Technology
LendingClub Reports Second Quarter 2024 Results
Published
4 months agoon
By
10% Sequential Originations Growth
Strong Balance Sheet Growth with Stable Net Interest Margin Drives Increase in Revenue
SAN FRANCISCO, July 30, 2024 /PRNewswire/ — LendingClub Corporation (NYSE: LC), the parent company of LendingClub Bank, America’s leading digital marketplace bank, today announced financial results for the second quarter ended June 30, 2024.
“Our second quarter results mark an inflection point, with our business calibrated to the current rate environment and positioned to accelerate as conditions improve,” said Scott Sanborn, LendingClub CEO. “Thanks to our unique product innovations, we were able to capture strong borrower and marketplace investor demand, delivering growth in originations, revenue, and profitability. I look forward to building on our momentum in the quarters ahead.”
Second Quarter 2024 Results
Balance Sheet:
Total assets of $9.6 billion compared to $9.2 billion in the prior quarter, primarily due to growth in securities related to the structured certificates program and growth in the extended seasoning portfolio.Securities available for sale of $2.8 billion, compared to $2.2 billion in the prior quarter, primarily reflecting growth in the structured certificates program.Whole loans held on the balance sheet of $5.1 billion, which consists of loans and leases held for investment and loans held for sale, were roughly flat compared to the prior quarter.Deposits of $8.1 billion compared to $7.5 billion in the prior quarter, primarily due to an increase in high-yield savings and certificates of deposit.87% of total deposits are FDIC-insured.Strong liquidity profile with $3.0 billion in readily available liquidity.Strong capital position with a consolidated Tier 1 leverage ratio of 12.1% and consolidated Common Equity Tier 1 capital ratio of 17.9%.Book value per common share increased to $11.52, compared to $11.40 in the prior quarter.Tangible book value per common share increased to $10.75, compared to $10.61 in the prior quarter.
Financial Performance:
Loan originations of $1.8 billion, compared to $1.6 billion in the prior quarter, driven by the successful execution of new consumer loan initiatives combined with marketplace investor demand for structured certificates and higher whole loan retention.Total net revenue of $187.2 million, compared to $180.7 million in the prior quarter, driven by:Marketplace revenue of $56.4 million, compared to $55.9 million in the prior quarter, primarily reflecting higher marketplace loan originations and improved loan sale pricing partially offset by the expected fair value adjustments on the maturing Held for Sale portfolio.Net interest income of $128.5 million, compared to $122.9 million in the prior quarter, primarily reflecting growth in total interest-earning assets at a stable net interest margin of 5.75%.Provision for credit losses of $35.6 million, compared to $31.9 million in the prior quarter.Net income increased to $14.9 million, with diluted EPS of $0.13, compared to $12.3 million, with diluted EPS of $0.11, in the prior quarter. The increase was primarily driven by higher net interest income from growth in the balance sheet.Pre-Provision Net Revenue (PPNR) of $55.0 million, compared to $48.5 million in the prior quarter, primarily driven by higher total net revenue while maintaining stable expenses.
Three Months Ended
($ in millions, except per share amounts)
June 30,
2024
March 31,
2024
June 30,
2023
Total net revenue
$ 187.2
$ 180.7
$ 232.5
Non-interest expense
132.3
132.2
151.1
Pre-provision net revenue (1)
55.0
48.5
81.4
Provision for credit losses
35.6
31.9
66.6
Income before income tax expense
19.4
16.5
14.8
Income tax expense
(4.5)
(4.3)
(4.7)
Net income
$ 14.9
$ 12.3
$ 10.1
Diluted EPS
$ 0.13
$ 0.11
$ 0.09
(1) See page 3 of this release for additional information on our use of non-GAAP financial measures.
For a calculation of Pre-Provision Net Revenue and Tangible Book Value Per Common Share, refer to the “Reconciliation of GAAP to Non-GAAP Financial Measures” tables at the end of this release.
Financial Outlook
Third Quarter 2024
Loan originations
$1.8B to $1.9B
Pre-provision net revenue (PPNR)
$40M to $50M
About LendingClub
LendingClub Corporation (NYSE: LC) is the parent company of LendingClub Bank, National Association, Member FDIC. LendingClub Bank is the leading digital marketplace bank in the U.S., where members can access a broad range of financial products and services designed to help them pay less when borrowing and earn more when saving. Based on hundreds of billions of cells of data and over $90 billion in loans, our advanced credit decisioning and machine-learning models are used across the customer lifecycle to expand seamless access to credit for our members, while generating compelling risk-adjusted returns for our loan investors. Since 2007, more than 4.9 million members have joined the Club to help reach their financial goals. For more information about LendingClub, visit https://www.lendingclub.com.
Conference Call and Webcast Information
The LendingClub second quarter 2024 webcast and teleconference is scheduled to begin at 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time) on Tuesday, July 30, 2024. A live webcast of the call will be available at http://ir.lendingclub.com under the Filings & Financials menu in Quarterly Results. To access the call, please dial +1 (404) 975-4839, or outside the U.S. +1 (833) 470-1428, with Access Code 895739, ten minutes prior to 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time). An audio archive of the call will be available at http://ir.lendingclub.com. An audio replay will also be available 1 hour after the end of the call until August 6, 2024, by calling +1 (929) 458-6194 or outside the U.S. +1 (866) 813-9403, with Access Code 305717. LendingClub has used, and intends to use, its investor relations website, blog (http://blog.lendingclub.com), X (formerly Twitter) handles (@LendingClub and @LendingClubIR) and Facebook page (https://www.facebook.com/LendingClubTeam) as a means of disclosing material non-public information and to comply with its disclosure obligations under Regulation FD.
Contacts
For Investors:
IR@lendingclub.com
Media Contact:
Press@lendingclub.com
Non-GAAP Financial Measures
To supplement our financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: Pre-Provision Net Revenue and Tangible Book Value Per Common Share. Our non-GAAP financial measures do have limitations as analytical tools and you should not consider them in isolation or as a substitute for an analysis of our results under GAAP.
We believe these non-GAAP financial measures provide management and investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and enable comparison of our financial results with other public companies.
We believe Pre-Provision Net Revenue is an important measure because it reflects the financial performance of our business operations. Pre-Provision Net Revenue is a non-GAAP financial measure calculated by subtracting the provision for credit losses and income tax benefit/expense from net income.
We believe Tangible Book Value (TBV) Per Common Share is an important measure used to evaluate the company’s use of equity. TBV Per Common Share is a non-GAAP financial measure representing common equity reduced by goodwill and intangible assets, divided by ending common shares issued and outstanding.
For a reconciliation of such measures to the nearest GAAP measures, please refer to the tables on page 14 of this release.
We do not provide a reconciliation of forward-looking Pre-Provision Net Revenue to the most directly comparable GAAP reported financial measures on a forward-looking basis because we are unable to predict future provision expense with reasonable certainty without unreasonable effort.
