Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 04, 2016 | |
Document And Entity Information [Line Items] | ||
Entity Registrant Name | PROSPER MARKETPLACE, INC | |
Entity Central Index Key | 1,416,265 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 69,744,201 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Prosper Funding LLC [Member] | ||
Document And Entity Information [Line Items] | ||
Entity Registrant Name | Prosper Funding LLC | |
Entity Central Index Key | 1,542,574 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 0 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and Cash Equivalents | $ 28,824 | $ 66,295 |
Restricted Cash | 133,216 | 151,223 |
Available for Sale Investments, at Fair Value | 55,713 | 73,187 |
Accounts Receivable | 870 | 2,434 |
Loans Held for Sale, at Fair Value | 4,705 | 32 |
Borrower Loans, at Fair Value | 310,034 | 297,273 |
Property and Equipment, Net | 28,178 | 24,965 |
Prepaid and Other Assets | 6,747 | 6,433 |
Servicing Assets | 14,297 | 14,363 |
Goodwill | 36,368 | 36,368 |
Intangibles Assets, Net | 11,076 | 13,051 |
Total Assets | 630,028 | 685,624 |
Liabilities, Convertible Preferred Stock and Stockholders' Deficit | ||
Accounts Payable and Accrued Liabilities | 13,104 | 22,409 |
Payable to Investors | 114,876 | 136,507 |
Notes at Fair Value | 309,530 | 297,405 |
Other Liabilities | 24,416 | 20,735 |
Total Liabilities | 461,926 | 477,056 |
Commitments and Contingencies (see Note 16) | ||
Convertible Preferred Stock – $0.01 par value; 177,388,425 shares authorized, issued and outstanding as of June 30, 2016 and December 31, 2015. Aggregate liquidation preference of $325,952 as of June 30, 2016 and December 31, 2015. | 275,938 | 275,938 |
Stockholders' Deficit | ||
Common Stock ($0.01 par value; 298,222,103 shares authorized, 70,893,225 issued and 69,957,290 outstanding as of June 30, 2016; and 270,326,075 shares authorized, 70,367,425 shares issued and 69,431,490 outstanding as of December 31, 2015) | 174 | 127 |
Additional Paid-In Capital | 115,325 | 102,971 |
Less: Treasury Stock (5,177,235 common shares at cost, June 30, 2016 and December 31, 2015) | (23,417) | (23,417) |
Accumulated Deficit | (199,996) | (146,907) |
Accumulated Other Comprehensive Income/(Loss) | 78 | (144) |
Total Stockholders' Deficit | (107,836) | (67,370) |
Total Liabilities, Convertible Preferred Stock and Stockholders' Deficit | 630,028 | 685,624 |
Prosper Funding LLC [Member] | ||
Assets | ||
Cash and Cash Equivalents | 6,911 | 15,026 |
Restricted Cash | 121,933 | 139,937 |
Short Term Investments | 1,279 | 1,277 |
Loans Held for Sale, at Fair Value | 4,705 | 32 |
Borrower Loans, at Fair Value | 310,034 | 297,273 |
Property and Equipment, Net | 9,854 | 8,419 |
Servicing Assets | 13,798 | 13,605 |
Other assets | 111 | 122 |
Total Assets | 468,625 | 475,691 |
Liabilities, Convertible Preferred Stock and Stockholders' Deficit | ||
Accounts Payable and Accrued Liabilities | 1,371 | 2,122 |
Payable to Related Party | 4,202 | 2,989 |
Payable to Investors | 113,610 | 135,661 |
Notes at Fair Value | 309,530 | 297,405 |
Other Liabilities | 1,283 | 1,209 |
Total Liabilities | 429,996 | 439,386 |
Stockholders' Deficit | ||
Accumulated Deficit | 38,629 | 36,305 |
Total Stockholders' Deficit | 38,629 | 36,305 |
Total Liabilities, Convertible Preferred Stock and Stockholders' Deficit | $ 468,625 | $ 475,691 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Convertible preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Convertible preferred stock, shares authorized (in shares) | 177,388,425 | 177,388,425 |
Convertible preferred stock, shares issued (in shares) | 177,388,425 | 177,388,425 |
Convertible preferred stock, shares outstanding (in shares) | 177,388,425 | 177,388,425 |
Convertible preferred stock, aggregate liquidation preference | $ 325,952 | $ 325,952 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 298,222,103 | 270,326,075 |
Common stock, shares issued (in shares) | 70,893,225 | 70,367,425 |
Common stock, shares outstanding (in shares) | 69,957,290 | 69,431,490 |
Treasury Stock, Shares | 5,177,235 | 5,177,235 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Operating Revenues | ||||
Transaction Fees, Net | $ 19,276,000 | $ 39,800,000 | $ 61,100,000 | $ 65,142,000 |
Servicing Fees, Net | 7,676,000 | 3,575,000 | 14,819,000 | 6,144,000 |
Gain (Loss) on Sale of Borrower Loans | (687,000) | 3,696,000 | 3,104,000 | 5,618,000 |
Other Revenue | 816,000 | 1,630,000 | 3,589,000 | 2,685,000 |
Total Operating Revenues | 27,081,000 | 48,701,000 | 82,612,000 | 79,589,000 |
Interest Income | ||||
Interest Income on Borrower Loans | 11,192,000 | 10,165,000 | 21,975,000 | 20,634,000 |
Interest Expense on Notes | (10,098,000) | (9,448,000) | (19,819,000) | (19,011,000) |
Net Interest Income | 1,094,000 | 717,000 | 2,156,000 | 1,623,000 |
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net | (2,000) | 95,000 | (79,000) | 21,000 |
Total Net Revenue | 28,173,000 | 49,513,000 | 84,689,000 | 81,233,000 |
Expenses | ||||
Origination and Servicing | 8,833,000 | 7,126,000 | 19,282,000 | 13,982,000 |
Sales and Marketing | 12,303,000 | 26,580,000 | 45,023,000 | 45,150,000 |
General and Administrative | 28,499,000 | 21,832,000 | 59,145,000 | 35,329,000 |
Restructuring Charges | 14,061,000 | 14,061,000 | ||
Total Expenses | 63,696,000 | 55,538,000 | 137,511,000 | 94,461,000 |
Net Loss Before Taxes | (35,523,000) | (6,025,000) | (52,822,000) | (13,228,000) |
Income Tax Expense | 105,000 | 176,000 | 270,000 | 249,000 |
Total Net Income | (35,628,000) | (6,201,000) | (53,092,000) | (13,477,000) |
Net Loss Applicable to Common Stockholders | $ (35,628,000) | $ (6,201,000) | $ (53,092,000) | $ (13,477,000) |
Net Loss Per Share – Basic and Diluted | $ (0.56) | $ (0.11) | $ (0.86) | $ (0.25) |
Weighted-Average Shares - Basic and Diluted | 63,270,058 | 55,612,485 | 61,813,773 | 54,168,175 |
Prosper Funding LLC [Member] | ||||
Operating Revenues | ||||
Administration Fee Revenue - Related Party | $ 6,930,000 | $ 14,213,000 | $ 22,348,000 | $ 23,886,000 |
Servicing Fees, Net | 7,589,000 | 3,272,000 | 14,623,000 | 5,536,000 |
Gain (Loss) on Sale of Borrower Loans | (687,000) | 3,696,000 | 3,104,000 | 5,618,000 |
Other Revenue | 26,000 | 417,000 | (22,000) | |
Total Operating Revenues | 13,858,000 | 21,181,000 | 40,492,000 | 35,018,000 |
Interest Income | ||||
Interest Income on Borrower Loans | 10,988,000 | 10,209,000 | 21,496,000 | 20,723,000 |
Interest Expense on Notes | (10,098,000) | (9,448,000) | (19,819,000) | (19,011,000) |
Net Interest Income | 890,000 | 761,000 | 1,677,000 | 1,712,000 |
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net | (2,000) | 94,000 | (79,000) | 21,000 |
Total Net Revenue | 14,746,000 | 22,036,000 | 42,090,000 | 36,751,000 |
Expenses | ||||
Administration Fee - Related Party | 15,652,000 | 14,085,000 | 36,258,000 | 23,380,000 |
Servicing | 1,536,000 | 899,000 | 2,767,000 | 2,271,000 |
General and Administrative | 380,000 | 282,000 | 737,000 | 546,000 |
Total Expenses | 17,568,000 | 15,266,000 | 39,762,000 | 26,197,000 |
Income Tax Expense | 0 | 0 | ||
Total Net Income | $ (2,822,000) | $ 6,770,000 | $ 2,328,000 | $ 10,554,000 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Other Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net Loss | $ (35,628) | $ (6,201) | $ (53,092) | $ (13,477) |
Other Comprehensive Income (Loss), Before Tax | ||||
Change in Net Unrealized Gain (Loss) on Available for Sale Investments, at Fair Value | 25 | 215 | ||
Realized Gain (Loss) on Sale of Available for Sale Investments, at Fair Value | 6 | 6 | ||
Other Comprehensive Income (Loss), Before Tax | 31 | 221 | ||
Other Comprehensive Income (Loss), Net of Tax | 31 | 221 | ||
Comprehensive Income (Loss) | $ (35,597) | $ (6,201) | $ (52,871) | $ (13,477) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from Operating Activities: | ||
Net Income (Loss) | $ (53,092) | $ (13,477) |
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by (Used in) Operating Activities: | ||
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes | 79 | (21) |
Depreciation And Amortization | 6,430 | 3,455 |
Gain on Sales of Borrower Loans | (5,690) | (5,857) |
Change in Fair Value of Servicing Rights | 5,647 | 1,895 |
Stock-Based Compensation Expense | 11,510 | 4,192 |
Restructuring Liability | 8,492 | |
Other, Net | 227 | 45 |
Changes in Operating Assets and Liabilities: | ||
Purchase of Loans Held for Sale at Fair Value | (1,358,011) | (1,402,499) |
Proceeds from Sales and Principal Payments of Loans Held for Sale at Fair Value | 1,353,338 | 1,409,426 |
Restricted Cash Except for those Related to Investing Activities | 20,621 | (63,254) |
Accounts Receivable | 1,564 | 1,956 |
Prepaid and Other Assets | (84) | (2,235) |
Accounts Payable and Accrued Liabilities | (4,995) | 2,754 |
Payable to Investors | (21,631) | 70,551 |
Other Liabilities | (7,690) | (2,000) |
Net Cash (Used in) Provided by Operating Activities | (43,285) | 4,931 |
Cash Flows from Investing Activities: | ||
Purchase of Borrower Loans Held at Fair Value | (109,215) | (94,512) |
Principal Payments of Borrower Loans Held at Fair Value | 83,514 | 73,457 |
Purchases of Property and Equipment | (8,600) | (6,412) |
Maturities of Short Term Investments | 1,278 | 1,274 |
Purchases of Short Term Investments | (1,277) | (1,275) |
Purchases of Available for Sale Investments, at Fair Value | (11,725) | |
Proceeds from Sale of Available for Sale Investments | 9,193 | |
Maturities of Available for Sale Investments | 20,064 | |
Acquisition of Businesses, Net of Cash Acquired | (19,000) | |
Changes in Restricted Cash Related to Investing Activities | (2,614) | (2,729) |
Net Cash Used in Investing Activities | (19,382) | (49,197) |
Cash Flows from Financing Activities: | ||
Proceeds from Issuance of Notes Held at Fair Value | 109,147 | 94,575 |
Payments of Notes Held at Fair Value | (84,200) | (73,509) |
Proceeds from Issuance of Convertible Preferred Stock, Net | 164,793 | |
Proceeds from Exercise of Warrants and Stock Options including Early Exercise, and Issuance of Restricted Stock | 464 | 4,609 |
Repurchase of Common Stock and Restricted Stock | (46) | (21,250) |
Taxes Paid for Awards Vested Under Equity Incentive Plans | (169) | (2,206) |
Net Cash Provided by (Used in) Financing Activities | 25,196 | 167,012 |
Net (Decrease) Increase in Cash and Cash Equivalents | (37,471) | 122,746 |
Cash and Cash Equivalents at Beginning of the Period | 66,295 | 50,557 |
Cash and Cash Equivalents at End of the Period | 28,824 | 173,303 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash Paid for Interest | 19,787 | 19,147 |
Non-Cash Investing Activity- Accrual for Property and Equipment, Net | 346 | 26 |
Non-Cash Investing Activity- Amount Payable for the Acquisition of Business | 840 | |
Prosper Funding LLC [Member] | ||
Cash flows from Operating Activities: | ||
Net Income (Loss) | 2,328 | 10,554 |
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by (Used in) Operating Activities: | ||
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes | 79 | 2 |
Other Non-Cash Changes in Borrower Loans, Loans Held for Sale and Notes | 39 | (21) |
Depreciation And Amortization | 1,864 | 1,896 |
Gain on Sales of Borrower Loans | (5,690) | (5,648) |
Change in Fair Value of Servicing Rights | 5,387 | 1,291 |
Changes in Operating Assets and Liabilities: | ||
Purchase of Loans Held for Sale at Fair Value | (1,358,011) | (1,402,499) |
Proceeds from Sales and Principal Payments of Loans Held for Sale at Fair Value | 1,353,338 | 1,409,426 |
Restricted Cash Except for those Related to Investing Activities | 21,080 | (62,390) |
Other Assets | 11 | (14) |
Accounts Payable and Accrued Liabilities | (755) | 402 |
Payable to Investors | (22,051) | 69,686 |
Net Related Party Receivable/Payable | 2,077 | 1,387 |
Other Liabilities | 184 | |
Net Cash (Used in) Provided by Operating Activities | (120) | 24,072 |
Cash Flows from Investing Activities: | ||
Purchase of Borrower Loans Held at Fair Value | (109,215) | (94,512) |
Principal Payments of Borrower Loans Held at Fair Value | 83,514 | 73,457 |
Purchases of Property and Equipment | (4,163) | (6,567) |
Maturities of Short Term Investments | 1,277 | 1,274 |
Purchases of Short Term Investments | (1,279) | (1,275) |
Changes in Restricted Cash Related to Investing Activities | (3,076) | (2,725) |
Net Cash Used in Investing Activities | (32,942) | (30,348) |
Cash Flows from Financing Activities: | ||
Proceeds from Issuance of Notes Held at Fair Value | 109,147 | 94,576 |
Payments of Notes Held at Fair Value | (84,200) | (73,509) |
Cash Distributions to Parent | (27,000) | |
Net Cash Provided by (Used in) Financing Activities | 24,947 | (5,933) |
Net (Decrease) Increase in Cash and Cash Equivalents | (8,115) | (12,209) |
Cash and Cash Equivalents at Beginning of the Period | 15,026 | 23,777 |
Cash and Cash Equivalents at End of the Period | 6,911 | 11,568 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash Paid for Interest | 19,787 | 19,147 |
Non-Cash Investing Activity- Accrual for Property and Equipment, Net | $ 572 | |
Non-Cash Financing Activity, Distribution to Parent | $ 249 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2016 | |
Basis of Presentation | 1. Basis of Presentation Prosper Marketplace, Inc. (“PMI”) was incorporated in the state of Delaware on March 22, 2005. Except as the context requires otherwise, as used in these notes to the condensed consolidated financial statements of Prosper Marketplace, Inc., “Prosper,” “we,” “us,” and “our” refer to PMI and its wholly-owned subsidiaries, on a consolidated basis. The unaudited interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“US GAAP”) and disclosure requirements for interim financial information and the requirements of Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by US GAAP for complete financial statements. The unaudited interim condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, 2015. The balance sheet at December 31, 2015 has been derived from the audited financial statements at that date. Management believes these unaudited interim condensed consolidated financial statements reflect all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the results for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the full year or any other interim period. The preparation of Prosper’s condensed consolidated financial statements and related disclosures in conformity with GAAP requires management to make judgments, assumptions and estimates that affect the amounts reported in Prosper’s financial statements and accompanying notes. Management bases its estimates on historical experience and on various other factors it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of certain assets and liabilities. These judgments, estimates and assumptions are inherently subjective in nature and actual results may differ from these estimates and assumptions, and the differences could be material. The accompanying interim condensed consolidated financial statements include the accounts of PMI and its wholly-owned subsidiaries. All intercompany balances have been eliminated in consolidation. On January 23, 2015, PMI acquired all of the outstanding limited liability company units of American HealthCare Lending, LLC (“American HealthCare Lending”), a company that operated a patient financing platform, and merged American HealthCare Lending with and into Prosper Healthcare Lending LLC (“PHL”), a newly established entity surviving the merger. Prosper’s condensed consolidated financial statements include PHL’s results of operations and financial position from the date of acquisition forward. On October 9, 2015, PMI acquired all of the outstanding stock of BillGuard, Inc. (“BillGuard”), a company incorporated in Delaware in 2010 that developed applications that help consumers manage their identity, finances and credit. PMI merged BillGuard with and into Beach Merger Sub, Inc., a newly established entity wholly owned by PMI, with BillGuard surviving the merger. Prosper’s condensed consolidated financial statements include BillGuard’s results of operations and financial position from the date of acquisition forward. Reclassifications During the period ended June 30, 2016, Prosper changed the presentation of its revenue in the condensed consolidated statements of operations. A new line called “Gain on Sales of Borrower Loans” was created with the amounts included in this line previously classified as “Other Revenue”. Prior period amounts have been reclassified to conform to the current presentation. Additionally, due to the early adoption of ASU 2016-09 on January 1, 2016, reclassifications were made to the financing section of the condensed consolidated statements of cash flows to reflect taxes paid for awards vested under equity incentive plans. Prior period amounts have been reclassified to conform to the current presentation. |
Prosper Funding LLC [Member] | |
Basis of Presentation | 1. Basis of Presentation Prosper Funding LLC (“PFL”) was formed in the state of Delaware on February 17, 2012 as a limited liability company with the sole equity member being Prosper Marketplace, Inc. (“PMI”). Except as the context otherwise requires, as used in these Notes to the condensed consolidated financial statements of Prosper Funding LLC, “Prosper Funding,” “we,” “us,” and “our” refers to PFL and its wholly owned subsidiary, Prosper Asset Holdings LLC (“PAH”), a Delaware limited liability company, on a consolidated basis. The unaudited interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“US GAAP”) and disclosure requirements for interim financial information and the requirements of Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by US GAAP for complete financial statements. The unaudited interim condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, 2015. The balance sheet at December 31, 2015 has been derived from the audited financial statements at that date. Management believes these unaudited interim condensed consolidated financial statements reflect all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the results for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the full year or any other interim period. Prosper Funding did not have any items of other comprehensive income (loss) during any of the periods presented in the condensed consolidated financial statements as of and for the six months ended June 30, 2016 and 2015. The preparation of Prosper Funding's condensed consolidated financial statements and related disclosures in conformity with GAAP requires management to make judgments, assumptions and estimates that affect the amounts reported in its condensed consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other factors it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of certain assets and liabilities. These judgments, estimates and assumptions are inherently subjective in nature and actual results may differ from these estimates and assumptions, and the differences could be material. Reclassifications During the period ended June 30, 2016, Prosper Funding changed the presentation of its revenue in the condensed consolidated statements of operations. A new line called “Gain on Sales of Borrower Loans” was created with the amounts included in this line previously classified as “Other Revenue”. The gain on sale related to the sale of Borrower Loans was reclassified from “Other Revenues” to a new line called “Gain on Sales of Borrower Loans.” |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
Significant Accounting Policies [Line Items] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Prosper’s significant accounting policies are included in Note 2 – Summary of Significant Accounting Policies Fair Value Measurements Financial instruments consist principally of Cash and Cash Equivalents, Restricted Cash, Available for Sale Investments at Fair Value, Borrower Loans, Loans Held for Sale, Accounts Receivable, Accounts Payable and Accrued Liabilities, Payable to Investors and Notes. The estimated fair values of Cash and Cash Equivalents, Restricted Cash, Accounts Receivable, Accounts Payable and Accrued Liabilities, and Payable to Investors approximate their carrying values because of their short term nature. Restructuring Charges Restructuring Borrower Loans, Loans Held for Sale and Notes Through the Note Channel, Prosper purchases Borrower Loans from WebBank then issues Notes, and holds the Borrower Loans until maturity. The obligation to repay a series of Notes issued through the Note Channel is dependent upon the repayment of the associated Borrower Loan. Borrower Loans funded and Notes issued through the Note Channel are carried on Prosper’s condensed consolidated balance sheets as assets and liabilities, respectively. We choose to measure certain financial instruments and certain other items at fair value on an instrument-by-instrument basis with unrealized gains and losses on items for which the fair value option has been elected reported in earnings. Management believes that the fair value option is more meaningful for the readers of the financial statements and it allows both the Borrower Loans and Notes to be valued using the same methodology. The fair value election, with respect to an item, may not be revoked once an election is made. Prosper estimates the fair value of such Borrower Loans and Notes using discounted cash flow methodologies that take into account expected prepayments, losses, recoveries and default rates. The Borrower Loans are not derecognized when a corresponding Note is issued as Prosper maintains the ability to sell the Borrower Loans without the approval of the holders of the corresponding Notes. Recent Accounting Pronouncements In May 2014, as part of its ongoing efforts to assist in the convergence of US GAAP and International Financial Reporting Standards (“IFRS”), the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “ Revenue from Contracts with Customers In November 2014, the FASB issued ASU 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity to eliminate the use of different methods in practice and thereby reduce existing diversity in the accounting for hybrid financial instruments issued in the form of a share. For hybrid financial instruments issued in the form of a share, an entity should determine the nature of the contract by considering the economic characteristics and risks of the entire hybrid financial instrument. The existence or omission of any single term or feature does not necessarily determine the economic characteristics and risks of the host contract. This standard will be effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2015. In April 2015, the FASB issued ASU 2015-05 “ Customers’ Accounting for Fees Paid in Cloud Computing Arrangement ”, which became effective for the . The guidance changes what a customer must consider in determining whether a cloud computing arrangement contains a software license. If the arrangement contains a software license, the customer would account for the fees related to the software license element in accordance with guidance related to internal use software; if the arrangement does not contain a software license, the customer would account for the arrangement as a service contract. In September 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments. The new guidance simplifies the accounting for measurement period adjustments in connection with business combinations by requiring that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. This guidance is effective for financial statements issued for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (Topic 718). |
Prosper Funding LLC [Member] | |
Significant Accounting Policies [Line Items] | |
Summary of Significant Accounting Policies | 2. Significant Accounting Policies Prosper Funding's significant accounting policies are included in Note 2 – Summary of Significant Accounting Policies Fair Value Measurements Financial instruments consist principally of Cash and Cash Equivalents, Restricted Cash, Short Term Investments, Borrower Loans, Loans Held for Sale, Accounts Receivable, Accounts Payable and Accrued Liabilities, Payable to Investors and Notes. The estimated fair values of Cash and Cash Equivalents, Restricted Cash, Accounts Receivable, Accounts Payable and Accrued Liabilities, and Payable to Investors approximate their carrying values because of their short term nature. Borrower Loans, Loans Held for Sale and Notes Through the Note Channel, Prosper Funding purchases Borrower Loans from WebBank then issues Notes, and holds the Borrower Loans until maturity. The obligation to repay a series of Notes funded through the Note Channel is dependent upon the repayment of the associated Borrower Loan. Borrower Loans and Notes funded through the Note Channel are carried on Prosper Funding’s consolidated balance sheets as assets and liabilities, respectively. We choose to measure certain financial instruments and certain other items at fair value on an instrument-by-instrument basis with unrealized gains and losses on items for which the fair value option has been elected reported in earnings. Management believes that the fair value option is more meaningful for the readers of the financial statements and it allows both the Borrower Loans and Notes to be valued using the same methodology. The fair value election, with respect to an item, may not be revoked once an election is made. Prosper Funding estimates the fair value of such Borrower Loans and Notes using discounted cash flow methodologies that take into account expected prepayments, losses, recoveries and default rates. The Borrower Loans are not derecognized when a corresponding Note is issued as Prosper Funding maintains the ability to sell the Borrower Loans without the approval of the holders of the corresponding Notes. Recent Accounting Pronouncements In May 2014, as part of its ongoing efforts to assist in the convergence of US GAAP and International Financial Reporting Standards (“IFRS”), the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “ Revenue from Contracts with Customers In April 2015, the FASB issued ASU 2015-05 “ Customers’ Accounting for Fees Paid in Cloud Computing Arrangement ”, which became effective for the . The guidance changes what a customer must consider in determining whether a cloud computing arrangement contains a software license. If the arrangement contains a software license, the customer would account for the fees related to the software license element in accordance with guidance related to internal use software; if the arrangement does not contain a software license, the customer would account for the arrangement as a service contract. |
Property and Equipment, Net
