Document And Entity Information
Document And Entity Information Document - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 31, 2015 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | On Deck Capital Inc | |
Entity Central Index Key | 1,420,811 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 69,587,381 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and cash equivalents | $ 179,692 | $ 220,433 |
Restricted cash | 28,267 | 29,448 |
Loans | 513,919 | 504,107 |
Less: Allowance for loan losses | (53,052) | (49,804) |
Loans, net of allowance for loan losses | 460,867 | 454,303 |
Loans held for sale | 13,317 | 1,523 |
Deferred debt issuance costs | 5,175 | 5,374 |
Property, equipment and software, net | 17,494 | 13,929 |
Other assets | 13,491 | 4,622 |
Total assets | 718,303 | 729,632 |
Liabilities: | ||
Accounts payable | 5,743 | 4,360 |
Interest payable | 663 | 819 |
Debt | 368,382 | 399,928 |
Accrued expenses and other liabilities | 22,670 | 13,920 |
Total liabilities | $ 397,458 | $ 419,027 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock—$0.005 par value, 1,000,000,000 shares authorized and 69,525,505 and 69,031,719 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively | $ 363 | $ 360 |
Treasury stock—at cost | (5,843) | (5,656) |
Additional paid-in capital | 447,042 | 442,969 |
Accumulated deficit | (127,384) | (127,068) |
Total On Deck Capital, Inc.'s stockholders’ equity | 314,178 | 310,605 |
Noncontrolling interest | 6,667 | 0 |
Total equity | 320,845 | 310,605 |
Total liabilities and equity | 718,303 | 729,632 |
Funding Debt [Member] | ||
Liabilities: | ||
Debt | 368,382 | 387,928 |
Corporate Debt [Member] | ||
Liabilities: | ||
Debt | $ 0 | $ 12,000 |
Unaudited Condensed Consolidat3
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.005 | $ 0.005 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 69,525,505 | 69,031,719 |
Common stock, shares outstanding | 69,525,505 | 69,031,719 |
Unaudited Condensed Consolidat4
Unaudited Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenue: | ||||
Interest income | $ 50,248 | $ 32,864 | $ 98,947 | $ 59,212 |
Gain on sales of loans | 11,710 | 1,584 | 18,389 | 2,927 |
Other revenue | 1,354 | 1,054 | 2,434 | 1,925 |
Gross revenue | 63,312 | 35,502 | 119,770 | 64,064 |
Cost of revenue: | ||||
Provision for loan losses | 15,526 | 13,073 | 38,626 | 29,652 |
Funding costs | 4,771 | 3,801 | 9,816 | 8,441 |
Total cost of revenue | 20,297 | 16,874 | 48,442 | 38,093 |
Net revenue | 43,015 | 18,628 | 71,328 | 25,971 |
Operating expense: | ||||
Sales and marketing | 14,981 | 7,113 | 27,656 | 13,474 |
Technology and analytics | 10,206 | 3,799 | 18,794 | 6,708 |
Processing and servicing | 3,015 | 2,084 | 5,717 | 3,693 |
General and administrative | 9,991 | 4,434 | 19,576 | 7,826 |
Total operating expense | 38,193 | 17,430 | 71,743 | 31,701 |
Income (loss) from operations | 4,822 | 1,198 | (415) | (5,730) |
Other expense: | ||||
Interest expense | (74) | (62) | (180) | (219) |
Warrant liability fair value adjustment | 0 | (2,190) | 0 | (8,822) |
Total other expense | (74) | (2,252) | (180) | (9,041) |
Income (loss) before provision for income taxes | 4,748 | (1,054) | (595) | (14,771) |
Provision for income taxes | 0 | 0 | 0 | 0 |
Net income (loss) | 4,748 | (1,054) | (595) | (14,771) |
Accretion of dividends on redeemable convertible preferred stock | 0 | (3,596) | 0 | (6,200) |
Net loss attributable to noncontrolling interest | 232 | 0 | 232 | 0 |
Net income (loss) attributable to On Deck Capital, Inc. common stockholders | $ 4,980 | $ (4,650) | $ (363) | $ (20,971) |
Net income (loss) per share attributable to On Deck Capital, Inc. common stockholders: | ||||
Basic (in dollars per share) | $ 0.07 | $ (0.88) | $ (0.01) | $ (4.21) |
Diluted (in dollars per share) | $ 0.07 | $ (0.88) | $ (0.01) | $ (4.21) |
Weighted-average common shares outstanding: | ||||
Basic (shares) | 69,479,737 | 5,262,317 | 69,366,278 | 4,983,554 |
Diluted (shares) | 75,680,290 | 5,262,317 | 69,366,278 | 4,983,554 |
Unaudited Condensed Consolidat5
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities | ||
Net loss | $ (595) | $ (14,771) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Provision for loan losses | 38,626 | 29,652 |
Depreciation and amortization | 2,943 | 1,755 |
Amortization of debt issuance costs | 1,332 | 1,482 |
Stock-based compensation | 4,358 | 637 |
Warrant liability fair value adjustment | 0 | 8,826 |
Amortization of net deferred origination costs | 18,317 | 12,322 |
Gain on sales of loans | (18,389) | (2,927) |
Provision for unfunded loan commitment | 807 | 71 |
Common stock warrant issuance | 0 | 64 |
Gain on extinguishment of debt | (48) | 0 |
Changes in operating assets and liabilities: | ||
Other assets | (8,823) | (941) |
Accounts payable | 2,946 | 512 |
Interest payable | (156) | (530) |
Accrued expenses and other liabilities | 7,352 | 1,437 |
Originations of loans held for sale | (196,119) | (53,677) |
Payments of net deferred origination costs of loans held for sale | (7,954) | (3,317) |
Proceeds from sale of loans held for sale | 204,025 | 59,648 |
Repayments of term loans held for sale | 1,664 | 591 |
Net cash provided by operating activities | 50,286 | 40,834 |
Cash flows from investing activities | ||
Change in restricted cash | 1,179 | (165) |
Purchases of property, equipment and software | (3,896) | (4,813) |
Capitalized internal-use software | (2,254) | (1,248) |
Originations of term loans and lines of credit, excluding rollovers into new originations | (511,726) | (359,793) |
Proceeds from sale of loans held for investment | 58,901 | 0 |
Payments of net deferred origination costs | (17,332) | (15,628) |
Principal repayments of term loans and lines of credit | 411,628 | 219,749 |
Net cash used in investing activities | (63,500) | (161,898) |
Cash flows from financing activities | ||
Proceeds from exercise of stock options | 187 | 355 |
Payments of initial public offering costs | (1,845) | 0 |
Purchase of shares for treasury | (184) | 0 |
Investment by noncontrolling interest | 7,069 | 0 |
Proceeds from the issuance of redeemable convertible preferred stock | 0 | 77,000 |
Proceeds from the issuance of funding debt | 110,728 | 340,926 |
Payments of debt issuance costs | (1,133) | (3,993) |
Net cash (used in) provided by financing activities | (27,404) | 135,377 |
Effect of exchange rate changes on cash and cash equivalents | (123) | 0 |
Net increase (decrease) in cash and cash equivalents | (40,741) | 14,313 |
Cash and cash equivalents at beginning of period | 220,433 | 4,670 |
Cash and cash equivalents at end of period | 179,692 | 18,983 |
Supplemental disclosure of other cash flow information | ||
Cash paid for interest | 8,087 | 7,493 |
Supplemental disclosures of non-cash investing and financing activities | ||
Stock-based compensation included in capitalized internal-use software | 360 | 73 |
Unpaid principal balance of term loans rolled into new originations | 127,174 | 61,947 |
Accretion of dividends on redeemable convertible preferred stock | 0 | 6,200 |
Funding Debt [Member] | ||
Cash flows from financing activities | ||
Repayment of funding debt principal | (130,226) | (266,911) |
Corporate Debt [Member] | ||
Cash flows from financing activities | ||
Repayment of funding debt principal | $ (12,000) | $ (12,000) |
Organization
Organization | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization On Deck Capital, Inc.’s principal activity is providing financing products to small businesses located throughout the United States and Canada, including term loans and lines of credit. We use technology and analytics to aggregate data about a business and then quickly and efficiently analyze the creditworthiness of the business using our proprietary credit scoring model. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements and footnotes have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") as contained in the Financial Accounting Standards Board (‘‘FASB’’) Accounting Standards Codification (“ASC”) for interim financial information. All intercompany transactions and accounts have been eliminated in consolidation. The results of operations for the three and six months ended June 30, 2015 are not necessarily indicative of the results for the full year or the results for any future periods. We have reclassified certain prior-period amounts to conform to the current period’s presentation. These unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements, including the related notes, and the other information contained in our Annual Report on Form 10-K for the year ended December 31, 2014 . When used in these notes to condensed consolidated financial statements, the terms "we," "us," "our" or similar terms refers to On Deck Capital, Inc. and its consolidated subsidiaries. During the six months ended June 30, 2015, we acquired a 55% interest in On Deck Capital Australia PTY LTD ("OnDeck Australia") with the remaining 45% owned by non-affiliated parties. We consolidate the financial position and results of operations of OnDeck Australia. The noncontrolling interest, which is presented as a separate component of our consolidated equity, represents the minority owners' proportionate share of the equity of the jointly owned entity. The noncontrolling interest is adjusted for the minority owners' share of the earnings, losses, investments and distributions. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts in the condensed consolidated financial statements and accompanying notes. Significant estimates include allowance for loan losses, valuation of warrants, stock-based compensation expense, servicing assets/liabilities, capitalized software development costs, the useful lives of long-lived assets and valuation allowance for deferred tax assets. We base our estimates on historical experience, current events and other factors we believe to be reasonable under the circumstances. These estimates and assumptions are inherently subjective in nature; actual results may differ from these estimates and assumptions. Loans and Loans Held for Sale Loans We originate term loans and lines of credit (collectively, “loans”) that are generally short term in nature and require daily or weekly repayments. We have both the ability and intent to hold these loans to maturity. When we originate a term loan, the borrower grants us a security interest in its assets. We may or may not perfect our security interest by publicly filing a financing statement. Loans are carried at amortized cost, reduced by a valuation allowance for loan losses estimated as of the balance sheet dates. In accordance with ASC Subtopic 310-20, Nonrefundable Fees and Other Costs , the amortized cost of a loan is equal to the unpaid principal balance, plus net deferred origination costs. Net deferred origination costs are comprised of certain direct origination costs, net of all loan origination fees received. Loan origination fees include fees charged to the borrower related to origination that increase the loan’s effective interest yield. Direct origination costs in excess of loan origination fees received are included in the loan balance and amortized over the term of the loan using the effective interest method. Loan origination costs are limited to direct costs attributable to originating a loan, including commissions and personnel costs directly related to the time spent by those individuals performing activities related to loan origination. Additionally, when a term loan is originated in conjunction with the extinguishment of a previously issued term loan, we determine whether this is a new loan or a modification to an existing loan in accordance with ASC 310-20. If accounted for as a new loan, any remaining unamortized net deferred costs are recognized when the new loan is originated. If accounted for as a modification, any remaining unamortized net deferred costs are amortized over the life of the modified loan. Loans Held for Sale OnDeck Marketplace ® is a program whereby we originate and sell certain term loans to third-party institutional investors and retain servicing rights. We sell these whole loans to purchasers in exchange for a cash payment. A portion of our loans are originated for the purpose of being sold through Marketplace . These whole loans are initially classified as held for sale within a short period of time from the initial funding when the whole loan is identified for sale and a plan exists for the sale. From time to time we may reclassify certain loans from held for investment to held for sale. Loans held for sale, inclusive of net deferred origination costs, are recorded at the lower of cost or market until the loans are sold. Because we continue to service the loans we sell, we evaluate whether a servicing asset or liability has been incurred. We estimate the fair value of the loan servicing asset or liability considering the contractual servicing fee revenue, adequate compensation for our servicing obligation, the non-delinquent principal balances of loans and projected servicing revenues over the remaining lives of the loans. As of June 30, 2015 and December 31, 2014 , we serviced term loans we sold with remaining unpaid principal of $202.6 million and $79.7 million , respectively, and determined any servicing asset to be immaterial. During the three months ended June 30, 2015 and 2014 we sold through Marketplace loans with an unpaid principal balance of $ 143.0 million and $ 24.0 million , respectively, and during the six months ended June 30, 2015 and 2014 we sold loans with an unpaid principal balance of $ 235.1 million and $ 53.3 million , respectively. Allowance for Loan Losses The allowance for loan losses (“ALLL”) is established through periodic charges to the provision for loan losses. Loan losses are charged against the ALLL when we believe that the future collection of principal is unlikely. Subsequent recoveries, if any, are credited to the ALLL. We evaluate the creditworthiness of our portfolio on a pooled basis due to its composition of small, homogeneous loans with similar general credit risk characteristics and diversification among variables including industry and geography. We use a proprietary forecast loss rate at origination for new loans that have not had the opportunity to make payments when they are first funded. The forecasted loss rate is updated daily to reflect actual loan performance, and the underlying ALLL model is updated monthly to reflect our assumptions. The allowance is subjective as it requires material estimates, including such factors as historical trends, known and inherent risks in the loan portfolio, adverse situations that may affect borrowers’ ability to repay and current economic conditions. Other qualitative factors considered may include items such as uncertainties in forecasting and modeling techniques, changes in portfolio composition, seasonality, business conditions and emerging trends. Recovery of the carrying value of loans is dependent to a great extent on conditions that may be beyond our control. Any combination of the aforementioned factors may adversely affect our loan portfolio resulting in increased delinquencies and loan losses and could require additional provisions for credit losses, which could impact future periods. In our opinion, we have provided adequate allowances to absorb probable credit losses inherent in our loan portfolio based on available and relevant information affecting the loan portfolio at each balance sheet date. Accrual for Unfunded Loan Commitments and Off-Balance Sheet Credit Exposures For our line of credit product we estimate probable losses on unfunded loan commitments similarly to the ALLL process and include the calculated amount in accrued expenses and other liabilities. We believe the accrual for unfunded loan commitments is sufficient to absorb estimated probable losses related to these unfunded credit commitments. The determination of the adequacy of the accrual is based on evaluations of the unfunded credit commitments, including an assessment of the probability of commitment usage, credit risk factors for lines of credit outstanding to these customers and the terms and expiration dates of the unfunded credit commitments. As of June 30, 2015 and December 31, 2014 , our off-balance sheet credit exposure related to the undrawn line of credit balances was $50.6 million and $28.7 million , respectively. The related accrual for unfunded loan commitments was $2.1 million and $1.3 million as of June 30, 2015 and December 31, 2014 , respectively. Net adjustments to the accrual for unfunded loan commitments are included in general and administrative expenses. Accrual for Third-Party Representations We have made certain representations to third parties that purchase loans through OnDeck Marketplace . Any significant estimated post-sale obligations or contingent obligations to the purchaser of the loans, such as fraudulent loan repurchase obligations or excess loss indemnification obligations, would be accrued if probable and estimable in accordance with ASC 450, Contingencies . There are no restricted assets related to these agreements. As of June 30, 2015 and December 31, 2014 , we have not incurred any significant losses and or material liability for probable obligations requiring accrual. Revenue Recognition Interest Income We generate revenue primarily through interest and origination fees earned on loans originated and held to maturity. We recognize interest and origination fee revenue over the terms of the underlying loans using the effective interest method. Origination fees collected but not yet recognized as revenue are netted with direct origination costs and presented as a component of loans in our condensed consolidated balance sheets. Historically, borrowers who elected to prepay term loans were required to pay future interest and fees that would have been assessed had the term loan been repaid in accordance with its original agreement. Beginning in December 2014, certain term loans may be eligible for a discount of future interest and fees that would have been assessed had the loan been repaid in accordance with its original agreement. Gain on Sales of Loans In October 2013, we started OnDeck Marketplace whereby we originate and sell certain loans to third-party purchasers and retain servicing rights. We account for the loan sales in accordance with ASC Topic 860, Transfers and Servicing, which states that a transfer of a financial asset, a group of financial assets, or a participating interest in a financial asset is accounted for as a sale if all of the following conditions are met: 1. The financial assets are isolated from the transferor and its consolidated affiliates as well as its creditors. 2. The transferee or beneficial interest holders have the right to pledge or exchange the transferred financial assets. 