Safe Harbor Statement
Some of the statements above, including statements regarding our competitive advantages, macroeconomic outlook, anticipated future performance and financial results, are “forward-looking statements.” The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “outlook,” “plan,” “predict,” “project,” “will,” “would” and similar expressions may identify forward-looking statements, although not all forward-looking statements contain these identifying words. Factors that could cause actual results to differ materially from those contemplated by these forward-looking statements include: our ability to continue to attract and retain new and existing borrowers and platform investors; competition; overall economic conditions; the interest rate environment; the regulatory environment; default rates and those factors set forth in the section titled “Risk Factors” in our most recent Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, as well as in our subsequent filings with the Securities and Exchange Commission. We may not actually achieve the plans, intentions or expectations disclosed in forward-looking statements, and you should not place undue reliance on forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in forward-looking statements. We do not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
LENDINGCLUB CORPORATION
OPERATING HIGHLIGHTS
(In thousands, except percentages or as noted)
(Unaudited)
As of and for the three months ended
% Change
June 30,
2024
March 31,
2024
December 31,
2023
September 30,
2023
June 30,
2023
Q/Q
Y/Y
Operating Highlights:
Non-interest income
$ 58,713
$ 57,800
$ 54,129
$ 63,844
$ 85,818
2 %
(32) %
Net interest income
128,528
122,888
131,477
137,005
146,652
5 %
(12) %
Total net revenue
187,241
180,688
185,606
200,849
232,470
4 %
(19) %
Non-interest expense
132,258
132,233
130,015
128,035
151,079
0 %
(12) %
Pre-provision net revenue(1)
54,983
48,455
55,591
72,814
81,391
13 %
(32) %
Provision for credit losses
35,561
31,927
41,907
64,479
66,595
11 %
(47) %
Income before income tax expense
19,422
16,528
13,684
8,335
14,796
18 %
31 %
Income tax expense
(4,519)
(4,278)
(3,529)
(3,327)
(4,686)
6 %
(4) %
Net income
$ 14,903
$ 12,250
$ 10,155
$ 5,008
$ 10,110
22 %
47 %
Basic EPS
$ 0.13
$ 0.11
$ 0.09
$ 0.05
$ 0.09
18 %
44 %
Diluted EPS
$ 0.13
$ 0.11
$ 0.09
$ 0.05
$ 0.09
18 %
44 %
LendingClub Corporation Performance Metrics:
Net interest margin
5.75 %
5.75 %
6.40 %
6.91 %
7.09 %
Efficiency ratio(2)
70.6 %
73.2 %
70.0 %
63.7 %
65.0 %
Return on average equity (ROE)(3)
4.7 %
3.9 %
3.3 %
1.7 %
3.4 %
Return on average total assets (ROA)(4)
0.6 %
0.5 %
0.5 %
0.2 %
0.5 %
Marketing expense as a % of loan originations
1.47 %
1.47 %
1.44 %
1.30 %
1.19 %
LendingClub Corporation Capital Metrics:
Common equity Tier 1 capital ratio
17.9 %
17.6 %
17.9 %
16.9 %
16.1 %
Tier 1 leverage ratio
12.1 %
12.5 %
12.9 %
13.2 %
12.4 %
Book value per common share
$ 11.52
$ 11.40
$ 11.34
$ 11.02
$ 11.09
1 %
4 %
Tangible book value per common share(1)
$ 10.75
$ 10.61
$ 10.54
$ 10.21
$ 10.26
1 %
5 %
Loan Originations (in millions)(5):
Total loan originations
$ 1,813
$ 1,646
$ 1,630
$ 1,508
$ 2,011
10 %
(10) %
Marketplace loans
$ 1,477
$ 1,361
$ 1,432
$ 1,182
$ 1,353
9 %
9 %
Loan originations held for investment
$ 336
$ 285
$ 198
$ 326
$ 657
18 %
(49) %
Loan originations held for investment as a % of total loan originations
19 %
17 %
12 %
22 %
33 %
Servicing Portfolio AUM (in millions)(6):
Total servicing portfolio
$ 12,999
$ 13,437
$ 14,122
$ 14,818
$ 15,669
(3) %
(17) %
Loans serviced for others
$ 8,337
$ 8,671
$ 9,336
$ 9,601
$ 10,204
(4) %
(18) %
(1)
Represents a non-GAAP financial measure. See “Reconciliation of GAAP to Non-GAAP Financial Measures.”
(2)
Calculated as the ratio of non-interest expense to total net revenue.
(3)
Calculated as annualized net income divided by average equity for the period presented.
(4)
Calculated as annualized net income divided by average total assets for the period presented.
(5)
Includes unsecured personal loans and auto loans only.
(6)
Loans serviced on our platform, which includes unsecured personal loans, auto loans and education and patient finance loans serviced for others and held for investment by the company.
LENDINGCLUB CORPORATION
OPERATING HIGHLIGHTS (Continued)
(In thousands, except percentages or as noted)
(Unaudited)
As of and for the three months ended
% Change
June 30,
2024
March 31,
2024
December 31,
2023
September 30,
2023
June 30,
2023
Q/Q
Y/Y
Balance Sheet Data:
Securities available for sale
$ 2,814,383
$ 2,228,500
$ 1,620,262
$ 795,669
$ 523,579
26 %
438 %
Loans held for sale at fair value
$ 791,059
$ 550,415
$ 407,773
$ 362,789
$ 250,361
44 %
216 %
Loans and leases held for investment at amortized cost
$ 4,228,391
$ 4,505,816
$ 4,850,302
$ 5,237,277
$ 5,533,349
(6) %
(24) %
Gross allowance for loan and lease losses (1)
$ (285,368)
$ (311,794)
$ (355,773)
$ (388,156)
$ (383,960)
(8) %
(26) %
Recovery asset value (2)
$ 56,459
$ 52,644
$ 45,386
$ 37,661
$ 28,797
7 %
96 %
Allowance for loan and lease losses
$ (228,909)
$ (259,150)
$ (310,387)
$ (350,495)
$ (355,163)
(12) %
(36) %
Loans and leases held for investment at amortized cost, net
$ 3,999,482
$ 4,246,666
$ 4,539,915
$ 4,886,782
$ 5,178,186
(6) %
(23) %
Loans held for investment at fair value (3)
$ 339,222
$ 427,396
$ 272,678
$ 344,417
$ 430,956
(21) %
(21) %
Total loans and leases held for investment (3)
$ 4,338,704
$ 4,674,062
$ 4,812,593
$ 5,231,199
$ 5,609,142
(7) %
(23) %
Whole loans held on balance sheet (4)
$ 5,129,763
$ 5,224,477
$ 5,220,366
$ 5,593,988
$ 5,859,503
(2) %
(12) %
Total assets
$ 9,586,050
$ 9,244,828
$ 8,827,463
$ 8,472,351
$ 8,342,506
4 %
15 %
Total deposits
$ 8,095,328
$ 7,521,655
$ 7,333,486
$ 7,000,263
$ 6,843,535
8 %
18 %
Total liabilities
$ 8,298,105
$ 7,978,542
$ 7,575,641
$ 7,264,132
$ 7,136,983
4 %
16 %
Total equity
$ 1,287,945
$ 1,266,286
$ 1,251,822
$ 1,208,219
$ 1,205,523
2 %
7 %
(1)
Represents the allowance for future estimated net charge-offs on existing portfolio balances.
(2)
Represents the negative allowance for expected recoveries of amounts previously charged-off.
(3)
Beginning in the first quarter of 2024, “Retail and certificate loans held for investment at fair value” were combined within “Loans held for investment at fair value.” Prior period amounts have been reclassified to conform to the current period presentation.
(4)
Includes loans held for sale at fair value, loans and leases held for investment at amortized cost, net of allowance for loan and lease losses, and loans held for investment at fair value.