Property and Equipment, Net | 6 Months Ended |
Jun. 30, 2016 | |
Property and Equipment, Net | 3. Property and Equipment, Net Property and equipment consist of the following (in thousands): June 30, December 31, 2016 2015 Property and equipment: Computer equipment $ 14,153 $ 10,522 Internal-use software and website development costs 14,289 10,990 Office equipment and furniture 3,087 2,442 Leasehold improvements 7,220 5,719 Assets not yet placed in service 1,994 3,242 Property and equipment 40,743 32,915 Less accumulated depreciation and amortization (12,565 ) (7,950 ) Total property and equipment, net $ 28,178 $ 24,965 Depreciation and amortization expense for property and equipment for the three months ended June 30, 2016 and 2015 was $2.5 million and $1.4 million, respectively. Depreciation and amortization expense for property and equipment for the six months ended June 30, 2016 and 2015 was $4.5 million and $3.1 million, respectively. Prosper capitalized internal-use software and website development costs in the amount of $1.8 million and $2.1 million for the three months ended June 30, 2016 and 2015, respectively. Prosper capitalized internal-use software and website development costs in the amount of $3.6 million and $3.9 million for the six months ended June 30, 2016 and 2015, respectively. Prosper recorded internal-use software and website development impairment charges of $240 thousand and $0 for the six months ended June 30, 2016 and 2015, respectively, as a result of its decision to discontinue several software and website development projects. These charges are included in general and administration expenses on the condensed consolidated statement of operations. |
Prosper Funding LLC [Member] | |
Property and Equipment, Net | 3. Property and Equipment Property and equipment consist of the following (in thousands): June 30, December 31, 2016 2015 Property and equipment: Internal-use software and web site development costs $ 14,289 $ 10,990 Less accumulated depreciation and amortization (4,435 ) (2,571 ) Total property and equipment, net $ 9,854 $ 8,419 Depreciation expense for the three months ended June 30, 2016 and 2015 was $981 thousand and $676 thousand, respectively. Depreciation expense for the six months ended June 30, 2016 and 2015 was $1,864 thousand and $1,896 thousand, respectively. |
Borrower Loans, Loans Held for
Borrower Loans, Loans Held for Sale, and Notes Held at Fair Value | 6 Months Ended |
Jun. 30, 2016 | |
Borrower Loans, Loans Held for Sale, and Notes Held at Fair Value | 4. Borrower Loans, Loans Held for Sale, and Notes Held at Fair Value The aggregate principal balances outstanding and fair values of Borrower Loans, Loans Held for Sale and Notes as of June 30, 2016 and December 31, 2015, are presented in the following table (in thousands): Borrower Loans Notes Loans Held for Sale June 30, 2016 December 31, 2015 June 30, 2016 December 31, 2015 June 30, 2016 December 31, 2015 Aggregate principal balance outstanding $ 312,725 $ 296,945 $ (315,671 ) $ (294,331 ) $ 4,715 $ 42 Fair value adjustments (2,691 ) 328 6,141 (3,074 ) (10 ) (10 ) Fair value $ 310,034 $ 297,273 $ (309,530 ) $ (297,405 ) $ 4,705 $ 32 At June 30, 2016, outstanding Borrower Loans had original terms to maturity of either 36 or 60 months; had monthly payments with fixed interest rates ranging from 5.32% to 33.04% and had various maturity dates through June 2021. At December 31, 2015, outstanding Borrower Loans had original maturities of either 36 or 60 months; had monthly payments with fixed interest rates ranging from 5.32% to 33.04% and had various maturity dates through December 2020. Approximately $0.3 million and $2.0 million represents the gain and loss, respectively, that is attributable to changes in the instrument specific credit risks related to Borrower Loans that were recorded in the change in fair value during the three and six months ending June 30, 2016. As of June 30, 2016, Borrower Loans that were 90 days or more delinquent had an aggregate principal amount of $2.0 million and a fair value of $0.7 million. As of December 31, 2015, Borrower Loans that were 90 days or more delinquent had an aggregate principal amount of $2.3 million and a fair value of $0.9 million. Prosper places loans on non-accrual status when they are over 120 days past due. As of June 30, 2016 and December 31, 2015, Borrower Loans in non-accrual status had a fair value of $0.2 million and $0.1 million, respectively. |
Prosper Funding LLC [Member] | |
Borrower Loans, Loans Held for Sale, and Notes Held at Fair Value | 4. Borrower Loans, Loans Held For Sale and Notes Held at Fair Value The aggregate principal balances outstanding and fair values of Borrower Loans, Loans Held for Sale and Notes as of June 30, 2016 and December 31, 2015, are presented in the following table (in thousands): Borrower Loans Notes Loans Held for Sale June 30, 2016 December 31, 2015 June 30, 2016 December 31, 2015 June 30, 2016 December 31, 2015 Aggregate principal balance outstanding $ 312,725 $ 296,945 $ (315,671 ) $ (294,331 ) $ 4,715 $ 42 Fair value adjustments (2,691 ) 328 6,141 (3,074 ) (10 ) (10 ) Fair value $ 310,034 $ 297,273 $ (309,530 ) $ (297,405 ) $ 4,705 $ 32 At June 30, 2016, outstanding Borrower Loans had original terms to maturity of either 36 or 60 months; had monthly payments with fixed interest rates ranging from 5.32% to 33.04% and had various maturity dates through June 2021. At December 31, 2015, outstanding Borrower Loans had original maturities of either 36 or 60 months; had monthly payments with fixed interest rates ranging from 5.32% to 33.04% and had various maturity dates through December 2020. Approximately $314 thousand and $2,033 thousand represents the gain and loss, respectively, that is attributable to changes in the instrument specific credit risks related to Borrower Loans that were recorded in the change in fair value during the three and six months ended June 30, 2016. As of June 30, 2016, Borrower Loans that were 90 days or more delinquent had an aggregate principal amount of $2.0 million and a fair value of $0.7 million. As of December 31, 2015, Borrower Loans that were 90 days or more delinquent had an aggregate principal amount of $2.3 million and a fair value of $0.9 million. Prosper Funding places loans on non-accrual status when they are over 120 days past due. As of June 30, 2016 and December 31, 2015, Borrower Loans in non-accrual status had a fair value of $0.2 million and $0.1 million, respectively. |
Loan Servicing Assets and Liabi
Loan Servicing Assets and Liabilities | 6 Months Ended |
Jun. 30, 2016 | |
Loan Servicing Assets and Liabilities | 5. Loan Servicing Assets and Liabilities Prosper accounts for servicing assets and liabilities at their estimated fair values with changes in fair values recorded in servicing fees. The initial asset or liability is recognized when Prosper sells Borrower Loans to unrelated third-party buyers through the Whole Loan Channel and the servicing rights are retained. The servicing assets and liabilities are measured at fair value throughout the servicing period. The total gains and losses recognized on the sale of such Borrower Loans was $0.7 million of losses and $3.7 million of gains for the three months ended June 30, 2016 and 2015, respectively. The total gain recognized on the sale of such Borrower Loans was $3.1 million and $5.6 million for the six months ended June 30, 2016 and 2015, respectively. As of June 30, 2016, Borrower Loans that were sold but for which Prosper retained servicing rights had a total outstanding principal balance of $4.1 billion, original terms of either 36 or 60 months and had monthly payments with fixed interest rates ranging from 5.32% to 35.52% and various maturity dates through June 2021. At December 31, 2015, Borrower Loans that were sold but for which Prosper retained servicing rights had a total outstanding principal balance of $3.8 billion, original terms of either 36 or 60 months and had monthly payments with fixed interest rates ranging from 5.32% to 31.90% and various maturity dates through December 2020. $10.4 million and $4.6 million of contractually specified servicing fees and ancillary fees are included on our condensed consolidated statement of operations in Servicing Fees, Net for the three months ended June 30, 2016 and 2015 respectively. $20.0 million and $7.8 million of contractually specified servicing fees and ancillary fees are included on our condensed statement of operations in Servicing Fees, Net for the six months ended June 30, 2016 and 2015 respectively. Fair value Valuation method – Prosper uses a discounted cash flow valuation methodology generally consisting of developing an estimate of future cash flows that are expected to occur over the life of a financial instrument and then discounting those cash flows at a rate of return that results in the fair value amount. Significant unobservable inputs presented in the table within Note 7 below are those that Prosper considers significant to the estimated fair values of the Level 3 servicing assets and liabilities. The following is a description of the significant unobservable inputs provided in the table. Market servicing rate Discount rate Default Rate Prepayment Rate |
Prosper Funding LLC [Member] | |
Loan Servicing Assets and Liabilities | 5. Loan Servicing Assets and Liabilities Prosper Funding accounts for servicing assets and liabilities at their estimated fair values with changes in fair values recorded in servicing fees. The initial asset or liability is recognized when Prosper Funding sells Borrower Loans to unrelated third-party buyers through the Whole Loan Channel and the servicing rights are retained. The servicing assets and liabilities are measured at fair value throughout the servicing period. The total gains and losses recognized on the sale of such Borrower Loans was $0.7 million of losses and $3.7 million of gains for the three months ended June 30, 2016 and 2015, respectively. The total gain recognized on the sale of such Borrower Loans was $3.1 million and $5.6 million for the six months ended June 30, 2016 and 2015, respectively. At June 30, 2016, Borrower Loans that were sold, but for which Prosper Funding retained servicing rights, had a total outstanding principal balance of $3.9 billion, original terms of either 36 or 60 months and had monthly payments with fixed interest rates ranging from 5.32% to 35.52% and various maturity dates through June 2021. At December 31, 2015, Borrower Loans that were sold, but for which Prosper Funding retained servicing rights, had a total outstanding principal balance of $3.6 billion, original terms of either 36 or 60 months and had monthly payments with fixed interest rates ranging from 5.32% to 31.90% and various maturity dates through December 2020. $10.3 million and $4.1 million of contractually specified servicing fees and ancillary fees are included on our condensed consolidated statement of operations in Servicing Fees, Net for the three months ended June 30, 2016 and 2015 respectively. $19.7 million and $6.8 million of contractually specified servicing fees and ancillary fees are included on our condensed consolidated statement of operations in Servicing Fees, Net for the six months ended June 30, 2016 and 2015 respectively. Fair value Valuation method – Prosper Funding uses a discounted cash flow valuation methodology generally consisting of developing an estimate of future cash flows that are expected to occur over the life of a financial instrument and then discounting those cash flows at a rate of return that results in the fair value amount. Significant unobservable inputs presented in the table within Note 7 below are those that Prosper Funding considers significant to the estimated fair values of the Level 3 servicing assets and liabilities. The following is a description of the significant unobservable inputs provided in the table. Market servicing rate Discount rate Default Rate Prepayment Rate |
Available for Sale Investments,
Available for Sale Investments, at Fair Value | 6 Months Ended |
Jun. 30, 2016 | |
Investments Debt And Equity Securities [Abstract] | |
Available for Sale Investments, at Fair Value | 6. Available for Sale Investments, at Fair Value Available for sale investments are recorded at fair value and unrealized gains and losses are reported, net of taxes, in accumulated other comprehensive income (loss) included in stockholders' equity unless management determines that an investment is other-than-temporarily impaired (OTTI). The amortized cost, gross unrealized gains and losses, and fair value of available for sale investments as of June 30, 2016 and December 31, 2015, are as follows: June 30, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Fixed maturity securities: Corporate debt securities $ 37,453 $ 49 $ (9 ) $ 37,493 Commercial paper 3,899 - - 3,899 US Treasury securities 10,533 28 - 10,561 Agency bonds 2,499 11 - 2,510 Total fixed maturity securities 54,384 88 (9 ) 54,463 Short term bond funds 1,250 - - 1,250 Total Available for Sale Investments $ 55,634 $ 88 $ (9 ) $ 55,713 December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Fixed maturity securities: Corporate debt securities $ 50,327 $ 1 $ (94 ) $ 50,234 Commercial paper 9,493 - - 9,493 US Treasury securities 8,512 - (41 ) 8,471 Agency bonds 2,499 - (8 ) 2,491 Total fixed maturity securities 70,831 1 (143 ) 70,689 Short term bond funds 2,500 - (2 ) 2,498 Total Available for Sale Investments $ 73,331 $ 1 $ (145 ) $ 73,187 A summary of available for sale investments with unrealized losses as of June 30, 2016, and December 31, 2015, aggregated by category and period of continuous unrealized loss, is as follows: Less than 12 months 12 months or longer Total June 30, 2016 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fixed maturity securities: Corporate debt securities $ 9,753 $ (9 ) $ - $ - $ 9,753 $ (9 ) U.S. treasury securities - - - - - - Agency bonds - - - - - - Total fixed maturity securities 9,753 (9 ) - - 9,753 (9 ) Short term bond funds - - - - - - Total Investments with Unrealized Losses $ 9,753 $ (9 ) $ - $ - $ 9,753 $ (9 ) Less than 12 months 12 months or longer Total December 31, 2015 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fixed maturity securities: Corporate debt securities $ 45,375 $ (94 ) $ - $ - $ 45,375 $ (94 ) U.S. treasury securities 8,471 (41 ) - - 8,471 (41 ) Agency bonds 2,491 (8 ) - - 2,491 (8 ) Total fixed maturity securities 56,337 (143 ) - - 56,337 (143 ) Short term bond funds 2,498 (2 ) - - 2,498 (2 ) Total Investments with Unrealized Losses $ 58,835 $ (145 ) $ - $ - $ 58,835 $ (145 ) There were no impairment charges recognized during the six months ended June 30, 2016. The maturities of available for sale investments at June 30, 2016, and December 31, 2015, are as follows: June 30, 2016 Within 1 year After 1 year through 5 years After 5 years to 10 years After 10 years Total Corporate debt securities $ 28,677 $ 8,816 $ - $ - $ 37,493 Commercial paper 3,899 - - - 3,899 US Treasury securities 3,006 7,555 - - 10,561 Agency bonds - 2,510 - - 2,510 Total Fair Value $ 35,582 $ 18,881 $ - $ - $ 54,463 Total Amortized Cost $ 35,560 $ 18,824 $ - $ - $ 54,384 December 31, 2015 Within 1 year After 1 year through 5 years After 5 years to 10 years After 10 years Total Corporate debt securities $ 26,289 $ 23,945 $ - $ - $ 50,234 Commercial paper 9,493 - - - 9,493 US Treasury securities - 8,471 - - 8,471 Agency bonds - 2,491 - - 2,491 Total Fair Value $ 35,782 $ 34,907 $ - $ - $ 70,689 Total Amortized Cost $ 35,831 $ 35,000 $ - $ - $ 70,831 During the three and six months ended June 30, 2016, Prosper sold $9.2 million of investments which resulted in a realized gain of $6 thousand. |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value of Assets and Liabilities | 7. Fair Value of Assets and Liabilities Prosper measures the fair value of assets and liabilities in accordance with its fair value hierarchy which prioritizes information used to measure fair value and the effect of fair value measurements on earnings and provides for enhanced disclosures determined by the level within the hierarchy of information used in the valuation. We apply this framework whenever other standards require (or permit) assets or liabilities to be measured at fair value. Assets and liabilities carried at fair value on the balance sheets are classified among three levels based on the observability of the inputs used to determine fair value: Level 1 — The valuation is based on quoted prices in active markets for identical instruments. Level 2 — The valuation is based on observable inputs such as quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation methodologies for which all significant assumptions are observable in the market. Level 3 — The valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the instrument. Level 3 valuations are typically performed using pricing models, discounted cash flow methodologies, or similar methodologies, which incorporate management’s own estimates of assumptions that market participants would use in pricing the instrument or valuations that require significant management judgment or estimation. Fair values of assets or liabilities are determined based on the fair value hierarchy, which requires an entity to maximize the use of quoted prices and observable inputs and to minimize the use of unobservable inputs when measuring fair value. Various valuation methodologies are utilized, depending on the nature of the financial instrument, including the use of market prices for identical or similar instruments, or discounted cash flow models. When possible, active and observable market data for identical or similar financial instruments are utilized. Alternatively, fair value is determined using assumptions that management believes a market participant would use in pricing the asset or liability. Financial instruments consist principally of Cash and Cash Equivalents, Restricted Cash, Available for Sale Investments, Borrower Loans, Loans Held for Sale, Accounts Receivable, Accounts Payable and Accrued Liabilities, Payable to Investors and Notes. Servicing Assets and Liabilities are also subject to fair value measurement within the financial statements of Prosper. The estimated fair values of Cash and Cash Equivalents, Restricted Cash, Accounts Receivable, Accounts Payable and Accrued Liabilities, and Payable to Investors approximate their carrying values because of their short term nature. Financial Instruments Recorded at Fair Value The fair value of the Borrower Loans, Loans Held for Sale and Notes are estimated using discounted cash flow methodologies based upon a set of valuation assumptions. The primary cash flow assumptions used to value such Borrower Loans, Loans Held for Sale and Notes include default rates derived from historical performance and discount rates applied to each credit grade based on the perceived credit risk of each credit grade. Investments held at fair value consist of available for sale investments. The available for sale investments consist of corporate debt securities, commercial paper, U.S. treasury securities, agency bonds and short term bond funds. When available, Prosper uses quoted prices in active markets to measure the fair value of securities available for sale. When utilizing market data and bid-ask spreads, Prosper uses the price within the bid-ask spread that best represents fair value. When quoted prices do not exist, Prosper uses prices obtained from independent third-party pricing services to measure the fair value of investment assets. Prosper generally obtains prices from at least two independent pricing sources for assets recorded at fair value. Prosper's primary independent pricing service provides prices based on observable trades and discounted cash flows that incorporate observable information, such as yields for similar types of securities (a benchmark interest rate plus observable spreads) and weighted-average maturity for the same or similar securities. Prosper compares the prices obtained from its primary independent pricing service to the prices obtained from the additional independent pricing services to determine if the price obtained from the primary independent pricing service is reasonable. Prosper does not adjust the prices received from independent third-party pricing services unless such prices are inconsistent with the definition of fair value and result in a material difference in the recorded amounts. The following tables present the fair value hierarchy for assets and liabilities measured at fair value (in thousands): June 30, 2016 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Assets: Borrower Loans $ - $ - $ 310,034 $ 310,034 Loans Held for Sale - - 4,705 4,705 Available for Sale Investments, at Fair Value - 55,713 - 55,713 Servicing Assets - - 14,297 14,297 Total Assets - 55,713 329,036 384,749 Liabilities: Notes $ - $ - $ 309,530 $ 309,530 Servicing Liabilities - - 324 324 Contingent Consideration - - 4,929 4,929 Total Liabilities $ - $ - $ 314,783 $ 314,783 December 31, 2015 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Assets: Borrower Loans $ - $ - $ 297,273 $ 297,273 Loans Held for Sale - - 32 32 Available for Sale Investments, at Fair Value - 73,187 - 73,187 Servicing Assets - - 14,363 14,363 Total Assets - 73,187 311,668 384,855 Liabilities: Notes $ - $ - $ 297,405 $ 297,405 Servicing Liabilities - - 484 484 Contingent Consideration - - 4,801 4,801 Total Liabilities $ - $ - $ 302,690 $ 302,690 As Prosper’s Borrower Loans, Loans Held for Sale, Notes and loan servicing rights do not trade in an active market with readily observable prices, Prosper uses significant unobservable inputs to measure the fair value of these assets and liabilities. Financial instruments are categorized in the level 3 valuation hierarchy based on the significance of unobservable factors in the overall fair value measurement. These fair value estimates may also include observable, actively quoted components derived from external sources. As a result, the realized and unrealized gains and losses for assets and liabilities within the level 3 category may include changes in fair value that were attributable to both observable and unobservable inputs. Significant Unobservable Inputs The following tables present quantitative information about the significant unobservable inputs used for Prosper’s level 3 fair value measurements at June 30, 2016 and December 31, 2015: Borrower Loans, Loans Held for Sale and Notes: Range Unobservable Input June 30, 2016 December 31, 2015 Discount rate 4.4% - 15.0% 4.3% - 14.5% Default rate 1.6% - 14.8% 1.4% - 14.4% Servicing Rights Range Unobservable Input June 30, 2016 December 31, 2015 Discount rate 15% - 25% 15% - 25% Default rate 1.1% - 15.0% 1.2% - 14.7% Prepayment rate 14.8% - 27.6% 14.3% - 25.6% Market servicing rate 0.625 % 0.625 % At June 30, 2016, the discounted cash flow methodology used to estimate the Note fair values used the same projected cash flows as the related Borrower Loans. As demonstrated in the following table, the fair value adjustments for Borrower Loans were largely offset by the fair value adjustments of the Notes due to the borrower payment dependent design of the Notes and because the principal balances of the Borrower Loans approximated the principal balances of the Notes. The following tables present additional information about level 3 Borrower Loans, Loans Held for Sale and Notes measured at fair value on a recurring basis (in thousands): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Borrower Loans Notes Loans Held for Sale Total Balance at January 1, 2016 $ 297,273 $ (297,405 ) $ 32 $ (100 ) Purchase of Borrower Loans/Issuance of Notes 109,215 (109,147 ) 1,358,011 1,358,079 Principal repayments (82,376 ) 83,119 (136 ) 607 Borrower Loans sold to third parties (1,138 ) 1,081 (1,353,202 ) (1,353,259 ) Other changes (6 ) (33 ) - (39 ) Change in fair value (12,934 ) 12,855 - (79 ) Balance at June 30, 2016 $ 310,034 $ (309,530 ) $ 4,705 $ 5,209 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Borrower Loans Notes Loans Held for Sale Total Balance at January 1, 2015 $ 273,243 $ (273,783 ) $ 8,463 $ 7,923 Purchase of Borrower Loans/Issuance of Notes 94,512 (94,575 ) 1,402,499 1,402,436 Principal repayments (73,457 ) 73,509 (543 ) (491 ) Borrower Loans sold to third parties - - (1,408,883 ) (1,408,883 ) Other changes (130 ) 136 (9 ) (3 ) Change in fair value (9,968 ) 10,085 (96 ) 21 Balance at June 30, 2015 $ 284,200 $ (284,628 ) $ 1,431 $ 1,003 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Borrower Loans Notes Loans Held for Sale Total Balance at April 1, 2015 $ 280,404 $ (280,801 ) $ 1,599 $ 1,202 Purchase of Borrower Loans/Issuance of Notes 46,805 (46,779 ) 861,574 861,600 Principal repayments (37,395 ) 37,440 (157 ) (112 ) Borrower Loans sold to third parties - - (861,574 ) (861,574 ) Other changes (136 ) (71 ) (1 ) (208 ) Change in fair value (5,478 ) 5,583 (10 ) 95 Balance at June 30, 2015 $ 284,200 $ (284,628 ) $ 1,431 $ 1,003 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Borrower Loans Notes Loans Held for Sale Total Balance at April 1, 2016 $ 303,243 $ (302,357 ) $ 30 $ 916 Purchase of Borrower Loans/Issuance of Notes 54,044 (53,873 ) 426,591 426,762 Principal repayments (41,390 ) 41,057 (131 ) (464 ) Borrower Loans sold to third parties (525 ) 499 (421,784 ) (421,810 ) Other changes (2 ) (191 ) - (193 ) Change in fair value (5,336 ) 5,335 (1 ) (2 ) Balance at June 30, 2016 $ 310,034 $ (309,530 ) $ 4,705 $ 5,209 The following tables present additional information about level 3 servicing assets and liabilities measured at fair value on a recurring basis (in thousands): Servicing Assets Servicing Liabilities Fair Value at January 1, 2016 14,363 484 Additions 5,750 9 Less: Changes in fair value (5,816 ) (169 ) Fair Value at June 30, 2016 14,297 324 Servicing Assets Servicing Liabilities Amortized Cost at January 1, 2015 4,163 624 Adjustment to Adopt Fair Value Measurement 546 (29 ) Fair Value at January 1, 2015 4,709 595 Additions 5,837 193 Less: Changes in fair value (1,864 ) (182 ) Fair Value at June 30, 2015 8,682 606 Servicing Assets Servicing Liabilities Fair Value at April 1, 2016 15,548 398 Additions 1,729 - Less: Changes in fair value (2,980 ) (74 ) Fair Value at June 30, 2016 14,297 324 Servicing Assets Servicing Liabilities Fair Value at April 1, 2015 6,034 668 Additions 3,759 39 Less: Changes in fair value (1,111 ) (101 ) Fair Value at June 30, 2015 8,682 606 Contingent Consideration: On October 9, 2015, PMI, purchased 100% of the outstanding shares of BillGuard. The contingent consideration was primarily performance-based and will be determined over a one-year period from the date of purchase. Total contingent consideration due in October 2016 is based on revenues generated and other criteria. We measured the fair value of the contingent consideration using a probability-weighted discounted cash flow approach. Some of the significant inputs used for the valuation are not observable in the market and are thus Level 3 inputs. Contingent consideration is recorded in the condensed consolidated balance sheet under "Other Liabilities." Significant increases or decreases in certain underlying assumptions used to value the contingent consideration could significantly increase or decrease the fair value estimates recorded in the condensed consolidated balance sheets. During the three and six month periods ended June 30, 2016, there were fair value changes of $63 thousand and $128 thousand, respectively, resulting in a fair value of $4.9 million at June 30, 2016 from the opening fair value at January 1, 2016 of $4.8 million. Significant Recurring Level 3 Fair Value Asset and Liability Input Sensitivity Key economic assumptions and the sensitivity of the current fair value to immediate changes in those assumptions at June 30, 2016 for Borrower Loans, Loans Held for Sale and Notes funded through the Note Channel are presented in the following table (in thousands, except percentages): Borrower Loans and Loans Held for Sale Notes Discount rate assumption: 7.25 %* 7.25 %* Resulting fair value from: 100 basis point increase $ 306,868 $ 306,363 200 basis point increase 303,781 303,277 Resulting fair value from: 100 basis point decrease $ 313,283 $ 312,780 200 basis point decrease 316,619 316,116 Default rate assumption: 11.02 %* 11.02 %* Resulting fair value from: 100 basis point increase $ 306,882 $ 306,370 200 basis point increase 303,823 303,303 Resulting fair value from: 100 basis point decrease $ 313,200 $ 312,704 200 basis point decrease 316,399 315,913 * Represents weighted average assumptions considering all credit grades. The following table presents the estimated impact on Prosper’s estimated fair value of servicing assets and liabilities, calculated using different market servicing rates and different default rates as of June 30, 2016 (in thousands, except percentages). Servicing Assets Servicing Liabilities Market servicing rate assumptions 0.625 % 0.625 % Resulting fair value from: Market servicing rate increase to 0.65% 13,252 $ 356 Market servicing rate decrease to 0.60% 15,342 $ 291 Weighted average prepayment assumptions 20.44 % 20.44 % Resulting fair value from: Applying a 1.1 multiplier to prepayment rate 13,918 $ 303 Applying a 0.9 multiplier to prepayment rate 14,451 $ 314 Weighted average default assumptions 11.39 % 11.39 % Resulting fair value from: Applying a 1.1 multiplier to default rate $ 14,067 $ 323 Applying a 0.9 multiplier to default rate $ 14,530 $ 323 These sensitivities are hypothetical and should be evaluated with care. The effect on fair value of a variation in assumptions generally cannot be determined because the relationship of the change in assumptions to the fair value may not be linear. Additionally, the impact of a variation in a particular assumption on the fair value is calculated while holding other assumptions constant. In reality, changes in one factor may lead to changes in other factors, which could impact the above hypothetical effects. |
