T. H. Data Flash – Lending Club Corporation – 2Q16: Lending Club’s 2Q16 Revenue May be Below Consensus; but Recovery Seems to be Slow

  • Date: Jul 12, 2016
  • T. H. Data Flash – Lending Club Corporation – 2Q16: Lending Club’s 2Q16 Revenue May be Below Consensus; but Recovery Seems to be Slow

2Q16 is likely to come in below consensus expectation – According to our
proprietary data, Lending Club’s loan originations are likely to decline 20.1% Y/Y
and 44.4% Q/Q to about $1,528M (Figure 1), along with the decline of loan
origination volume. The decline in loan origination amount is below the company
expectation of one-third Q/Q decline. As such, the Street expects its 2Q16 topline
to decline 27.3% Q/Q or $110.65M, which we believe could be too optimistic.
However, after the low during the week of May 30 to June 5, 2016, our data shows
that the situation has been improving since then (Figure 2), but the improvement is
slow.

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