The asset quality metrics presented in the following table are for loans and leases held for investment at amortized cost and do not reflect loans held for investment at fair value:
As of and for the three months ended
June 30,
2024
March 31,
2024
December 31,
2023
September 30,
2023
June 30,
2023
Asset Quality Metrics (1):
Allowance for loan and lease losses to total loans and leases held
for investment at amortized cost
5.4 %
5.8 %
6.4 %
6.7 %
6.4 %
Allowance for loan and lease losses to commercial loans and leases
held for investment at amortized cost
2.7 %
1.9 %
1.8 %
2.0 %
1.9 %
Allowance for loan and lease losses to consumer loans and leases
held for investment at amortized cost
5.9 %
6.4 %
7.2 %
7.4 %
7.1 %
Gross allowance for loan and lease losses to consumer loans and
leases held for investment at amortized cost
7.5 %
7.8 %
8.3 %
8.2 %
7.7 %
Net charge-offs
$ 66,818
$ 80,483
$ 82,511
$ 68,795
$ 59,884
Net charge-off ratio (2)
6.2 %
6.9 %
6.6 %
5.1 %
4.4 %
(1)
Calculated as ALLL or gross ALLL, where applicable, to the corresponding portfolio segment balance of loans and leases held for investment at amortized cost.
(2)
Net charge-off ratio is calculated as annualized net charge-offs divided by average outstanding loans and leases held for investment during the period.
LENDINGCLUB CORPORATION
LOANS AND LEASES HELD FOR INVESTMENT
(In thousands)
(Unaudited)
The following table presents loans and leases held for investment at amortized cost and loans held for investment at fair value:
June 30,
2024
December 31,
2023
Unsecured personal
$ 3,144,504
$ 3,726,830
Residential mortgages
178,290
183,050
Secured consumer
244,288
250,039
Total consumer loans held for investment
3,567,082
4,159,919
Equipment finance (1)
83,770
110,992
Commercial real estate
381,873
380,322
Commercial and industrial
195,666
199,069
Total commercial loans and leases held for investment
661,309
690,383
Total loans and leases held for investment at amortized cost
4,228,391
4,850,302
Allowance for loan and lease losses
(228,909)
(310,387)
Loans and leases held for investment at amortized cost, net
$ 3,999,482
$ 4,539,915
Loans held for investment at fair value (2)
339,222
272,678
Total loans and leases held for investment
$ 4,338,704
$ 4,812,593
(1)
Comprised of sales-type leases for equipment.
(2)
Beginning in the first quarter of 2024, “Retail and certificate loans held for investment at fair value” were combined within “Loans held for investment at fair value.” Prior period amount has been reclassified to conform to the current period presentation.
LENDINGCLUB CORPORATION
ALLOWANCE FOR LOAN AND LEASE LOSSES
(In thousands)
(Unaudited)
The following table presents the components of the allowance for loan and lease losses on loans and leases held for investment at amortized cost:
June 30, 2024
December 31, 2023
Gross allowance for loan and lease losses (1)
$ 285,368
$ 355,773
Recovery asset value (2)
(56,459)
(45,386)
Allowance for loan and lease losses
$ 228,909
$ 310,387
(1)
Represents the allowance for future estimated net charge-offs on existing portfolio balances.
(2)
Represents the negative allowance for expected recoveries of amounts previously charged-off.
The following tables present the allowance for loan and lease losses on loans and leases held for investment at amortized cost and do not reflect loans held for investment at fair value:
Three Months Ended
June 30, 2024
March 31, 2024
Consumer
Commercial
Total
Consumer
Commercial
Total
Allowance for loan and lease losses, beginning of period
$ 246,280
$ 12,870
$ 259,150
$ 298,061
$ 12,326
$ 310,387
Credit loss expense for loans and leases held for investment
30,760
5,817
36,577
27,686
1,560
29,246
Charge-offs
(77,494)
(594)
(78,088)
(89,110)
(1,232)
(90,342)
Recoveries
11,183
87
11,270
9,643
216
9,859
Allowance for loan and lease losses, end of period
$ 210,729
$ 18,180
$ 228,909
$ 246,280
$ 12,870
$ 259,150
Three Months Ended
June 30, 2023
Consumer
Commercial
Total
Allowance for loan and lease losses, beginning of period
$ 333,546
$ 15,311
$ 348,857
Credit loss expense (benefit) for loans and leases held for investment
66,874
(684)
66,190
Charge-offs
(63,345)
(924)
(64,269)
Recoveries
4,086
299
4,385
Allowance for loan and lease losses, end of period
$ 341,161
$ 14,002
$ 355,163
LENDINGCLUB CORPORATION
PAST DUE LOANS AND LEASES HELD FOR INVESTMENT
(In thousands)
(Unaudited)
The following tables present past due loans and leases held for investment at amortized cost and do not reflect loans held for investment at fair value:
June 30, 2024
30-59
Days
60-89
Days
90 or More
Days
Total Days
Past Due
Guaranteed
Amount (1)
Unsecured personal
$ 24,837
$ 22,869
$ 23,825
$ 71,531
$ —
Residential mortgages
—
147
—
147
—
Secured consumer
1,825
622
258
2,705
—
Total consumer loans held for investment
$ 26,662
$ 23,638
$ 24,083
$ 74,383
$ —
Equipment finance
$ 18
$ —
$ 8
$ 26
$ —
Commercial real estate
7,422
384
8,569
16,375
10,894
Commercial and industrial
8,715
774
5,869
15,358
12,736
Total commercial loans and leases held for investment
$ 16,155
$ 1,158
$ 14,446
$ 31,759
$ 23,630
Total loans and leases held for investment at amortized cost
$ 42,817
$ 24,796
$ 38,529
$ 106,142
$ 23,630
December 31, 2023
30-59
Days
60-89
Days
90 or More
Days
Total Days
Past Due
Guaranteed
Amount (1)
Unsecured personal
$ 32,716
$ 29,556
$ 30,132
$ 92,404
$ —
Residential mortgages
1,751
—
—
1,751
—
Secured consumer
2,076
635
217
2,928
—
Total consumer loans held for investment
$ 36,543
$ 30,191
$ 30,349
$ 97,083
$ —
Equipment finance
$ 1,265
$ —
$ —
$ 1,265
$ —
Commercial real estate
—
3,566
1,618
5,184
4,047
Commercial and industrial
12,261
1,632
1,515
15,408
11,260
Total commercial loans and leases held for investment
$ 13,526
$ 5,198
$ 3,133
$ 21,857
$ 15,307
Total loans and leases held for investment at amortized cost
$ 50,069
$ 35,389
$ 33,482
$ 118,940
$ 15,307
(1) Represents loan balances guaranteed by the Small Business Association.
