“We continued to see growth during the third quarter as people turned to Prosper’s personal loan product to refinance high-interest debt, pay for medical expenses, and finance home improvement projects,” said David Kimball, CEO, Prosper Marketplace. “As we look to the end of the year and 2018, our ability to consistently generate positive operating cash flow along with the $50 million capital raise in the third quarter will help drive strategic investments in the company’s platform and products.”
Prosper also recently closed the third securitization from the Prosper Marketplace Issuance Trust, Series 2017-3, with approximately $500 million of notes issued.
“We are very pleased with the success of the Prosper securitization program this year, which included three deals totaling $1.5 billion and over 45 unique investors participating,” said Usama Ashraf, CFO, Prosper Marketplace.
The following table summarizes the financial highlights from the quarter:
Key Operating and Financial Metrics (Unaudited) | ||||||||
(in thousands) | ||||||||
Three Months Ended September 30, | ||||||||
2017 | 2016 | |||||||
Loan Originations | $ | 821,841 | $ | 311,776 | ||||
Transaction Fees, Net | 37,250 | 14,086 | ||||||
Servicing Fees, Net | 6,976 | 7,079 | ||||||
Net Loss | (26,940) | (17,417) | ||||||
Adjusted EBITDA(1) | 7,271 | (8,804) | ||||||
Net Cash Provided by (Used in) Operating Activities | 9,881 | (4,237) | ||||||
Summary of Key Financial Highlights:
- Prosper facilitated $822 million in loan originations through its platform, up 6% quarter-over-quarter and 164% year-over-year, driven by strong demand for its personal loan product.
- Transaction fee revenue rose to $37.2 million, up 5% quarter-over-quarter and 164% year-over-year.
- The company reported a Net Loss of $26.9 million in the third quarter of 2017, which included $28.1 million in non-cash charges related to warrants to purchase preferred stock that were issued to a consortium of investors and a third party in connection with a settlement agreement.
- Prosper generated $9.9 million of Net Cash from Operating Activities and Adjusted EBITDA(1) of $7.3 million in the third quarter of 2017.