On January 26, 2022, LendingClub Corp. (LC) declared its financials for Q4 and the full year 2021. Consequently, the stock suffered a huge blow in the after hours.
During regular trading, the stock fluctuated between a high of $23.84 and a low of $22.10. LC stock closed the session at $22.50 with a gain of 4.41% at 7.33 million shares. Following the announcement, LC stock reversed and fell down to $19.36 after-hours. Hence, losing 13.96% at an after-hours volume of 976.85K shares.
The San Francisco-based loan and financial services provider, LendingClub Corp. (LC) was founded in 2006. Currently, the company has a market capitalization of $2.15 billion with 99.78 million shares outstanding.
LC’s Q4 Financials
In the fourth quarter of 2021, the company reported a revenue of $262.2 million, an increase of 7% quarter over quarter.
Moreover, the net income in Q4 of 2021 was $29.1 million with $0.27 earnings per diluted share. Thus, showing a sequential increase of 7%. quarter over quarter.
Additionally, the net income of the quarter suffered from a negative impact of notable items of $56.6 million. Resultantly, earnings per share decreased by $0.53 in Q4 of 2021.
The full Year 2021 Results
For the full year 2021, LC’s reported revenue was $818.6 million, showing an increase of 157% year over year.
Furthermore, the company had a net income of $18.6 million in 2021, against a net loss of $187.5 million in the previous year. Thus, achieving GAAP profitability in 2021.
LC’s Financial Outlook
In addition, the company also provided guidance for its upcoming Q1 and full-year 2022.
Q1 2022
According to the guidance, LC expects total revenue between $255 million and $265 million in Q1 2022.
The expected consolidated net income for Q1 2022, is in the range of $25 million and $30 million.
Full Year 2022
For the full year of 2022, LC expects total revenue between $1.1 billion and $1.2 billion.
Additionally, the expected consolidated net income is in the range of $130 million and $150 million for 2022.
Recent Developments
On November 30, the company provided updates regarding its auto refinance loans which were first launched in 2016. Currently, the refinance loans are obtainable in 40 states of the country. Therefore, it covers 94% of the population of the U.S.
Conclusion
In conclusion, the company provided record results for the fourth quarter and full-year 2021. But due to the financial outlook for 2022, the stock tanked in the after-hours on Wednesday. LC expects a full-year 2022 profit between $130-$150 million while the expectations were for $180 million.
