LendingClub sends shares down after lowering revenue forecasts
LENDINGCLUB has seen its share price plummet 20 per cent after lowering its revenue forecast and announcing a change in its approach to borrowers.
The US peer-to-peer lending giant reported the highest revenue in the company’s history for the third quarter, up 34 per cent to $154m (£117m), but a conference call did little to put investor nerves at ease.
The lender had lifted its revenue guidance for the full year in August’s second-quarter update to between $585m and $600m, but told investors this week that the figure would be in the range of $576m to $581m.
The platform also said its net losses would be closer to $67m, rather than the $65m previously reported for 2017.
LendingClub also said in the call that it would only be lending to the most creditworthy borrowers.
The lender reported a 24 per cent annual growth in loan originations, taking its book to $2.4bn for the quarter and more than $30bn since 2007.
“LendingClub’s strong growth and record revenue are clear indicators of our platform’s appeal to both borrowers and investors,” Scott Sanborn, chief executive of LendingClub, said.
“Responsibly helping more people get access to the credit they deserve is why we exist as a business and hitting new milestones on both sides of the marketplace is a testament to the power of our business model.”
Its shares were trading at $4.48 on the New York Stock Exchange at 16.49 GMT.
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