Prosper Funding LLC [Member] | |
Fair Value of Assets and Liabilities | 7. Fair Value of Assets and Liabilities Prosper Funding Assets and liabilities carried at fair value on the balance sheets are classified among three levels based on the observability of the inputs used to determine fair value: Level 1 — The valuation is based on quoted prices in active markets for identical instruments. Level 2 — The valuation is based on observable inputs such as quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation methodologies for which all significant assumptions are observable in the market. Level 3 — The valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the instrument. Level 3 valuations are typically performed using pricing models, discounted cash flow methodologies, or similar methodologies, which incorporate management’s own estimates of assumptions that market participants would use in pricing the instrument or valuations that require significant management judgment or estimation. Fair values of assets or liabilities are determined based on the fair value hierarchy, which requires an entity to maximize the use of quoted prices and observable inputs and to minimize the use of unobservable inputs when measuring fair value. Various valuation methodologies are utilized, depending on the nature of the financial instrument, including the use of market prices for identical or similar instruments, or discounted cash flow models. When possible, active and observable market data for identical or similar financial instruments are utilized. Alternatively, fair value is determined using assumptions that management believes a market participant would use in pricing the asset or liability. Financial instruments consist principally of cash and cash equivalents, restricted cash, Borrower Loans, accounts payable and accrued liabilities, and Notes. Servicing assets and liabilities are also subject to fair value measurement within the financial statements of Prosper Funding. The estimated fair values of cash and cash equivalents, restricted cash, accounts payable and accrued liabilities approximate their carrying values because of their short term nature. Financial Instruments Recorded at Fair Value The fair value of the Borrower Loans, Loans Held for Sale and Notes are estimated using discounted cash flow methodologies based upon a set of valuation assumptions. The primary cash flow assumptions used to value such Borrower Loans, Loans Held for Sale and Notes include default rates derived from historical performance and discount rates applied to each credit grade based on the perceived credit risk of each credit grade. Investments held at fair value consist of available for sale investments. The available for sale investments consist of corporate and government bonds. When available, Prosper Funding uses quoted prices in active markets to measure the fair value of securities available for sale. When utilizing market data and bid-ask spreads, Prosper Funding uses the price within the bid-ask spread that best represents fair value. When quoted prices do not exist, Prosper Funding uses prices obtained from independent third-party pricing services to measure the fair value of investment assets. Prosper Funding generally obtains prices from at least two independent pricing sources for assets recorded at fair value. Prosper Funding's primary independent pricing service provides prices based on observable trades and discounted cash flows that incorporate observable information, such as yields for similar types of securities (a benchmark interest rate plus observable spreads) and weighted-average maturity for the same or similar securities. Prosper Funding compares the prices obtained from its primary independent pricing service to the prices obtained from the additional independent pricing services to determine if the price obtained from the primary independent pricing service is reasonable. Prosper Funding does not adjust the prices received from independent third-party pricing services unless such prices are inconsistent with the definition of fair value and result in a material difference in the recorded amounts. The following tables present the fair value hierarchy for assets and liabilities measured at fair value (in thousands): June 30, 2016 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Assets: Borrower Loans $ - $ - $ 310,034 $ 310,034 Loans Held for Sale - - 4,705 4,705 Servicing Assets - - 13,798 13,798 Total Assets - - 328,537 328,537 Liabilities: Notes $ - $ - $ 309,530 $ 309,530 Servicing Liabilities - - 324 324 Total Liabilities $ - $ - $ 309,854 $ 309,854 December 31, 2015 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Assets: Borrower Loans $ - $ - $ 297,273 $ 297,273 Loans Held for Sale - - 32 32 Servicing Assets - - 13,605 13,605 Total Assets - - 310,910 310,910 Liabilities: Notes $ - $ - $ 297,405 $ 297,405 Servicing Liabilities - - 484 484 Total Liabilities $ - $ - $ 297,889 $ 297,889 As Prosper Funding’s Borrower Loans, Loans Held for Sale, Notes and loan servicing rights do not trade in an active market with readily observable prices, Prosper Funding uses significant unobservable inputs to measure the fair value of these assets and liabilities. Financial instruments are categorized in the level 3 valuation hierarchy based on the significance of unobservable factors in the overall fair value measurement. These fair value estimates may also include observable, actively quoted components derived from external sources. As a result, the realized and unrealized gains and losses for assets and liabilities within the level 3 category may include changes in fair value that were attributable to both observable and unobservable inputs. Significant Unobservable Inputs The following tables present quantitative information about the significant unobservable inputs used for Prosper Funding’s level 3 fair value measurements at June 30, 2016 and December 31, 2015 : Borrower Loans, Loans Held for Sale and Notes: Range Unobservable Input June 30, 2016 December 31, 2015 Discount rate 4.4% - 15.0% 4.3% - 14.5% Default rate 1.6% - 14.8% 1.4% - 14.4% Servicing Rights Range Unobservable Input June 30, 2016 December 31, 2015 Discount rate 15% - 25% 15% - 25% Default rate 1.1% - 15.0% 1.2% - 14.7% Prepayment rate 14.8% - 27.6% 14.3% - 25.6% Market servicing rate 0.625 % 0.625 % The changes in the Borrower Loans, Loans Held for Sale and Notes, which are Level 3 assets and liabilities measured at fair value on a recurring basis are as follows (in thousands): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Loans Held for Borrower Notes Sale Total Balance at January 1, 2016 $ 297,273 $ (297,405 ) $ 32 $ (100 ) Originations 109,215 (109,147 ) 1,358,011 1,358,079 Principal repayments (82,376 ) 83,119 (136 ) 607 Borrower Loans sold to third parties (1,138 ) 1,081 (1,353,202 ) (1,353,259 ) Other changes (6 ) (33 ) - (39 ) Change in fair value (12,934 ) 12,855 - (79 ) Balance at June 30, 2016 $ 310,034 $ (309,530 ) $ 4,705 $ 5,209 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Loans Held for Borrower Notes Sale Total Balance at January 1, 2015 $ 273,243 $ (273,783 ) $ 8,463 $ 7,923 Originations 94,512 (94,575 ) 1,402,499 1,402,436 Principal repayments (73,457 ) 73,509 (543 ) (491 ) Borrower Loans sold to third parties - - (1,408,883 ) (1,408,883 ) Other changes (130 ) 136 (9 ) (3 ) Change in fair value (9,968 ) 10,085 (96 ) 21 Balance at June 30, 2015 $ 284,200 $ (284,628 ) $ 1,431 $ 1,003 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Loans Held for Borrower Notes Sale Total Balance at April 1, 2015 $ 280,404 $ (280,801 ) $ 1,599 $ 1,202 Originations 46,805 (46,779 ) 861,574 861,600 Principal repayments (37,395 ) 37,440 (157 ) (112 ) Borrower Loans sold to third parties - - (861,574 ) (861,574 ) Other changes (136 ) (71 ) (1 ) (208 ) Change in fair value (5,478 ) 5,583 (10 ) 95 Balance at June 30, 2015 $ 284,200 $ (284,628 ) $ 1,431 $ 1,003 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Borrower Loans Notes Loans Held for Sale Total Balance at April 1, 2016 $ 303,243 $ (302,357 ) $ 30 $ 916 Purchase of Borrower Loans/Issuance of Notes 54,044 (53,873 ) 426,591 426,762 Principal repayments (41,390 ) 41,057 (131 ) (464 ) Borrower Loans sold to third parties (525 ) 499 (421,784 ) (421,810 ) Other changes (2 ) (191 ) - (193 ) Change in fair value (5,336 ) 5,335 (1 ) (2 ) Balance at June 30, 2016 $ 310,034 $ (309,530 ) $ 4,705 $ 5,209 The following table presents additional information about Level 3 servicing assets and liabilities recorded at fair value for the three months ended June 30, 2016 (in thousands). Servicing Servicing Assets Liabilities Fair Value at January 1, 2016 13,605 484 Additions 5,750 9 Less: Changes in fair value (5,557 ) (169 ) Fair Value at June 30, 2016 13,798 324 Servicing Assets Servicing Liabilities Amortized Cost at January 1, 2015 3,116 624 Adjustment to Adopt Fair Value Measurement 399 (29 ) Fair Value at January 1, 2015 3,515 595 Additions 5,837 193 Less: Transfers to PMI (249 ) - Less: Changes in fair value (1,469 ) (182 ) Fair Value at June 30, 2015 7,634 606 Servicing Servicing Assets Liabilities Fair Value at April 1, 2016 14,929 398 Additions 1,729 - Less: Changes in fair value (2,860 ) (74 ) Fair Value at June 30, 2016 13,798 324 Servicing Assets Servicing Liabilities Fair Value at April 1, 2015 4,782 668 Additions 3,759 39 Less: Transfers to PMI - - Less: Changes in fair value (907 ) (101 ) Fair Value at June 30, 2015 7,634 606 Significant Recurring Level 3 Fair Value Asset and Liability Input Sensitivity Key economic assumptions and the sensitivity of the current fair value to immediate changes in those assumptions at June 30, 2016 for Borrower Loans, Loans Held for Sale and Notes funded are presented in the following table (in thousands): Borrower Loans and Loans Held for Sale Notes Discount rate assumption: 7.25 %* 7.25 %* Resulting fair value from: 100 basis point increase $ 306,868 $ 306,363 200 basis point increase 303,781 303,277 Resulting fair value from: 100 basis point decrease $ 313,283 $ 312,780 200 basis point decrease 316,619 316,116 Default rate assumption: 11.02 %* 11.02 %* Resulting fair value from: 100 basis point increase $ 306,882 $ 306,370 200 basis point increase 303,823 303,303 Resulting fair value from: 100 basis point decrease $ 313,200 $ 312,704 200 basis point decrease 316,399 315,913 * Represents weighted average assumptions considering all credit grades. Servicing Asset and Liability Fair Value Input Sensitivity: The following table presents the estimated impact on Prosper Funding’s estimated fair value of servicing assets and liabilities, calculated using different market servicing rates and different default rates as of June 30, 2016 (in thousands, except percentages). Servicing Assets Servicing Liabilities Market servicing rate assumptions 0.625 % 0.625 % Resulting fair value from: Market servicing rate increase to 0.65% 12,952 356 Market servicing rate decrease to 0.60% 14,995 291 Weighted average prepayment assumptions 20.44 % 20.44 % Resulting fair value from: Applying a 1.1 multiplier to default rate 13,541 303 Applying a 0.9 multiplier to default rate 14,059 314 Weighted average default assumptions 11.39 % 11.39 % Resulting fair value from: Applying a 1.1 multiplier to default rate 13,576 323 Applying a 0.9 multiplier to default rate 14,023 323 These sensitivities are hypothetical and should be evaluated with care. The effect on fair value of a 10% variation in assumptions generally cannot be determined because the relationship of the change in assumptions to the fair value may not be linear. Additionally, the impact of a variation in a particular assumption on the fair value is calculated while holding other assumptions constant. In reality, changes in one factor may lead to changes in other factors, which could impact the above hypothetical effects. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | 8. Acquisitions On January 23, 201 . On October 9, 2015, PMI acquired all of the outstanding shares of BillGuard. PMI merged BillGuard with and into Beach Merger Sub, Inc., a newly established entity wholly owned by PMI, with BillGuard surviving the merger. The allocation of the purchase price is preliminary and subject to further adjustment as information relative to closing date balances and related tax balances are finalized. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 9. Goodwill and Other Intangible Assets Goodwill Prosper’s goodwill balance of $36.4 million at June 30, 2016 did not change during the six months ended June 30, 2016. We did not record any goodwill impairment expense for the six months ended June 30, 2016. Other Intangible Assets The following table presents the detail of other intangible assets for the period presented (dollars in thousands): June 30, 2016 Gross Carrying Value Accumulated Amortization Net Carrying Value Remaining Useful Life (In Years) User base and customer relationships $ 6,250 $ (1,976 ) $ 4,274 8.6 Developed technology 8,310 (1,508 ) $ 6,802 4.3 Brand name 60 (60 ) - - Total intangible assets subject to amortization $ 14,620 $ (3,544 ) $ 11,076 Prosper’s intangible asset balance was $11.1 million and $13.1 million at June 30, 2016 and December 31, 2015, respectively. The user base and customer relationship intangible assets are being amortized on an accelerated basis over a three to ten year period. The technology and brand name intangible assets are being amortized on a straight line basis over three to five years and one year, respectively. Amortization expense for the three months ended June 30, 2016 and 2015 was $1.0 million and $0.3 million, respectively. Amortization expense for the six months ended June 30, 2016 and 2015 was $2.0 million and $0.3 million, respectively. Estimated amortization of purchased intangible assets for future periods is as follows (in thousands): Year Ending December 31, 2016 $ 1,862 2017 3,260 2018 2,329 2019 1,779 2020 1,344 Thereafter 502 Total $ 11,076 |
Other Liabilities
Other Liabilities | 6 Months Ended |
Jun. 30, 2016 | |
Other Liabilities [Abstract] | |
Other Liabilities | 10. Other Liabilities Other Liabilities includes the following: June 30, 2016 December 31, 2015 Class action settlement liability $ 2,973 $ 5,949 Repurchase liability for unvested restricted stock awards 267 473 Contingent consideration 4,929 4,801 Deferred revenue 420 1,591 Servicing liabilities 324 484 Deferred rent 4,647 5,240 Restructuring liability 8,492 - Other 2,364 2,197 Total Other Liabilities $ 24,416 $ 20,735 |
Net Loss Per Share
Net Loss Per Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 11. Net Loss Per Share The weighted average shares used in calculating basic and diluted net loss per share excludes certain shares that are disclosed as outstanding shares in the condensed consolidated balance sheets because such shares are restricted as they were associated with options that were early exercised and continue to remain unvested. Basic and diluted net loss per share was calculated as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Numerator: Net loss available to common stockholders for basic and diluted EPS $ (35,628 ) $ (6,201 ) $ (53,092 ) $ (13,477 ) Denominator: Weighted average shares used in computing basic and diluted net loss per share 63,270,058 55,612,485 61,813,773 54,168,175 Basic and diluted net loss per share $ (0.56 ) $ (0.11 ) $ (0.86 ) $ (0.25 ) The following common stock equivalents were excluded from the computation of diluted net loss per share for the periods presented because including them would have been anti-dilutive: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (shares) (shares) (shares) (shares) Excluded securities: Convertible preferred stock issued and outstanding 177,388,425 35,477,685 177,388,425 35,477,685 Stock options issued and outstanding 43,719,604 6,982,320 41,694,271 6,478,422 Unvested stock options exercised 5,345,950 3,084,604 5,345,950 3,084,604 Warrants issued and outstanding 962,113 123,467 792,449 123,467 Total common stock equivalents excluded from diluted net loss per common share computation 227,416,092 45,668,076 225,221,095 45,164,178 The number of shares issued and outstanding reflect a 5-for-1 forward stock split effected by PMI on February 16, 2016. |
Convertible Preferred Stock and
Convertible Preferred Stock and Stockholders' Deficit | 6 Months Ended |
Jun. 30, 2016 | |
Stockholders Equity Note [Abstract] | |
Convertible Preferred Stock and Stockholders' Deficit | 12. Convertible Preferred Stock and Stockholders’ Deficit Convertible Preferred Stock The number of authorized, issued and outstanding shares, their par value and liquidation preference for each series of convertible preferred stock as of June 30, 2016 are disclosed in the table below (amounts in thousands except share and per share amounts): Convertible Preferred Stock Par Value Authorized shares Outstanding and Issued shares Liquidation Preference New Series A $ 0.01 68,558,220 68,558,220 $ 19,774 Series A-1 0.01 24,760,915 24,760,915 49,522 New Series B 0.01 35,775,880 35,775,880 21,581 New Series C 0.01 24,404,770 24,404,770 70,075 New Series D 0.01 23,888,640 23,888,640 165,000 177,388,425 177,388,425 $ 325,952 The number of shares issued and outstanding reflect a 5-for-1 forward stock split effected by PMI on February 16, 2016. Common Stock PMI, through its amended and restated certificate of incorporation, as amended, is the sole issuer of common stock and related options, RSUs and warrants. On February 16, 2016, PMI amended and restated its certificate of incorporation to, among other things, effect a 5-for-1 forward stock split. On May 31, 2016, PMI further amended its amended and restated certificate of incorporation to increase the number of shares of common stock authorized for issuance. The total number of shares of stock which PMI has the authority to issue is 475,610,528, consisting of 298,222,103 shares of common stock, $0.01 par value per share, and 177,388,425 shares of preferred stock, $0.01 par value per share. As of June 30, 2016, 70,893,225 shares of common stock were issued and 69,957,290 shares of common stock were outstanding. As of December 31, 2015, 70,367,425 shares of common stock were issued and 69,431,490 shares of common stock were outstanding. Each holder of common stock is entitled to one vote for each share of common stock held. Common Stock Issued upon Exercise of Stock Options During the six months ended June 30, 2016, PMI issued 334,475 shares of common stock upon the exercise of vested options for cash proceeds of $0.3 million. Certain options are eligible for exercise prior to vesting. These unvested options may be exercised for restricted shares of common stock that have the same vesting schedule as the options. Prosper records a liability for the exercise price paid upon the exercise of unvested options, which is reclassified to common stock and additional paid-in capital as the shares vest. Should the holder’s employment be terminated, the unvested restricted shares are subject to repurchase by PMI at an amount equal to the exercise price paid for such shares. At June 30, 2016 and December 31, 2015, there were 5,345,950 and 9,806,170 shares, respectively, of restricted stock outstanding that remain unvested and subject to Prosper’s right of repurchase. For the six months ended June 30, 2016, PMI repurchased 51,105 shares of restricted stock for $46 thousand upon termination of employment of various employees. Common Stock Issued upon Exercise of Warrants For the six months ended June 30, 2016, PMI issued 51,915 shares of common stock upon the exercise of warrants for aggregate proceeds of $11 thousand. |
Shared Based Incentive Plan and