3. The transferor does not maintain effective control of the transferred assets. For the three and six months ended June 30, 2015 and 2014 , all sales met the requirements for sale treatment under the guidance for ASC Topic 860, Transfers and Servicing . We record the gain or loss on the sale of a loan at the sale date in an amount equal to the proceeds received less outstanding principal and net deferred origination costs. Other Revenue We retain servicing rights on sold loans and recognize servicing revenue for servicing sold loans as a component of other revenue. For the three months ended June 30, 2015 and 2014 we earned $0.9 million and $0.2 million of servicing revenue, respectively. For the six months ended June 30, 2015 and 2014 we earned $1.4 million and $0.4 million of servicing revenue, respectively. In accordance with ASC Topic 860, Transfers and Servicing, we have recognized an immaterial servicing asset. Other revenue also includes marketing fees earned from our issuing bank partner, which are recognized as the related services are provided, and monthly fees charged to customers for our line of credit products. Stock-Based Compensation In accordance with ASC Topic 718, Compensation—Stock Compensation , all stock-based compensation made to employees is measured based on the grant-date fair value of the awards and recognized as compensation expense on a straight-line basis over the period during which the option holder is required to perform services in exchange for the award (the vesting period). We use the Black-Scholes-Merton Option Pricing Model to estimate the fair value of stock options. The use of the option valuation model requires subjective assumptions, including the fair value of our common stock, the expected term of the option and the expected stock price volatility, which is based on our stock as well as our peer companies. We issue restricted stock units ("RSUs") to employees and directors, which are measured based on the fair values of the underlying stock on the dates of grant. Additionally, the recognition of stock-based compensation expense requires an estimation of the number of options and RSUs that will ultimately vest and the number of options and RSUs that will ultimately be forfeited. Estimated forfeitures are subsequently adjusted to reflect actual forfeiture. Recent Accounting Pronouncements Not Yet Adopted In May 2014, the FASB issued ASU 2014-09, Revenue Recognition , which creates ASC 606, Revenue from Contracts with Customers , and supersedes ASC 605, Revenue Recognition . ASU 2014-09 requires revenue to be recognized in an amount that reflects the consideration to which the entity expects to be entitled in exchange for goods or services as described in ASU 2014-09. In July of 2015, the FASB voted to defer the effective date of the new revenue standard by one year. The new guidance will be effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted, but not before the original effective date of December 15, 2016. We are currently in the process of assessing the impact the adoption of this guidance will have on our consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs , which amends ASC 835-30, Interest - Imputation of Interest. ASU 2015-03 requires entities to change the presentation of debt issuance costs in the financial statements. Under the ASU, an entity will be required to present such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. This accounting standard is effective beginning January 1, 2017. We are currently assessing the impact this accounting standard will have on our consolidated financial statements. |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share | Net Income (Loss) Per Common Share Basic and diluted net income (loss) per common share is calculated as follows (in thousands, except share and per share data): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Numerator: Net income (loss) $ 4,748 $ (1,054 ) $ (595 ) $ (14,771 ) Less: net loss attributable to noncontrolling interest 232 — 232 — Less: Accretion of dividends on redeemable convertible preferred stock — (3,596 ) — (6,200 ) Net income (loss) attributable to On Deck Capital, Inc. common stockholders $ 4,980 $ (4,650 ) $ (363 ) $ (20,971 ) Denominator: Weighted-average common shares outstanding: Basic 69,479,737 5,262,317 69,366,278 4,983,554 Weighted average effect of dilutive securities: Stock options 5,819,581 — — — Restricted stock and RSUs 40,032 — — — Employee stock purchase program 58,776 — — — Warrants to purchase common stock 282,164 — — — Diluted weighted-average common shares outstanding 75,680,290 5,262,317 69,366,278 4,983,554 Net income (loss) attributable to On Deck Capital, Inc. common stockholders per common share: Basic $ 0.07 $ (0.88 ) $ (0.01 ) $ (4.21 ) Diluted $ 0.07 $ (0.88 ) $ (0.01 ) $ (4.21 ) Diluted loss per common share is the same as basic loss per common share for all loss periods presented because the effects of potentially dilutive items were anti-dilutive given our net losses in those periods. The following common share equivalent securities have been excluded from the calculation of weighted-average common shares outstanding because the effect is anti-dilutive for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Anti-Dilutive Common Share Equivalents Redeemable convertible preferred stock: Series A — 4,438,662 — 4,438,662 Series B — 10,755,262 — 10,755,262 Series C — 9,735,538 — 9,735,538 Series C-1 — 1,701,112 — 1,701,112 Series D — 14,467,756 — 14,467,756 Series E — 5,234,546 — 5,234,546 Warrants to purchase redeemable convertible preferred stock — 1,423,768 — 1,423,768 Warrants to purchase common stock 22,000 4,077,066 2,516,288 4,077,066 Restricted stock units and restricted stock 351,737 — 555,666 — Stock options 1,125,043 8,179,788 9,911,822 8,179,788 Total anti-dilutive common share equivalents 1,498,780 60,013,498 12,983,776 60,013,498 The weighted-average exercise price for warrants to purchase common stock was $ 9.51 as of June 30, 2015 and December 31, 2014 . For the three months ended June 30, 2015 a warrant to purchase 2,206,496 of shares of common stock was excluded from diluted weighted-average shares outstanding and anti-dilutive common share equivalents as performance conditions had not been met. |
Loans, Allowance for Loan Losse
Loans, Allowance for Loan Losses and Loans Held for Sale | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Loans, Allowance for Loan Losses and Loans Held for Sale | Loans, Allowance for Loan Losses and Loans Held for Sale Loans consisted of the following as of June 30, 2015 and December 31, 2014 (in thousands): June 30, 2015 December 31, 2014 Term loans $ 461,657 $ 466,386 Lines of credit 41,731 24,177 Total unpaid principal balance 503,388 490,563 Net deferred origination costs 10,531 13,544 Total loans $ 513,919 $ 504,107 The activity in the allowance for loan losses for the three and six months ended June 30, 2015 and 2014 consisted of the following (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Balance - beginning of period $ 56,795 $ 27,723 $ 49,804 $ 19,443 Provision for loan losses 15,526 13,073 38,626 29,652 Loans charged off (21,155 ) (9,382 ) (39,014 ) (18,059 ) Recoveries of loans previously charged off 1,886 486 3,636 864 Allowance for loan losses - end of period $ 53,052 $ 31,900 $ 53,052 $ 31,900 We originate most of the loans in our portfolio and also purchase loans from an issuing bank partner. During the three months ended June 30, 2015 and 2014 we purchased loans in the amount of $48.8 million and $40.4 million , respectively. During the six months ended June 30, 2015 and 2014 we purchased loans in the amount of $103.4 million and $74.4 million , respectively. We sell previously charged-off loans to a third-party debt collector. The proceeds from these sales are recorded as a component of the recoveries of loans previously charged-off. For the three months ended June 30, 2015 and 2014 , previously charged-off loans sold accounted for $1.3 million and $0.3 million of recoveries of loans previously charged-off, respectively. For the six months ended June 30, 2015 and 2014 , previously charged-off loans sold accounted for $2.8 million and $0.6 million of recoveries of loans previously charged-off, respectively. The following table illustrates the unpaid principal balance of loans related to non-delinquent, paying and non-paying delinquent loans as of June 30, 2015 and December 31, 2014 (in thousands): June 30, 2015 December 31, 2014 Non-delinquent loans $ 440,841 $ 430,689 Delinquent: paying (accrual status) 41,794 40,049 Delinquent: non-paying (non-accrual status) 20,753 19,825 Total $ 503,388 $ 490,563 The balance of the allowance for loan losses for non-delinquent loans was $22.0 million and $20.5 million as of June 30, 2015 and December 31, 2014 , respectively, while the balance of the allowance for loan losses for delinquent loans was $31.1 million and $29.3 million as of June 30, 2015 and December 31, 2014 , respectively. The following table shows an aging analysis of the unpaid principal balance of loans by delinquency status as of June 30, 2015 and December 31, 2014 (in thousands): June 30, 2015 December 31, 2014 By delinquency status: Non-delinquent loans $ 440,841 $ 430,689 1-14 calendar days past due 22,215 23,954 15-29 calendar days past due 8,491 9,462 30-59 calendar days past due 9,910 10,707 60-89 calendar days past due 9,819 7,724 90 + calendar days past due 12,112 8,027 Total unpaid principal balance $ 503,388 $ 490,563 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table summarizes our outstanding debt as of June 30, 2015 and December 31, 2014 : Description Type Maturity Date Interest Rates at June 30, 2015 June 30, 2015 December 31, 2014 (in thousands) Funding Debt: ODAST Agreement Securitization Facility May 2018 3.4% $ 174,976 $ 174,972 ODART Agreement Revolving September 2016 3.7% 86,732 105,598 ODAC Agreement Revolving May 2017 8.4% 18,782 32,733 ODAP Agreement Revolving August 2016 5.0% 22,727 56,686 PORT Agreement Revolving June 2017 2.4% 15,011 — RAOD Agreement Revolving May 2017 3.2% 28,209 — SBAF Agreement Revolving Various (1) 7.4% 16,921 16,740 Partner Synthetic Participations Term Various (2) Various 5,024 1,199 368,382 387,928 Corporate Debt: Square 1 Agreement Revolving October 2015 4.5% — 12,000 $ 368,382 $ 399,928 ___________ (1) Maturity dates range from July 2015 through May 2017 (2) Maturity dates range from July 2015 through June 2017 On May 22, 2015, through a wholly-owned bankruptcy remote subsidiary, we entered into a $50 million revolving line of credit with SunTrust Bank ("RAOD Agreement"). The facility bears interest at LIBOR plus 3.00% , and matures in May 2017. On May 22, 2015 an amendment was made to the ODAC Agreement extending the date of maturity from October 2016 to May 2017. In addition to other changes, this facility is now exclusively for the use of financing our line of credit product. On June 12, 2015, through a wholly-owned bankruptcy remote subsidiary, we entered into a $100 million revolving line of credit with Bank of America, N.A. ("PORT Agreement"). The facility bears interest at LIBOR plus 2.25% , and matures in June 2017. |
