LendingClub: Still A Stumbling Grower
After the close on Tuesday, LendingClub (LC) reported results that again disappointed the market. The stock is down about 7% to $3.35 providing an incredible value assuming the management team ever figures out how to impress the market with 20% growth.
The stock has a market cap of about $1.4 billion with a 2019 revenue estimate of about $800 million. So the stock isn't expensive on a P/S multiple even with these disappointing Q4 numbers and 2019 guidance:
- Q4 Non-GAAP EPS of -$0.01 misses by $0.03
- Revenue of $181.5M (+16.0% Y/Y) misses by $0.65M.
- Q1 net revenue of $162M-$172M vs. consensus of $181.8M
- Adjusted net loss of $15M-$20M
- FY2019 of $765M-$795M (consensus of $804.3M)
- Adjusted net loss of $9M to $29M.
- Adjusted EBITDA of $115 to $135 million
The amazing part is that LendingClub has nearly $800 million in cash and loans that leads to an enterprise value below $800 million or 1x sales estimates.
Net Loans: $236.6M
Total Cash/Net Loans: $780.0M
Not the greatest news, but the platform continues to grow and expand EBITDA at a solid clip. The stock shouldn't trade at a bargain basement price of EV/S of 1x.
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