Shared Based Incentive Plan and Compensation | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Shared Based Incentive Plan and Compensation | 13. Share Based Incentive Plan and Compensation In 2005, PMI’s stockholders approved the adoption of the 2005 Stock Plan. On December 1, 2010, PMI’s stockholders approved the adoption of the Amended and Restated 2005 Stock Plan (the “2005 Plan”). The 2005 Plan expired during the year ending December 31, 2015 and PMI’s stockholders approved the adoption of the 2015 Equity Incentive Plan. On February 15, 2016, PMI’s stockholders approved the adoption of an Amendment No. 1 to the 2015 Equity Incentive Plan, and on May 31, 2016, PMI’s stockholders approved the adoption of an Amendment No. 2 to the 2015 Equity Incentive Plan (as amended to date, the “2015 Plan”). As of June 30, 2016 under the 2005 Plan, up to 59,388,480 shares of common stock are reserved and may be issued to employees, directors, and consultants by PMI’s board of directors and stockholders to promote the success of Prosper’s business. As of June 30, 2016 under the 2015 Plan, up to 51,850,918 shares of common stock are reserved and may be granted to employees, directors, and consultants by PMI’s board of directors and stockholders to promote the success of Prosper’s business. Options generally vest 25% one year from the vesting commencement date and 1/48 th th t h At June 30, 2016, there were 11,402,606 shares available for grant under the 2015 Plan and zero shares available for grant under the 2005 Plan. The number of options, restricted stock units and amounts per share reflects a 5-for-1 forward stock split effected by PMI on February 16, 2016. Stock Option Reprice On May 3, 2016, the Compensation Committee of the Board of Directors of PMI approved a stock option repricing program, (the “Reprice”) authorizing PMI’s officers to reprice certain outstanding stock options held by employees and directors that have exercise prices above the current fair market value of PMI’s common stock. The repricing was effected on May 16, 2016 for eligible directors and employees located in the United States and on May 19, 2016 for eligible employees located in Israel. Prosper believes the repricing of such stock options will encourage the continued service of valued employees and directors, and motivate such service providers to perform at high levels, both of which are critical to Prosper’s continued success. Prosper expects to incur additional stock based compensation charges as a result of this repricing. The financial statement impact of this repricing is $1.2 million in the 3 months ended June 30, 2016 and $4.2 million (net of forfeitures) that will be recognized over the remaining weighted average vesting period of 2.8 years. Early Exercised Stock Options The activity of options that were early exercised under the 2005 Plan for the six months ended June 30, 2016 is below: Early exercised options, unvested Weighted average exercise price Balance as of January 1, 2016 9,806,170 $ 0.05 Repurchase of restricted stock (51,105 ) 0.90 Restricted stock vested (4,409,115 ) 0.04 Balance as of June 30, 2016 5,345,950 $ 0.05 Additional information regarding the unvested early exercised stock options outstanding as of June 30, 2016 is as follows: Options Outstanding Range of Exercise Number Weighted –Avg. Weighted –Avg. Prices Outstanding Remaining Life Exercise Price 0.02 4,847,590 0.7 $ 0.02 0.11 387,010 1.6 0.11 1.13 111,350 2.1 1.13 $0.02 - $1.13 5,345,950 0.8 $ 0.05 Stock Option Activity Stock option activity under the 2005 Plan and 2015 Plan is summarized for the six months ended June 30, 2016 below: Options Issued and Outstanding Weighted- Average Exercise Price Balance as of January 1, 2016 40,425,605 $ 2.64 Options issued 19,655,338 $ 2.14 Options exercised – vested (334,475 ) 0.85 Options forfeited (4,725,406 ) 1.38 Balance as of June 30, 2016 55,021,062 1.54 Options vested and/or exercisable at June 30, 2016 26,856,397 1.15 Due to the timing of the Reprice, the ending weighted average exercise price shown above reflects repriced options while the opening weighted average exercise price does not. Other Information Regarding Stock Options Additional information regarding common stock options outstanding as of June 30, 2016 is as follows: Options Outstanding Options Vested and Exercisable Weighted – Weighted – Weighted - Range of Avg. Avg. Avg. Exercise Number Remaining Exercise Number Exercise Prices Outstanding Life Price Vested Price $ 0.02 - 0.99 13,462,825 7.41 $ 0.12 13,462,110 $ 0.12 1.00 - 2.99 38,325,717 9.34 2.04 11,565,657 1.91 3.00 - 4.99 1,586,875 8.63 3.62 1,586,875 3.62 5.00 - 5.52 1,645,645 9.14 5.49 241,755 5.46 $ 0.02 - 5.52 55,021,062 8.84 $ 1.72 26,856,397 $ 1.15 The fair value of options granted to employees is estimated on the grant date using the Black-Scholes option valuation model. This valuation model for stock-based compensation expense requires Prosper to make assumptions and judgments about the variables used in the calculation, including the fair value of PMI’s common stock, the expected term (the period of time that the options granted are expected to be outstanding), the volatility of PMI’s common stock, a risk-free interest rate, and expected dividends. Given the absence of a publicly traded market, Prosper considered numerous objective and subjective factors to determine the fair value of PMI’s common stock at each grant date. These factors included, but were not limited to: (i) contemporaneous valuations of common stock performed by unrelated third-party specialists; (ii) the prices for PMI’s preferred stock sold to outside investors; (iii) the rights, preferences and privileges of PMI’s preferred stock relative to PMI’s common stock; (iv) the lack of marketability of PMI’s common stock; (v) developments in the business; (vi) secondary transactions of PMI’s common and preferred shares and (vii) the likelihood of achieving a liquidity event, such as an initial public offering or a merger or acquisition of Prosper, given prevailing market conditions. Prosper also estimates forfeitures of unvested stock options. Expected forfeitures are based on Prosper’s historical experience. To the extent actual forfeitures differ from the estimates, the difference will be recorded as a cumulative adjustment in the period estimates are revised. No compensation cost is recorded for options that do not vest. The fair value of PMI’s stock option awards granted during the three months ended June 30, 2016 and 2015 was estimated at the date of grant using the Black-Scholes model with the following average assumptions: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Volatility of common stock 50.88 % 52.75 % 50.88 % 57.26 % Risk-free interest rate 1.29 % 1.80 % 1.29 % 1.72 % Expected life 5.8 years 6.0 years 5.8 years 6.1 years Dividend yield 0 % 0 % 0 % 0 % Restricted Stock Unit Activity During the six months ended June 30, 2016, PMI granted restricted stock units (“RSUs”) to certain employees that are subject to three-year vesting terms or four year vesting terms and the occurrence of a liquidity event. The aggregate fair value of the RSUs granted was $10.7 million. The following table summarizes the activities for PMI’s RSUs during the six months ending June 30, 2016: Number of Shares Weighted-Average Grant Date Fair Value Unvested - December 31, 2015 1,835,510 $ 5.52 Granted 3,580,220 2.14 Vested - - Forfeited (1,274,920 ) 2.14 Unvested - June 30, 2016 4,140,810 $ 2.59 The following table presents the amount of stock-based compensation related to stock-based awards granted to employees recognized in Prosper’s condensed consolidated statements of operations during the three months ended June 30, 2016 and 2015 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Origination and servicing $ 579 $ 292 $ 1,018 $ 436 Sales and marketing 896 676 1,632 1,065 General and administrative 4,884 1,784 8,815 2,691 Restructuring 45 - 45 - Total stock based compensation $ 6,404 $ 2,752 $ 11,510 $ 4,192 During the three months ended June 30, 2016 and 2015, Prosper capitalized $225 thousand and $175 thousand respectively, of stock-based compensation as internal use software and website development costs. During the six months ended June 30, 2016 and 2015, Prosper capitalized $436 thousand and $297 thousand respectively, of stock-based compensation as internal use software and website development costs. As of June 30, 2016, the unamortized stock-based compensation expense adjusted for forfeiture estimates related to Prosper’s employees’ unvested stock-based awards was approximately $58.6 million, which will be recognized over the remaining weighted-average vesting period of approximately 2.77 years. Management modified or accelerated the vesting terms for certain employee options, which resulted in an additional $0.7 million and $0.1 million of stock-based compensation expense for the three months ended June 30, 2016 and 2015, respectively. |
Restructuring
Restructuring | 6 Months Ended |
Jun. 30, 2016 | |
Restructuring And Related Activities [Abstract] | |
Restructuring | 14. Restructuring Summary of Restructuring Plan On May 3, 2016, Prosper adopted a strategic restructuring of its business. This restructuring is intended to streamline our operations and support future growth efforts. Under this restructuring, Prosper closed its Salt Lake City, Utah location. As a result of this restructuring, Prosper will terminate 167 employees across all locations. In connection with the restructuring, Prosper has recognized employee severance and benefits charges of approximately $5.4 million in the second quarter which were included in “Restructuring Charges” within the condensed consolidated statement of operations, and expects to incur $ 0.2 In addition to the employment costs associated with the restructuring, Prosper is also engaged in marketing for sublease, space in our existing office space that is no longer needed due to the reduction in headcount. In total, the losses incurred on the leases in San Francisco, Salt Lake City and Phoenix totaled $8.7 million which has been included in “Restructuring Charges” within the condensed consolidated statement of operations. Prosper expects to incur an additional $ 0.2 The following table summarizes the activities related to Prosper's restructuring plan (in thousands) : Severance Related * Facilities Related Total Balance April 1, 2016 $ - $ - $ - Additions to expense 5,400 8,661 14,061 Transfer from deferred rent - 764 764 Less: Cash paid (3,362 ) (933 ) (4,295 ) Balance June 30, 2016 $ 2,038 $ 8,492 $ 10,530 * Severance related restructuring costs excludes non-cash charges related to vesting of equity incentives for fully-vested employees terminated as part of the Restructuring of $45 thousand |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Taxes [Line Items] | |
Income Taxes | 15. Income Taxes For the three months ended June 30, 2016 and 2015, Prosper recognized $105 thousand and $176 thousand of income tax expense, respectively. For the six months ended June 30, 2016 and 2015, Prosper recognized $270 thousand and $249 thousand of income tax expense, respectively. The income tax expense relates to state income tax expense and the amortization of tax deductible goodwill which gives rise to an indefinite-lived deferred tax liability. No other income tax expense or benefit was recorded for the six month periods ended June 30, 2016 and 2015 due to a full valuation allowance recorded against our deferred tax assets. Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize our existing deferred tax assets. On the basis of this evaluation, it is not more likely than not that our deferred tax assets will be realized and therefore a full valuation allowance has been recorded. |
Prosper Funding LLC [Member] | |
Income Taxes [Line Items] | |
Income Taxes | 6. Income Taxes Prosper Funding incurred no income tax provision for the six months ended June 30, 2016 and 2015. Prosper Funding is a US disregarded entity and its income and loss is included in the return of its parent, PMI. Since PMI is in a loss position, is not currently subject to income taxes, and has fully reserved its deferred tax asset, the net effective tax rate for Prosper Funding is 0%. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies | 16. Commitments and Contingencies Future Minimum Lease Payments Prosper has entered into various non-cancelable operating leases for certain offices with contractual lease periods expiring between 2022 and 2027. Future minimum rental payments under these leases as of June 30, 2016 are as follows (in thousands): Remaining six months of 2016 3,674 2017 8,888 2018 9,524 2019 9,732 2020 10,225 2021 10,313 Thereafter 26,102 Total future operating lease obligations $ 78,458 Rental expense under operating lease arrangements was $1.9 million and $0.9 million for the three months ended June 30, 2016 and 2015, respectively. Rental expense under operating lease arrangements was $3.7 million and $1.7 million for the six months ended June 30, 2016 and 2015, respectively. Operating Commitments Prosper has an agreement with WebBank, under which all Borrower Loans originated through the marketplace are made by WebBank under its bank charter. The arrangement allows for Borrower Loans to be offered to borrowers at uniform nationwide terms. Prosper is required to pay the greater of a monthly minimum fee or a fee calculated based on a certain percentage of monthly Borrower Loan origination volume. The minimum fee for the remaining six months ended December 31, 2016 is $0.8 million. The minimum fee is $1.7 million, $1.7 million and $1.0 million for years 2017, 2018 and 2019, respectively. Loan Purchase Commitments Prosper has entered into an agreement with WebBank to purchase $7.8 million of Borrower Loans that WebBank originated during the last business day of the quarter ended June 30, 2016 and the first business day of the quarter ending September 30, 2016. Prosper Repurchase and Indemnification Contingency Under the terms of the loan purchase agreements between Prosper and investors that participate in the Whole Loan Channel, Prosper may, in certain circumstances, become obligated to repurchase a Borrower Loan from an investor. Generally, these circumstances include the occurrence of verifiable identity theft, the failure to properly follow loan listing or bidding protocols, or a violation of the applicable federal, state, or local lending laws. The fair value of the indemnification and repurchase obligation is estimated based on historical experience and the initial fair value is insignificant. Prosper recognizes a liability for the repurchase and indemnification obligation when the Borrower Loans are issued. Indemnified or repurchased Borrower Loans associated with violations of federal, state, or local lending laws or verifiable identity theft are written off at the time of repurchase or at the time an indemnification payment is made. The maximum potential amount of future payments associated under this obligation is the outstanding balances of the Borrower Loans issued through the Whole Loan Channel, which at June 30, 2016 is $4,063 million. Prosper has accrued $489 thousand and $510 thousand as of June 30, 2016 and December 31, 2015, respectively, in regard to this obligation. Securities Law Compliance From inception through October 16, 2008, Prosper sold approximately $178.0 million of Borrower Loans to investors through its old platform structure, whereby Prosper assigned promissory notes directly to investors. Prosper did not register the offer and sale of the promissory notes corresponding to these Borrower Loans under the Securities Act or under the registration or qualification provisions of any state securities laws. Prosper believes that the question of whether or not the operation of the platform during this period constituted an offer or sale of “securities” involved a complicated factual and legal analysis and was uncertain. If the sales of promissory notes offered through the platform during this period were viewed as a securities offering, Prosper would have failed to comply with the registration and qualification requirements of federal and state laws. In 2008, plaintiffs filed a class action lawsuit against Prosper and certain of its executive officers and directors in the Superior Court of California, County of San Francisco, California. The suit was brought on behalf of all promissory note purchasers on the platform from January 1, 2006 through October 14, 2008. The lawsuit alleged that Prosper offered and sold unqualified and unregistered securities in violation of the California and federal securities laws. On July 19, 2013 solely to avoid the costs, risks and uncertainties inherent in litigation, and without admitting any liability or wrongdoing, the parties to the class action litigation agreed to enter into a settlement to resolve all claims related thereto (the “Settlement”). In connection with the Settlement, Prosper agreed to pay an aggregate amount of $10 million into a settlement fund, split into four annual installments of $2 million in 2014, $2 million in 2015, $3 million in 2016 and $3 million in 2017. The Settlement received final approval in a final order and judgment entered by the Superior Court on April 16, 2014. Pursuant to the final order and judgment, the claims in the class action were dismissed, and the defendants were released by the plaintiffs from all claims that were or could have been asserted concerning the issues alleged in the class action lawsuit. The first three annual installments have been made prior to June 30, 2016 and the reserve for the class action settlement liability is $3.0 million in the condensed consolidated balance sheet as of June 30, 2016. |
Prosper Funding LLC [Member] | |
Commitments and Contingencies | 8. Commitments and Contingencies Operating Commitments Prosper Funding has an agreement with WebBank, under which Prosper Funding is required to pay WebBank the greater of a monthly minimum fee or a fee calculated based on a certain percentage of Borrower Loans purchased by Prosper Funding. The minimum fee for the remaining six months of 2016 is $0.8 million. The minimum fee is $1.7 million, $1.7 million and $1.0 million for years 2017, 2018 and 2019 respectively. Loan Purchase Commitments Under the terms of Prosper Funding’s agreement with WebBank, Prosper Funding is committed to purchase $7.8 million of Borrower Loans that WebBank originated during the last business day of the quarter ended June 30, 2016 and first business day of the quarter ended September 30, 2016. Prosper Repurchase and Indemnification Contingency Under the terms of the loan purchase agreements between Prosper Funding and investor members that participate in the Whole Loan Channel, Prosper Funding may, in certain circumstances, become obligated to repurchase a Borrower Loan from an investor member. Generally, these circumstances include the occurrence of verifiable identity theft, the failure to properly follow loan listing or bidding protocols, or a violation of the applicable federal, state, or local lending laws. The fair value of the indemnification and repurchase obligation is estimated based on historical experience. Prosper Funding recognizes a liability for the repurchase and indemnification obligation when the Borrower Loans are issued. Indemnified or repurchased Borrower Loans associated with violations of federal, state, or local lending laws or verifiable identity theft are written off at the time of repurchase or at the time an indemnification payment is made. The maximum potential amount of future payments associated under this obligation is the outstanding balances of the Borrower Loans issued through the Whole Loan Channel, which at June 30, 2016 is $3,911 million. Prosper Funding had accrued $439 thousand and $460 thousand as of June 30, 2016 and December 31, 2015, respectively, in regard to this obligation. |
Related Parties
Related Parties | 6 Months Ended |
Jun. 30, 2016 | |
Related Parties | 17. Related Parties Since Prosper’s inception, it has engaged in various transactions with its directors, executive officers and holders of more than 10% of its voting securities, and immediate family members and other affiliates of its directors, executive officers and 10% stockholders. Prosper believes that all of the transactions described below were made on terms no less favorable to Prosper than could have been obtained from unaffiliated third parties. Prosper’s executive officers, directors who are not executive officers, and certain affiliates participate in its marketplace by placing bids and purchasing Notes and Borrower Loans. The aggregate amount of the Notes and Borrower Loans purchased and the income earned by parties deemed to be affiliates and related parties of Prosper for the three and six months ended June 30, 2016 and 2015, as well as the Notes and Borrower Loans outstanding as of June 30, 2016 and December 31, 2015 are summarized below (in thousands): Aggregate Amount of Notes and Borrower Loans Purchased Interest Earned on Notes and Borrower Loans Six Months Ended June 30, Six Months Ended June 30, Related Party 2016 2015 2016 2015 Executive officers and management $ 801 $ 846 $ 110 $ 98 Directors (excluding executive officers and management) 350 20 15 4 Total $ 1,151 $ 866 $ 125 $ 102 Aggregate Amount of Notes and Borrower Loans Purchased Interest Earned on Notes and Borrower Loans Three Months Ended June 30, Three Months Ended June 30, Related Party 2016 2015 2016 2015 Executive officers and management $ 396 $ 365 $ 61 $ 51 Directors (excluding executive officers and management) 114 - 9 2 Total $ 510 $ 365 $ 70 $ 53 Notes and Borrower Loans Balance as of Related Party June 30, 2016 December 31, 2015 Executive officers and management $ 1,822 $ 1,912 Directors (excluding executive officers and management) 528 325 $ 2,350 $ 2,237 |
Prosper Funding LLC [Member] | |
Related Parties | 9. Related Parties Since inception, Prosper Funding has engaged in various transactions with its directors, executive officers and sole member, and immediate family members and other affiliates of its directors, executive officers and sole member. Prosper Funding believes that all of the transactions described below were made on terms no less favorable to Prosper Funding than could have been obtained from unaffiliated third parties. Prosper Funding’s executive officers and directors who are not executive officers participate in its marketplace by placing bids and purchasing Notes and Borrower Loans. The aggregate amount of the Notes and Borrower Loans purchased and the income earned by parties deemed to be related parties of Prosper Funding as of June 30, 2016 and December 31, 2015 are summarized below (in thousands): Aggregate Amount of Notes and Borrower Loans Purchased Interest Earned on Notes and Borrower Loans Six Months Ended June 30, Six Months Ended June 30, Related Party 2016 2015 2016 2015 Executive officers and management $ 801 $ 846 $ 110 $ 98 Directors (excluding executive officers and management) - - - - Total $ 801 $ 846 $ 110 $ 98 Aggregate Amount of Notes and Borrower Loans Purchased Interest Earned on Notes and Borrower Loans Three Months Ended June 30, Three Months Ended June 30, Related Party 2016 2015 2016 2015 Executive officers and management $ 396 $ 365 $ 61 $ 51 Directors (excluding executive officers and management) - - - - Total $ 396 $ 365 $ 61 $ 51 Note and Borrower Loan Balance as of Related Party June 30, 2016 December 31, 2015 Executive officers and management $ 1,822 $ 1,912 Directors (excluding executive officers and management) - - $ 1,822 $ 1,912 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | 18. Subsequent Events On July 1, 2016, Prosper and WebBank, an FDIC-insured, Utah-chartered industrial bank (“WebBank”), entered into (i) an Asset Sale Agreement between Prosper Funding and WebBank (the “Sale Agreement”), (ii) a Marketing Agreement between PMI and WebBank (the “Marketing Agreement”), and (iii) a Stand By Purchase Agreement between PMI and WebBank (the “Purchase Agreement,” and collectively, the “Origination and Sale Agreements”). As of the effective date of August 1, 2016 these agreements replace the existing agreements with WebBank. The Origination and Sale Agreements set forth the respective obligations of the Registrants and WebBank with respect to the origination and sales activities of consumer loans originated on or after August 1, 2016. Under the Sale Agreement, WebBank sells and assigns certain consumer loans or related participation rights to Prosper Funding. As consideration for WebBank’s agreement to sell and assign such consumer loans or related participation rights, Prosper Funding agrees to pay WebBank certain fees in addition to the purchase price of such consumer loans or participation rights. Under the Marketing Agreement, PMI identifies customers who qualify for WebBank’s consumer loans, markets such loan programs and provides an online interface and other operational services in support of such consumer loan program. WebBank pays PMI a marketing fee in consideration for PMI’s marketing and other activities under the consumer loan program. Under the Purchase Agreement, PMI has agreed to purchase consumer loans or related participation rights from WebBank in the event that Prosper Funding fails to purchase loans or participation rights that it is obligated to purchase under the Sale Agreement. The initial term of each of the Origination and Sale Agreements is three years. As a result of entering into these agreements, on August 1 st |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Significant Accounting Policies [Line Items] | |
Basis of Presentation | Prosper Marketplace, Inc. (“PMI”) was incorporated in the state of Delaware on March 22, 2005. Except as the context requires otherwise, as used in these n otes to the condensed consolidated financial statements of Prosper Marketplace, Inc., “Prosper,” “we,” “us,” and “our” refer to PMI and its wholly-owned subsidiaries, on a consolidated basis. The unaudited interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“US GAAP”) and disclosure requirements for interim financial information and the requirements of Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by US GAAP for complete financial statements. The unaudited interim condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, 2015. The balance sheet at December 31, 2015 has been derived from the audited financial statements at that date. Management believes these unaudited interim condensed consolidated financial statements reflect all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the results for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the full year or any other interim period. The preparation of Prosper’s condensed consolidated financial statements and related disclosures in conformity with GAAP requires management to make judgments, assumptions and estimates that affect the amounts reported in Prosper’s financial statements and accompanying notes. Management bases its estimates on historical experience and on various other factors it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of certain assets and liabilities. These judgments, estimates and assumptions are inherently subjective in nature and actual results may differ from these estimates and assumptions, and the differences could be material. The accompanying interim condensed consolidated financial statements include the accounts of PMI and its wholly-owned subsidiaries. All intercompany balances have been eliminated in consolidation. On January 23, 2015, PMI acquired all of the outstanding limited liability company units of American HealthCare Lending, LLC (“American HealthCare Lending”), a company that operated a patient financing platform, and merged American HealthCare Lending with and into Prosper Healthcare Lending LLC (“PHL”), a newly established entity surviving the merger. Prosper’s condensed consolidated financial statements include PHL’s results of operations and financial position from the date of acquisition forward. On October 9, 2015, PMI acquired all of the outstanding stock of BillGuard, Inc. (“BillGuard”), a company incorporated in Delaware in 2010 that developed applications that help consumers manage their identity, finances and credit. PMI merged BillGuard with and into Beach Merger Sub, Inc., a newly established entity wholly owned by PMI, with BillGuard surviving the merger. Prosper’s condensed consolidated financial statements include BillGuard’s results of operations and financial position from the date of acquisition forward. |
Reclassifications | Reclassifications During the period ended June 30, 2016, Prosper changed the presentation of its revenue in the condensed consolidated statements of operations. A new line called “Gain on Sales of Borrower Loans” was created with the amounts included in this line previously classified as “Other Revenue”. Prior period amounts have been reclassified to conform to the current presentation. Additionally, due to the early adoption of ASU 2016-09 on January 1, 2016, reclassifications were made to the financing section of the condensed consolidated statements of cash flows to reflect taxes paid for awards vested under equity incentive plans. Prior period amounts have been reclassified to conform to the current presentation. |
Fair Value Measurements | Fair Value Measurements Financial instruments consist principally of Cash and Cash Equivalents, Restricted Cash, Available for Sale Investments at Fair Value, Borrower Loans, Loans Held for Sale, Accounts Receivable, Accounts Payable and Accrued Liabilities, Payable to Investors and Notes. The estimated fair values of Cash and Cash Equivalents, Restricted Cash, Accounts Receivable, Accounts Payable and Accrued Liabilities, and Payable to Investors approximate their carrying values because of their short term nature. |
Restructuring Charges | Restructuring Charges Restructuring |
