Lendingclub Corporation · NYSE:LC
Lendingclub — Q4 2020 Earnings Presentation
18 slides from Lendingclub's earnings presentation, Mar 10, 2021
Slide 1: Fourth Quarter & Full Year 2020 Results
Fourth Quarter & Full Year 2020 Results March 10, 2021
Slide 2: 4Q 2020 Results & Financial Metrics
4Q 2020 Results & Financial Metrics
Slide 3: Disclaimer
Disclaimer Some of the statements in this presentation, including statements regarding anticipated future financial results, are “forward-looking statements.” The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “outlook,” “plan,” “predict,” “project,” “will,” “would” and simila
Slide 4: LendingClub Platform Investors
Return of institutional investors and LendingClub Platform Investors continued limits on LC inventory in preparation for bank acquisition Platform Originations by Funding Source1 (As a % of total platform originations) 7% 17% Other Institutional 25% Investors 41% 33% Banks 68% 32% 43% Managed Accoun
Slide 5: Loan Originations & Revenue
Continued strong growth in Loan Originations & Revenue originations Quarterly Loan Originations1 Quarterly Total Net Revenue1 ($ in millions) ($ in millions) Net Investor Revenue Personal loans - standard 188.5 Other Revenue 2 Personal loans - custom Transaction Fee Revenue 3,083 33.5 Other 120.2 5.
Slide 6: Contribution
Strong contribution margin levels driven by increasing Contribution2 revenues, focused marketing to existing members, resized expense base, and strong credit performance Quarterly expenses impacting Contribution Margin1,2 Quarterly Contribution Margin1,2 ($ in millions) ($ in millions) 101.3 Origina
Slide 7: Adjusted EBITDA Margin
Achieved positive Adjusted EBITDA Adjusted EBITDA Margin2 driven by higher origination volumes Quarterly Expenses impacting Adjusted EBITDA Margin1,2 Quarterly Adjusted EBITDA1, 2 ($ in millions) ($ in millions) 62.3 59.7 Engineering & 39.0 Product 49.0 49.1 Development 24.1 23.1 43.3 18.8 18.7 16.3
Slide 8: Adjusted Net Income (Loss)
Adjusted Net Income (Loss)2 Quarterly Expenses impacting Adjusted Net Income (Loss)1 Quarterly Adjusted Net Income (Loss)1, 2 ($ in millions) ($ in millions) 32.0 31.3 26.6 27.4 7.0 26.0 Depreciation, amortization, & 15.3 13.2 other net 12.3 12.4 11.9 adjustments (23.1) (22.1) Stock-based 16.7 18.1
Slide 9: $11B servicing portfolio drove +$35M in cash from investor fees in 4Q20
$11B servicing portfolio drove +$35M in cash from investor fees in 4Q20 Servicing Portfolio Balance1 Adjusted Investor Fee Revenue2 ($ in millions) ($ in thousands) Adjusted Investor Fees % of Servicing Portfolio (Average) $16,011 $60,000 0.50% $15,975 $51,362 $13,962 $50,000 $48,471 0.45% $44,376 $
Slide 10: Earnings Guidance
Earnings Guidance 1Q21 Guidance FY21 Guidance Commentary Originations $1.2B to $1.3B +45% YoY Loan volumes reflecting (+32% to +43% QoQ) (Implied $6.3B) continued growth Impacted by deferral of origination Revenue $87M to $95M +55% YoY fees for loans held for investment (+15% to +25% QoQ) (Implied $
Slide 11: Appendix: Financial Reconciliations
Appendix: Financial Reconciliations
Slide 12: GAAP to Non-GAAP Reconciliation: Operating Expenses
GAAP to Non-GAAP Reconciliation: Operating Expenses Year Ended Dec. 31, Three Months Ended (in thousands, except percentages) (unaudited) 2018 2019 2020 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 Total net revenue $ 694,812 $ 758,607 $ 314,702 $ 174,418 $ 190,807 $ 204,896 $ 188,486 $ 120,206 $ 43,869
Slide 13: Contribution Reconciliation & Definition
Contribution Reconciliation & Definition Contribution is a non-GAAP financial measure that we calculate as net revenue less “Sales and marketing” and “Origination and servicing” expenses on the Company’s Statements of Operations, adjusted to exclude cost structure simplification, restructuring costs
Slide 14: Contribution as a Percent of Originations
Contribution as a Percent of Originations Year Ended Dec. 31, Three Months Ended (in thousands, except percentages or as noted) (unaudited) (1) 2018 2019 2020 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 Loan originations ($ mm) $ 10,882 $ 12,290 $ 4,343 $ 2,728 $ 3,130 $ 3,350 $ 3,083 $ 2,521 $ 326 $ 58
Slide 15: Adjusted Net Income (Loss), Adjusted EBITDA, and Adjusted EBITDA Margin Reconciliation
Adjusted Net Income (Loss), Adjusted EBITDA, and Adjusted EBITDA Margin Reconciliation Adjusted Net Income (Loss) is a non-GAAP financial measure defined as net income (loss) attributable to LendingClub adjusted to exclude certain items that are either non-recurring, do not contribute directly to ma
Slide 16: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation Adjusted EPS is a non-GAAP financial measure calculated by dividing Adjusted Net Income (Loss) attributable to both common and preferred stockholders by the weighted-average diluted common and preferred shares outstanding. Year Ended Dec. 31, Three Months Ended (in thousa
Slide 17: Net Cash and Other Financial Assets
Net Cash and Other Financial Assets Net cash and other financial assets is calculated as cash and certain other assets and liabilities, including loans and securities available for sale, which are partially secured and offset by related credit facilities, and working capital. Three Months Ended (in
Slide 18: LendingClub
= LendingClub