LENDINGCLUB CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended
Change (%)
June 30,
2024
March 31,
2024
June 30,
2023
Q2 2024
vs
Q1 2024
Q2 2024
vs
Q2 2023
Non-interest income:
Origination fees
$ 77,131
$ 70,079
$ 70,989
10 %
9 %
Servicing fees
19,869
19,592
22,015
1 %
(10) %
Gain on sales of loans
10,748
10,909
13,221
(1) %
(19) %
Net fair value adjustments
(51,395)
(44,689)
(23,442)
15 %
119 %
Marketplace revenue
56,353
55,891
82,783
1 %
(32) %
Other non-interest income
2,360
1,909
3,035
24 %
(22) %
Total non-interest income
58,713
57,800
85,818
2 %
(32) %
Total interest income
219,634
207,351
214,486
6 %
2 %
Total interest expense
91,106
84,463
67,834
8 %
34 %
Net interest income
128,528
122,888
146,652
5 %
(12) %
Total net revenue
187,241
180,688
232,470
4 %
(19) %
Provision for credit losses
35,561
31,927
66,595
11 %
(47) %
Non-interest expense:
Compensation and benefits
56,540
59,554
71,553
(5) %
(21) %
Marketing
26,665
24,136
23,940
10 %
11 %
Equipment and software
12,360
12,684
13,968
(3) %
(12) %
Depreciation and amortization
13,072
12,673
11,638
3 %
12 %
Professional services
7,804
7,091
9,974
10 %
(22) %
Occupancy
3,941
3,861
4,684
2 %
(16) %
Other non-interest expense
11,876
12,234
15,322
(3) %
(22) %
Total non-interest expense
132,258
132,233
151,079
— %
(12) %
Income before income tax expense
19,422
16,528
14,796
18 %
31 %
Income tax expense
(4,519)
(4,278)
(4,686)
6 %
(4) %
Net income
$ 14,903
$ 12,250
$ 10,110
22 %
47 %
Net income per share:
Basic EPS
$ 0.13
$ 0.11
$ 0.09
18 %
44 %
Diluted EPS
$ 0.13
$ 0.11
$ 0.09
18 %
44 %
Weighted-average common shares – Basic
111,395,025
110,685,796
107,892,590
1 %
3 %
Weighted-average common shares – Diluted
111,466,497
110,687,380
107,895,072
1 %
3 %
LENDINGCLUB CORPORATION
NET INTEREST INCOME
(In thousands, except percentages or as noted)
(Unaudited)
Consolidated LendingClub Corporation (1)
Three Months Ended
June 30, 2024
Three Months Ended
March 31, 2024
Three Months Ended
June 30, 2023
Average
Balance
Interest Income/
Expense
Average Yield/
Rate
Average
Balance
Interest Income/
Expense
Average Yield/
Rate
Average
Balance
Interest Income/
Expense
Average Yield/
Rate
Interest-earning assets (2)
Cash, cash equivalents, restricted cash and other
$ 976,330
$ 13,168
5.40 %
$ 1,217,395
$ 16,503
5.42 %
$ 1,512,700
$ 19,134
5.06 %
Securities available for sale at fair value
2,406,767
42,879
7.13 %
1,972,561
35,347
7.17 %
437,473
5,948
5.44 %
Loans held for sale at fair value
838,143
26,721
12.75 %
467,275
14,699
12.58 %
106,865
4,433
16.59 %
Loans and leases held for investment:
Unsecured personal loans
3,243,161
108,425
13.37 %
3,518,101
116,055
13.20 %
4,360,506
145,262
13.33 %
Commercial and other consumer loans
1,097,846
16,394
5.97 %
1,115,931
16,338
5.86 %
1,156,751
16,823
5.82 %
Loans and leases held for investment at amortized cost
4,341,007
124,819
11.50 %
4,634,032
132,393
11.43 %
5,517,257
162,085
11.75 %
Loans held for investment at fair value (3)
383,872
12,047
12.55 %
256,335
8,409
13.12 %
703,729
22,886
13.01 %
Total loans and leases held for investment (3)
4,724,879
136,866
11.59 %
4,890,367
140,802
11.52 %
6,220,986
184,971
11.89 %
Total interest-earning assets
8,946,119
219,634
9.82 %
8,547,598
207,351
9.70 %
8,278,024
214,486
10.36 %
Cash and due from banks and restricted cash
55,906
58,440
78,221
Allowance for loan and lease losses
(245,478)
(291,168)
(354,348)
Other non-interest earning assets
632,253
631,468
686,956
Total assets
$ 9,388,800
$ 8,946,338
$ 8,688,853
Interest-bearing liabilities
Interest-bearing deposits:
Checking and money market accounts
$ 1,097,696
$ 10,084
3.69 %
$ 1,054,614
$ 9,410
3.59 %
$ 1,397,302
$ 7,760
2.23 %
Savings accounts and certificates of deposit
6,449,061
80,109
5.00 %
6,069,942
74,553
4.94 %
5,546,862
58,761
4.25 %
Interest-bearing deposits
7,546,757
90,193
4.81 %
7,124,556
83,963
4.74 %
6,944,164
66,521
3.84 %
Other interest-bearing liabilities (3)
56,628
913
6.45 %
26,571
500
7.53 %
64,169
1,313
8.18 %
Total interest-bearing liabilities
7,603,385
91,106
4.82 %
7,151,127
84,463
4.75 %
7,008,333
67,834
3.88 %
Non-interest bearing deposits
303,199
317,430
205,750
Other liabilities
215,608
220,544
272,142
Total liabilities
$ 8,122,192
$ 7,689,101
$ 7,486,225
Total equity
$ 1,266,608
$ 1,257,237
$ 1,202,628
Total liabilities and equity
$ 9,388,800
$ 8,946,338
$ 8,688,853
Interest rate spread
5.00 %
4.95 %
6.48 %
Net interest income and net interest margin
$ 128,528
5.75 %
$ 122,888
5.75 %
$ 146,652
7.09 %
(1)
Consolidated presentation reflects intercompany eliminations.
(2)
Nonaccrual loans and any related income are included in their respective loan categories.
(3)
Beginning in the first quarter of 2024, “Retail and certificate loans held for investment at fair value” were combined within “Loans held for investment at fair value” and “Retail notes and certificates at fair value” were combined within “Other interest-bearing liabilities.” Prior period amounts have been reclassified to conform to the current period presentation.
LENDINGCLUB CORPORATION
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share and Per Share Amounts)
(Unaudited)
June 30,
2024
December 31,
2023
Assets
Cash and due from banks
$ 19,099
$ 14,993
Interest-bearing deposits in banks
919,020
1,237,511
Total cash and cash equivalents
938,119
1,252,504
Restricted cash
31,332
41,644
Securities available for sale at fair value ($2,869,880 and $1,663,990 at amortized cost, respectively)
2,814,383
1,620,262
Loans held for sale at fair value
791,059
407,773
Loans and leases held for investment
4,228,391
4,850,302
Allowance for loan and lease losses
(228,909)
(310,387)
Loans and leases held for investment, net
3,999,482
4,539,915
Loans held for investment at fair value (1)
339,222
272,678
Property, equipment and software, net
166,150
161,517
Goodwill
75,717
75,717
Other assets
430,586
455,453
Total assets
$ 9,586,050
$ 8,827,463
Liabilities and Equity
Deposits:
Interest-bearing
$ 7,759,632
$ 7,001,680
Noninterest-bearing
335,696
331,806
Total deposits
8,095,328
7,333,486
Borrowings (1)
5,474
19,354
Other liabilities
197,303
222,801
Total liabilities
8,298,105
7,575,641
Equity
Common stock, $0.01 par value; 180,000,000 shares authorized; 111,812,215 and 110,410,602 shares issued and outstanding, respectively
1,118
1,104
Additional paid-in capital
1,685,865
1,669,828
Accumulated deficit
(361,653)
(388,806)
Accumulated other comprehensive loss
(37,385)
(30,304)
Total equity
1,287,945
1,251,822
Total liabilities and equity
$ 9,586,050
$ 8,827,463
(1)
Beginning in the first quarter of 2024, “Retail and certificate loans held for investment at fair value” were combined within “Loans held for investment at fair value” and “Retail notes and certificates at fair value” were combined within “Borrowings.” Prior period amounts have been reclassified to conform to the current period presentation.