Borrower Loans, Loans Held for Sale and Notes | Borrower Loans, Loans Held for Sale and Notes Through the Note Channel, Prosper purchases Borrower Loans from WebBank then issues Notes, and holds the Borrower Loans until maturity. The obligation to repay a series of Notes issued through the Note Channel is dependent upon the repayment of the associated Borrower Loan. Borrower Loans funded and Notes issued through the Note Channel are carried on Prosper’s condensed consolidated balance sheets as assets and liabilities, respectively. We choose to measure certain financial instruments and certain other items at fair value on an instrument-by-instrument basis with unrealized gains and losses on items for which the fair value option has been elected reported in earnings. Management believes that the fair value option is more meaningful for the readers of the financial statements and it allows both the Borrower Loans and Notes to be valued using the same methodology. The fair value election, with respect to an item, may not be revoked once an election is made. Prosper estimates the fair value of such Borrower Loans and Notes using discounted cash flow methodologies that take into account expected prepayments, losses, recoveries and default rates. The Borrower Loans are not derecognized when a corresponding Note is issued as Prosper maintains the ability to sell the Borrower Loans without the approval of the holders of the corresponding Notes. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, as part of its ongoing efforts to assist in the convergence of US GAAP and International Financial Reporting Standards (“IFRS”), the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “ Revenue from Contracts with Customers In November 2014, the FASB issued ASU 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity to eliminate the use of different methods in practice and thereby reduce existing diversity in the accounting for hybrid financial instruments issued in the form of a share. For hybrid financial instruments issued in the form of a share, an entity should determine the nature of the contract by considering the economic characteristics and risks of the entire hybrid financial instrument. The existence or omission of any single term or feature does not necessarily determine the economic characteristics and risks of the host contract. This standard will be effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2015. In April 2015, the FASB issued ASU 2015-05 “ Customers’ Accounting for Fees Paid in Cloud Computing Arrangement ”, which became effective for the . The guidance changes what a customer must consider in determining whether a cloud computing arrangement contains a software license. If the arrangement contains a software license, the customer would account for the fees related to the software license element in accordance with guidance related to internal use software; if the arrangement does not contain a software license, the customer would account for the arrangement as a service contract. In September 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments. The new guidance simplifies the accounting for measurement period adjustments in connection with business combinations by requiring that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. This guidance is effective for financial statements issued for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (Topic 718). |
Prosper Funding LLC [Member] | |
Significant Accounting Policies [Line Items] | |
Basis of Presentation | Prosper Funding LLC (“PFL”) was formed in the state of Delaware on February 17, 2012 as a limited liability company with the sole equity member being Prosper Marketplace, Inc. (“PMI”). Except as the context otherwise requires, as used in these Notes to the condensed consolidated financial statements of Prosper Funding LLC, “Prosper Funding,” “we,” “us,” and “our” refers to PFL and its wholly owned subsidiary, Prosper Asset Holdings LLC (“PAH”), a Delaware limited liability company, on a consolidated basis. The unaudited interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“US GAAP”) and disclosure requirements for interim financial information and the requirements of Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by US GAAP for complete financial statements. The unaudited interim condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, 2015. The balance sheet at December 31, 2015 has been derived from the audited financial statements at that date. Management believes these unaudited interim condensed consolidated financial statements reflect all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the results for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the full year or any other interim period. Prosper Funding did not have any items of other comprehensive income (loss) during any of the periods presented in the condensed consolidated financial statements as of and for the six months ended June 30, 2016 and 2015. The preparation of Prosper Funding's condensed consolidated financial statements and related disclosures in conformity with GAAP requires management to make judgments, assumptions and estimates that affect the amounts reported in its condensed consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other factors it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of certain assets and liabilities. These judgments, estimates and assumptions are inherently subjective in nature and actual results may differ from these estimates and assumptions, and the differences could be material. |
Reclassifications | Reclassifications During the period ended June 30, 2016, Prosper Funding changed the presentation of its revenue in the condensed consolidated statements of operations. A new line called “Gain on Sales of Borrower Loans” was created with the amounts included in this line previously classified as “Other Revenue”. The gain on sale related to the sale of Borrower Loans was reclassified from “Other Revenues” to a new line called “Gain on Sales of Borrower Loans.” |
Fair Value Measurements | Fair Value Measurements Financial instruments consist principally of Cash and Cash Equivalents, Restricted Cash, Short Term Investments, Borrower Loans, Loans Held for Sale, Accounts Receivable, Accounts Payable and Accrued Liabilities, Payable to Investors and Notes. The estimated fair values of Cash and Cash Equivalents, Restricted Cash, Accounts Receivable, Accounts Payable and Accrued Liabilities, and Payable to Investors approximate their carrying values because of their short term nature. |
Borrower Loans, Loans Held for Sale and Notes | Borrower Loans, Loans Held for Sale and Notes Through the Note Channel, Prosper Funding purchases Borrower Loans from WebBank then issues Notes, and holds the Borrower Loans until maturity. The obligation to repay a series of Notes funded through the Note Channel is dependent upon the repayment of the associated Borrower Loan. Borrower Loans and Notes funded through the Note Channel are carried on Prosper Funding’s consolidated balance sheets as assets and liabilities, respectively. We choose to measure certain financial instruments and certain other items at fair value on an instrument-by-instrument basis with unrealized gains and losses on items for which the fair value option has been elected reported in earnings. Management believes that the fair value option is more meaningful for the readers of the financial statements and it allows both the Borrower Loans and Notes to be valued using the same methodology. The fair value election, with respect to an item, may not be revoked once an election is made. Prosper Funding estimates the fair value of such Borrower Loans and Notes using discounted cash flow methodologies that take into account expected prepayments, losses, recoveries and default rates. The Borrower Loans are not derecognized when a corresponding Note is issued as Prosper Funding maintains the ability to sell the Borrower Loans without the approval of the holders of the corresponding Notes. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, as part of its ongoing efforts to assist in the convergence of US GAAP and International Financial Reporting Standards (“IFRS”), the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “ Revenue from Contracts with Customers In April 2015, the FASB issued ASU 2015-05 “ Customers’ Accounting for Fees Paid in Cloud Computing Arrangement ”, which became effective for the . The guidance changes what a customer must consider in determining whether a cloud computing arrangement contains a software license. If the arrangement contains a software license, the customer would account for the fees related to the software license element in accordance with guidance related to internal use software; if the arrangement does not contain a software license, the customer would account for the arrangement as a service contract. |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Property and Equipment, Net | Property and equipment consist of the following (in thousands): June 30, December 31, 2016 2015 Property and equipment: Computer equipment $ 14,153 $ 10,522 Internal-use software and website development costs 14,289 10,990 Office equipment and furniture 3,087 2,442 Leasehold improvements 7,220 5,719 Assets not yet placed in service 1,994 3,242 Property and equipment 40,743 32,915 Less accumulated depreciation and amortization (12,565 ) (7,950 ) Total property and equipment, net $ 28,178 $ 24,965 |
Prosper Funding LLC [Member] | |
Property and Equipment, Net | Property and equipment consist of the following (in thousands): June 30, December 31, 2016 2015 Property and equipment: Internal-use software and web site development costs $ 14,289 $ 10,990 Less accumulated depreciation and amortization (4,435 ) (2,571 ) Total property and equipment, net $ 9,854 $ 8,419 |
Borrower Loans, Loans Held fo27
Borrower Loans, Loans Held for Sale, and Notes Held at Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Aggregate Principal Balances Outstanding and Fair Values of Borrower Loans, Notes and Loans Held for Sale | The aggregate principal balances outstanding and fair values of Borrower Loans, Loans Held for Sale and Notes as of June 30, 2016 and December 31, 2015, are presented in the following table (in thousands): Borrower Loans Notes Loans Held for Sale June 30, 2016 December 31, 2015 June 30, 2016 December 31, 2015 June 30, 2016 December 31, 2015 Aggregate principal balance outstanding $ 312,725 $ 296,945 $ (315,671 ) $ (294,331 ) $ 4,715 $ 42 Fair value adjustments (2,691 ) 328 6,141 (3,074 ) (10 ) (10 ) Fair value $ 310,034 $ 297,273 $ (309,530 ) $ (297,405 ) $ 4,705 $ 32 |
Prosper Funding LLC [Member] | |
Aggregate Principal Balances Outstanding and Fair Values of Borrower Loans, Notes and Loans Held for Sale | The aggregate principal balances outstanding and fair values of Borrower Loans, Loans Held for Sale and Notes as of June 30, 2016 and December 31, 2015, are presented in the following table (in thousands): Borrower Loans Notes Loans Held for Sale June 30, 2016 December 31, 2015 June 30, 2016 December 31, 2015 June 30, 2016 December 31, 2015 Aggregate principal balance outstanding $ 312,725 $ 296,945 $ (315,671 ) $ (294,331 ) $ 4,715 $ 42 Fair value adjustments (2,691 ) 328 6,141 (3,074 ) (10 ) (10 ) Fair value $ 310,034 $ 297,273 $ (309,530 ) $ (297,405 ) $ 4,705 $ 32 |
Available for Sale Investment28
Available for Sale Investments, at Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Amortized Cost, Gross Unrealized Gains and Losses and Fair Value of Securities Available for Sale | The amortized cost, gross unrealized gains and losses, and fair value of available for sale investments as of June 30, 2016 and December 31, 2015, are as follows: June 30, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Fixed maturity securities: Corporate debt securities $ 37,453 $ 49 $ (9 ) $ 37,493 Commercial paper 3,899 - - 3,899 US Treasury securities 10,533 28 - 10,561 Agency bonds 2,499 11 - 2,510 Total fixed maturity securities 54,384 88 (9 ) 54,463 Short term bond funds 1,250 - - 1,250 Total Available for Sale Investments $ 55,634 $ 88 $ (9 ) $ 55,713 December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Fixed maturity securities: Corporate debt securities $ 50,327 $ 1 $ (94 ) $ 50,234 Commercial paper 9,493 - - 9,493 US Treasury securities 8,512 - (41 ) 8,471 Agency bonds 2,499 - (8 ) 2,491 Total fixed maturity securities 70,831 1 (143 ) 70,689 Short term bond funds 2,500 - (2 ) 2,498 Total Available for Sale Investments $ 73,331 $ 1 $ (145 ) $ 73,187 |
Summary of Securities Available for Sale of Continuous Unrealized Loss | A summary of available for sale investments with unrealized losses as of June 30, 2016, and December 31, 2015, aggregated by category and period of continuous unrealized loss, is as follows: Less than 12 months 12 months or longer Total June 30, 2016 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fixed maturity securities: Corporate debt securities $ 9,753 $ (9 ) $ - $ - $ 9,753 $ (9 ) U.S. treasury securities - - - - - - Agency bonds - - - - - - Total fixed maturity securities 9,753 (9 ) - - 9,753 (9 ) Short term bond funds - - - - - - Total Investments with Unrealized Losses $ 9,753 $ (9 ) $ - $ - $ 9,753 $ (9 ) Less than 12 months 12 months or longer Total December 31, 2015 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fixed maturity securities: Corporate debt securities $ 45,375 $ (94 ) $ - $ - $ 45,375 $ (94 ) U.S. treasury securities 8,471 (41 ) - - 8,471 (41 ) Agency bonds 2,491 (8 ) - - 2,491 (8 ) Total fixed maturity securities 56,337 (143 ) - - 56,337 (143 ) Short term bond funds 2,498 (2 ) - - 2,498 (2 ) Total Investments with Unrealized Losses $ 58,835 $ (145 ) $ - $ - $ 58,835 $ (145 ) |
Schedule of Maturities of Securities Available for Sale | The maturities of available for sale investments at June 30, 2016, and December 31, 2015, are as follows: June 30, 2016 Within 1 year After 1 year through 5 years After 5 years to 10 years After 10 years Total Corporate debt securities $ 28,677 $ 8,816 $ - $ - $ 37,493 Commercial paper 3,899 - - - 3,899 US Treasury securities 3,006 7,555 - - 10,561 Agency bonds - 2,510 - - 2,510 Total Fair Value $ 35,582 $ 18,881 $ - $ - $ 54,463 Total Amortized Cost $ 35,560 $ 18,824 $ - $ - $ 54,384 December 31, 2015 Within 1 year After 1 year through 5 years After 5 years to 10 years After 10 years Total Corporate debt securities $ 26,289 $ 23,945 $ - $ - $ 50,234 Commercial paper 9,493 - - - 9,493 US Treasury securities - 8,471 - - 8,471 Agency bonds - 2,491 - - 2,491 Total Fair Value $ 35,782 $ 34,907 $ - $ - $ 70,689 Total Amortized Cost $ 35,831 $ 35,000 $ - $ - $ 70,831 |
Fair Value of Assets and Liab29
Fair Value of Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Hierarchy for Assets and Liabilities Measured at Fair Value | The following tables present the fair value hierarchy for assets and liabilities measured at fair value (in thousands) June 30, 2016 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Assets: Borrower Loans $ - $ - $ 310,034 $ 310,034 Loans Held for Sale - - 4,705 4,705 Available for Sale Investments, at Fair Value - 55,713 - 55,713 Servicing Assets - - 14,297 14,297 Total Assets - 55,713 329,036 384,749 Liabilities: Notes $ - $ - $ 309,530 $ 309,530 Servicing Liabilities - - 324 324 Contingent Consideration - - 4,929 4,929 Total Liabilities $ - $ - $ 314,783 $ 314,783 December 31, 2015 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Assets: Borrower Loans $ - $ - $ 297,273 $ 297,273 Loans Held for Sale - - 32 32 Available for Sale Investments, at Fair Value - 73,187 - 73,187 Servicing Assets - - 14,363 14,363 Total Assets - 73,187 311,668 384,855 Liabilities: Notes $ - $ - $ 297,405 $ 297,405 Servicing Liabilities - - 484 484 Contingent Consideration - - 4,801 4,801 Total Liabilities $ - $ - $ 302,690 $ 302,690 |
Quantitative Information About Significant Unobservable Inputs | Borrower Loans, Loans Held for Sale and Notes: Range Unobservable Input June 30, 2016 December 31, 2015 Discount rate 4.4% - 15.0% 4.3% - 14.5% Default rate 1.6% - 14.8% 1.4% - 14.4% |
Significant Unobservable Inputs Fair Value | Servicing Rights Range Unobservable Input June 30, 2016 December 31, 2015 Discount rate 15% - 25% 15% - 25% Default rate 1.1% - 15.0% 1.2% - 14.7% Prepayment rate 14.8% - 27.6% 14.3% - 25.6% Market servicing rate 0.625 % 0.625 % |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present additional information about level 3 Borrower Loans, Loans Held for Sale and Notes measured at fair value on a recurring basis (in thousands) Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Borrower Loans Notes Loans Held for Sale Total Balance at January 1, 2016 $ 297,273 $ (297,405 ) $ 32 $ (100 ) Purchase of Borrower Loans/Issuance of Notes 109,215 (109,147 ) 1,358,011 1,358,079 Principal repayments (82,376 ) 83,119 (136 ) 607 Borrower Loans sold to third parties (1,138 ) 1,081 (1,353,202 ) (1,353,259 ) Other changes (6 ) (33 ) - (39 ) Change in fair value (12,934 ) 12,855 - (79 ) Balance at June 30, 2016 $ 310,034 $ (309,530 ) $ 4,705 $ 5,209 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Borrower Loans Notes Loans Held for Sale Total Balance at January 1, 2015 $ 273,243 $ (273,783 ) $ 8,463 $ 7,923 Purchase of Borrower Loans/Issuance of Notes 94,512 (94,575 ) 1,402,499 1,402,436 Principal repayments (73,457 ) 73,509 (543 ) (491 ) Borrower Loans sold to third parties - - (1,408,883 ) (1,408,883 ) Other changes (130 ) 136 (9 ) (3 ) Change in fair value (9,968 ) 10,085 (96 ) 21 Balance at June 30, 2015 $ 284,200 $ (284,628 ) $ 1,431 $ 1,003 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Borrower Loans Notes Loans Held for Sale Total Balance at April 1, 2015 $ 280,404 $ (280,801 ) $ 1,599 $ 1,202 Purchase of Borrower Loans/Issuance of Notes 46,805 (46,779 ) 861,574 861,600 Principal repayments (37,395 ) 37,440 (157 ) (112 ) Borrower Loans sold to third parties - - (861,574 ) (861,574 ) Other changes (136 ) (71 ) (1 ) (208 ) Change in fair value (5,478 ) 5,583 (10 ) 95 Balance at June 30, 2015 $ 284,200 $ (284,628 ) $ 1,431 $ 1,003 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Borrower Loans Notes Loans Held for Sale Total Balance at April 1, 2016 $ 303,243 $ (302,357 ) $ 30 $ 916 Purchase of Borrower Loans/Issuance of Notes 54,044 (53,873 ) 426,591 426,762 Principal repayments (41,390 ) 41,057 (131 ) (464 ) Borrower Loans sold to third parties (525 ) 499 (421,784 ) (421,810 ) Other changes (2 ) (191 ) - (193 ) Change in fair value (5,336 ) 5,335 (1 ) (2 ) Balance at June 30, 2016 $ 310,034 $ (309,530 ) $ 4,705 $ 5,209 |
Schedule of Servicing Assets and Liabilities Measured at Fair Value | The following tables present additional information about level 3 servicing assets and liabilities measured at fair value on a recurring basis (in thousands): Servicing Assets Servicing Liabilities Fair Value at January 1, 2016 14,363 484 Additions 5,750 9 Less: Changes in fair value (5,816 ) (169 ) Fair Value at June 30, 2016 14,297 324 Servicing Assets Servicing Liabilities Amortized Cost at January 1, 2015 4,163 624 Adjustment to Adopt Fair Value Measurement 546 (29 ) Fair Value at January 1, 2015 4,709 595 Additions 5,837 193 Less: Changes in fair value (1,864 ) (182 ) Fair Value at June 30, 2015 8,682 606 Servicing Assets Servicing Liabilities Fair Value at April 1, 2016 15,548 398 Additions 1,729 - Less: Changes in fair value (2,980 ) (74 ) Fair Value at June 30, 2016 14,297 324 Servicing Assets Servicing Liabilities Fair Value at April 1, 2015 6,034 668 Additions 3,759 39 Less: Changes in fair value (1,111 ) (101 ) Fair Value at June 30, 2015 8,682 606 |
Fair Value Assumptions for Loans Held for Sale, Borrower Loans and Notes | Key economic assumptions and the sensitivity of the current fair value to immediate changes in those assumptions at June 30, 2016 for Borrower Loans, Loans Held for Sale and Notes funded through the Note Channel are presented in the following table (in thousands, except percentages): Borrower Loans and Loans Held for Sale Notes Discount rate assumption: 7.25 %* 7.25 %* Resulting fair value from: 100 basis point increase $ 306,868 $ 306,363 200 basis point increase 303,781 303,277 Resulting fair value from: 100 basis point decrease $ 313,283 $ 312,780 200 basis point decrease 316,619 316,116 Default rate assumption: 11.02 %* 11.02 %* Resulting fair value from: 100 basis point increase $ 306,882 $ 306,370 200 basis point increase 303,823 303,303 Resulting fair value from: 100 basis point decrease $ 313,200 $ 312,704 200 basis point decrease 316,399 315,913 * Represents weighted average assumptions considering all credit grades. |
Schedule of Prosper's and Prosper Funding's Estimated Fair Value of Servicing Assets and Liabilities | The following table presents the estimated impact on Prosper’s estimated fair value of servicing assets and liabilities, calculated using different market servicing rates and different default rates as of June 30, 2016 (in thousands, except percentages). Servicing Assets Servicing Liabilities Market servicing rate assumptions 0.625 % 0.625 % Resulting fair value from: Market servicing rate increase to 0.65% 13,252 $ 356 Market servicing rate decrease to 0.60% 15,342 $ 291 Weighted average prepayment assumptions 20.44 % 20.44 % Resulting fair value from: Applying a 1.1 multiplier to prepayment rate 13,918 $ 303 Applying a 0.9 multiplier to prepayment rate 14,451 $ 314 Weighted average default assumptions 11.39 % 11.39 % Resulting fair value from: Applying a 1.1 multiplier to default rate $ 14,067 $ 323 Applying a 0.9 multiplier to default rate $ 14,530 $ 323 |
Prosper Funding LLC [Member] | |
Fair Value Hierarchy for Assets and Liabilities Measured at Fair Value | The following tables present the fair value hierarchy for assets and liabilities measured at fair value (in thousands): June 30, 2016 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Assets: Borrower Loans $ - $ - $ 310,034 $ 310,034 Loans Held for Sale - - 4,705 4,705 Servicing Assets - - 13,798 13,798 Total Assets - - 328,537 328,537 Liabilities: Notes $ - $ - $ 309,530 $ 309,530 Servicing Liabilities - - 324 324 Total Liabilities $ - $ - $ 309,854 $ 309,854 December 31, 2015 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Assets: Borrower Loans $ - $ - $ 297,273 $ 297,273 Loans Held for Sale - - 32 32 Servicing Assets - - 13,605 13,605 Total Assets - - 310,910 310,910 Liabilities: Notes $ - $ - $ 297,405 $ 297,405 Servicing Liabilities - - 484 484 Total Liabilities $ - $ - $ 297,889 $ 297,889 |
Quantitative Information About Significant Unobservable Inputs | The following tables present quantitative information about the significant unobservable inputs used for Prosper Funding’s level 3 fair value measurements at June 30, 2016 and December 31, 2015 : Borrower Loans, Loans Held for Sale and Notes: Range Unobservable Input June 30, 2016 December 31, 2015 Discount rate 4.4% - 15.0% 4.3% - 14.5% Default rate 1.6% - 14.8% 1.4% - 14.4% |
Significant Unobservable Inputs Fair Value | Servicing Rights Range Unobservable Input June 30, 2016 December 31, 2015 Discount rate 15% - 25% 15% - 25% Default rate 1.1% - 15.0% 1.2% - 14.7% Prepayment rate 14.8% - 27.6% 14.3% - 25.6% Market servicing rate 0.625 % 0.625 % |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The changes in the Borrower Loans, Loans Held for Sale and Notes, which are Level 3 assets and liabilities measured at fair value on a recurring basis are as follows (in thousands): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Loans Held for Borrower Notes Sale Total Balance at January 1, 2016 $ 297,273 $ (297,405 ) $ 32 $ (100 ) Originations 109,215 (109,147 ) 1,358,011 1,358,079 Principal repayments (82,376 ) 83,119 (136 ) 607 Borrower Loans sold to third parties (1,138 ) 1,081 (1,353,202 ) (1,353,259 ) Other changes (6 ) (33 ) - (39 ) Change in fair value (12,934 ) 12,855 - (79 ) Balance at June 30, 2016 $ 310,034 $ (309,530 ) $ 4,705 $ 5,209 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Loans Held for Borrower Notes Sale Total Balance at January 1, 2015 $ 273,243 $ (273,783 ) $ 8,463 $ 7,923 Originations 94,512 (94,575 ) 1,402,499 1,402,436 Principal repayments (73,457 ) 73,509 (543 ) (491 ) Borrower Loans sold to third parties - - (1,408,883 ) (1,408,883 ) Other changes (130 ) 136 (9 ) (3 ) Change in fair value (9,968 ) 10,085 (96 ) 21 Balance at June 30, 2015 $ 284,200 $ (284,628 ) $ 1,431 $ 1,003 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Loans Held for Borrower Notes Sale Total Balance at April 1, 2015 $ 280,404 $ (280,801 ) $ 1,599 $ 1,202 Originations 46,805 (46,779 ) 861,574 861,600 Principal repayments (37,395 ) 37,440 (157 ) (112 ) Borrower Loans sold to third parties - - (861,574 ) (861,574 ) Other changes (136 ) (71 ) (1 ) (208 ) Change in fair value (5,478 ) 5,583 (10 ) 95 Balance at June 30, 2015 $ 284,200 $ (284,628 ) $ 1,431 $ 1,003 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Borrower Loans Notes Loans Held for Sale Total Balance at April 1, 2016 $ 303,243 $ (302,357 ) $ 30 $ 916 Purchase of Borrower Loans/Issuance of Notes 54,044 (53,873 ) 426,591 426,762 Principal repayments (41,390 ) 41,057 (131 ) (464 ) Borrower Loans sold to third parties (525 ) 499 (421,784 ) (421,810 ) Other changes (2 ) (191 ) - (193 ) Change in fair value (5,336 ) 5,335 (1 ) (2 ) Balance at June 30, 2016 $ 310,034 $ (309,530 ) $ 4,705 $ 5,209 |
Schedule of Servicing Assets and Liabilities Measured at Fair Value | The following table presents additional information about Level 3 servicing assets and liabilities recorded at fair value for the three months ended June 30, 2016 (in thousands). Servicing Servicing Assets Liabilities Fair Value at January 1, 2016 13,605 484 Additions 5,750 9 Less: Changes in fair value (5,557 ) (169 ) Fair Value at June 30, 2016 13,798 324 Servicing Assets Servicing Liabilities Amortized Cost at January 1, 2015 3,116 624 Adjustment to Adopt Fair Value Measurement 399 (29 ) Fair Value at January 1, 2015 3,515 595 Additions 5,837 193 Less: Transfers to PMI (249 ) - Less: Changes in fair value (1,469 ) (182 ) Fair Value at June 30, 2015 7,634 606 Servicing Servicing Assets Liabilities Fair Value at April 1, 2016 14,929 398 Additions 1,729 - Less: Changes in fair value (2,860 ) (74 ) Fair Value at June 30, 2016 13,798 324 Servicing Assets Servicing Liabilities Fair Value at April 1, 2015 4,782 668 Additions 3,759 39 Less: Transfers to PMI - - Less: Changes in fair value (907 ) (101 ) Fair Value at June 30, 2015 7,634 606 |
Fair Value Assumptions for Loans Held for Sale, Borrower Loans and Notes | Key economic assumptions and the sensitivity of the current fair value to immediate changes in those assumptions at June 30, 2016 for Borrower Loans, Loans Held for Sale and Notes funded are presented in the following table (in thousands): Borrower Loans and Loans Held for Sale Notes Discount rate assumption: 7.25 %* 7.25 %* Resulting fair value from: 100 basis point increase $ 306,868 $ 306,363 200 basis point increase 303,781 303,277 Resulting fair value from: 100 basis point decrease $ 313,283 $ 312,780 200 basis point decrease 316,619 316,116 Default rate assumption: 11.02 %* 11.02 %* Resulting fair value from: 100 basis point increase $ 306,882 $ 306,370 200 basis point increase 303,823 303,303 Resulting fair value from: 100 basis point decrease $ 313,200 $ 312,704 200 basis point decrease 316,399 315,913 |
