Prosper Files 10-Q for Q2-2014

[Xenon481]

http://www.sec.gov/Archives/edgar/data/1416265/000114036114032894/form10q.htm" class="bbc_link" target="_blank">http://www.sec.gov/Archives/edgar/data/1416265/000114036114032894/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 **
Q3 2013 - Loss before other income: $5,375,000
Q4 2013 - Loss before other income: $3,146,000
Q1 2014 - Loss before other income: $2,465,000
Q2 2014 - Loss before other income: $95,000

* = Prosper recorded the entire $10million settlement cost in Q2 of 2013.
** = Prosper's Q2 2013 quarterly operating loss (not counting the $10million settlement) is $6,175,000.


- Q2-2014 is Prosper's lowest quarterly loss since their inception
- Prosper was able to increase (Q1 to Q2) their Originations Fees by ~90% while only increasing their total expenses by ~50%
- Compensation and Benefits was ~35% (~$1.4million) higher in Q2-2014 than it was in Q1-2014
- Marketing/Advertising/Rebates/Promotions costs were ~50% (~$3.3million) higher in Q2-2014 than it was in Q1-2014


It has always been my (and many others') opinion that many/most of Prosper's problems stemmed from the original management and public relations teams through their decisions to repeatedly alienate the community of lenders, their inability to react to constructive criticism like professionals, and their inability to structure their business in a scalable manner.

The new ownership/management team seems to have been able to clean house and root out much of the toxicity that came from the original management group; and through this have been able to find a way to properly scale their business model, putting themselves on the verge of positive quarterly cashflow/profitability.

[Peter]

Thanks Xenon. Very happy to see you continue your quarterly numbers update for Prosper. It was a very impressive performance from Prosper in the last quarter.