Redeemable Convertible Preferre
Redeemable Convertible Preferred Stock | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Redeemable Convertible Preferred Stock | Redeemable Convertible Preferred Stock The following table presents a summary of activity for the preferred stock issued and outstanding for the six months ended June 30, 2014 (in thousands): Series A Series B Series C Series C-1 Series D Series E Total Balance, January 1, 2014 $ 2,559 $ 22,918 $ 24,749 $ 5,401 $ 62,716 $ — $ 118,343 Issuance of preferred stock — — — — — 77,000 77,000 Accretion of dividends on preferred stock 65 634 818 188 2,407 2,088 6,200 Balance, June 30, 2014 $ 2,624 $ 23,552 $ 25,567 $ 5,589 $ 65,123 $ 79,088 $ 201,543 All redeemable convertible preferred stock automatically converted into shares of common stock upon close of our initial public offering in December 2014. As of June 30, 2015 we had no redeemable convertible preferred stock outstanding. |
Income Tax
Income Tax | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax | Income Tax As part of the process of preparing the unaudited condensed consolidated financial statements, we are required to estimate our income taxes in each of the jurisdictions in which we operate. This process involves determining the annual effective tax rate, income tax expense (benefit) and deferred income tax expense (benefit) related to temporary differences resulting from differing treatment of items, such as the loan loss reserve, timing of depreciation and deferred rent liabilities, for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included within the accompanying unaudited condensed consolidated balance sheets. We must then assess the likelihood that the deferred tax assets will be recovered through the generation of future taxable income. We have not incurred any income tax during the three and six months ended June 30, 2015 and 2014 due to one or more of the following reasons: • the book losses incurred during those periods; • the anticipated and known book losses for years ended December 31, 2015 and 2014 , respectively, or; • the significant deferred tax assets available for application should permanent and temporary differences from book income yield taxable income. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based upon the level of historical losses and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that we will not realize the benefits of these deductible differences in the foreseeable future. Therefore, we have recorded a full valuation allowance against our net deferred tax asset. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) The following table presents the changes in the Level 3 instruments measured at fair value on a recurring basis for the three and six months ended June 30, 2014 (in thousands): Three Months Ended June 30, 2014 Six Months Ended June 30, 2014 Warrant liability balance - beginning of period $ 11,078 $ 4,446 Issuance of warrants at fair value 4 4 Change in fair value 2,190 8,822 Warrant liability balance - end of period $ 13,272 $ 13,272 The warrant liability is classified within Level 3 due to the liability being valued using significant unobservable inputs. Fair value of these warrants is based on a valuation of our common stock. As the valuation of our common stock was determined prior to our initial public offering, we used a combination of the inputs including option pricing models, secondary transactions with third-party investors and an initial public offering scenario to determine the valuation of our common stock. A hypothetical increase or decrease in assumed asset volatility of 10% in the option pricing model would result in an immaterial impact to the fair value of the warrants as of June 30, 2014. In the unaudited consolidated statements of operations, changes in fair value are included in warrant liability fair value adjustment. For the three and six months ended June 30, 2015 we did not hold any material Level 3 instruments measured at fair value on a recurring basis. Assets and Liabilities Disclosed at Fair Value As loans are not measured at fair value, the following discussion relates to estimating the fair value disclosure under ASC Topic 825. The fair value of loans is estimated by discounting scheduled cash flows through the estimated maturity. The estimated market discount rates used for loans are our current offering rates for comparable loans with similar terms. The carrying amounts of certain of our financial instruments, including loans and loans held for sale, approximate fair value due to their short-term nature and are considered Level 3. The carrying amount of our financing obligations, such as fixed-rate debt, approximates fair value, considering the borrowing rates currently available to us for financing obligations with similar terms and credit risks. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The following table summarizes the assumptions used for estimating the fair value of stock options granted during the six months ended June 30, 2015 : Six Months Ended June 30, 2015 Risk-free interest rate 1.65 - 2.13 % Expected term (years) 5.51 - 6.04 Expected volatility 44.00 - 46.51 % Dividend yield 0% Weighted-average grant date fair value per share option $8.27 The following is a summary of option activity during the six months ended June 30, 2015 : Number of Weighted- Weighted- Aggregate (in years) (in thousands) Outstanding at January 1, 2015 10,371,472 $ 4.59 Granted 310,043 $ 18.73 Exercised (476,231 ) $ 1.18 Forfeited (278,638 ) $ 5.90 Expired (14,824 ) $ 0.97 Outstanding at June 30, 2015 9,911,822 $ 5.16 8.04 $ 67,820 Exercisable at June 30, 2015 3,769,311 $ 1.16 7.10 $ 39,645 Vested or expected to vest as of June 30, 2015 9,431,273 $ 4.95 8.05 $ 65,494 Stock-based compensation expense was attributed to the following line items in our accompanying unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2015 and 2014 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Sales and marketing $ 594 $ 111 $ 1,168 $ 157 Technology and analytics 504 99 941 148 Processing and servicing 156 42 303 61 General and administrative 1,062 152 1,946 271 Total $ 2,316 $ 404 $ 4,358 $ 637 Total compensation cost related to nonvested awards not yet recognized as of June 30, 2015 was $19.0 million and will be recognized over a weighted-average period of approximately 3.01 years. The aggregate intrinsic value of options exercised during the three and six months ended June 30, 2015 was $1.7 million and $7.8 million , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments In March 2015 we amended the lease of our New York City corporate headquarters to extend the lease and rent additional space. We will occupy the additional space incrementally, as it becomes available, at which time we will incur a proportionate amount of additional rent payments. The dates the additional space will be available are uncertain as they are dependent upon the departure of current occupants and the landlord’s ability to prepare the space. Upon the completion of delivery of all additional space, our additional average monthly fixed rent payment will be approximately $0.4 million . The amended lease also provides for rent credits aggregating $3.6 million and a tenant improvement allowance not to exceed $5.8 million . The lease will terminate ten years and ten months after the delivery of certain portions of the additional space. In April 2015, we provided notice of termination to the landlord of our current office space in Denver, Colorado resulting in a termination fee of $0.4 million which is included in general and administrative expense for the three months ended June 30, 2015. The lease is scheduled to expire in January 2016. In June 2015, we entered into a sublease in Denver, Colorado (the "New Denver Lease") as the subtenant. The New Denver Lease is for approximately 72,000 square feet with an average monthly fixed rent payment of approximately $144,000 . The New Denver Lease also provides for a tenant improvement allowance not to exceed $2.6 million . The lease has a term of 124 months after the commencement date. Concentrations of Credit Risk Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash, cash equivalents, restricted cash and loans. We hold cash, cash equivalents and restricted cash in accounts at regulated domestic financial institutions in amounts that may exceed FDIC insured amounts. We believe these institutions to be of high credit quality, and we have not experienced any related losses to date. We are exposed to default risk on loans we originate and hold and that we purchase from our issuing bank partner. We perform an evaluation of each customer's financial condition and during the term of the customer's loan(s), we have the contractual right to limit a customer's ability to take working capital loans or other financing from other lenders that may cause a material adverse change in the financial condition of the customer. There is no single customer or group of customers that comprise a significant portion of our loan portfolio. Contingencies Two separate putative class actions were filed in August 2015 in the United States District Court for the Southern District of New York against us, certain of our executive officers, our directors and certain or all of the underwriters of our initial public offering, or IPO. The suits allege that the registration statement for our IPO contained materially false and misleading statements regarding, or failed to disclose, specified information in violation of the Securities Act of 1933, as amended. The suits seek a determination that the case is a proper class action and/or certification of the plaintiff as a class representative, rescission or a rescissory measure of damages and/or unspecified damages, interest, attorneys’ fees and other fees and costs. The Company intends to defend itself vigorously in these matters, although at this time we cannot predict the outcome. From time to time we are subject to other legal proceedings and claims in the ordinary course of business. The results of such matters cannot be predicted with certainty. However, we believe that the final outcome of any such current matters will not result in a material adverse effect on our consolidated financial condition, consolidated results of operations or consolidated cash flows. |