Schedule of Prosper's and Prosper Funding's Estimated Fair Value of Servicing Assets and Liabilities | The following table presents the estimated impact on Prosper Funding’s estimated fair value of servicing assets and liabilities, calculated using different market servicing rates and different default rates as of June 30, 2016 (in thousands, except percentages). Servicing Assets Servicing Liabilities Market servicing rate assumptions 0.625 % 0.625 % Resulting fair value from: Market servicing rate increase to 0.65% 12,952 356 Market servicing rate decrease to 0.60% 14,995 291 Weighted average prepayment assumptions 20.44 % 20.44 % Resulting fair value from: Applying a 1.1 multiplier to default rate 13,541 303 Applying a 0.9 multiplier to default rate 14,059 314 Weighted average default assumptions 11.39 % 11.39 % Resulting fair value from: Applying a 1.1 multiplier to default rate 13,576 323 Applying a 0.9 multiplier to default rate 14,023 323 |
Goodwill and Other Intangible30
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Other Intangible Assets for the Period Presented | The following table presents the detail of other intangible assets for the period presented (dollars in thousands): June 30, 2016 Gross Carrying Value Accumulated Amortization Net Carrying Value Remaining Useful Life (In Years) User base and customer relationships $ 6,250 $ (1,976 ) $ 4,274 8.6 Developed technology 8,310 (1,508 ) $ 6,802 4.3 Brand name 60 (60 ) - - Total intangible assets subject to amortization $ 14,620 $ (3,544 ) $ 11,076 |
Summary of Estimated Amortization of Purchased Intangible Assets | Estimated amortization of purchased intangible assets for future periods is as follows (in thousands): Year Ending December 31, 2016 $ 1,862 2017 3,260 2018 2,329 2019 1,779 2020 1,344 Thereafter 502 Total $ 11,076 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Other Liabilities [Abstract] | |
Schedule of Other Liabilities | Other Liabilities includes the following: June 30, 2016 December 31, 2015 Class action settlement liability $ 2,973 $ 5,949 Repurchase liability for unvested restricted stock awards 267 473 Contingent consideration 4,929 4,801 Deferred revenue 420 1,591 Servicing liabilities 324 484 Deferred rent 4,647 5,240 Restructuring liability 8,492 - Other 2,364 2,197 Total Other Liabilities $ 24,416 $ 20,735 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Loss Per Share | Basic and diluted net loss per share was calculated as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Numerator: Net loss available to common stockholders for basic and diluted EPS $ (35,628 ) $ (6,201 ) $ (53,092 ) $ (13,477 ) Denominator: Weighted average shares used in computing basic and diluted net loss per share 63,270,058 55,612,485 61,813,773 54,168,175 Basic and diluted net loss per share $ (0.56 ) $ (0.11 ) $ (0.86 ) $ (0.25 ) |
Common Stock Equivalents Excluded from Computation of Diluted Net Loss Per Share | The following common stock equivalents were excluded from the computation of diluted net loss per share for the periods presented because including them would have been anti-dilutive: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (shares) (shares) (shares) (shares) Excluded securities: Convertible preferred stock issued and outstanding 177,388,425 35,477,685 177,388,425 35,477,685 Stock options issued and outstanding 43,719,604 6,982,320 41,694,271 6,478,422 Unvested stock options exercised 5,345,950 3,084,604 5,345,950 3,084,604 Warrants issued and outstanding 962,113 123,467 792,449 123,467 Total common stock equivalents excluded from diluted net loss per common share computation 227,416,092 45,668,076 225,221,095 45,164,178 |
Convertible Preferred Stock a33
Convertible Preferred Stock and Stockholders' Deficit (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Stockholders Equity Note [Abstract] | |
Summary of Shares Authorized, Issued, Outstanding, Par Value and Liquidation Preference of Convertible Preferred Stock | The number of authorized, issued and outstanding shares, their par value and liquidation preference for each series of convertible preferred stock as of June 30, 2016 are disclosed in the table below (amounts in thousands except share and per share amounts): Convertible Preferred Stock Par Value Authorized shares Outstanding and Issued shares Liquidation Preference New Series A $ 0.01 68,558,220 68,558,220 $ 19,774 Series A-1 0.01 24,760,915 24,760,915 49,522 New Series B 0.01 35,775,880 35,775,880 21,581 New Series C 0.01 24,404,770 24,404,770 70,075 New Series D 0.01 23,888,640 23,888,640 165,000 177,388,425 177,388,425 $ 325,952 |
Shared Based Incentive Plan a34
Shared Based Incentive Plan and Compensation (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Activity of Options that were Early Exercised under the Plan | The activity of options that were early exercised under the 2005 Plan for the six months ended June 30, 2016 is below: Early exercised options, unvested Weighted average exercise price Balance as of January 1, 2016 9,806,170 $ 0.05 Repurchase of restricted stock (51,105 ) 0.90 Restricted stock vested (4,409,115 ) 0.04 Balance as of June 30, 2016 5,345,950 $ 0.05 |
Additional Information Regarding the Unvested Early Exercised Stock Options Outstanding | Additional information regarding the unvested early exercised stock options outstanding as of June 30, 2016 is as follows: Options Outstanding Range of Exercise Number Weighted –Avg. Weighted –Avg. Prices Outstanding Remaining Life Exercise Price 0.02 4,847,590 0.7 $ 0.02 0.11 387,010 1.6 0.11 1.13 111,350 2.1 1.13 $0.02 - $1.13 5,345,950 0.8 $ 0.05 |
Summarized Option Activity under Option Plan | Stock option activity under the 2005 Plan and 2015 Plan is summarized for the six months ended June 30, 2016 below: Options Issued and Outstanding Weighted- Average Exercise Price Balance as of January 1, 2016 40,425,605 $ 2.64 Options issued 19,655,338 $ 2.14 Options exercised – vested (334,475 ) 0.85 Options forfeited (4,725,406 ) 1.38 Balance as of June 30, 2016 55,021,062 1.54 Options vested and/or exercisable at June 30, 2016 26,856,397 1.15 |
Additional Information Regarding Common Stock Options Outstanding | Additional information regarding common stock options outstanding as of June 30, 2016 is as follows: Options Outstanding Options Vested and Exercisable Weighted – Weighted – Weighted - Range of Avg. Avg. Avg. Exercise Number Remaining Exercise Number Exercise Prices Outstanding Life Price Vested Price $ 0.02 - 0.99 13,462,825 7.41 $ 0.12 13,462,110 $ 0.12 1.00 - 2.99 38,325,717 9.34 2.04 11,565,657 1.91 3.00 - 4.99 1,586,875 8.63 3.62 1,586,875 3.62 5.00 - 5.52 1,645,645 9.14 5.49 241,755 5.46 $ 0.02 - 5.52 55,021,062 8.84 $ 1.72 26,856,397 $ 1.15 |
Fair Value of Stock Option Awards | The fair value of PMI’s stock option awards granted during the three months ended June 30, 2016 and 2015 was estimated at the date of grant using the Black-Scholes model with the following average assumptions: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Volatility of common stock 50.88 % 52.75 % 50.88 % 57.26 % Risk-free interest rate 1.29 % 1.80 % 1.29 % 1.72 % Expected life 5.8 years 6.0 years 5.8 years 6.1 years Dividend yield 0 % 0 % 0 % 0 % |
Summarized Activities for RSU's | The following table summarizes the activities for PMI’s RSUs during the six months ending June 30, 2016: Number of Shares Weighted-Average Grant Date Fair Value Unvested - December 31, 2015 1,835,510 $ 5.52 Granted 3,580,220 2.14 Vested - - Forfeited (1,274,920 ) 2.14 Unvested - June 30, 2016 4,140,810 $ 2.59 |
Stock Based Compensation Included in Consolidated Statements of Operations | The following table presents the amount of stock-based compensation related to stock-based awards granted to employees recognized in Prosper’s condensed consolidated statements of operations during the three months ended June 30, 2016 and 2015 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Origination and servicing $ 579 $ 292 $ 1,018 $ 436 Sales and marketing 896 676 1,632 1,065 General and administrative 4,884 1,784 8,815 2,691 Restructuring 45 - 45 - Total stock based compensation $ 6,404 $ 2,752 $ 11,510 $ 4,192 |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Restructuring And Related Activities [Abstract] | |
Summary of Activities Related to Prosper's Restructuring Plan | The following table summarizes the activities related to Prosper's restructuring plan (in thousands) : Severance Related * Facilities Related Total Balance April 1, 2016 $ - $ - $ - Additions to expense 5,400 8,661 14,061 Transfer from deferred rent - 764 764 Less: Cash paid (3,362 ) (933 ) (4,295 ) Balance June 30, 2016 $ 2,038 $ 8,492 $ 10,530 * Severance related restructuring costs excludes non-cash charges related to vesting of equity incentives for fully-vested employees terminated as part of the Restructuring of $45 thousand |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Minimum Lease Payments | Prosper has entered into various non-cancelable operating leases for certain offices with contractual lease periods expiring between 2022 and 2027. Future minimum rental payments under these leases as of June 30, 2016 are as follows (in thousands): Remaining six months of 2016 3,674 2017 8,888 2018 9,524 2019 9,732 2020 10,225 2021 10,313 Thereafter 26,102 Total future operating lease obligations $ 78,458 |
Related Parties (Tables)
Related Parties (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Aggregate Amount of Notes Purchased and the Income Earned | The aggregate amount of the Notes and Borrower Loans purchased and the income earned by parties deemed to be affiliates and related parties of Prosper for the three and six months ended June 30, 2016 and 2015, as well as the Notes and Borrower Loans outstanding as of June 30, 2016 and December 31, 2015 are summarized below (in thousands): Aggregate Amount of Notes and Borrower Loans Purchased Interest Earned on Notes and Borrower Loans Six Months Ended June 30, Six Months Ended June 30, Related Party 2016 2015 2016 2015 Executive officers and management $ 801 $ 846 $ 110 $ 98 Directors (excluding executive officers and management) 350 20 15 4 Total $ 1,151 $ 866 $ 125 $ 102 Aggregate Amount of Notes and Borrower Loans Purchased Interest Earned on Notes and Borrower Loans Three Months Ended June 30, Three Months Ended June 30, Related Party 2016 2015 2016 2015 Executive officers and management $ 396 $ 365 $ 61 $ 51 Directors (excluding executive officers and management) 114 - 9 2 Total $ 510 $ 365 $ 70 $ 53 Notes and Borrower Loans Balance as of Related Party June 30, 2016 December 31, 2015 Executive officers and management $ 1,822 $ 1,912 Directors (excluding executive officers and management) 528 325 $ 2,350 $ 2,237 |
Prosper Funding LLC [Member] | |
Aggregate Amount of Notes Purchased and the Income Earned | The aggregate amount of the Notes and Borrower Loans purchased and the income earned by parties deemed to be related parties of Prosper Funding as of June 30, 2016 and December 31, 2015 are summarized below (in thousands): Aggregate Amount of Notes and Borrower Loans Purchased Interest Earned on Notes and Borrower Loans Six Months Ended June 30, Six Months Ended June 30, Related Party 2016 2015 2016 2015 Executive officers and management $ 801 $ 846 $ 110 $ 98 Directors (excluding executive officers and management) - - - - Total $ 801 $ 846 $ 110 $ 98 Aggregate Amount of Notes and Borrower Loans Purchased Interest Earned on Notes and Borrower Loans Three Months Ended June 30, Three Months Ended June 30, Related Party 2016 2015 2016 2015 Executive officers and management $ 396 $ 365 $ 61 $ 51 Directors (excluding executive officers and management) - - - - Total $ 396 $ 365 $ 61 $ 51 Note and Borrower Loan Balance as of Related Party June 30, 2016 December 31, 2015 Executive officers and management $ 1,822 $ 1,912 Directors (excluding executive officers and management) - - $ 1,822 $ 1,912 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $ 40,743 | $ 32,915 |
Less accumulated depreciation and amortization | (12,565) | (7,950) |
Total property and equipment, net | 28,178 | 24,965 |
Prosper Funding LLC [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Less accumulated depreciation and amortization | (4,435) | (2,571) |
Total property and equipment, net | 9,854 | 8,419 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 14,153 | 10,522 |
Internal-use Software and Website Development Costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 14,289 | 10,990 |
Internal-use Software and Website Development Costs [Member] | Prosper Funding LLC [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 14,289 | 10,990 |
Office Equipment and Furniture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 3,087 | 2,442 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 7,220 | 5,719 |
Assets Not Yet Placed in Service [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $ 1,994 | $ 3,242 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation And Amortization | $ 6,430 | $ 3,455 | ||
Prosper Funding LLC [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation And Amortization | $ 981 | $ 676 | 1,864 | 1,896 |
Property Plant And Equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation and amortization expense | 2,500 | 1,400 | 4,500 | 3,100 |
Internal-use Software and Website Development Costs [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Capitalized internal-use software and website development costs | $ 1,800 | $ 2,100 | 3,600 | 3,900 |
Recorded internal-use software and website development impairment charges | $ 240 | $ 0 |
Borrower Loans, Loans Held fo40
Borrower Loans, Loans Held for Sale, and Notes Held at Fair Value - Aggregate Principal Balances Outstanding and Fair Values of Borrower Loans, Notes and Loans Held for Sale (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Borrower Loans, at Fair Value | $ 310,034 | $ 297,273 |
Notes at Fair Value | (309,530) | (297,405) |
Loans Held for Sale, at Fair Value | 4,705 | 32 |
Prosper Funding LLC [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Borrower Loans, at Fair Value | 310,034 | 297,273 |
Notes at Fair Value | (309,530) | (297,405) |
Loans Held for Sale, at Fair Value | 4,705 | 32 |
Notes [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Aggregate principal balance outstanding, Notes | (315,671) | (294,331) |
Fair value adjustments | 6,141 | (3,074) |
Notes at Fair Value | (309,530) | (297,405) |
Notes [Member] | Prosper Funding LLC [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Aggregate principal balance outstanding, Notes | (315,671) | (294,331) |
Fair value adjustments | 6,141 | (3,074) |
Notes at Fair Value | (309,530) | (297,405) |
Borrower Loans [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Aggregate principal balance outstanding, Borrower Loans | 312,725 | 296,945 |
Fair value adjustments | (2,691) | 328 |
Borrower Loans, at Fair Value | 310,034 | 297,273 |
Borrower Loans [Member] | Prosper Funding LLC [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Aggregate principal balance outstanding, Borrower Loans | 312,725 | 296,945 |
Fair value adjustments | (2,691) | 328 |
Borrower Loans, at Fair Value | 310,034 | 297,273 |
Loans Held for Sale [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair value adjustments | (10) | (10) |
Aggregate principal balance outstanding, Loans Held for Sale | 4,715 | 42 |
Loans Held for Sale, at Fair Value | 4,705 | 32 |
Loans Held for Sale [Member] | Prosper Funding LLC [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair value adjustments | (10) | (10) |
Aggregate principal balance outstanding, Loans Held for Sale | 4,715 | 42 |
Loans Held for Sale, at Fair Value | $ 4,705 | $ 32 |
Borrower Loans, Loans Held fo41
Borrower Loans, Loans Held for Sale, and Notes Held at Fair Value - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Gain (loss) related to credit risks on borrower loans | $ 300 | $ (2,000) | |
Minimum number of days for which loans originated were delinquent | 90 days | 90 days | |
Aggregate principal amount of loans originated | 2,000 | $ 2,000 | $ 2,300 |
Non accrual status past due date | 120 days | ||
Fair value of loans originated | 700 | $ 700 | 900 |
Borrower Loans receivable | 200 | 200 | $ 100 |
Prosper Funding LLC [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Gain (loss) related to credit risks on borrower loans | 314 | $ (2,033) | |
Minimum number of days for which loans originated were delinquent | 90 days | 90 days | |
Aggregate principal amount of loans originated | 2,000 | $ 2,000 | $ 2,300 |
Non accrual status past due date | 120 days | ||
Fair value of loans originated | 700 | $ 700 | 900 |
Borrower Loans receivable | $ 200 | $ 200 | $ 100 |
Loans Held For Sale Borrower Loans And Underlying Notes | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Borrower loans original maturity term, description | Original terms to maturity of either 36 or 60 months | ||
Fixed interest rate, Minimum | 5.32% | ||
Fixed interest rate, Maximum | 33.04% | ||
Loans maturity date | Jun. 30, 2021 | ||
Loans Held For Sale Borrower Loans And Underlying Notes | Prosper Funding LLC [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Borrower loans original maturity term, description | original terms to maturity of either 36 or 60 months | ||
Fixed interest rate, Minimum | 5.32% | ||
Fixed interest rate, Maximum | 33.04% | ||
Loans maturity date | Jun. 30, 2021 | ||
Outstanding Borrower Loans And Underlying Notes | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Borrower loans original maturity term, description | original maturities of either 36 or 60 months | ||
Fixed interest rate, Minimum | 5.32% | ||
Fixed interest rate, Maximum | 33.04% | ||
Loans maturity date | Dec. 31, 2020 | ||
Outstanding Borrower Loans And Underlying Notes | Prosper Funding LLC [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Borrower loans original maturity term, description | original maturities of either 36 or 60 months | ||
Fixed interest rate, Minimum | 5.32% | ||
Fixed interest rate, Maximum | 33.04% | ||
Loans maturity date | Dec. 31, 2020 |
Loan Servicing Assets and Lia42
Loan Servicing Assets and Liabilities - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Servicing Assets And Liabilities Fair Value [Line Items] | |||||
Gain (loss) on sale of borrower loans | $ (687) | $ 3,696 | $ 3,104 | $ 5,618 | |
Prosper Funding LLC [Member] | |||||
Servicing Assets And Liabilities Fair Value [Line Items] | |||||
Gain (loss) on sale of borrower loans | (687) | 3,696 | 3,104 | 5,618 | |
Borrower Loans [Member] | |||||
Servicing Assets And Liabilities Fair Value [Line Items] | |||||
Outstanding principle | 4,100,000 | $ 4,100,000 | $ 3,800,000 | ||
Borrower loans original maturity term, description | Original terms of either 36 or 60 months | ||||
Fixed interest rate, Minimum | 5.32% | 5.32% | |||
Fixed interest rate, Maximum | 35.52% | 31.90% | |||
Loans maturity date | Jun. 30, 2021 | Dec. 31, 2020 | |||
Debt instrument servicing rights, Description | As of June 30, 2016, Borrower Loans that were sold but for which Prosper retained servicing rights had a total outstanding principal balance of $4.1 billion, original terms of either 36 or 60 months and had monthly payments with fixed interest rates ranging from 5.32% to 35.52% and various maturity dates through June 2021. At December 31, 2015, Borrower Loans that were sold but for which Prosper retained servicing rights had a total outstanding principal balance of $3.8 billion, original terms of either 36 or 60 months and had monthly payments with fixed interest rates ranging from 5.32% to 31.90% and various maturity dates through December 2020. | ||||
Contractually specified servicing fees, late charges and ancillary fees | 10,400 | 4,600 | $ 20,000 | 7,800 | |
Borrower Loans [Member] | Prosper Funding LLC [Member] | |||||
Servicing Assets And Liabilities Fair Value [Line Items] | |||||
Outstanding principle | 3,900,000 | $ 3,900,000 | $ 3,600,000 | ||
Borrower loans original maturity term, description | Original terms of either 36 or 60 months | ||||
Fixed interest rate, Minimum | 5.32% | 5.32% | |||
Fixed interest rate, Maximum | 35.52% | 31.90% | |||
Loans maturity date | Jun. 30, 2021 | Dec. 31, 2020 | |||
Debt instrument servicing rights, Description | At June 30, 2016, Borrower Loans that were sold, but for which Prosper Funding retained servicing rights, had a total outstanding principal balance of $3.9 billion, original terms of either 36 or 60 months and had monthly payments with fixed interest rates ranging from 5.32% to 35.52% and various maturity dates through June 2021. At December 31, 2015, Borrower Loans that were sold, but for which Prosper Funding retained servicing rights, had a total outstanding principal balance of $3.6 billion, original terms of either 36 or 60 months and had monthly payments with fixed interest rates ranging from 5.32% to 31.90% and various maturity dates through December 2020. | ||||
Contractually specified servicing fees, late charges and ancillary fees | $ 10,300 | $ 4,100 | $ 19,700 | $ 6,800 |
Available for Sale Investments
Available for Sale Investments at Fair Value - Schedule of Amortized Cost, Gross Unrealized Gains and Losses and Fair Value of Available for Sale Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 55,634 | $ 73,331 |
Gross Unrealized Gains | 88 | 1 |
Gross Unrealized Losses | (9) | (145) |
Available for Sale Investments, at Fair Value | 55,713 | 73,187 |
Short Term Bond Funds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 1,250 | 2,500 |
Gross Unrealized Losses | (2) | |
Available for Sale Investments, at Fair Value | 1,250 | 2,498 |
Fixed Maturity Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 54,384 | 70,831 |
Gross Unrealized Gains | 88 | 1 |
Gross Unrealized Losses | (9) | (143) |
Available for Sale Investments, at Fair Value | 54,463 | 70,689 |
Fixed Maturity Securities | Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 37,453 | 50,327 |
Gross Unrealized Gains | 49 | 1 |
Gross Unrealized Losses | (9) | (94) |
Available for Sale Investments, at Fair Value | 37,493 | 50,234 |
Fixed Maturity Securities | Commercial Paper | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 3,899 | 9,493 |
Available for Sale Investments, at Fair Value | 3,899 | 9,493 |
Fixed Maturity Securities | U S Treasury Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 10,533 | 8,512 |
Gross Unrealized Gains | 28 | |
Gross Unrealized Losses | (41) | |
Available for Sale Investments, at Fair Value | 10,561 | 8,471 |
Fixed Maturity Securities | Agency Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 2,499 | 2,499 |
Gross Unrealized Gains | 11 | |
Gross Unrealized Losses | (8) | |
Available for Sale Investments, at Fair Value | $ 2,510 | $ 2,491 |
Available for Sale Investment44
Available for Sale Investments at Fair Value - Summary of Available for Sale Investments of Continuous Unrealized Loss (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Schedule Of Available For Sale Securities [Line Items] | ||
Fair value, less than 12 months | $ 9,753 | $ 58,835 |
Unrealized losses, less than 12 months | (9) | (145) |
Fair Value | 9,753 | 58,835 |
Unrealized losses | (9) | (145) |
Short Term Bond Funds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair value, less than 12 months | 2,498 | |
Unrealized losses, less than 12 months | (2) | |
Fair Value | 2,498 | |
Unrealized losses | (2) | |
Fixed Maturity Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair value, less than 12 months | 9,753 | 56,337 |
Unrealized losses, less than 12 months | (9) | (143) |
Fair Value | 9,753 | 56,337 |
Unrealized losses | (9) | (143) |
Fixed Maturity Securities | Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair value, less than 12 months | 9,753 | 45,375 |
Unrealized losses, less than 12 months | (9) | (94) |
Fair Value | 9,753 | 45,375 |
Unrealized losses | $ (9) | (94) |
Fixed Maturity Securities | U S Treasury Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair value, less than 12 months | 8,471 | |
Unrealized losses, less than 12 months | (41) | |
Fair Value | 8,471 | |
Unrealized losses | (41) | |
Fixed Maturity Securities | Agency Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair value, less than 12 months | 2,491 | |
Unrealized losses, less than 12 months | (8) | |
Fair Value | 2,491 | |
Unrealized losses | $ (8) |
Available for Sale Investment45
Available for Sale Investments at Fair Value - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2016 | Jun. 30, 2016 | |
Segment Reporting [Abstract] | ||
Impairment charges recognized during period | $ 0 | |
Proceeds from Sale of Available for Sale Investments | $ 9,193,000 | 9,193,000 |
Available-for-sale investments, realized gains | $ 6,000 | $ 6,000 |
Available for Sale Investment46
Available for Sale Investments at Fair Value - Schedule of Maturities of Available for Sale Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Schedule Of Available For Sale Securities [Line Items] | ||
Fair value within 1 year | $ 35,582 | $ 35,782 |
Fair value after 1 year through 5 years | 18,881 | 34,907 |
Fair value | 54,463 | 70,689 |
Amortized cost within 1 year | 35,560 | 35,831 |
Amortized cost after 1 year through 5 years | 18,824 | 35,000 |
Amortized cost | 54,384 | 70,831 |
Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair value within 1 year | 28,677 | 26,289 |
Fair value after 1 year through 5 years | 8,816 | 23,945 |
Fair value | 37,493 | 50,234 |
Commercial Paper | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair value within 1 year | 3,899 | 9,493 |
Fair value | 3,899 | 9,493 |
U S Treasury Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair value within 1 year | 3,006 | |
Fair value after 1 year through 5 years | 7,555 | 8,471 |
Fair value | 10,561 | 8,471 |
Agency Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair value after 1 year through 5 years | 2,510 | 2,491 |
Fair value | $ 2,510 | $ 2,491 |
Fair Value of Assets and Liab47
Fair Value of Assets and Liabilities - Fair Value Hierarchy for Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Assets: | ||
Borrower Loans | $ 310,034 | $ 297,273 |
Loans Held for Sale | 4,705 | 32 |
Available for Sale Investments, at Fair Value | 55,713 | 73,187 |
Servicing Assets | 14,297 | 14,363 |
Total Assets | 384,749 | 384,855 |
Liabilities: | ||
Notes | 309,530 | 297,405 |
Servicing Liabilities | 324 | 484 |
Contingent Consideration | 4,929 | 4,801 |
Total Liabilities | 314,783 | 302,690 |
