On Deck Capital Beats Estimates, Loans Under Management Up 47%

On Deck Capital ONDK shares are flat in Monday's after hours session. On Deck Capital reported Q2 adjusted EPS loss of $0.20 versus estimated loss of $0.24. Sales were $69.5 million versus estimates of $67.83 million.

The online facilitator of loans to small and medium sized businesses said Loans Under Management increased by 47 percent year-over-year to $1 billion. Originations grew 41 percent to $590 million. Unpaid Principal Balances grew to $790 million, an increase of 57 percent year-over-year. Provisions for loses doubled year-over-year to $32.3 million to which the company said "The increase in provision expense primarily reflected the 74% increase in originations of loans designated as held for investment in connection with the planned reduction of Marketplace sales during the second quarter of 2016."

CEO Noah Breslow said "Although financial comparisons continue to be affected by our planned reduction in Marketplace sales and its resulting accounting impacts, we believe that retaining a greater percentage of loans on our balance sheet is the right decision for the long-term economics of the business. To that end, our Unpaid Principal Balance grew 57% year-over-year, which will drive future gross revenue."

Revenues for Q3 are expected to between $73 million and $76 million compared with analyst estimates of $74.82 million. Full year 2016 revenues are expected to be between $280 million and $290 million compared with analyst estimates of $286.10 million

Shares of On Deck Capital closed Monday's regular session down $0.09 or 1.71 percent to $5.16.

Posted In: EarningsNewsGuidance
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