LendingClub reported another quarterly loss because of an impairment tied to a business it acquired in 2014 and costs stemming from lingering regulatory and legal matters.
Its second-quarter loss widened to $60.8 million, or 14 cents per share, compared with a loss of $25.5 million in the same period last year, the marketplace lender said in a news release Tuesday.
The results included $35.6 million of goodwill impairment related to LendingClub’s health care and education finance unit.
In April 2014, LendingClub paid $140 million to
The second-quarter results also included $18.5 million of legal and regulatory expenses connected to the events that led to then-CEO Renaud Laplanche’s departure in May 2016. Laplanche's ouster was prompted in part by the discovery that certain loan information that the firm provided to a loan buyer had been falsified.
The marketplace lender is facing fresh regulatory issues, too. In April, the Federal Trade Commission sued the company, claiming it
Without the one-time items, LendingClub’s quarterly loss would have been $6.7 million.
In spite of the elevated expenses, CEO Scott Sanborn touted LendingClub’s overall loan growth. Total revenue rose 27% to $177 million. Loan originations increased 31% to $2.8 billion.
“Our core business is firing on all cylinders,” Sanborn said in the news release. “We are laser-focused on the direct-to-consumer opportunity as we help our members on the path to financial success.”
Total operating expenses rose 44% to $237.8 million on the one-time charges, as well as higher sales and marketing costs and loan origination and servicing expenses.
LendingClub on Tuesday estimated that it will lose between $10 million and $15 million in the third quarter, on net revenue of between $175 million and $185 million. For the full year, LendingClub expects to record a loss of between $109 million and $124 million, on revenue of $680 million to $705 million.
