OOnDeck announced Q3/17 and year-to-date gross revenue of $83.7 million and $263.2 million, respectively, was up from $77.4 million and $209.5 million for the same periods a year earlier. The Q3/17 and year-to-date net losses of $4.53 million and $18.7 million, respectively were down from $17.2 million and $49.0 million for the same periods in 2016.

The following highlights were excerpted from the news release:

  • Q3/17 originations of $530.9 million were down 13.3% from $612.6 million in Q3/16.
  • The year-to-date provision for loan losses of $118.5 million was up 26% from $94.3 million a year earlier.
  • The effective interest yield was 33.4%, up from 32.8% in the prior period, primarily reflecting the increases in average loan pricing that occurred over the last 12 months. The weighted average APR for loans originated in Q3/17 was 43.8%.

“OnDeck’s third quarter performance demonstrated tangible progress on our strategic priorities and goal of achieving GAAP profitability,” said Noah Breslow, OnDeck’s chief executive officer.  “Originations grew sequentially by 14%, operating expense was at its lowest level in more than two years, and credit trends continued to strengthen.  Reflecting these initiatives, our bottom line performance improved over $12 million in the third quarter compared to the prior year period.”

Breslow added, “We achieved these solid results despite the negative impact of Hurricanes Harvey and Irma. Absent these weather events, our provision pate and 15+ day delinquency ratio would have improved sequentially and our GAAP net loss would have been closer to breakeven for the period.  Looking ahead, our business is well-positioned to build on our strong customer demand and disciplined operating performance. As evidenced by our recent partnership announcement with VISA and Ingo Money, we remain committed to innovation that better serves our customers and drives responsible originations growth. We remain on track to achieve GAAP profitability in the fourth quarter and look forward to profitable growth in 2018.”to profitable growth off a lower expense base in 2018.”

Follow the story:OnDeck Reports Lower Q2 Losses; Originations Down on Loan Tightening