LENDINGCLUB CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except share and per share data)
(Unaudited)
Pre-Provision Net Revenue
For the three months ended
June 30,
2024
March 31,
2024
December 31,
2023
September 30,
2023
June 30,
2023
GAAP Net income
$ 14,903
$ 12,250
$ 10,155
$ 5,008
$ 10,110
Less: Provision for credit losses
(35,561)
(31,927)
(41,907)
(64,479)
(66,595)
Less: Income tax expense
(4,519)
(4,278)
(3,529)
(3,327)
(4,686)
Pre-provision net revenue
$ 54,983
$ 48,455
$ 55,591
$ 72,814
$ 81,391
For the three months ended
June 30,
2024
March 31,
2024
December 31,
2023
September 30,
2023
June 30,
2023
Non-interest income
$ 58,713
$ 57,800
$ 54,129
$ 63,844
$ 85,818
Net interest income
128,528
122,888
131,477
137,005
146,652
Total net revenue
187,241
180,688
185,606
200,849
232,470
Non-interest expense
(132,258)
(132,233)
(130,015)
(128,035)
(151,079)
Pre-provision net revenue
54,983
48,455
55,591
72,814
81,391
Provision for credit losses
(35,561)
(31,927)
(41,907)
(64,479)
(66,595)
Income before income tax expense
19,422
16,528
13,684
8,335
14,796
Income tax expense
(4,519)
(4,278)
(3,529)
(3,327)
(4,686)
GAAP Net income
$ 14,903
$ 12,250
$ 10,155
$ 5,008
$ 10,110
Tangible Book Value Per Common Share
June 30,
2024
March 31,
2024
December 31,
2023
September 30,
2023
June 30,
2023
GAAP common equity
$ 1,287,945
$ 1,266,286
$ 1,251,822
$ 1,208,219
$ 1,205,523
Less: Goodwill
(75,717)
(75,717)
(75,717)
(75,717)
(75,717)
Less: Intangible assets
(10,293)
(11,165)
(12,135)
(13,151)
(14,167)
Tangible common equity
$ 1,201,935
$ 1,179,404
$ 1,163,970
$ 1,119,351
$ 1,115,639
Book value per common share
GAAP common equity
$ 1,287,945
$ 1,266,286
$ 1,251,822
$ 1,208,219
$ 1,205,523
Common shares issued and outstanding
111,812,215
111,120,415
110,410,602
109,648,769
108,694,120
Book value per common share
$ 11.52
$ 11.40
$ 11.34
$ 11.02
$ 11.09
Tangible book value per common share
Tangible common equity
$ 1,201,935
$ 1,179,404
$ 1,163,970
$ 1,119,351
$ 1,115,639
Common shares issued and outstanding
111,812,215
111,120,415
110,410,602
109,648,769
108,694,120
Tangible book value per common share
$ 10.75
$ 10.61
$ 10.54
$ 10.21
$ 10.26
View original content to download multimedia:https://www.prnewswire.com/news-releases/lendingclub-reports-second-quarter-2024-results-302210183.html
SOURCE LendingClub Corporation
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View original content:https://www.prnewswire.com/news-releases/avathon-partners-with-cp-plus-largest-cctv-manufacturer-in-india-to-enhance-public-safety-while-strengthening-community-bonds-302304865.html
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Operating Highlights for the Third Quarter of 2024
Total vehicle deliveries were 55,003 units for the third quarter of 2024, representing a 51% year-over-year increase.
Deliveries
2024 Q3
2024 Q2
2024 Q1
2023 Q4
55,003
54,811
33,059
39,657
Deliveries
2023 Q3
2023 Q2
2023 Q1
2022 Q4
36,395
27,399
15,234
32,467
Financial Highlights for the Third Quarter of 2024
Vehicle sales were RMB14,401.3 million (US$2,052.2 million)[1] for the third quarter of 2024, representing an increase of 42.0% from the third quarter of 2023 and an increase of 7.2% from the second quarter of 2024.
Vehicle margin[2] was 15.7% for the third quarter of 2024, compared with 18.1% for the third quarter of 2023 and 14.2% for the second quarter of 2024.
Total revenues were RMB18,358.0 million (US$2,616.0 million) for the third quarter of 2024, representing an increase of 30.7% from the third quarter of 2023 and a decrease of 8.4% from the second quarter of 2024.
Gross profit was RMB2,941.8 million (US$419.2 million) for the third quarter of 2024, representing an increase of 28.5% from the third quarter of 2023 and a decrease of 14.7% from the second quarter of 2024.
Gross margin was 16.0% for the third quarter of 2024, compared with 16.3% for the third quarter of 2023 and 17.2% for the second quarter of 2024.
Loss from operations was RMB1,216.4 million (US$173.3 million) for the third quarter of 2024, representing a decrease of 19.3% from the third quarter of 2023 and a decrease of 29.3% from the second quarter of 2024. Excluding share-based compensation expenses, adjusted loss from operations (non-GAAP)[3] was RMB1,169.8 million (US$166.7 million) for the third quarter of 2024, representing a decrease of 20.8% from the third quarter of 2023 and an increase of 50.5% from the second quarter of 2024.
Net loss was RMB1,139.1 million (US$162.3 million) for the third quarter of 2024, representing a decrease of 21.7% from the third quarter of 2023 and a decrease of 37.0% from the second quarter of 2024. Excluding share-based compensation expenses, adjusted net loss (non-GAAP) was RMB1,092.6 million (US$155.7 million) for the third quarter of 2024, representing a decrease of 23.4% from the third quarter of 2023 and an increase of 26.3% from the second quarter of 2024.
[1] All conversions from Renminbi(“RMB”) to U.S. dollars (“US$”) are made at an exchange rate of RMB7.0176 to US$1.00, set forth in the H.10 statistical release of the Federal Reserve Board on September 30, 2024.
[2] Vehicle margin is the margin of vehicle sales, which is calculated based on revenues and cost of revenues derived from vehicle sales only.
[3] The Company’s non-GAAP financial measures exclude share-based compensation expenses. See “Unaudited Reconciliation of GAAP and Non-GAAP Results” set forth at the end of this announcement.
Key Financial Results
(in RMB millions, except for percentages)
2024 Q3
2024 Q2
2023 Q3
% Change i
YoY
QoQ
Vehicle sales
14,401.3
13,438.2
10,143.7
42.0 %
7.2 %
Vehicle margin
15.7 %
14.2 %
18.1 %
(2.4)pts
1.5pts
Total revenues
18,358.0
20,040.1
14,044.6
30.7 %
(8.4) %
Gross profit
2,941.8
3,449.8
2,289.4
28.5 %
(14.7) %
Gross margin
16.0 %
17.2 %
16.3 %
(0.3)pts
(1.2)pts
Loss from operations
(1,216.4)
(1,721.0)
(1,507.8)
(19.3) %
(29.3) %
Non-GAAP loss from operations
(1,169.8)
(777.1)
(1,477.6)
(20.8) %
50.5 %
Net loss
(1,139.1)
(1,808.8)
(1,455.7)
(21.7) %
(37.0) %
Non-GAAP net loss
(1,092.6)
(864.9)
(1,425.6)
(23.4) %
26.3 %
i
Except for vehicle margin and gross margin, absolute changes instead of percentage changes are presented.
