OnDeck announced fourth quarter 2018 net income of $14 million, an increase from $9.8 million from the previous quarter. The company’s full year 2018 net income of $27.7 million was significantly improved from its net loss of $11.5 million in 2017.
“Our record fourth quarter earnings cap a year of significant progress at OnDeck, highlighted by strong growth and improved profitability,” said Noah Breslow, OnDeck CEO. “We solidified our position as the leading online lender to small businesses in the U.S., launched ODX, our platform-as-a-service business, and announced plans to scale our international operations and enter the equipment finance market. We advanced these initiatives while strengthening our balance sheet, improving our funding profile and increasing profitability. OnDeck enters 2019 with considerable momentum fueled by our US lending franchise and is well-positioned to drive additional shareholder value through our high-growth strategic initiatives in 2019 and beyond.”
Adjusted net income was $15.9 million, an increase from $13.2 million in the prior quarter and from $8.1 million in the year-ago period.
Loans grew 5% sequentially and 23% from a year ago to $1,169 million. OnDeck also had record origination volume of $658 million, a 2% increase from the third quarter and 21% increase from the year-ago quarter, the latter of which reflected growth across all channels.
Gross revenue increased to $109.5 million, up 6% from the prior quarter and 25% from the year-ago quarter, driven by higher interest income that resulted from portfolio growth and higher yields.
Provision for loan losses was $39.9 million, up slightly sequentially and $5.4 million from a year ago primarily reflecting increased origination volume.
Adjusted net income was $45.4 million, improved from $4.2 million in 2017.
Gross revenue increased 14% to $398.4 million, driven by higher interest income reflecting loan growth and higher yields. Loans grew 23% from a year ago driven by a 17% increase in origination volume to nearly $2.5 billion.
