LendingClub posts surprise profitShares of online personal loans company LendingClub pop to their highest price since November 2017, closing up 47% last week on the back of a surprise Q2 profit.
LendingClub gave investors a look at how its second quarter went, and what they saw sent the stock soaring up over 47% on Thursday to a three year high. The fintech company shredded its guidance and turned a corner on profitability, reporting earnings per share of $0.09 compared to expectations of a loss of $0.40 and up from a $0.87 loss per share in the same period a year ago. Revenue was up a whopping 204% at $204.4 million from the $40.4 million it reported last year, exceeding expectations of $130.2 million. The surprise profit is expected to continue into the third quarter, and guidance called for a net income of between $10 million and $15 million.
said Scott Sanborn, LendingClub's CEO.
The earnings cover LendingClub’s first full quarter since it became a bank in February following its $185 million acquisition of Radius, the first fintech takeover of a regulated U.S. bank ever. The deal gives the fintech company cheaper and more stable access to funding.