Recent Developments
Delivery Update
In October 2024, the Company delivered 25,049 vehicles, representing an increase of 92% from October 2023.
New Model Launches
On October 23, 2024, ZEEKR officially launched and commenced deliveries of the ZEEKR MIX, a five-seat, family-oriented vehicle. The ZEEKR MIX redefines the concept of an everyday driver, seamlessly combining ample space, outstanding safety, and agile handling. As the first model built on the Company’s SEA-M architecture, the ZEEKR MIX boasts up to 93% in-cabin space utilization, maximizing interior space through innovative packaging and a capsule-style exterior. Two front-row seats that can swivel 270 degrees and a movable central console enhance cabin versatility, enabling “9+N” cabin scenario modes and flexible seating arrangements.
CEO and CFO Comments
“Our performance remained strong and resilient this quarter, marked by record-high deliveries and successful new model launches,” said Mr. Andy An, ZEEKR’s chief executive officer. “In the third quarter, we set a new record with 55,003 vehicle deliveries, representing a 51% year-over-year increase, and reached an additional milestone in October with monthly deliveries of 25,049 units. Notably, the ZEEKR 7X’s deliveries exceeded 20,000 units within 50 days since its launch, marking a robust achievement in the highly competitive mainstream SUV market. As we expand our product lineup and strengthen each model’s position in its respective category, we are delivering ZEEKR’s ultimate driving experience to more users, further cementing ZEEKR’s industry leadership.”
Mr. Jing Yuan, ZEEKR’s chief financial officer, added, “Our disciplined cost control measures, coupled with ongoing optimization of product structure, economies of scale, and technological innovation, drove a 30.7% year-over-year increase in revenue. Vehicle sales for the quarter grew by 42.0% and 7.2% year-over-year and quarter-over-quarter, respectively. Meanwhile, vehicle margin remained on an upward trajectory, rising to 15.7% in the third quarter of 2024, highlighting our consistent progress in profitability enhancement. Looking ahead, we will continue to consolidate resources, strengthen product capabilities, and expand our industry presence to propel our sustainable growth.”
Financial Results for the Third Quarter of 2024
Revenues
Total revenues were RMB18,358.0 million (US$2,616.0 million) for the third quarter of 2024, representing an increase of 30.7% from RMB14,044.6 million for the third quarter of 2023 and a decrease of 8.4% from RMB20,040.1 million for the second quarter of 2024.
Revenues from vehicle sales were RMB14,401.3 million (US$2,052.2 million) for the third quarter of 2024, representing an increase of 42.0% from RMB10,143.7 million for the third quarter of 2023, and an increase of 7.2% from RMB13,438.2 million for the second quarter of 2024. The year-over-year increase was due to the increase in new product delivery volume, partially offset by the lower average selling price due to the different product mix and pricing strategy changes between the two quarters. The quarter-over-quarter increase was mainly attributable to the launch of the ZEEKR 7X new model in the third quarter of 2024 and the higher average selling price resulting from changes in product mix.
Revenues from sales of batteries and other components were RMB3,245.3 million (US$462.5 million) for the third quarter of 2024, representing a decrease of 1.3% from RMB3,288.8 million for the third quarter of 2023 and a decrease of 38.8% from RMB5,299.2 million for the second quarter of 2024. The revenues from sales of batteries and other components remained relatively stable compared with the third quarter of 2023. The quarter-over-quarter decrease was mainly driven by lower sales volume of battery packs in the domestic market.
Revenues from research and development service and other services were RMB711.4 million (US$101.4 million) for the third quarter of 2024, representing an increase of 16.2% from RMB612.1 million for the third quarter of 2023 and a decrease of 45.4% from RMB1,302.6 million for the second quarter of 2024. The year-over-year increase was mainly due to the increased sales of after-sales vehicle services. The quarter-over-quarter decrease was mainly due to the decreased sales of research and development services to related parties.
Cost of Revenues and Gross Margin
Cost of revenues was RMB15,416.2 million (US$2,196.8 million) for the third quarter of 2024, representing an increase of 31.1% from RMB11,755.2 million for the third quarter of 2023 and a decrease of 7.1% from RMB16,590.2 million for the second quarter of 2024. The year-over-year increase was mainly attributable to the increase in vehicle delivery volume and the quarter-over-quarter decrease was mainly attributable to the decrease in sales of batteries and other components.
Gross profit was RMB2,941.8 million (US$419.2 million) for the third quarter of 2024, representing an increase of 28.5% from RMB2,289.4 million for the third quarter of 2023 and a decrease of 14.7% from RMB3,449.8 million for the second quarter of 2024.
Gross margin was 16.0% for the third quarter of 2024, compared with 16.3% for the third quarter of 2023 and 17.2% for the second quarter of 2024. The gross margin remained relatively stable compared with the third quarter of 2023. The quarter-over-quarter decrease was mainly attributable to the decreased margins on batteries and other components.
Vehicle margin was 15.7% for the third quarter of 2024, compared with 18.1% for the third quarter of 2023 and 14.2% for the second quarter of 2024. The year-over-year decrease was primarily attributed to the lower average selling price of ZEEKR vehicles due to the different product mix and pricing strategy changes between the two quarters, partially offset by the procurement savings as the cost of auto parts and materials decreased. The quarter-over-quarter increase was mainly due to the change in product mix.
Operating Expenses
Research and development expenses were RMB1,966.2 million (US$280.2 million) for the third quarter of 2024, representing a decrease of 2.6% from RMB2,018.1 million for the third quarter of 2023 and a decrease of 25.1% from RMB2,623.5 million for the second quarter of 2024. Research and development expenses remained relatively stable compared with the third quarter of 2023. The quarter-over-quarter decrease was mainly due to a one-off, large quantity of share-based compensation expenses in the second quarter, conditioned on the Company’s initial public offering.
Selling, general and administrative expenses were RMB2,274.8 million (US$324.1 million) for the third quarter of 2024, representing an increase of 25.4% from RMB1,813.9 million for the third quarter of 2023 and a decrease of 12.7% from RMB2,604.7 million for the second quarter of 2024. The year-over-year increase was mainly due to increased expenses related to the expansion of offline channels in China and overseas as well as the marketing activities of the launch of new models. The quarter-over-quarter decrease was mainly due to a one-off, large quantity of share-based compensation expenses in the second quarter, conditioned on the Company’s initial public offering.
Loss from Operations
Loss from operations was RMB1,216.4 million (US$173.3 million) for the third quarter of 2024, representing a decrease of 19.3% from RMB1.507.8 million for the third quarter of 2023 and a decrease of 29.3% from RMB1,721.0 million for the second quarter of 2024.
Non-GAAP loss from operations, which excludes share-based compensation expenses from loss from operations, was RMB1,169.8 million (US$166.7 million) for the third quarter of 2024, representing a decrease of 20.8% from RMB1,477.6 million for the third quarter of 2023 and an increase of 50.5% from RMB777.1 million for the second quarter of 2024.