Summary of Significant Accoun16
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | The accompanying unaudited condensed consolidated financial statements and footnotes have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") as contained in the Financial Accounting Standards Board (‘‘FASB’’) Accounting Standards Codification (“ASC”) for interim financial information. All intercompany transactions and accounts have been eliminated in consolidation. The results of operations for the three and six months ended June 30, 2015 are not necessarily indicative of the results for the full year or the results for any future periods. We have reclassified certain prior-period amounts to conform to the current period’s presentation. These unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements, including the related notes, and the other information contained in our Annual Report on Form 10-K for the year ended December 31, 2014 . When used in these notes to condensed consolidated financial statements, the terms "we," "us," "our" or similar terms refers to On Deck Capital, Inc. and its consolidated subsidiaries. |
Use of Estimates | The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts in the condensed consolidated financial statements and accompanying notes. Significant estimates include allowance for loan losses, valuation of warrants, stock-based compensation expense, servicing assets/liabilities, capitalized software development costs, the useful lives of long-lived assets and valuation allowance for deferred tax assets. We base our estimates on historical experience, current events and other factors we believe to be reasonable under the circumstances. These estimates and assumptions are inherently subjective in nature; actual results may differ from these estimates and assumptions. |
Loans and Loans Held for Sale | Loans We originate term loans and lines of credit (collectively, “loans”) that are generally short term in nature and require daily or weekly repayments. We have both the ability and intent to hold these loans to maturity. When we originate a term loan, the borrower grants us a security interest in its assets. We may or may not perfect our security interest by publicly filing a financing statement. Loans are carried at amortized cost, reduced by a valuation allowance for loan losses estimated as of the balance sheet dates. In accordance with ASC Subtopic 310-20, Nonrefundable Fees and Other Costs , the amortized cost of a loan is equal to the unpaid principal balance, plus net deferred origination costs. Net deferred origination costs are comprised of certain direct origination costs, net of all loan origination fees received. Loan origination fees include fees charged to the borrower related to origination that increase the loan’s effective interest yield. Direct origination costs in excess of loan origination fees received are included in the loan balance and amortized over the term of the loan using the effective interest method. Loan origination costs are limited to direct costs attributable to originating a loan, including commissions and personnel costs directly related to the time spent by those individuals performing activities related to loan origination. Additionally, when a term loan is originated in conjunction with the extinguishment of a previously issued term loan, we determine whether this is a new loan or a modification to an existing loan in accordance with ASC 310-20. If accounted for as a new loan, any remaining unamortized net deferred costs are recognized when the new loan is originated. If accounted for as a modification, any remaining unamortized net deferred costs are amortized over the life of the modified loan. Loans Held for Sale OnDeck Marketplace ® is a program whereby we originate and sell certain term loans to third-party institutional investors and retain servicing rights. We sell these whole loans to purchasers in exchange for a cash payment. A portion of our loans are originated for the purpose of being sold through Marketplace . These whole loans are initially classified as held for sale within a short period of time from the initial funding when the whole loan is identified for sale and a plan exists for the sale. From time to time we may reclassify certain loans from held for investment to held for sale. Loans held for sale, inclusive of net deferred origination costs, are recorded at the lower of cost or market until the loans are sold. Because we continue to service the loans we sell, we evaluate whether a servicing asset or liability has been incurred. We estimate the fair value of the loan servicing asset or liability considering the contractual servicing fee revenue, adequate compensation for our servicing obligation, the non-delinquent principal balances of loans and projected servicing revenues over the remaining lives of the loans. As of June 30, 2015 and December 31, 2014 , we serviced term loans we sold with remaining unpaid principal of $202.6 million and $79.7 million , respectively, and determined any servicing asset to be immaterial. During the three months ended June 30, 2015 and 2014 we sold through Marketplace loans with an unpaid principal balance of $ 143.0 million and $ 24.0 million , respectively, and during the six months ended June 30, 2015 and 2014 we sold loans with an unpaid principal balance of $ 235.1 million and $ 53.3 million , respectively. Allowance for Loan Losses The allowance for loan losses (“ALLL”) is established through periodic charges to the provision for loan losses. Loan losses are charged against the ALLL when we believe that the future collection of principal is unlikely. Subsequent recoveries, if any, are credited to the ALLL. We evaluate the creditworthiness of our portfolio on a pooled basis due to its composition of small, homogeneous loans with similar general credit risk characteristics and diversification among variables including industry and geography. We use a proprietary forecast loss rate at origination for new loans that have not had the opportunity to make payments when they are first funded. The forecasted loss rate is updated daily to reflect actual loan performance, and the underlying ALLL model is updated monthly to reflect our assumptions. The allowance is subjective as it requires material estimates, including such factors as historical trends, known and inherent risks in the loan portfolio, adverse situations that may affect borrowers’ ability to repay and current economic conditions. Other qualitative factors considered may include items such as uncertainties in forecasting and modeling techniques, changes in portfolio composition, seasonality, business conditions and emerging trends. Recovery of the carrying value of loans is dependent to a great extent on conditions that may be beyond our control. Any combination of the aforementioned factors may adversely affect our loan portfolio resulting in increased delinquencies and loan losses and could require additional provisions for credit losses, which could impact future periods. In our opinion, we have provided adequate allowances to absorb probable credit losses inherent in our loan portfolio based on available and relevant information affecting the loan portfolio at each balance sheet date. Accrual for Unfunded Loan Commitments and Off-Balance Sheet Credit Exposures For our line of credit product we estimate probable losses on unfunded loan commitments similarly to the ALLL process and include the calculated amount in accrued expenses and other liabilities. We believe the accrual for unfunded loan commitments is sufficient to absorb estimated probable losses related to these unfunded credit commitments. The determination of the adequacy of the accrual is based on evaluations of the unfunded credit commitments, including an assessment of the probability of commitment usage, credit risk factors for lines of credit outstanding to these customers and the terms and expiration dates of the unfunded credit commitments. As of June 30, 2015 and December 31, 2014 , our off-balance sheet credit exposure related to the undrawn line of credit balances was $50.6 million and $28.7 million , respectively. The related accrual for unfunded loan commitments was $2.1 million and $1.3 million as of June 30, 2015 and December 31, 2014 , respectively. Net adjustments to the accrual for unfunded loan commitments are included in general and administrative expenses. Accrual for Third-Party Representations We have made certain representations to third parties that purchase loans through OnDeck Marketplace . Any significant estimated post-sale obligations or contingent obligations to the purchaser of the loans, such as fraudulent loan repurchase obligations or excess loss indemnification obligations, would be accrued if probable and estimable in accordance with ASC 450, Contingencies . There are no restricted assets related to these agreements. |
