LendingClub Corp. (NYSE:LC) Monday reported a smaller-than-expected loss and said it stopped needing incentives to attract customers. The stock jumped as much as 17.54 percent to $6.03 in the early trading, but it has tumbled 54 percent this year.
Online leading platform operator reported a loss of $36.5 million, or 9 cents a share, in the third quarter, compared with a profit of $950,000, or roughly break-even on a per-share basis a year earlier. Excluding certain items, the company posted a loss of 4 cents per share. Analysts had projected a loss of 7 cents per share. Total revenue fell 1.5 percent to $114.6 million from $116.3 million, beating analysts’ estimates of $103.7 million.
“While we’ve made incredible progress, there is still work to be done,” Chief Executive Scott Sanborn said Monday. Loan originations, a key metric for the company, fell 11.8 percent to $1.97 billion in the third quarter ended Sept.30. The company spent about $11 million in incentives and it said it didn’t need it since September.
“We actively reengaged with investors of all types to deliver on our plan and enable $2 billion in loan originations,” said Chief Executive Scott Sanborn. “In the months ahead we are focused on increasing the diversity and resiliency of our funding mix, realigning our resources, and regaining our operating rhythm.”
For the current quarter, the company now expects revenue of between $116 million to $123 million and a loss of between $48 million to $38 million.