LendingClub Advances on First Profit Since IPO, Revenue Outlookby
Profit of $950,000 compares with $7.37 million loss in 3Q14
Finance chief Dolan says LendingClub sees `strong momentum'
LendingClub Corp. rallied in New York trading after the company that helps investors fund personal loans over the Internet reported its first profitable quarter as a public company and lifted its revenue forecast.
The so-called peer-to-peer lender advanced 82 cents, or 6 percent, to $14.44 at 9:46 a.m. Shares had declined 46 percent for the year through Thursday.
Third-quarter net income was $950,000 and compares with a loss of $7.4 million in the year-earlier period, the San Francisco-based company said in a statement Thursday after the close of regular trading in U.S. markets. Operating revenue for 2015 will probably be $420 million to $422 million, Lending Club said, raising its forecast from the prior range of $405 million to $409 million.
“We head into the fourth quarter with strong momentum and the confidence to raise our outlook,” Chief Financial Officer Carrie Dolan said in the statement. “We remain excited by the opportunity that lies ahead and will continue to invest in product, automation, risk management and channel development.”
LendingClub raised $1 billion in December in its initial public offering, the first for a peer-to-peer lender. The company sold shares for $15 in the IPO.