htm)


Seems nobody wanted to be the CFO:

Daniel P. Sanford resigned as SVP, Finance of PMI and as Treasurer of Prosper Funding, effective as of May 1, 2013.  On that same date, Kenneth L. Niewald was appointed to serve as Acting Chief Financial Officer of PMI and as Treasurer of Prosper Funding and was designated as the principal financial and accounting officer of both PMI and Prosper Funding.
(http://www.sec.gov/Archives/edgar/data/1416265/000114036113019880/form10q.htm)

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c
  • Posts: 227
Prosper Files 10-Q for Q2-2013
#6: August 25, 2013, 11:00:00 PM
Is it possible some accounting games are being played, the CFOs are being asked to sign fraudulent statements, and these CFOs are resigning instead so as not to end up as somebody's prison girlfriend?  Hard to imagine someone resigning after 6 weeks just because the company's not doing well.   The CFOs knew things were bad when they signed on and a few weeks is hardly enough time to make a real turnaround.

Theories aside, when is it time to pull money out of Prosper?
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h
  • Posts: 10
Prosper Files 10-Q for Q2-2013
#7: August 25, 2013, 11:00:00 PM
Prosper was in much worse shape several months ago and received a significant sum to keep operating. With the class action behind them and the industry continuing to grow rapidly, there will be plenty of VC funding available. Investors see a disruptive industry and a potentially lucrative IPO on the horizon -- which, by the way, does not depend on the company being profitable. You can argue that is illogical, but that's the reality of start-ups. Look at Amazon, they still don't make money consistently.

Xenon has a hobby horse, a bone to pick for some reason, and I wouldn't stop investing based on his forum posts.
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D
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n
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Prosper Files 10-Q for Q2-2013
#10: August 25, 2013, 11:00:00 PM
How do you calculate sharpe ratio for Prosper?  Or LC?
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T
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Prosper Files 10-Q for Q2-2013
#14: August 26, 2013, 11:00:00 PM
Are you willing to post those calculations in another thread Fred?
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