Prosper Funding LLC [Member] | ||
Assets: | ||
Borrower Loans | 310,034 | 297,273 |
Loans Held for Sale | 4,705 | 32 |
Servicing Assets | 13,798 | 13,605 |
Total Assets | 328,537 | 310,910 |
Liabilities: | ||
Notes | 309,530 | 297,405 |
Servicing Liabilities | 324 | 484 |
Total Liabilities | 309,854 | 297,889 |
Level 2 Inputs [Member] | ||
Assets: | ||
Available for Sale Investments, at Fair Value | 55,713 | 73,187 |
Total Assets | 55,713 | 73,187 |
Level 3 Inputs [Member] | ||
Assets: | ||
Borrower Loans | 310,034 | 297,273 |
Loans Held for Sale | 4,705 | 32 |
Servicing Assets | 14,297 | 14,363 |
Total Assets | 329,036 | 311,668 |
Liabilities: | ||
Notes | 309,530 | 297,405 |
Servicing Liabilities | 324 | 484 |
Contingent Consideration | 4,929 | 4,801 |
Total Liabilities | 314,783 | 302,690 |
Level 3 Inputs [Member] | Prosper Funding LLC [Member] | ||
Assets: | ||
Borrower Loans | 310,034 | 297,273 |
Loans Held for Sale | 4,705 | 32 |
Servicing Assets | 13,798 | 13,605 |
Total Assets | 328,537 | 310,910 |
Liabilities: | ||
Notes | 309,530 | 297,405 |
Servicing Liabilities | 324 | 484 |
Total Liabilities | $ 309,854 | $ 297,889 |
Fair Value of Assets and Liab48
Fair Value of Assets and Liabilities - Borrower Loans, Loans Held For Sale and Notes - Quantitative Information about the Significant Unobservable Inputs (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Minimum [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 4.40% | 4.30% |
Default rate | 1.60% | 1.40% |
Minimum [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 4.40% | 4.30% |
Default rate | 1.60% | 1.40% |
Maximum [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 15.00% | 14.50% |
Default rate | 14.80% | 14.40% |
Maximum [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 15.00% | 14.50% |
Default rate | 14.80% | 14.40% |
Fair Value of Assets and Liab49
Fair Value of Assets and Liabilities - Servicing Rights - Quantitative Information about the Significant Unobservable Inputs (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Market servicing rate | 0.625% | 0.625% |
Prosper Funding LLC [Member] | ||
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Market servicing rate | 0.625% | 0.625% |
Minimum [Member] | ||
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Discount rate | 15.00% | 15.00% |
Default rate | 1.10% | 1.20% |
Prepayment rate | 14.80% | 14.30% |
Minimum [Member] | Prosper Funding LLC [Member] | ||
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Discount rate | 15.00% | 15.00% |
Default rate | 1.10% | 1.20% |
Prepayment rate | 14.80% | 14.30% |
Maximum [Member] | ||
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Discount rate | 25.00% | 25.00% |
Default rate | 15.00% | 14.70% |
Prepayment rate | 27.60% | 25.60% |
Maximum [Member] | Prosper Funding LLC [Member] | ||
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Discount rate | 25.00% | 25.00% |
Default rate | 15.00% | 14.70% |
Prepayment rate | 27.60% | 25.60% |
Fair Value of Assets and Liab50
Fair Value of Assets and Liabilities - Summary of Level 3 Borrower Loans, Loans Held for Sale and Notes, Measured at Fair Value on a Recurring Basis (Details) - Recurring [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||||
Beginning balance, Total | $ 916 | $ 1,202 | $ (100) | $ 7,923 |
Purchase of Borrower Loans/Issuance of Notes, Total | 426,762 | 861,600 | 1,358,079 | 1,402,436 |
Principal repayments, Total | (464) | (112) | 607 | (491) |
Borrower Loans sold to third parties, Total | (421,810) | (861,574) | (1,353,259) | (1,408,883) |
Other changes, Total | (193) | (208) | (39) | (3) |
Change in fair value, Total | (2) | 95 | (79) | 21 |
Ending balance, Total | 5,209 | 1,003 | 5,209 | 1,003 |
Prosper Funding LLC [Member] | ||||
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||||
Beginning balance, Total | 916 | 1,202 | (100) | 7,923 |
Purchase of Borrower Loans/Issuance of Notes, Total | 426,762 | |||
Originations, Total | 861,600 | 1,358,079 | 1,402,436 | |
Principal repayments, Total | (464) | (112) | 607 | (491) |
Borrower Loans sold to third parties, Total | (421,810) | (861,574) | (1,353,259) | (1,408,883) |
Other changes, Total | (193) | (208) | (39) | (3) |
Change in fair value, Total | (2) | 95 | (79) | 21 |
Ending balance, Total | 5,209 | 5,209 | ||
Prosper Funding LLC [Member] | Scenario Previously Reported [Member] | ||||
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||||
Ending balance, Total | 1,003 | 1,003 | ||
Notes [Member] | ||||
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||||
Beginning balance, Liabilities | (302,357) | (280,801) | (297,405) | (273,783) |
Purchase of Borrower Loans/Issuance of Notes, Liabilities | (53,873) | (46,779) | (109,147) | (94,575) |
Principal repayments, Liabilities | 41,057 | 37,440 | 83,119 | 73,509 |
Borrower Loans sold to third parties, Liabilities | 499 | 1,081 | ||
Other changes, Liabilities | (191) | (71) | (33) | 136 |
Change in fair value, Liabilities | 5,335 | 5,583 | 12,855 | 10,085 |
Ending balance, Liabilities | (309,530) | (284,628) | (309,530) | (284,628) |
Notes [Member] | Prosper Funding LLC [Member] | ||||
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||||
Beginning balance, Liabilities | (302,357) | (280,801) | (297,405) | (273,783) |
Purchase of Borrower Loans/Issuance of Notes, Liabilities | (53,873) | |||
Originations, Liabilities | (46,779) | (109,147) | (94,575) | |
Principal repayments, Liabilities | 41,057 | 37,440 | 83,119 | 73,509 |
Borrower Loans sold to third parties, Liabilities | 499 | 1,081 | ||
Other changes, Liabilities | (191) | (71) | (33) | 136 |
Change in fair value, Liabilities | 5,335 | 5,583 | 12,855 | 10,085 |
Ending balance, Liabilities | (309,530) | (309,530) | ||
Notes [Member] | Prosper Funding LLC [Member] | Scenario Previously Reported [Member] | ||||
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||||
Ending balance, Liabilities | (284,628) | (284,628) | ||
Borrower Loans [Member] | ||||
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||||
Beginning balance, Assets | 303,243 | 280,404 | 297,273 | 273,243 |
Purchase of Borrower Loans/Issuance of Notes, Assets | 54,044 | 46,805 | 109,215 | 94,512 |
Principal repayments, Assets | (41,390) | (37,395) | (82,376) | (73,457) |
Borrower Loans sold to third parties, Assets | (525) | (1,138) | ||
Other changes, Assets | (2) | (136) | (6) | (130) |
Change in fair value, Assets | (5,336) | (5,478) | (12,934) | (9,968) |
Ending balance, Assets | 310,034 | 284,200 | 310,034 | 284,200 |
Borrower Loans [Member] | Prosper Funding LLC [Member] | ||||
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||||
Beginning balance, Assets | 303,243 | 280,404 | 297,273 | 273,243 |
Purchase of Borrower Loans/Issuance of Notes, Assets | 54,044 | |||
Originations, Assets | 46,805 | 109,215 | 94,512 | |
Principal repayments, Assets | (41,390) | (37,395) | (82,376) | (73,457) |
Borrower Loans sold to third parties, Assets | (525) | (1,138) | ||
Other changes, Assets | (2) | (136) | (6) | (130) |
Change in fair value, Assets | (5,336) | (5,478) | (12,934) | (9,968) |
Ending balance, Assets | 310,034 | 310,034 | ||
Borrower Loans [Member] | Prosper Funding LLC [Member] | Scenario Previously Reported [Member] | ||||
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||||
Ending balance, Assets | 284,200 | 284,200 | ||
Loans Held for Sale [Member] | ||||
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||||
Beginning balance, Assets | 30 | 1,599 | 32 | 8,463 |
Purchase of Borrower Loans/Issuance of Notes, Assets | 426,591 | 861,574 | 1,358,011 | 1,402,499 |
Principal repayments, Assets | (131) | (157) | (136) | (543) |
Borrower Loans sold to third parties, Assets | (421,784) | (861,574) | (1,353,202) | (1,408,883) |
Other changes, Assets | (1) | (9) | ||
Change in fair value, Assets | (1) | (10) | (96) | |
Ending balance, Assets | 4,705 | 1,431 | 4,705 | 1,431 |
Loans Held for Sale [Member] | Prosper Funding LLC [Member] | ||||
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||||
Beginning balance, Assets | 30 | 1,599 | 32 | 8,463 |
Purchase of Borrower Loans/Issuance of Notes, Assets | 426,591 | |||
Originations, Assets | 861,574 | 1,358,011 | 1,402,499 | |
Principal repayments, Assets | (131) | (157) | (136) | (543) |
Borrower Loans sold to third parties, Assets | (421,784) | (861,574) | (1,353,202) | (1,408,883) |
Other changes, Assets | (1) | (9) | ||
Change in fair value, Assets | (1) | (10) | (96) | |
Ending balance, Assets | $ 4,705 | $ 4,705 | ||
Loans Held for Sale [Member] | Prosper Funding LLC [Member] | Scenario Previously Reported [Member] | ||||
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||||
Ending balance, Assets | $ 1,431 | $ 1,431 |
Fair Value of Assets and Liab51
Fair Value of Assets and Liabilities - Schedule of Servicing Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||||
Amortized cost at beginning of period | $ 14,363 | |||
Prosper Funding LLC [Member] | ||||
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||||
Amortized cost at beginning of period | 13,605 | |||
Servicing assets [Member] | ||||
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||||
Amortized cost at beginning of period | $ 4,163 | |||
Adjustment to Adopt Fair Value Measurement, servicing assets | 546 | |||
Fair value at beginning of period | $ 15,548 | $ 6,034 | 14,363 | 4,709 |
Additions | 1,729 | 3,759 | 5,750 | 5,837 |
Less: Changes in fair value | (2,980) | (1,111) | (5,816) | (1,864) |
Fair Value at end of period | 14,297 | 8,682 | 14,297 | 8,682 |
Servicing assets [Member] | Prosper Funding LLC [Member] | ||||
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||||
Amortized cost at beginning of period | 3,116 | |||
Adjustment to Adopt Fair Value Measurement, servicing assets | 399 | |||
Fair value at beginning of period | 14,929 | 4,782 | 13,605 | 3,515 |
Additions | 1,729 | 3,759 | 5,750 | 5,837 |
Less: Transfers to PMI | (249) | |||
Less: Changes in fair value | (2,860) | (907) | (5,557) | (1,469) |
Fair Value at end of period | 13,798 | 7,634 | 13,798 | 7,634 |
Servicing liabilities [Member] | ||||
Servicing Liability at Amortized Cost [Roll Forward] | ||||
Amortized cost at beginning of period | 624 | |||
Adjustment to Adopt Fair Value Measurement | (29) | |||
Fair value at beginning of the period | 398 | 668 | 484 | 595 |
Additions | 39 | 9 | 193 | |
Less: Changes in fair value | (74) | (101) | (169) | (182) |
Fair value at end of the period | 324 | 606 | 324 | 606 |
Servicing liabilities [Member] | Prosper Funding LLC [Member] | ||||
Servicing Liability at Amortized Cost [Roll Forward] | ||||
Amortized cost at beginning of period | 624 | |||
Adjustment to Adopt Fair Value Measurement | (29) | |||
Fair value at beginning of the period | 398 | 668 | 484 | 595 |
Additions | 39 | 9 | 193 | |
Less: Changes in fair value | (74) | (101) | (169) | (182) |
Fair value at end of the period | $ 324 | $ 606 | $ 324 | $ 606 |
Fair Value of Assets and Liab52
Fair Value of Assets and Liabilities - Additional Information (Details) - USD ($) $ in Thousands | Oct. 09, 2015 | Jun. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Contingent Consideration | $ 4,929 | $ 4,929 | $ 4,801 | |
Changes in fair value | $ 63,000 | $ 128,000 | ||
BillGuard Inc [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Business Acquisition, Effective Date of Acquisition | Oct. 9, 2015 | |||
Outstanding shares purchased by parent company | 100.00% | |||
Business Acquisition, Name of Acquired Entity | BillGuard, Inc | |||
Duration of payment for purchase of outstanding shares | 1 year |
Fair Value of Assets and Liab53
Fair Value of Assets and Liabilities - Fair Value Assumptions for Borrower Loans, Loans Held for Sale and Notes (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Discount rate assumption [Member] | Borrower Loans and Loans Held for Sale [Member] | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Discount rate | 7.25% |
Discount rate assumption [Member] | Borrower Loans and Loans Held for Sale [Member] | Prosper Funding LLC [Member] | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Discount rate | 7.25% |
Discount rate assumption [Member] | Notes [Member] | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Discount rate | 7.25% |
Discount rate assumption [Member] | Notes [Member] | Prosper Funding LLC [Member] | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Discount rate | 7.25% |
Discount rate assumption [Member] | 100 Basis Point Increase [Member] | Borrower Loans and Loans Held for Sale [Member] | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Borrower loans | $ 306,868 |
Discount rate assumption [Member] | 100 Basis Point Increase [Member] | Borrower Loans and Loans Held for Sale [Member] | Prosper Funding LLC [Member] | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Borrower loans | 306,868 |
Discount rate assumption [Member] | 100 Basis Point Increase [Member] | Notes [Member] | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Notes | 306,363 |
Discount rate assumption [Member] | 100 Basis Point Increase [Member] | Notes [Member] | Prosper Funding LLC [Member] | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Notes | 306,363 |
Discount rate assumption [Member] | 200 Basis Point Increase [Member] | Borrower Loans and Loans Held for Sale [Member] | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Borrower loans | 303,781 |
Discount rate assumption [Member] | 200 Basis Point Increase [Member] | Borrower Loans and Loans Held for Sale [Member] | Prosper Funding LLC [Member] | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Borrower loans | 303,781 |
Discount rate assumption [Member] | 200 Basis Point Increase [Member] | Notes [Member] | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Notes | 303,277 |
Discount rate assumption [Member] | 200 Basis Point Increase [Member] | Notes [Member] | Prosper Funding LLC [Member] | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Notes | 303,277 |
Discount rate assumption [Member] | 100 Basis Point Decrease [Member] | Borrower Loans and Loans Held for Sale [Member] | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Borrower loans | 313,283 |
Discount rate assumption [Member] | 100 Basis Point Decrease [Member] | Borrower Loans and Loans Held for Sale [Member] | Prosper Funding LLC [Member] | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Borrower loans | 313,283 |
Discount rate assumption [Member] | 100 Basis Point Decrease [Member] | Notes [Member] | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Notes | 312,780 |
Discount rate assumption [Member] | 100 Basis Point Decrease [Member] | Notes [Member] | Prosper Funding LLC [Member] | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Notes | 312,780 |
Discount rate assumption [Member] | 200 Basis Point Decrease [Member] | Borrower Loans and Loans Held for Sale [Member] | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Borrower loans | 316,619 |
Discount rate assumption [Member] | 200 Basis Point Decrease [Member] | Borrower Loans and Loans Held for Sale [Member] | Prosper Funding LLC [Member] | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Borrower loans | 316,619 |
Discount rate assumption [Member] | 200 Basis Point Decrease [Member] | Notes [Member] | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Notes | 316,116 |
Discount rate assumption [Member] | 200 Basis Point Decrease [Member] | Notes [Member] | Prosper Funding LLC [Member] | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Notes | $ 316,116 |
Default rate assumption [Member] | Borrower Loans and Loans Held for Sale [Member] | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Default rate | 11.02% |
Default rate assumption [Member] | Borrower Loans and Loans Held for Sale [Member] | Prosper Funding LLC [Member] | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Default rate | 11.02% |
Default rate assumption [Member] | Notes [Member] | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Default rate | 11.02% |
Default rate assumption [Member] | Notes [Member] | Prosper Funding LLC [Member] | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Default rate | 11.02% |
Default rate assumption [Member] | 100 Basis Point Increase [Member] | Borrower Loans and Loans Held for Sale [Member] | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Borrower loans | $ 306,882 |
Default rate assumption [Member] | 100 Basis Point Increase [Member] | Borrower Loans and Loans Held for Sale [Member] | Prosper Funding LLC [Member] | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Borrower loans | 306,882 |
Default rate assumption [Member] | 100 Basis Point Increase [Member] | Notes [Member] | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Notes | 306,370 |
Default rate assumption [Member] | 100 Basis Point Increase [Member] | Notes [Member] | Prosper Funding LLC [Member] | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Notes | 306,370 |
Default rate assumption [Member] | 200 Basis Point Increase [Member] | Borrower Loans and Loans Held for Sale [Member] | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Borrower loans | 303,823 |
Default rate assumption [Member] | 200 Basis Point Increase [Member] | Borrower Loans and Loans Held for Sale [Member] | Prosper Funding LLC [Member] | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Borrower loans | 303,823 |
Default rate assumption [Member] | 200 Basis Point Increase [Member] | Notes [Member] | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Notes | 303,303 |
Default rate assumption [Member] | 200 Basis Point Increase [Member] | Notes [Member] | Prosper Funding LLC [Member] | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Notes | 303,303 |
Default rate assumption [Member] | 100 Basis Point Decrease [Member] | Borrower Loans and Loans Held for Sale [Member] | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Borrower loans | 313,200 |
Default rate assumption [Member] | 100 Basis Point Decrease [Member] | Borrower Loans and Loans Held for Sale [Member] | Prosper Funding LLC [Member] | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Borrower loans | 313,200 |
Default rate assumption [Member] | 100 Basis Point Decrease [Member] | Notes [Member] | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Notes | 312,704 |
Default rate assumption [Member] | 100 Basis Point Decrease [Member] | Notes [Member] | Prosper Funding LLC [Member] | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Notes | 312,704 |
Default rate assumption [Member] | 200 Basis Point Decrease [Member] | Borrower Loans and Loans Held for Sale [Member] | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Borrower loans | 316,399 |
Default rate assumption [Member] | 200 Basis Point Decrease [Member] | Borrower Loans and Loans Held for Sale [Member] | Prosper Funding LLC [Member] | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Borrower loans | 316,399 |
Default rate assumption [Member] | 200 Basis Point Decrease [Member] | Notes [Member] | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Notes | 315,913 |
Default rate assumption [Member] | 200 Basis Point Decrease [Member] | Notes [Member] | Prosper Funding LLC [Member] | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Notes | $ 315,913 |
Fair Value of Assets and Liab54
Fair Value of Assets and Liabilities - Schedule of Prosper's and Prosper Funding's Estimated Fair Value of Servicing Assets and Liabilities (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Market servicing rate assumptions | 0.625% | 0.625% |
Prosper Funding LLC [Member] | ||
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Market servicing rate assumptions | 0.625% | 0.625% |
Servicing assets [Member] | ||
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Market servicing rate assumptions | 0.625% | |
Resulting fair value from: | ||
Market servicing rate increase to 0.65% | $ 13,252 | |
Market servicing rate decrease to 0.60% | $ 15,342 | |
Weighted average prepayment assumptions | 20.44% | |
Weighted average default assumptions | 11.39% | |
Servicing assets [Member] | Prosper Funding LLC [Member] | ||
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Market servicing rate assumptions | 0.625% | |
Resulting fair value from: | ||
Market servicing rate increase to 0.65% | $ 12,952 | |
Market servicing rate decrease to 0.60% | $ 14,995 | |
Weighted average prepayment assumptions | 20.44% | |
Weighted average default assumptions | 11.39% | |
Servicing liabilities [Member] | ||
Resulting fair value from: | ||
Weighted average prepayment assumptions | 20.44% | |
Market servicing rate increase to 0.65% | $ 356 | |
Market servicing rate decrease to 0.60% | $ 291 | |
Weighted average default assumptions | 11.39% | |
Market servicing rate assumptions | 0.625% | |
Servicing liabilities [Member] | Prosper Funding LLC [Member] | ||
Resulting fair value from: | ||
Weighted average prepayment assumptions | 20.44% | |
Market servicing rate increase to 0.65% | $ 356 | |
Market servicing rate decrease to 0.60% | $ 291 | |
Weighted average default assumptions | 11.39% | |
Market servicing rate assumptions | 0.625% | |
Prepayment rate assumption [Member] | Servicing assets [Member] | 1.1 Multiplier to Prepayment Rate [Member] | ||
Resulting fair value from: | ||
Applying a 1.1 multiplier to prepayment rate | $ 13,918 | |
Prepayment rate assumption [Member] | Servicing assets [Member] | 0.9 Multiplier Prepayment Rate [Member] | ||
Resulting fair value from: | ||
Applying a 0.9 multiplier to prepayment rate | 14,451 | |
Prepayment rate assumption [Member] | Servicing assets [Member] | 1.1 Multiplier to Default Rate [Member] | Prosper Funding LLC [Member] | ||
Resulting fair value from: | ||
Market servicing rate increase to 0.65% | 13,541 | |
Prepayment rate assumption [Member] | Servicing assets [Member] | 0.9 Multiplier Default Rate [Member] | Prosper Funding LLC [Member] | ||
Resulting fair value from: | ||
Market servicing rate decrease to 0.60% | 14,059 | |
Prepayment rate assumption [Member] | Servicing liabilities [Member] | 1.1 Multiplier to Prepayment Rate [Member] | ||
Resulting fair value from: | ||
Applying a 1.1 multiplier to prepayment rate | 303 | |
Prepayment rate assumption [Member] | Servicing liabilities [Member] | 0.9 Multiplier Prepayment Rate [Member] | ||
Resulting fair value from: | ||
Applying a 0.9 multiplier to prepayment rate | 314 | |
Prepayment rate assumption [Member] | Servicing liabilities [Member] | 1.1 Multiplier to Default Rate [Member] | Prosper Funding LLC [Member] | ||
Resulting fair value from: | ||
Applying a 1.1 multiplier to default rate | 303 | |
Prepayment rate assumption [Member] | Servicing liabilities [Member] | 0.9 Multiplier Default Rate [Member] | Prosper Funding LLC [Member] | ||
Resulting fair value from: | ||
Applying a 0.9 multiplier to default rate | 314 | |
Default rate assumption [Member] | Servicing assets [Member] | 1.1 Multiplier to Default Rate [Member] | ||
Resulting fair value from: | ||
Applying a 1.1 multiplier to default rate | 14,067 | |
Default rate assumption [Member] | Servicing assets [Member] | 1.1 Multiplier to Default Rate [Member] | Prosper Funding LLC [Member] | ||
Resulting fair value from: | ||
Applying a 1.1 multiplier to default rate | 13,576 | |
Default rate assumption [Member] | Servicing assets [Member] | 0.9 Multiplier Default Rate [Member] | ||
Resulting fair value from: | ||
Applying a 0.9 multiplier to default rate | 14,530 | |
Default rate assumption [Member] | Servicing assets [Member] | 0.9 Multiplier Default Rate [Member] | Prosper Funding LLC [Member] | ||
Resulting fair value from: | ||
Applying a 0.9 multiplier to default rate | 14,023 | |
Default rate assumption [Member] | Servicing liabilities [Member] | 1.1 Multiplier to Default Rate [Member] | ||
Resulting fair value from: | ||
Applying a 1.1 multiplier to default rate | 323 | |
Default rate assumption [Member] | Servicing liabilities [Member] | 1.1 Multiplier to Default Rate [Member] | Prosper Funding LLC [Member] | ||
Resulting fair value from: | ||
Applying a 1.1 multiplier to default rate | 323 | |
Default rate assumption [Member] | Servicing liabilities [Member] | 0.9 Multiplier Default Rate [Member] | ||
Resulting fair value from: | ||
Applying a 0.9 multiplier to default rate | 323 | |
Default rate assumption [Member] | Servicing liabilities [Member] | 0.9 Multiplier Default Rate [Member] | Prosper Funding LLC [Member] | ||
Resulting fair value from: | ||
Applying a 0.9 multiplier to default rate | $ 323 |
Fair Value of Assets and Liab55
Fair Value of Assets and Liabilities - Schedule of Prosper's and Prosper Funding's Estimated Fair Value of Servicing Assets and Liabilities (Parenthetical) (Details) | 6 Months Ended |
Jun. 30, 2016 | |
Servicing Assets And Liabilities Fair Value [Line Items] | |
Servicing rate increase | 0.65% |
Servicing rate decrease | 0.60% |
Prosper Funding LLC [Member] | |
Servicing Assets And Liabilities Fair Value [Line Items] | |
Servicing rate increase | 0.65% |
Servicing rate decrease | 0.60% |
Prepayment rate assumption [Member] | |
Servicing Assets And Liabilities Fair Value [Line Items] | |
Prepayment rate increase | 1.10% |
Prepayment rate decrease | 0.90% |
Prepayment rate assumption [Member] | Prosper Funding LLC [Member] | |
Servicing Assets And Liabilities Fair Value [Line Items] | |
Prepayment rate increase | 1.10% |
Prepayment rate decrease | 0.90% |
Default rate assumption [Member] | |
Servicing Assets And Liabilities Fair Value [Line Items] | |
Default rate increase | 1.10% |
Default rate decrease | 0.90% |
Default rate assumption [Member] | Prosper Funding LLC [Member] | |
Servicing Assets And Liabilities Fair Value [Line Items] | |
Default rate increase | 1.10% |
Default rate decrease | 0.90% |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2016 | |
American HealthCare Lending [Member] | |
Business Acquisition [Line Items] | |
Business Acquisition, Effective Date of Acquisition | Jan. 23, 2015 |
Business Acquisition, Name of Acquired Entity | American HealthCare Lending |
BillGuard Inc [Member] | |
Business Acquisition [Line Items] | |
Business Acquisition, Effective Date of Acquisition | Oct. 9, 2015 |
Business Acquisition, Name of Acquired Entity | BillGuard, Inc |
Goodwill And Other Intangible57
Goodwill And Other Intangible Assets - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Goodwill And Other Intangible Assets [Line Items] | |||||
Goodwill | $ 36,368,000 | $ 36,368,000 | $ 36,368,000 | ||
Goodwill impairment expense | 0 | ||||
Intangible assets | 11,076,000 | 11,076,000 | $ 13,051,000 | ||
Amortization of intangible assets | 1,000,000 | $ 300,000 | $ 2,000,000 | $ 300,000 | |
User Base and Customer Relationships [Member] | Minimum [Member] | |||||
Goodwill And Other Intangible Assets [Line Items] | |||||
