LendingClub Corporation (NYSE: LC), through its wholly-owned subsidiary LendingClub Bank, manages a digital marketplace bank in the United States. The platform allows users to shop and access a wide range of financial products and services aimed around affordable loans. Shares of the consumer lending company are rallying 34% through early trading on Thursday, October 28, 2021. Over the past three months, LendingClub has seen average daily volume of 2.74 million shares. However, volume of 6.62 million shares or dollar volume of $284.99 million, has already exchanged hands through early trading on Thursday.
Shares of LendingClub are gaining Thursday, after the company reported third quarter 2021 financial results for the period ending September 30, 2021. The consumer lending platform reported record revenue of $246.2 million, which represents sequential growth of 20%. The company also reported record net income of $27.2 million or earnings per share of $0.26, which was growth of 190% sequentially.
As a result of the strong financial results, LendingClub raised its full year 2021 financial outlook. On a total revenue basis, LendingClub now estimates full-year 2021 revenue to come in between $796 million and $806 million. Previously, the company’s prior full year 2021 guidance for revenue was between $26 million and $46 million.
The lending company is also raising guidance on loan originations. LendingClub now estimates full year 2021 loan originations to come between $10.1 billion and $10.3 billion. Previously, LendingClub’s range was $100 million to $300 million.
On a less-positive note, the company did say there were some items and adjustments that are impacting net income. Despite the record net income, management says they were negatively impacted by $51.5 million worth of items, including: $34 million of Current Expected Credit Loss and $17.5 million in net revenue deferrals. LendingClub says these two item reduced its EPS by $0.49 during the third quarter.
“Our strong revenue and earnings growth trajectory has become evident following our transformation into a digital marketplace bank,” said Scott Sanborn, LendingClub’s CEO. “Our success continues to be driven by our competitive advantages, including our growing base of 3.8 million members, our exceptional data science capabilities, and our proven marketplace model. With our enhanced operating leverage, digital first infrastructure, and the ongoing move of consumers toward online banking, there’s no better time to grow a next generation digital bank like LendingClub.”
Disclosure: Neither Spotlight Growth nor its officers have any position or relationship with any companies mentioned in this article. No payment was made to create this article. This article should not be taken as a solicitation or recommendation to buy or sell any securities. Please conduct your own research and consult your financial advisor to determine your risk tolerance and investment path. We are not licensed brokers or investment advisors.