Revenue Recognition | Interest Income We generate revenue primarily through interest and origination fees earned on loans originated and held to maturity. We recognize interest and origination fee revenue over the terms of the underlying loans using the effective interest method. Origination fees collected but not yet recognized as revenue are netted with direct origination costs and presented as a component of loans in our condensed consolidated balance sheets. Historically, borrowers who elected to prepay term loans were required to pay future interest and fees that would have been assessed had the term loan been repaid in accordance with its original agreement. Beginning in December 2014, certain term loans may be eligible for a discount of future interest and fees that would have been assessed had the loan been repaid in accordance with its original agreement. Gain on Sales of Loans In October 2013, we started OnDeck Marketplace whereby we originate and sell certain loans to third-party purchasers and retain servicing rights. We account for the loan sales in accordance with ASC Topic 860, Transfers and Servicing, which states that a transfer of a financial asset, a group of financial assets, or a participating interest in a financial asset is accounted for as a sale if all of the following conditions are met: 1. The financial assets are isolated from the transferor and its consolidated affiliates as well as its creditors. 2. The transferee or beneficial interest holders have the right to pledge or exchange the transferred financial assets. 3. The transferor does not maintain effective control of the transferred assets. For the three and six months ended June 30, 2015 and 2014 , all sales met the requirements for sale treatment under the guidance for ASC Topic 860, Transfers and Servicing . We record the gain or loss on the sale of a loan at the sale date in an amount equal to the proceeds received less outstanding principal and net deferred origination costs. Other Revenue We retain servicing rights on sold loans and recognize servicing revenue for servicing sold loans as a component of other revenue. For the three months ended June 30, 2015 and 2014 we earned $0.9 million and $0.2 million of servicing revenue, respectively. For the six months ended June 30, 2015 and 2014 we earned $1.4 million and $0.4 million of servicing revenue, respectively. In accordance with ASC Topic 860, Transfers and Servicing, we have recognized an immaterial servicing asset. Other revenue also includes marketing fees earned from our issuing bank partner, which are recognized as the related services are provided, and monthly fees charged to customers for our line of credit products. |
Stock-Based Compensation | In accordance with ASC Topic 718, Compensation—Stock Compensation , all stock-based compensation made to employees is measured based on the grant-date fair value of the awards and recognized as compensation expense on a straight-line basis over the period during which the option holder is required to perform services in exchange for the award (the vesting period). We use the Black-Scholes-Merton Option Pricing Model to estimate the fair value of stock options. The use of the option valuation model requires subjective assumptions, including the fair value of our common stock, the expected term of the option and the expected stock price volatility, which is based on our stock as well as our peer companies. We issue restricted stock units ("RSUs") to employees and directors, which are measured based on the fair values of the underlying stock on the dates of grant. Additionally, the recognition of stock-based compensation expense requires an estimation of the number of options and RSUs that will ultimately vest and the number of options and RSUs that will ultimately be forfeited. Estimated forfeitures are subsequently adjusted to reflect actual forfeiture. |
Recent Accounting Pronouncements Not Yet Adopted | In May 2014, the FASB issued ASU 2014-09, Revenue Recognition , which creates ASC 606, Revenue from Contracts with Customers , and supersedes ASC 605, Revenue Recognition . ASU 2014-09 requires revenue to be recognized in an amount that reflects the consideration to which the entity expects to be entitled in exchange for goods or services as described in ASU 2014-09. In July of 2015, the FASB voted to defer the effective date of the new revenue standard by one year. The new guidance will be effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted, but not before the original effective date of December 15, 2016. We are currently in the process of assessing the impact the adoption of this guidance will have on our consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs , which amends ASC 835-30, Interest - Imputation of Interest. ASU 2015-03 requires entities to change the presentation of debt issuance costs in the financial statements. Under the ASU, an entity will be required to present such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. This accounting standard is effective beginning January 1, 2017. We are currently assessing the impact this accounting standard will have on our consolidated financial statements. |
Net Income (Loss) Per Common 17
Net Income (Loss) Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Basic and diluted net income (loss) per common share is calculated as follows (in thousands, except share and per share data): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Numerator: Net income (loss) $ 4,748 $ (1,054 ) $ (595 ) $ (14,771 ) Less: net loss attributable to noncontrolling interest 232 — 232 — Less: Accretion of dividends on redeemable convertible preferred stock — (3,596 ) — (6,200 ) Net income (loss) attributable to On Deck Capital, Inc. common stockholders $ 4,980 $ (4,650 ) $ (363 ) $ (20,971 ) Denominator: Weighted-average common shares outstanding: Basic 69,479,737 5,262,317 69,366,278 4,983,554 Weighted average effect of dilutive securities: Stock options 5,819,581 — — — Restricted stock and RSUs 40,032 — — — Employee stock purchase program 58,776 — — — Warrants to purchase common stock 282,164 — — — Diluted weighted-average common shares outstanding 75,680,290 5,262,317 69,366,278 4,983,554 Net income (loss) attributable to On Deck Capital, Inc. common stockholders per common share: Basic $ 0.07 $ (0.88 ) $ (0.01 ) $ (4.21 ) Diluted $ 0.07 $ (0.88 ) $ (0.01 ) $ (4.21 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following common share equivalent securities have been excluded from the calculation of weighted-average common shares outstanding because the effect is anti-dilutive for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Anti-Dilutive Common Share Equivalents Redeemable convertible preferred stock: Series A — 4,438,662 — 4,438,662 Series B — 10,755,262 — 10,755,262 Series C — 9,735,538 — 9,735,538 Series C-1 — 1,701,112 — 1,701,112 Series D — 14,467,756 — 14,467,756 Series E — 5,234,546 — 5,234,546 Warrants to purchase redeemable convertible preferred stock — 1,423,768 — 1,423,768 Warrants to purchase common stock 22,000 4,077,066 2,516,288 4,077,066 Restricted stock units and restricted stock 351,737 — 555,666 — Stock options 1,125,043 8,179,788 9,911,822 8,179,788 Total anti-dilutive common share equivalents 1,498,780 60,013,498 12,983,776 60,013,498 |
Loans, Allowance for Loan Los18
Loans, Allowance for Loan Losses and Loans Held for Sale (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Schedule of Loans | Loans consisted of the following as of June 30, 2015 and December 31, 2014 (in thousands): June 30, 2015 December 31, 2014 Term loans $ 461,657 $ 466,386 Lines of credit 41,731 24,177 Total unpaid principal balance 503,388 490,563 Net deferred origination costs 10,531 13,544 Total loans $ 513,919 $ 504,107 |
Schedule of Allowance for Loan Losses | The activity in the allowance for loan losses for the three and six months ended June 30, 2015 and 2014 consisted of the following (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Balance - beginning of period $ 56,795 $ 27,723 $ 49,804 $ 19,443 Provision for loan losses 15,526 13,073 38,626 29,652 Loans charged off (21,155 ) (9,382 ) (39,014 ) (18,059 ) Recoveries of loans previously charged off 1,886 486 3,636 864 Allowance for loan losses - end of period $ 53,052 $ 31,900 $ 53,052 $ 31,900 |
Schedule of Non-delinquent and Delinquent Loans | The following table shows an aging analysis of the unpaid principal balance of loans by delinquency status as of June 30, 2015 and December 31, 2014 (in thousands): June 30, 2015 December 31, 2014 By delinquency status: Non-delinquent loans $ 440,841 $ 430,689 1-14 calendar days past due 22,215 23,954 15-29 calendar days past due 8,491 9,462 30-59 calendar days past due 9,910 10,707 60-89 calendar days past due 9,819 7,724 90 + calendar days past due 12,112 8,027 Total unpaid principal balance $ 503,388 $ 490,563 The following table illustrates the unpaid principal balance of loans related to non-delinquent, paying and non-paying delinquent loans as of June 30, 2015 and December 31, 2014 (in thousands): June 30, 2015 December 31, 2014 Non-delinquent loans $ 440,841 $ 430,689 Delinquent: paying (accrual status) 41,794 40,049 Delinquent: non-paying (non-accrual status) 20,753 19,825 Total $ 503,388 $ 490,563 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Summary of Outstanding Debt | The following table summarizes our outstanding debt as of June 30, 2015 and December 31, 2014 : Description Type Maturity Date Interest Rates at June 30, 2015 June 30, 2015 December 31, 2014 (in thousands) Funding Debt: ODAST Agreement Securitization Facility May 2018 3.4% $ 174,976 $ 174,972 ODART Agreement Revolving September 2016 3.7% 86,732 105,598 ODAC Agreement Revolving May 2017 8.4% 18,782 32,733 ODAP Agreement Revolving August 2016 5.0% 22,727 56,686 PORT Agreement Revolving June 2017 2.4% 15,011 — RAOD Agreement Revolving May 2017 3.2% 28,209 — SBAF Agreement Revolving Various (1) 7.4% 16,921 16,740 Partner Synthetic Participations Term Various (2) Various 5,024 1,199 368,382 387,928 Corporate Debt: Square 1 Agreement Revolving October 2015 4.5% — 12,000 $ 368,382 $ 399,928 ___________ (1) Maturity dates range from July 2015 through May 2017 (2) Maturity dates range from July 2015 through June 2017 |