Net Loss and Net Loss Per Share
Net loss was RMB1,139.1 million (US$162.3 million) for the third quarter of 2024, representing a decrease of 21.7% from RMB1,455.7 million for the third quarter of 2023 and a decrease of 37.0% from RMB1,808.8 million for the second quarter of 2024.
Non-GAAP net loss, which excludes share-based compensation expenses from net loss, was RMB1,092.6 million (US$155.7 million) for the third quarter of 2024, representing a decrease of 23.4% from RMB1,425.6 million for the third quarter of 2023 and an increase of 26.3% from RMB864.9 million for the second quarter of 2024.
Net loss attributable to ordinary shareholders of ZEEKR was RMB1,226.3 million (US$174.7 million) for the third quarter of 2024, representing a decrease of 16.9% from RMB1,476.1 million for the third quarter of 2023 and a decrease of 44.0% from RMB2,190.2 million for the second quarter of 2024.
Non-GAAP net loss attributable to ordinary shareholders of ZEEKR, which excludes share-based compensation expenses from net loss attributable to ordinary shareholders, was RMB1,179.7 million (US$168.1 million) for the third quarter of 2024, representing a decrease of 18.4% from RMB1,445.9 million for the third quarter of 2023 and a decrease of 5.3% from RMB1,246.3 million for the second quarter of 2024.
Basic and diluted net loss per share attributed to ordinary shareholders were RMB0.48 (US$0.07) each for the third quarter of 2024, compared with RMB0.74 each for the third quarter of 2023 and RMB0.95 each for the second quarter of 2024.
Non-GAAP basic and diluted net loss per share attributed to ordinary shareholders were both RMB0.46 (US$0.07) each for the third quarter of 2024, compared with RMB0.72 each for the third quarter of 2023 and RMB0.54 each for the second quarter of 2024.
Basic and diluted net loss per American Depositary Share (“ADS[4]”) attributed to ordinary shareholders were RMB4.80 (US$0.68) each for the third quarter of 2024, compared with RMB9.51 each for the second quarter of 2024.
Non-GAAP basic and diluted net loss per ADS attributed to ordinary shareholders were RMB4.62 (US$0.66) each for the third quarter of 2024, compared with RMB5.41 each for the second quarter of 2024.
[4] Each ADS represents ten ordinary shares.
Balance Sheets
Cash and cash equivalents and restricted cash was RMB8,297.7 million (US$1,182.4 million) as of September 30, 2024.
Conference Call
The Company’s management will host an earnings conference call on Thursday, November 14, 2024, at 7:00 A.M. U.S. Eastern Time (8:00 P.M. Beijing/Hong Kong Time on the same day).
All participants who wish to join the call are requested to complete the online registration using the link provided below. After registration, each participant will receive by email a set of dial-in numbers, a passcode and a unique access PIN to join the conference call. Participants may pre-register at any time, including up to and after the call start time.
Participant Online Registration: https://dpregister.com/sreg/10194063/fdd5d5735e
A live webcast of the conference call will be available on the Company’s investor relations website at https://ir.zeekrlife.com/.
About ZEEKR
ZEEKR (NYSE: ZK) is a global premium electric mobility technology brand from Geely Holding Group. ZEEKR aims to create a fully integrated user ecosystem with innovation as a standard. ZEEKR utilizes Sustainable Experience Architecture (SEA) and develops its own battery technologies, battery management systems, electric motor technologies, and electric vehicle supply chains. ZEEKR’s value is equality, diversity, and sustainability. Its ambition is to become a true mobility solution provider.
ZEEKR operates its R&D centers and design studios in Ningbo, Hangzhou, Gothenburg, and Shanghai and boasts state-of-the-art facilities and world-class expertise. Since ZEEKR began delivering vehicles in October 2021, the brand has developed a diversified product portfolio that primarily includes the ZEEKR 001, a luxury shooting brake; the ZEEKR 001 FR, a hyper-performing electric shooting brake; the ZEEKR 009, a pure electric luxury MPV; the ZEEKR 009 Grand, a four-seat ultra-luxury flagship MPV; the ZEEKR X, a compact SUV; the ZEEKR 7X, a premium electric five-seater SUV; the ZEEKR MIX; and an upscale sedan model. ZEEKR has announced plans to sell vehicles in global markets, and has an ambitious roll-out plan over the next 5 years to satisfy the rapidly expanding global EV demand.
For more information, please visit https://ir.zeekrlife.com/.
Non-GAAP Financial Measures
The Company uses non-GAAP financial measures, such as non-GAAP loss from operations, non-GAAP net loss, non-GAAP net loss attributable to ordinary shareholders, non-GAAP basic and diluted net loss per ordinary share attributed to ordinary shareholders, non-GAAP basic and diluted net loss per ADS attributed to ordinary shareholders, in evaluating its operating results and for financial and operational decision-making purposes. By excluding the impact of share-based compensation expenses, the Company believes that the non-GAAP financial measures help identify underlying trends in its business and enhance the overall understanding of the Company’s past performance and future prospects. The Company also believes that the non-GAAP financial measures allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making. The non-GAAP financial measures are not presented in accordance with U.S. GAAP and may be different from non-GAAP methods of accounting and reporting used by other companies. The non-GAAP financial measures have limitations as analytical tools and when assessing the Company’s operating performance, investors should not consider them in isolation, or as a substitute for net loss or other consolidated statements of comprehensive loss data prepared in accordance with U.S. GAAP. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company’s performance.
For more information on the non-GAAP financial measures, please see the table captioned “Unaudited Reconciliations of GAAP and non-GAAP Results” set forth in this announcement.
Exchange Rate Information
This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars and from U.S. dollars to RMB are made at a rate of RMB7.0176 to US$1.00, the exchange rate on September 30, 2024, set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or U.S. dollar amounts referred to could be converted into U.S. dollars or RMB, as the case may be, at any particular rate or at all.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “future,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to,” or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC. All information provided in this announcement is as of the date of this announcement, and the Company does not undertake any duty to update such information, except as required under applicable law.
