Expects Annualized Run-Rate Savings of
$30 to $35
Million
Provides Preliminary Select
Financial Results for Third Quarter 2023
Schedules Third
Quarter 2023 Earnings Release and Conference Call
SAN
FRANCISCO, Oct. 12, 2023 /PRNewswire/
-- LendingClub Corporation (NYSE: LC) announced today a cost
reduction plan to ensure its ability to navigate through the
challenging macroenvironment. The Company also provided preliminary
results and scheduled the earnings release and conference call for
the third quarter of 2023.
"We continue to proactively implement various measures to
navigate the persistent and ongoing macroeconomic headwinds and the
resulting pressure in our marketplace, primarily driven by higher
interest rates," said Scott Sanborn,
LendingClub's Chief Executive Officer. "To that end, we have made
the very difficult decision to streamline our workforce. Longer
term, we expect marketplace revenue to rebound as we capture the
historically large credit card debt refinancing opportunity."
LendingClub is reducing its workforce by approximately 14%, or
172 employees. The Company anticipates that the actions will result
in annualized run-rate compensation and benefits savings of
approximately $30 to $35 million compared to the second quarter of
2023.
Preliminary Financial Results for Third Quarter 2023
During the third quarter of 2023, the Company originated
approximately $1.5 billion of loans
and, based upon management's current expectations, expects revenue
and net income for the third quarter within the following
ranges:
|
Third Quarter
2023
|
Revenue
|
$198 to $200
million
|
Net Income
|
$4 to $5
million
|
The expectations above are inclusive of the majority of
severance charges, which were recorded in the third quarter of
2023.
Third Quarter 2023 Earnings Release and Conference
Call
LendingClub will report earnings for the third quarter of 2023
on Wednesday, October 25, 2023, after
market hours. LendingClub will host a conference call to discuss
the third quarter 2023 financial results at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) on the same day.
Submission of Conference Call Questions
In addition to questions asked live by analysts during the call,
the company will also accept for consideration questions submitted
via email prior to 12:00 p.m. Pacific
Time (3:00 p.m. Eastern Time)
on Tuesday, October 24, 2023. Please
email questions to ir@lendingclub.com.
Webcast Information
A live webcast of the call will be available at
http://ir.lendingclub.com under the Filings & Financials menu
in Quarterly Results. To access the call please dial +1 (404)
975-4839 or outside the U.S. +1 (833) 470-1428 with Access Code
896211 ten minutes prior to 2:00 p.m.
Pacific Time (or 5:00 p.m. Eastern
Time).
Replay
An audio archive of the call will be available at
http://ir.lendingclub.com. An audio replay will also be available
one hour after the end of the call until Wednesday, November 1, 2023, by calling +1 (929)
458-6194 or outside the U.S. +1 (833) 470-1428 with Access Code
963754.
About LendingClub
LendingClub Corporation (NYSE: LC) is the parent company of
LendingClub Bank, National Association, Member FDIC. LendingClub
Bank is the leading digital marketplace bank in the U.S., where
members can access a broad range of financial products and services
designed to help them pay less when borrowing and earn more when
saving. Based on more than 150 billion cells of data and over
$85 billion in loans, our advanced
credit decisioning and machine-learning models are used across the
customer lifecycle to expand seamless access to credit for our
members, while generating compelling risk-adjusted returns for our
loan investors. Since 2007, more than 4.7 million members have
joined the Club to help reach their financial goals. For more
information about LendingClub, visit
https://www.lendingclub.com.
Safe Harbor Statement
Some of the statements in this press release, including
statements regarding future financial results, the expected savings
from the workforce reductions and macroeconomic conditions, are
"forward-looking statements." The words "anticipate," "believe,"
"estimate," "expect," "intend," "may," "outlook," "plan,"
"predict," "project," "will," "would" and similar expressions may
identify forward-looking statements, although not all
forward-looking statements contain these identifying words. Factors
that could cause actual results to differ materially from those
contemplated by these forward-looking statements include: the
results of procedures to finalize third quarter 2023 financial
results; our ability to continue to attract and retain new and
existing customers; competition; overall economic conditions; the
interest rate environment; the regulatory environment; demand for
the types of loans facilitated by us; default rates and those
factors set forth in the section titled "Risk Factors" in our most
recent Annual Report on Form 10-K, as filed with the Securities and
Exchange Commission, as well as in our subsequent filings with the
Securities and Exchange Commission. We may not actually achieve the
plans, intentions or expectations disclosed in forward-looking
statements, and you should not place undue reliance on
forward-looking statements. Actual results or events could differ
materially from the plans, intentions and expectations disclosed in
forward-looking statements. We do not assume any obligation to
update any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by
law.
CONTACT: For Investors: IR@lendingclub.com; Media
Contact: Press@lendingclub.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/lendingclub-aligns-cost-structure-to-evolving-macroeconomic-environment-301955425.html
SOURCE LendingClub Corporation