Redeemable Convertible Prefer20
Redeemable Convertible Preferred Stock (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Summary of Activity for Preferred Stock | The following table presents a summary of activity for the preferred stock issued and outstanding for the six months ended June 30, 2014 (in thousands): Series A Series B Series C Series C-1 Series D Series E Total Balance, January 1, 2014 $ 2,559 $ 22,918 $ 24,749 $ 5,401 $ 62,716 $ — $ 118,343 Issuance of preferred stock — — — — — 77,000 77,000 Accretion of dividends on preferred stock 65 634 818 188 2,407 2,088 6,200 Balance, June 30, 2014 $ 2,624 $ 23,552 $ 25,567 $ 5,589 $ 65,123 $ 79,088 $ 201,543 |
Fair Value of Financial Instr21
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Liabilities Measured on Recurring Basis | The following table presents the changes in the Level 3 instruments measured at fair value on a recurring basis for the three and six months ended June 30, 2014 (in thousands): Three Months Ended June 30, 2014 Six Months Ended June 30, 2014 Warrant liability balance - beginning of period $ 11,078 $ 4,446 Issuance of warrants at fair value 4 4 Change in fair value 2,190 8,822 Warrant liability balance - end of period $ 13,272 $ 13,272 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Assumptions for Estimating Fair Value of Stock Options | The following table summarizes the assumptions used for estimating the fair value of stock options granted during the six months ended June 30, 2015 : Six Months Ended June 30, 2015 Risk-free interest rate 1.65 - 2.13 % Expected term (years) 5.51 - 6.04 Expected volatility 44.00 - 46.51 % Dividend yield 0% Weighted-average grant date fair value per share option $8.27 |
Summary of Option Activity | The following is a summary of option activity during the six months ended June 30, 2015 : Number of Weighted- Weighted- Aggregate (in years) (in thousands) Outstanding at January 1, 2015 10,371,472 $ 4.59 Granted 310,043 $ 18.73 Exercised (476,231 ) $ 1.18 Forfeited (278,638 ) $ 5.90 Expired (14,824 ) $ 0.97 Outstanding at June 30, 2015 9,911,822 $ 5.16 8.04 $ 67,820 Exercisable at June 30, 2015 3,769,311 $ 1.16 7.10 $ 39,645 Vested or expected to vest as of June 30, 2015 9,431,273 $ 4.95 8.05 $ 65,494 |
Schedule of Stock-based Compensation Expense | Stock-based compensation expense was attributed to the following line items in our accompanying unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2015 and 2014 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Sales and marketing $ 594 $ 111 $ 1,168 $ 157 Technology and analytics 504 99 941 148 Processing and servicing 156 42 303 61 General and administrative 1,062 152 1,946 271 Total $ 2,316 $ 404 $ 4,358 $ 637 |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Basis of Presentation and Principles of Consolidation) (Details) - OnDeck Australia [Member] | Jun. 30, 2015 |
Noncontrolling Interest [Line Items] | |
Ownership percentage | 55.00% |
Ownership percentage by non-affiliated parties | 45.00% |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Loans and Loans Held for Sale) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
Serviced unpaid principal amount | $ 202.6 | $ 202.6 | $ 79.7 | ||
Unpaid principal balance for loans sold during period | 143 | $ 24 | 235.1 | $ 53.3 | |
Reserve for Off-balance Sheet Activities [Member] | |||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
Related accrual for unfunded loan commitments | 2.1 | 2.1 | 1.3 | ||
Unused lines of Credit [Member] | |||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
Off-balance sheet credit exposure related to undrawn line of credit | $ 50.6 | $ 50.6 | $ 28.7 |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Revenue Recognition) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Accounting Policies [Abstract] | ||||
Servicing revenue | $ 0.9 | $ 0.2 | $ 1.4 | $ 0.4 |
Net Income (Loss) Per Common 26
Net Income (Loss) Per Common Share (Basic and Diluted Net Loss per Common Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net income (loss) | $ 4,748 | $ (1,054) | $ (595) | $ (14,771) |
Less: net loss attributable to noncontrolling interest | 232 | 0 | 232 | 0 |
Less: Accretion of dividends on redeemable convertible preferred stock | 0 | (3,596) | 0 | (6,200) |
Net income (loss) attributable to On Deck Capital, Inc. common stockholders | $ 4,980 | $ (4,650) | $ (363) | $ (20,971) |
Weighted-average common shares outstanding: Basic | 69,479,737 | 5,262,317 | 69,366,278 | 4,983,554 |
Diluted weighted-average common shares outstanding | 75,680,290 | 5,262,317 | 69,366,278 | 4,983,554 |
Net income (loss) attributable to On Deck Capital, Inc. common stockholders per common share: | ||||
Basic (in dollars per share) | $ 0.07 | $ (0.88) | $ (0.01) | $ (4.21) |
Diluted (in dollars per share) | $ 0.07 | $ (0.88) | $ (0.01) | $ (4.21) |
Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted average effect of dilutive securities | 5,819,581 | 0 | 0 | 0 |
Restricted Stock and RSUs [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted average effect of dilutive securities | 40,032 | 0 | 0 | 0 |
Employee stock purchase program [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted average effect of dilutive securities | 58,776 | 0 | 0 | 0 |
Warrant [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted average effect of dilutive securities | 282,164 | 0 | 0 | 0 |
Net Income (Loss) Per Common 27
Net Income (Loss) Per Common Share (Anti-Dilutive Common Share Equivalents) (Details) - shares | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Dec. 31, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive common share equivalents | 1,498,780 | 60,013,498 | 12,983,776 | 60,013,498 |
Restricted stock units and restricted stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive common share equivalents | 351,737 | 0 | 555,666 | 0 |
Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive common share equivalents | 1,125,043 | 8,179,788 | 9,911,822 | 8,179,788 |
Series A [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive common share equivalents | 0 | 4,438,662 | 0 | 4,438,662 |
Series B [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive common share equivalents | 0 | 10,755,262 | 0 | 10,755,262 |
Series C [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive common share equivalents | 0 | 9,735,538 | 0 | 9,735,538 |
Series C-1 [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive common share equivalents | 0 | 1,701,112 | 0 | 1,701,112 |
Series D [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive common share equivalents | 0 | 14,467,756 | 0 | 14,467,756 |
Series E [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive common share equivalents | 0 | 5,234,546 | 0 | 5,234,546 |
Redeemable Convertible Preferred Stock [Member] | Warrants to purchase [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive common share equivalents | 0 | 1,423,768 | 0 | 1,423,768 |
Common Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive common share equivalents | 2,206,496 | |||
Common Stock [Member] | Warrants to purchase [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive common share equivalents | 22,000 | 4,077,066 | 2,516,288 | 4,077,066 |
Net Income (Loss) Per Common 28
Net Income (Loss) Per Common Share (Narrative) (Details) - $ / shares | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Dec. 31, 2014 | |
Class of Warrant or Right [Line Items] | ||||
Warrant to purchase shares of common stock excluded | 1,498,780 | 60,013,498 | 12,983,776 | 60,013,498 |
Common Stock [Member] | ||||
Class of Warrant or Right [Line Items] | ||||
Warrant to purchase shares of common stock excluded | 2,206,496 | |||
Weighted Average [Member] | ||||
Class of Warrant or Right [Line Items] | ||||
Weighted average exercise price for warrants to purchase common stock | $ 9.51 | $ 9.51 | $ 9.51 |
Loans, Allowance for Loan Los29
Loans, Allowance for Loan Losses and Loans Held for Sale (Loans) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unpaid principal balance | $ 503,388 | $ 490,563 |
Net deferred origination costs | 10,531 | 13,544 |
Total loans | 513,919 | 504,107 |
Term Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unpaid principal balance | 461,657 | 466,386 |
Lines of Credit [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unpaid principal balance | $ 41,731 | $ 24,177 |
Loans, Allowance for Loan Los30
Loans, Allowance for Loan Losses and Loans Held for Sale (Allowance Roll Forward) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance - beginning of period | $ 56,795 | $ 27,723 | $ 49,804 | $ 19,443 |
Provision for loan losses | 15,526 | 13,073 | 38,626 | 29,652 |
Loans charged off | (21,155) | (9,382) | (39,014) | (18,059) |
Recoveries of loans previously charged off | 1,886 | 486 | 3,636 | 864 |
Allowance for loan losses - end of period | $ 53,052 | $ 31,900 | $ 53,052 | $ 31,900 |
Loans, Allowance for Loan Los31
Loans, Allowance for Loan Losses and Loans Held for Sale (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Receivables [Abstract] | |||||
Purchased loans | $ 48.8 | $ 40.4 | $ 103.4 | $ 74.4 | |
Proceeds from sale of previously charged-off loans | 1.3 | $ 0.3 | 2.8 | $ 0.6 | |
Allowance for loan losses for non-delinquent loans | 22 | 22 | $ 20.5 | ||
Allowance for loan losses for delinquent loans | $ 31.1 | $ 31.1 | $ 29.3 |
Loans, Allowance for Loan Los32
Loans, Allowance for Loan Losses and Loans Held for Sale (Non-delinquent, Paying and Non-paying Delinquent Loans) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Receivables [Abstract] | ||
Non-delinquent loans | $ 440,841 | $ 430,689 |
Delinquent: paying (accrual status) | 41,794 | 40,049 |
Delinquent: non-paying (non-accrual status) | 20,753 | 19,825 |
Total loans | $ 503,388 | $ 490,563 |
Loans, Allowance for Loan Los33