Intangible assets amortized period | 3 years | ||||
User Base and Customer Relationships [Member] | Maximum [Member] | |||||
Goodwill And Other Intangible Assets [Line Items] | |||||
Intangible assets amortized period | 10 years | ||||
Developed Technology [Member] | |||||
Goodwill And Other Intangible Assets [Line Items] | |||||
Intangible assets | $ 6,802,000 | $ 6,802,000 | |||
Intangible assets amortized period | 4 years 3 months 18 days | ||||
Developed Technology [Member] | Minimum [Member] | |||||
Goodwill And Other Intangible Assets [Line Items] | |||||
Intangible assets amortized period | 3 years | ||||
Developed Technology [Member] | Maximum [Member] | |||||
Goodwill And Other Intangible Assets [Line Items] | |||||
Intangible assets amortized period | 5 years | ||||
Brand Name [Member] | |||||
Goodwill And Other Intangible Assets [Line Items] | |||||
Intangible assets amortized period | 1 year |
Goodwill And Other Intangible58
Goodwill And Other Intangible Assets - Summary of Other Intangible for the Period Presented (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 14,620 | |
Accumulated Amortization | (3,544) | |
Net Carrying Value | 11,076 | $ 13,051 |
User Base and Customer Relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 6,250 | |
Accumulated Amortization | (1,976) | |
Net Carrying Value | $ 4,274 | |
Remaining Useful Life (In Years) | 8 years 7 months 6 days | |
Developed Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 8,310 | |
Accumulated Amortization | (1,508) | |
Net Carrying Value | $ 6,802 | |
Remaining Useful Life (In Years) | 4 years 3 months 18 days | |
Brand Name [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 60 | |
Accumulated Amortization | $ (60) | |
Remaining Useful Life (In Years) | 1 year | |
Remaining Useful Life (In Years) | 0 years |
Goodwill And Other Intangible59
Goodwill And Other Intangible Assets - Summary of Estimated Amortization of Purchased Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Finite Lived Intangible Assets Future Amortization Expense Current And Five Succeeding Fiscal Years [Abstract] | ||
2,016 | $ 1,862 | |
2,017 | 3,260 | |
2,018 | 2,329 | |
2,019 | 1,779 | |
2,020 | 1,344 | |
Thereafter | 502 | |
Net Carrying Value | $ 11,076 | $ 13,051 |
Other Liabilities - Schedule of
Other Liabilities - Schedule of Other Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Other Liabilities [Abstract] | ||
Class action settlement liability | $ 2,973 | $ 5,949 |
Repurchase liability for unvested restricted stock awards | 267 | 473 |
Contingent consideration | 4,929 | 4,801 |
Deferred revenue | 420 | 1,591 |
Servicing liabilities | 324 | 484 |
Deferred rent | 4,647 | 5,240 |
Restructuring liability | 8,492 | |
Other | 2,364 | 2,197 |
Total Other Liabilities | $ 24,416 | $ 20,735 |
Net Loss Per Share - Basic and
Net Loss Per Share - Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Numerator [Abstract] | ||||
Net loss available to common stockholders for basic and diluted EPS | $ (35,628) | $ (6,201) | $ (53,092) | $ (13,477) |
Denominator [Abstract] | ||||
Weighted average shares used in computing basic and diluted net loss per share | 63,270,058 | 55,612,485 | 61,813,773 | 54,168,175 |
Basic and diluted net loss per share | $ (0.56) | $ (0.11) | $ (0.86) | $ (0.25) |
Net Loss Per Share - Common Sto
Net Loss Per Share - Common Stock Equivalents Excluded from Computation of Diluted Net Loss Per Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total common stock equivalents excluded from diluted net loss per common share computation (in shares) | 227,416,092 | 45,668,076 | 225,221,095 | 45,164,178 |
Convertible Preferred Stock Issued and Outstanding [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total common stock equivalents excluded from diluted net loss per common share computation (in shares) | 177,388,425 | 35,477,685 | 177,388,425 | 35,477,685 |
Stock Options Issued and Outstanding [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total common stock equivalents excluded from diluted net loss per common share computation (in shares) | 43,719,604 | 6,982,320 | 41,694,271 | 6,478,422 |
Unvested Stock Options Exercised [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total common stock equivalents excluded from diluted net loss per common share computation (in shares) | 5,345,950 | 3,084,604 | 5,345,950 | 3,084,604 |
Warrants Issued and Outstanding [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total common stock equivalents excluded from diluted net loss per common share computation (in shares) | 962,113 | 123,467 | 792,449 | 123,467 |
Net Loss Per Share - Additional
Net Loss Per Share - Additional Information (Details) | Feb. 16, 2016shares |
Earnings Per Share [Abstract] | |
Forward stock split, shares issued (in shares) | 5 |
Forward stock split, shares converted (in shares) | 1 |
Convertible Preferred Stock a64
Convertible Preferred Stock and Stockholders' Deficit - Summary of Shares Authorized, Issued, Outstanding, Par Value and Liquidation Preference of Convertible Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 30, 2016 | May 31, 2016 | Dec. 31, 2015 |
Class of Stock [Line Items] | |||
Convertible preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Convertible preferred stock, shares authorized (in shares) | 177,388,425 | 177,388,425 | 177,388,425 |
Convertible preferred stock, shares outstanding (in shares) | 177,388,425 | 177,388,425 | |
Convertible preferred stock, shares issued (in shares) | 177,388,425 | 177,388,425 | |
Convertible preferred stock, aggregate liquidation preference | $ 325,952 | $ 325,952 | |
Series A Convertible Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Convertible preferred stock, par value (in dollars per share) | $ 0.01 | ||
Convertible preferred stock, shares authorized (in shares) | 68,558,220 | ||
Convertible preferred stock, shares outstanding (in shares) | 68,558,220 | ||
Convertible preferred stock, shares issued (in shares) | 68,558,220 | ||
Convertible preferred stock, aggregate liquidation preference | $ 19,774 | ||
Series A 1 [Member] | |||
Class of Stock [Line Items] | |||
Convertible preferred stock, par value (in dollars per share) | $ 0.01 | ||
Convertible preferred stock, shares authorized (in shares) | 24,760,915 | ||
Convertible preferred stock, shares outstanding (in shares) | 24,760,915 | ||
Convertible preferred stock, shares issued (in shares) | 24,760,915 | ||
Convertible preferred stock, aggregate liquidation preference | $ 49,522 | ||
Series B Convertible Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Convertible preferred stock, par value (in dollars per share) | $ 0.01 | ||
Convertible preferred stock, shares authorized (in shares) | 35,775,880 | ||
Convertible preferred stock, shares outstanding (in shares) | 35,775,880 | ||
Convertible preferred stock, shares issued (in shares) | 35,775,880 | ||
Convertible preferred stock, aggregate liquidation preference | $ 21,581 | ||
Series C Convertible Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Convertible preferred stock, par value (in dollars per share) | $ 0.01 | ||
Convertible preferred stock, shares authorized (in shares) | 24,404,770 | ||
Convertible preferred stock, shares outstanding (in shares) | 24,404,770 | ||
Convertible preferred stock, shares issued (in shares) | 24,404,770 | ||
Convertible preferred stock, aggregate liquidation preference | $ 70,075 | ||
Series D Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Convertible preferred stock, par value (in dollars per share) | $ 0.01 | ||
Convertible preferred stock, shares authorized (in shares) | 23,888,640 | ||
Convertible preferred stock, shares outstanding (in shares) | 23,888,640 | ||
Convertible preferred stock, shares issued (in shares) | 23,888,640 | ||
Convertible preferred stock, aggregate liquidation preference | $ 165,000 |
Convertible Preferred Stock a65
Convertible Preferred Stock and Stockholders' Deficit - Additional Information (Details) $ / shares in Units, $ in Thousands | Feb. 16, 2016 | Jun. 30, 2016USD ($)$ / sharesshares | May 31, 2016$ / sharesshares | Dec. 31, 2015$ / sharesshares |
Class of Stock [Line Items] | ||||
Stock split conversion ratio | 0.2 | 5 | ||
Common and preferred stock, shares authorized (in shares) | 475,610,528 | |||
Common stock, shares authorized (in shares) | 298,222,103 | 298,222,103 | 270,326,075 | |
Preferred stock, shares authorized (in shares) | 177,388,425 | 177,388,425 | 177,388,425 | |
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | |||
Common stock, shares issued (in shares) | 70,893,225 | 70,367,425 | ||
Common stock, shares outstanding (in shares) | 69,957,290 | 69,431,490 | ||
Common stock voting rights | Each holder of common stock is entitled to one vote for each share of common stock held. | |||
Common Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Stock split conversion ratio | 5 | |||
Exercise of stock options (in shares) | 334,475 | |||
Proceeds from Exercise of Vested Stock Options | $ | $ 300 | |||
Unvested restricted stock outstanding (in shares) | 5,345,950 | 9,806,170 | ||
Stock repurchase upon termination of employment (in shares) | 51,105 | |||
Aggregate price for repurchase of common stock | $ | $ 46 | |||
Warrants [Member] | ||||
Class of Stock [Line Items] | ||||
Shares issued (in shares) | 51,915 | |||
Exercise of warrants aggregate proceeds | $ | $ 11 |
Shared Based Incentive Plan a66
Shared Based Incentive Plan and Compensation - Additional Information (Details) | Feb. 16, 2016 | Jun. 30, 2016USD ($)shares | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)shares | Jun. 30, 2015USD ($) |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | Options generally vest 25% one year from the vesting commencement date and 1/48th per month thereafter or vest 50% two years from the vesting commencement date and 1/48 th per month thereafter or vest 1/36th per month from the vesting commencement date. | ||||
Options exercisable, maximum period | 10 years | ||||
Stock split conversion ratio | 0.2 | 5 | |||
Stock split conversion ratio description | The number of options, restricted stock units and amounts per share reflects a 5-for-1 forward stock split effected by PMI on February 16, 2016. | ||||
Stock-Based Compensation Expense | $ 11,510,000 | $ 4,192,000 | |||
Unamortized expense related to unvested stock-based awards | $ 58,600,000 | 58,600,000 | |||
Unrecognized cost of unvested share-based compensation awards. | 0 | $ 0 | |||
Remaining weighted average vesting period | 2 years 9 months 7 days | ||||
Internal-use Software and Website Development Costs [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock-Based Compensation, capitalized amount | 225,000 | $ 175,000 | $ 436,000 | $ 297,000 | |
Stock Options Issued and Outstanding [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock-Based Compensation Expense | 700,000 | $ 100,000 | |||
Stock Option Repricing [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock-Based Compensation Expense | 1,200,000 | ||||
Unamortized expense related to unvested stock-based awards | $ 4,200,000 | $ 4,200,000 | |||
Weighted average vesting period | 2 years 9 months 18 days | ||||
Restricted Stock Unit (RSUs) [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Aggregate fair value | $ 10,700,000 | ||||
Vesting Period One [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting period of the options | 1 year | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | ||||
Vesting Period Two [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting period of the options | 2 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | ||||
2005 Stock Plan [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of options made available in pool (in shares) | shares | 59,388,480 | 59,388,480 | |||
2005 Stock Plan [Member] | Stock Options Issued and Outstanding [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares available for grant under the plan | shares | 0 | 0 | |||
2015 Stock Option Plan [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of options made available in pool (in shares) | shares | 51,850,918 | 51,850,918 | |||
Shares available for grant under the plan | shares | 11,402,606 | 11,402,606 |
Shared Based Incentive Plan a67
Shared Based Incentive Plan and Compensation - Schedule of Activity of Options that were Early Exercised under the Plan (Details) - Early Exercised Stock Options Under 2005 Stock Option Plan [Member] | 6 Months Ended |
Jun. 30, 2016$ / sharesshares | |
Early exercised options, unvested [Roll Forward] | |
Beginning balance | shares | 9,806,170 |
Repurchase of restricted stock | shares | (51,105) |
Restricted stock vested | shares | (4,409,115) |
Ending balance | shares | 5,345,950 |
Weighted average exercise price [Abstract] | |
Weighted-Average Exercise Price, Beginning balance | $ / shares | $ 0.05 |
Repurchase of restricted stock | $ / shares | 0.90 |
Restricted stock vested | $ / shares | 0.04 |
Weighted-Average Exercise Price, Ending balance | $ / shares | $ 0.05 |
Shared Based Incentive Plan a68
Shared Based Incentive Plan and Compensation - Additional Information Regarding Unvested Early exercised stock options outstanding (Details) | 6 Months Ended |
Jun. 30, 2016$ / sharesshares | |
$0.02 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices | $ 0.02 |
Number Outstanding | shares | 4,847,590 |
Weighted Avg. Remaining Life | 8 months 12 days |
Weighted Avg. Exercise Price | $ 0.02 |
$0.11 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices | $ 0.11 |
Number Outstanding | shares | 387,010 |
Weighted Avg. Remaining Life | 1 year 7 months 6 days |
Weighted Avg. Exercise Price | $ 0.11 |
$1.13 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices | $ 1.13 |
Number Outstanding | shares | 111,350 |
Weighted Avg. Remaining Life | 2 years 1 month 6 days |
Weighted Avg. Exercise Price | $ 1.13 |
$0.02 - $1.13 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices, Minimum | 0.02 |
Range of Exercise Prices, Maximum | $ 1.13 |
Number Outstanding | shares | 5,345,950 |
Weighted Avg. Remaining Life | 9 months 18 days |
Weighted Avg. Exercise Price | $ 0.05 |
Shared Based Incentive Plan a69
Shared Based Incentive Plan and Compensation - Summarized Option Activity under Option Plan (Details) - 2005 Stock Plan and 2015 Stock Option Plan [Member] | 6 Months Ended |
Jun. 30, 2016$ / sharesshares | |
Options Issued and Outstanding [Roll Forward] | |
Options Issued and Outstanding, Beginning Balance | shares | 40,425,605 |
Options Issued and Outstanding, Options issued | shares | 19,655,338 |
Options Issued and Outstanding, Options exercised - vested | shares | (334,475) |
Options Issued and Outstanding, Options forfeited | shares | (4,725,406) |
Options Issued and Outstanding, Ending balance | shares | 55,021,062 |
Options Issued and Outstanding, Options vested and/or exercisable at March 31, 2016 | shares | 26,856,397 |
Weighted-Average Exercise Price [Roll Forward] | |
Weighted-Average Exercise Price, Beginning balance | $ / shares | $ 2.64 |
Weighted-Average Exercise Price, Options issued | $ / shares | 2.14 |
Weighted-Average Exercise Price, Options exercised - vested | $ / shares | 0.85 |
Weighted-Average Exercise Price, Options forfeited | $ / shares | 1.38 |
Weighted-Average Exercise Price, Ending balance | $ / shares | 1.54 |
Weighted-Average Exercise Price, Options vested and/or exercisable at March 31, 2016 | $ / shares | $ 1.15 |
Shared Based Incentive Plan a70
Shared Based Incentive Plan and Compensation - Additional Information Regarding Common Stock Options Outstanding (Details) - Stock Options Issued and Outstanding [Member] | 6 Months Ended |
Jun. 30, 2016$ / sharesshares | |
$0.02 - 0.99 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices, Minimum | $ 0.02 |
Range of Exercise Prices, Maximum | $ 0.99 |
Number Outstanding | shares | 13,462,825 |
Weighted Avg. Remaining Life | 7 years 4 months 28 days |
Weighted Avg. Exercise Price | $ 0.12 |
Number Exercisable | shares | 13,462,110 |
Weighted-Avg. Exercise Price | $ 0.12 |
$1.00 -2.99 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices, Minimum | 1 |
Range of Exercise Prices, Maximum | $ 2.99 |
Number Outstanding | shares | 38,325,717 |
Weighted Avg. Remaining Life | 9 years 4 months 2 days |
Weighted Avg. Exercise Price | $ 2.04 |
Number Exercisable | shares | 11,565,657 |
Weighted-Avg. Exercise Price | $ 1.91 |
$3.00 - 4.99 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices, Minimum | 3 |
Range of Exercise Prices, Maximum | $ 4.99 |
Number Outstanding | shares | 1,586,875 |
Weighted Avg. Remaining Life | 8 years 7 months 17 days |
Weighted Avg. Exercise Price | $ 3.62 |
Number Exercisable | shares | 1,586,875 |
Weighted-Avg. Exercise Price | $ 3.62 |
$5.00- 5.52 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices, Minimum | 5 |
Range of Exercise Prices, Maximum | $ 5.52 |
Number Outstanding | shares | 1,645,645 |
Weighted Avg. Remaining Life | 9 years 1 month 21 days |
Weighted Avg. Exercise Price | $ 5.49 |
Number Exercisable | shares | 241,755 |
Weighted-Avg. Exercise Price | $ 5.46 |
$0.02 - 5.52 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices, Minimum | 0.02 |
Range of Exercise Prices, Maximum | $ 5.52 |
Number Outstanding | shares | 55,021,062 |
Weighted Avg. Remaining Life | 8 years 10 months 2 days |
Weighted Avg. Exercise Price | $ 1.72 |
Number Exercisable | shares | 26,856,397 |
Weighted-Avg. Exercise Price | $ 1.15 |
Shared Based Incentive Plan a71
Shared Based Incentive Plan and Compensation - Fair Value of Stock Option Awards (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Fair value of stock option awards [Abstract] | ||||
Volatility of common stock | 50.88% | 52.75% | 50.88% | 57.26% |
Risk-free interest rate | 1.29% | 1.80% | 1.29% | 1.72% |
Expected life | 5 years 9 months 18 days | 6 years | 5 years 9 months 18 days | 6 years 1 month 6 days |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Shared Based Incentive Plan a72
Shared Based Incentive Plan and Compensation - Summarized Activities for the Company's RSU's (Details) - Restricted Stock Unit (RSUs) [Member] | 6 Months Ended |
Jun. 30, 2016$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Restricted stock unit ,Unvested ,Beginning Balance | shares | 1,835,510 |
Granted | shares | 3,580,220 |
Forfeited | shares | (1,274,920) |
Restricted stock unit ,Unvested ,Ending Balance | shares | 4,140,810 |
Unvested | $ / shares | $ 5.52 |
Granted | $ / shares | 2.14 |
Forfeited | $ / shares | 2.14 |
Unvested | $ / shares | $ 2.59 |
Shared Based Incentive Plan a73
Shared Based Incentive Plan and Compensation - Stock Based Compensation Included in Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock based compensation | $ 6,404 | $ 2,752 | $ 11,510 | $ 4,192 |
Origination and Servicing [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock based compensation | 579 | 292 | 1,018 | 436 |
Sales and Marketing [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock based compensation | 896 | 676 | 1,632 | 1,065 |
General and Administrative [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock based compensation | 4,884 | $ 1,784 | 8,815 | $ 2,691 |
Restructuring [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock based compensation | $ 45 | $ 45 |
Restructuring - Additional Info
Restructuring - Additional Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Sep. 30, 2016USD ($) | May 03, 2016Employee | |
Restructuring Cost And Reserve [Line Items] | ||||
Number of employees terminated due to restructuring | Employee | 167 | |||
Employee severance and benefits charges | $ 5.4 | |||
San Francisco, Salt Lake City and Phoenix [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Loss incurred on leases | $ 8.7 | |||
Scenario, Forecast [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Expected employee severance and benefits charges | $ 0.2 | |||
Scenario, Forecast [Member] | Facilities Related [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Expected employee severance and benefits charges | $ 0.2 |
Restructuring - Summary of Acti
Restructuring - Summary of Activities Related to Prosper's Restructuring Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2016 | Jun. 30, 2016 | |
Restructuring Cost And Reserve [Line Items] | ||
Additions to expense | $ 14,061 | $ 14,061 |
Transfer from deferred rent | 764 | |
Less: Cash paid | (4,295) | |
Ending Balance | 10,530 | 10,530 |
Severance Related [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Additions to expense | 5,400 | |
Less: Cash paid | (3,362) | |
Ending Balance | 2,038 | 2,038 |
Facilities Related [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Additions to expense | 8,661 | |
Transfer from deferred rent | 764 | |
Less: Cash paid | (933) | |
Ending Balance | $ 8,492 | $ 8,492 |
Restructuring - Summary of Ac76
Restructuring - Summary of Activities Related to Prosper's Restructuring Plan (Parenthetical) (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2016USD ($) | |
Restructuring And Related Activities [Abstract] | |
Non-cash charges | $ 45 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Taxes [Line Items] | ||||
Income Tax Expense | $ 105,000 | $ 176,000 | $ 270,000 | $ 249,000 |
Prosper Funding LLC [Member] | ||||
Income Taxes [Line Items] | ||||
Income Tax Expense | $ 0 | $ 0 | ||
Net effective tax rate | 0.00% | 0.00% | ||
Valuation Allowance of Deferred Tax Assets | ||||
Income Taxes [Line Items] | ||||
Income Tax Expense | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016Installment | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)Installment | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Oct. 16, 2008USD ($) | |
Commitments And Contingencies [Line Items] | |||||||||
Rental expense under operating lease arrangements | $ 1,900,000 | $ 900,000 | $ 3,700,000 | $ 1,700,000 | |||||
Minimum fee, Remaining six months of 2016 | 800,000 | 800,000 | |||||||
Minimum fee, 2017 | 1,700,000 | 1,700,000 | |||||||
Minimum fee, 2018 | 1,700,000 | 1,700,000 | |||||||
Minimum fee, 2019 | 1,000,000 | 1,000,000 | |||||||
Maximum potential future payments | 4,063,000,000 | 4,063,000,000 | |||||||
Accrued repurchase and indemnification obligation | 489,000 | 489,000 | $ 510,000 | ||||||
Amount of loans sold to lender members | $ 178,000,000 | ||||||||
Agreed amount of settlement liability payable to plaintiffs | $ 10,000,000 | ||||||||
Number of annual installments paid to plaintiffs | Installment | 3 | 4 | |||||||
Other commitment paid | 2,000,000 | $ 2,000,000 | |||||||
Settlement installment due in 2016 | 3,000,000 | $ 3,000,000 | |||||||
Settlement installment due in 2017 | 3,000,000 | 3,000,000 | |||||||
Class action settlement liability | 2,973,000 | 2,973,000 | 5,949,000 | ||||||
Prosper Funding LLC [Member] | |||||||||
Commitments And Contingencies [Line Items] | |||||||||
Minimum fee, Remaining six months of 2016 | 800,000 | 800,000 | |||||||
Minimum fee, 2017 | 1,700,000 | 1,700,000 | |||||||
Minimum fee, 2018 | 1,700,000 | 1,700,000 | |||||||
Minimum fee, 2019 | 1,000,000 | 1,000,000 | |||||||
Maximum potential future payments | 3,911,000,000 | 3,911,000,000 | |||||||
Accrued repurchase and indemnification obligation | $ 439,000 | $ 439,000 | $ 460,000 | ||||||
Scenario, Forecast [Member] | |||||||||
Commitments And Contingencies [Line Items] | |||||||||
Purchase of borrower loans | $ 7,800,000 | ||||||||
Scenario, Forecast [Member] | Prosper Funding LLC [Member] | |||||||||
Commitments And Contingencies [Line Items] | |||||||||
Purchase of borrower loans | $ 7,800,000 | ||||||||
Minimum [Member] | |||||||||
Commitments And Contingencies [Line Items] | |||||||||
Non cancelable operating lease expiration | 2,022 | ||||||||
Maximum [Member] | |||||||||
Commitments And Contingencies [Line Items] | |||||||||
Non cancelable operating lease expiration | 2,027 |
Commitments and Contingencies79
Commitments and Contingencies - Future Minimum Lease Payments (Details) $ in Thousands | Jun. 30, 2016USD ($) |
Operating Leases Future Minimum Payments Due [Abstract] | |
Remaining six months of 2016 | $ 3,674 |
2,017 | 8,888 |
2,018 | 9,524 |
2,019 | 9,732 |
2,020 | 10,225 |
2,021 | 10,313 |
Thereafter | 26,102 |
Total future operating lease obligations | $ 78,458 |
Related Parties - Additional In
Related Parties - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2016 | |
Related Party Transactions [Abstract] | |
Minimum percentage of voting securities considered for related parties | 10.00% |
Minimum percentage of stock holders considered for related parties | 10.00% |
Related Parties - Aggregate Amo
Related Parties - Aggregate Amount of Notes Purchased and the Income Earned (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||||
Aggregate amount of notes and borrower loans purchased | $ 510 | $ 365 | $ 1,151 | $ 866 | |
Interest earned on Notes and Borrower Loans | 70 | 53 | 125 | 102 | |
Notes and Borrower Loans balance | 2,350 | 2,350 | $ 2,237 | ||
Prosper Funding LLC [Member] | |||||
Related Party Transaction [Line Items] | |||||
Aggregate amount of notes and borrower loans purchased | 396 | 365 | 801 | 846 | |
Interest earned on Notes and Borrower Loans | 61 | 51 | 110 | 98 | |
Notes and Borrower Loans balance | 1,822 | 1,822 | 1,912 | ||
Executive Officers & Management [Member] | |||||
Related Party Transaction [Line Items] | |||||
Aggregate amount of notes and borrower loans purchased | 396 | 365 | 801 | 846 | |
Interest earned on Notes and Borrower Loans | 61 | 51 | 110 | 98 | |
Notes and Borrower Loans balance | 1,822 | 1,822 | 1,912 | ||
Executive Officers & Management [Member] | Prosper Funding LLC [Member] | |||||
Related Party Transaction [Line Items] | |||||
Aggregate amount of notes and borrower loans purchased | 396 | 365 | 801 | 846 | |
Interest earned on Notes and Borrower Loans | 61 | 51 | 110 | 98 | |
Notes and Borrower Loans balance | 1,822 | 1,822 | 1,912 | ||
Directors (Excluding Executive Officers and Management) [Member] | |||||
Related Party Transaction [Line Items] | |||||
Aggregate amount of notes and borrower loans purchased | 114 | 350 | 20 | ||
Interest earned on Notes and Borrower Loans | 9 | $ 2 | 15 | $ 4 | |
Notes and Borrower Loans balance | $ 528 | $ 528 | $ 325 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2016 | Aug. 01, 2016 | Dec. 31, 2015 | |
Subsequent Event [Line Items] | |||
Initial origination and sale agreement period | 3 years | ||
Additional collateral account deposit | $ 133,216 | $ 151,223 | |
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Additional collateral account deposit | $ 5,000 | ||
Minimum liquidity covenant | $ 15,000 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Prosper Funding LLC [Member] | ||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Comprehensive income (loss) | $ 0 | $ 0 |