Lending Club crashes 22% after cutting guidance

  • Lending Club, the San Francisco-based peer-to-peer online lender, crashed more than 20% in pre-market trading Wednesday to $US4.27 a share.
  • The company posted earnings of $US0.03 per share as revenue surged 34% year-over-year to $US154 million.
  • The company expects a net loss in the range of $US3 to $US7 million for Q4 and revenue of between $US158 million and $US163 million.
  • Tech lending companies like LendingClub have struggled to churn a profit despite gaining market share from traditional lenders in some areas.
  • According to TransUnion, fintechs make up 32% of all personal loans in the US, up from 1% in 2010.

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