Loans, Allowance for Loan Losses and Loans Held for Sale (Aging Analysis of Term Loans) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-delinquent loans | $ 440,841 | $ 430,689 |
Total loans | 503,388 | 490,563 |
1-14 calendar days past due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 22,215 | 23,954 |
15 to 29 calendar days past due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 8,491 | 9,462 |
30 to 59 calendar days past due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 9,910 | 10,707 |
60 to 89 calendar days past due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 9,819 | 7,724 |
Equal to or greater than 90 calendar days past due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | $ 12,112 | $ 8,027 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Outstanding debt | $ 368,382 | $ 399,928 |
Partner Synthetic Participations [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding debt | 5,024 | 1,199 |
Funding Debt [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding debt | $ 368,382 | 387,928 |
ODAST Agreement Due May 2018 [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Fixed interest rate | 3.40% | |
Outstanding debt | $ 174,976 | 174,972 |
ODART Agreement Due September 2016 [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Variable interest rate | 3.70% | |
Outstanding debt | $ 86,732 | 105,598 |
ODAC Agreement Due May 2017 [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Variable interest rate | 8.40% | |
Outstanding debt | $ 18,782 | 32,733 |
ODAP Agreement Due August 2016 [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Variable interest rate | 5.00% | |
Outstanding debt | $ 22,727 | 56,686 |
PORT Agreement Due June 2017 [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Variable interest rate | 2.40% | |
Outstanding debt | $ 15,011 | 0 |
RAOD Agreement Due May 2017 [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Variable interest rate | 3.20% | |
Outstanding debt | $ 28,209 | 0 |
SBAF Agreement Due July 2015 through May 2017 [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Fixed interest rate | 7.40% | |
Outstanding debt | $ 16,921 | 16,740 |
Corporate Debt [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding debt | $ 0 | 12,000 |
Corporate Debt [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Variable interest rate | 4.50% | |
Outstanding debt | $ 0 | $ 12,000 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - Revolving Credit Facility [Member] - USD ($) | Jun. 12, 2015 | May. 22, 2015 |
RAOD Agreement Due May 2017 [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit | $ 50,000,000 | |
RAOD Agreement Due May 2017 [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Variable interest spread | 3.00% | |
PORT Agreement Due June 2017 [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit | $ 100,000,000 | |
PORT Agreement Due June 2017 [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Variable interest spread | 2.25% |
Redeemable Convertible Prefer36
Redeemable Convertible Preferred Stock (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance, Preferred Stock Issued and Outstanding | $ 118,343,000 | |||
Issuance of preferred stock | 77,000,000 | |||
Accretion of dividends on preferred stock | $ 0 | $ 3,596,000 | $ 0 | 6,200,000 |
Ending Balance, Preferred Stock Issued and Outstanding | 201,543,000 | 201,543,000 | ||
Series A [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance, Preferred Stock Issued and Outstanding | 2,559,000 | |||
Issuance of preferred stock | 0 | |||
Accretion of dividends on preferred stock | 65,000 | |||
Ending Balance, Preferred Stock Issued and Outstanding | 2,624,000 | 2,624,000 | ||
Series B [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance, Preferred Stock Issued and Outstanding | 22,918,000 | |||
Issuance of preferred stock | 0 | |||
Accretion of dividends on preferred stock | 634,000 | |||
Ending Balance, Preferred Stock Issued and Outstanding | 23,552,000 | 23,552,000 | ||
Series C [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance, Preferred Stock Issued and Outstanding | 24,749,000 | |||
Issuance of preferred stock | 0 | |||
Accretion of dividends on preferred stock | 818,000 | |||
Ending Balance, Preferred Stock Issued and Outstanding | 25,567,000 | 25,567,000 | ||
Series C-1 [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance, Preferred Stock Issued and Outstanding | 5,401,000 | |||
Issuance of preferred stock | 0 | |||
Accretion of dividends on preferred stock | 188,000 | |||
Ending Balance, Preferred Stock Issued and Outstanding | 5,589,000 | 5,589,000 | ||
Series D [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance, Preferred Stock Issued and Outstanding | 62,716,000 | |||
Issuance of preferred stock | 0 | |||
Accretion of dividends on preferred stock | 2,407,000 | |||
Ending Balance, Preferred Stock Issued and Outstanding | 65,123,000 | 65,123,000 | ||
Series E [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance, Preferred Stock Issued and Outstanding | 0 | |||
Issuance of preferred stock | 77,000,000 | |||
Accretion of dividends on preferred stock | 2,088,000 | |||
Ending Balance, Preferred Stock Issued and Outstanding | $ 79,088,000 | $ 79,088,000 | ||
Redeemable Convertible Preferred Stock [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Ending Balance, Preferred Stock Issued and Outstanding | $ 0 | $ 0 |
Fair Value of Financial Instr37
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Hypothetical change in assumed asset volatility | 10.00% | ||
Warrant Liability [Member] | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Warrant liability balance - beginning of period | $ 11,078 | $ 4,446 | |
Issuance of warrants at fair value | 4 | 4 | |
Change in fair value | 2,190 | 8,822 | |
Warrant liability balance - end of period | $ 13,272 | $ 13,272 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Assumptions) (Details) - 6 months ended Jun. 30, 2015 - Employee Stock Option [Member] - $ / shares | Total |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate, Minimum | 1.65% |
Risk-free interest rate, Maximum | 2.13% |
Expected volatility, Minimum | 44.00% |
Expected volatility, Maximum | 46.51% |
Dividend yield | 0.00% |
Weighted-average grant date fair value per share option | $ 8.27 |
Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term (years) | 5 years 6 months 4 days |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term (years) | 6 years 15 days |
Stock-Based Compensation (Sum39
Stock-Based Compensation (Summary of Option Activity) (Details) - Jun. 30, 2015 - USD ($) $ / shares in Units, $ in Thousands | Total |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Beginning Balance, Outstanding, Number of Options | 10,371,472 |
Granted, Number of Options | 310,043 |
Exercised, Number of Options | (476,231) |
Forfeited, Number of Options | (278,638) |
Expired, Number of Options | (14,824) |
Ending Balance, Outstanding, Number of Options | 9,911,822 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Beginning Balance, Outstanding, Weighted-Average Exercise Price | $ 4.59 |
Granted, Weighted-Average Exercise Price | 18.73 |
Exercised, Weighted-Average Exercise Price | 1.18 |
Forfeited, Weighted-Average Exercise Price | 5.90 |
Expired, Weighted-Average Exercise Price | 0.97 |
Ending Balance, Outstanding, Weighted-Average Exercise Price | $ 5.16 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Outstanding, Weighted-Average Remaining Contractual Term | 8 years 15 days |
Outstanding, Aggregate Intrinsic Value | $ 67,820 |
Exercisable, Number of Options | 3,769,311 |
Exercisable, Weighted-Average Exercise Price | $ 1.16 |
Exercisable, Weighted-Average Remaining Contractual Term | 7 years 1 month 6 days |
Exercisable, Aggregate Intrinsic Value | $ 39,645 |
Vested or expected to vest, Number of Options | 9,431,273 |
Vested or expected to vest, Weighted-Average Exercise Price | $ 4.95 |
Vested or expected to vest, Weighted-Average Remaining Contractual Term | 8 years 18 days |
Vested or expected to vest, Aggregate Intrinsic Value | $ 65,494 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock-based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 2,316 | $ 404 | $ 4,358 | $ 637 |
Sales and Marketing [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 594 | 111 | 1,168 | 157 |
Technology and Analytics [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 504 | 99 | 941 | 148 |
Processing and Servicing [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 156 | 42 | 303 | 61 |
General and Administrative [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 1,062 | $ 152 | $ 1,946 | $ 271 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) (Details) - Jun. 30, 2015 - USD ($) $ in Millions | Total | Total |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation cost for nonvested awards not yet recognized | $ 19 | $ 19 |
Aggregate intrinsic value, employee options exercised | $ 1.7 | $ 7.8 |
Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Period for recognition | 3 years 4 days |
Commitments and Contingencies (
Commitments and Contingencies (Details) ft² in Thousands, $ in Thousands | 1 Months Ended | 6 Months Ended | ||
Jun. 30, 2015USD ($)ft² | Apr. 30, 2015USD ($) | Jun. 30, 2015USD ($)ft² | Aug. 31, 2015lawsuit | |
Loss Contingencies [Line Items] | ||||
Initial monthly fixed rent payments | $ 400 | |||
Rent credits | 3,600 | |||
Tenant improvement allowance | $ 5,800 | |||
Lease term of contract | 10 years 10 months | |||
Pending Litigation [Member] | Subsequent Event [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of putative class actions filed | lawsuit | 2 | |||
New Denver Lease [Member] | ||||
Loss Contingencies [Line Items] | ||||
Tenant improvement allowance | $ 2,600 | |||
Lease term of contract | 124 months | |||
Number of square feet | ft² | 72 | 72 | ||
Average monthly fixed rent payment | $ 144 | |||
General and Administrative Expense [Member] | ||||
Loss Contingencies [Line Items] | ||||
Lease termination fee | $ 400 |