For Investor Enquiries
ZEEKR
Investor Relations
Email: ir@zeekrlife.com
For Media Enquiries
ZEEKR
Media Relations
Email: Globalcomms@zeekrlife.com
ZEEKR INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
As of
December 31
September 30
September 30
2023
2024
2024
RMB
RMB
US$
ASSETS
Current assets:
Cash and cash equivalents
3,260,670
5,640,993
803,835
Restricted cash
844,079
2,656,734
378,582
Notes receivable
487,851
952,108
135,674
Accounts receivable
1,104,450
2,096,355
298,728
Inventories
5,228,689
4,745,085
676,169
Amounts due from related parties
7,256,861
6,535,623
931,319
Prepayments and other current assets
2,294,508
2,711,024
386,317
Total current assets
20,477,108
25,337,922
3,610,624
Property, plant and equipment, net
2,914,274
3,265,370
465,312
Intangible assets, net
410,912
624,404
88,977
Land use rights, net
51,755
62,185
8,861
Operating lease right-of-use assets
2,443,545
2,225,175
317,085
Deferred tax assets
86,395
195,175
27,812
Long-term investments
459,794
629,383
89,686
Other non-current assets
273,717
367,752
52,404
Total non-current assets
6,640,392
7,369,444
1,050,137
TOTAL ASSETS
27,117,500
32,707,366
4,660,761
ZEEKR INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
(Amounts in thousands)
As of
December 31
September 30
September 30
2023
2024
2024
RMB
RMB
US$
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term Borrowings
–
30,000
4,275
Accounts payable
4,104,717
3,589,418
511,488
Notes payable
5,504,945
12,474,151
1,777,552
Amounts due to related parties
16,355,902
15,008,230
2,138,656
Income tax payable
108,083
172,826
24,628
Accruals and other current liabilities
6,243,956
8,114,841
1,156,354
Total current liabilities
32,317,603
39,389,466
5,612,953
Long-term borrowings
–
414,630
59,084
Operating lease liabilities, non-current
1,807,159
1,577,950
224,856
Amounts due to related parties, non-current
1,100,000
–
–
Other non-current liabilities
563,001
540,082
76,961
Deferred tax liability
8,337
8,224
1,172
Total non-current liabilities
3,478,497
2,540,886
362,073
TOTAL LIABILITIES
35,796,100
41,930,352
5,975,026
SHAREHOLDERS’ EQUITY
Ordinary shares
2,584
3,361
479
Convertible preferred shares
362
–
–
Shares subscription receivable
–
(66)
(9)
Additional paid-in capital
11,213,798
15,683,094
2,234,823
Accumulated deficits
(20,865,686)
(26,296,475)
(3,747,218)
Accumulated other comprehensive income/(loss)
17,555
(26,402)
(3,762)
Total ZEEKR shareholders’ deficit
(9,631,387)
(10,636,488)
(1,515,687)
Non-controlling interest
952,787
1,413,502
201,422
TOTAL SHAREHOLDERS’ DEFICIT
(8,678,600)
(9,222,986)
(1,314,265)
TOTAL LIABILITIES AND SHAREHOLDERS’
EQUITY
27,117,500
32,707,366
4,660,761
ZEEKR INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
(LOSS)/INCOME
(Amounts in thousands, except share/ADS and per share/ADS data and otherwise noted)
Three Months Ended
September 30
June 30
September 30
September 30
2023
2024
2024
2024
RMB
RMB
RMB
US$
Revenues:
Vehicle sales
10,143,742
13,438,241
14,401,309
2,052,170
Sales of batteries and other components
3,288,766
5,299,171
3,245,331
462,456
Research and development service and
other services
612,103
1,302,639
711,362
101,368
Total revenues
14,044,611
20,040,051
18,358,002
2,615,994
Cost of revenues:
Vehicle sales
(8,308,327)
(11,533,020)
(12,146,781)
(1,730,902)
Sales of batteries and other components
(3,050,588)
(4,223,452)
(2,808,646)
(400,229)
Research and development service and
other services
(396,289)
(833,756)
(460,775)
(65,660)
Total cost of revenues
(11,755,204)
(16,590,228)
(15,416,202)
(2,196,791)
Gross profit
2,289,407
3,449,823
2,941,800
419,203
Operating expenses:
Research and development expenses
(2,018,136)
(2,623,471)
(1,966,167)
(280,177)
Selling, general and administrative
expenses
(1,813,890)
(2,604,665)
(2,274,751)
(324,149)
Other operating income, net
34,851
57,287
82,747
11,791
Total operating expenses
(3,797,175)
(5,170,849)
(4,158,171)
(592,535)
Loss from operations
(1,507,768)
(1,721,026)
(1,216,371)
(173,332)
Interest expense
(28,186)
(23,396)
(8,088)
(1,153)
Interest income
27,614
42,537
43,255
6,163
Other income/(expense), net
6,020
(7,809)
54,967
7,833
Loss before income tax expense and
share of losses in equity method
investments
(1,502,320)
(1,709,694)
(1,126,237)
(160,489)
Share of income in equity method
investments
33,021
85,852
81,500
11,614
Income tax benefits/(expense)
13,605
(184,980)
(94,409)
(13,453)
Net loss
(1,455,694)
(1,808,822)
(1,139,146)
(162,328)
Less: income attributable to non-
controlling interest
20,368
381,363
87,134
12,416
Net loss attributable to shareholders
of ZEEKR
(1,476,062)
(2,190,185)
(1,226,280)
(174,744)
ZEEKR INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
(LOSS)/INCOME (CONTINUED)
(Amounts in thousands, except share/ADS and per share/ADS data and otherwise noted)
Three Months Ended
September 30
June 30
September 30
September 30
2023
2024
2024
2024
RMB
RMB
RMB
US$
Net loss per share attributed to
ordinary shareholders:
Basic and diluted
(0.74)
(0.95)
(0.48)
(0.07)
Weighted average shares used in
calculating net loss per share:
Basic and diluted
2,000,000,000
2,301,866,887
2,552,901,668
2,552,901,668
Net loss per ADS attributed to
ordinary shareholders:
Basic and diluted
–
(9.51)
(4.80)
(0.68)
Weighted average ADS used in
calculating net loss per ADS:
Basic and diluted
–
230,186,689
255,290,167
255,290,167
Net loss
(1,455,694)
(1,808,822)
(1,139,146)
(162,328)
Other comprehensive income/(loss),
net of tax of nil:
Foreign currency translation
adjustments
(35,240)
74,670
(75,858)
(10,810)
Comprehensive loss
(1,490,934)
(1,734,152)
(1,215,004)
(173,138)
Less: comprehensive income/(loss)
attributable to non-controlling interest
20,368
381,363
87,134
12,416
Comprehensive loss attributable to
shareholders of ZEEKR
(1,511,302)
(2,115,515)
(1,302,138)
(185,554)
ZEEKR INC.
UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS
(Amounts in thousands, except share/ADS and per share/ADS data and otherwise noted)
Three Months Ended
September 30
June 30
September 30
September 30
2023
2024
2024
2024
RMB
RMB
RMB
US$
Loss from operations
(1,507,768)
(1,721,026)
(1,216,371)
(173,332)
Share-based compensation expenses
30,142
943,921
46,595
6,640
Non-GAAP loss from operations
(1,477,626)
(777,105)
(1,169,776)
(166,692)
Net loss
(1,455,694)
(1,808,822)
(1,139,146)
(162,328)
Share-based compensation expenses
30,142
943,921
46,595
6,640
Non-GAAP net loss
(1,425,552)
(864,901)
(1,092,551)
(155,688)
Net loss attributable to ordinary
shareholders
(1,476,062)
(2,190,185)
(1,226,280)
(174,744)
Share-based compensation expenses
30,142
943,921
46,595
6,640
Non-GAAP net loss attributable to
ordinary shareholders of ZEEKR
(1,445,920)
(1,246,264)
(1,179,685)
(168,104)
Weighted average number of
ordinary shares used in calculating
Non-GAAP net loss per share
Basic and diluted
2,000,000,000
2,301,866,887
2,552,901,668
2,552,901,668
Non-GAAP net loss per ordinary
share attributed to ordinary
shareholders
Basic and diluted
(0.72)
(0.54)
(0.46)
(0.07)
Weighted average number of ADS
used in calculating Non-GAAP net
loss per ADS
Basic and diluted
–
230,186,689
255,290,167
255,290,167
Non-GAAP net loss per ADS
attributed to ordinary shareholders
Basic and diluted
–
(5.41)
(4.62)
(0.66)
View original content:https://www.prnewswire.com/news-releases/zeekr-reports-third-quarter-2024-unaudited-financial-results-302305084.html
SOURCE ZEEKR Intelligent Technology Holding Limited
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