Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2020 | Aug. 10, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2020 | |
Entity File Number | 333-225797-01 | |
Entity Registrant Name | PROSPER MARKETPLACE, INC. | |
Entity Central Index Key | 0001416265 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 73-1733867 | |
Entity Address, Address Line One | 221 Main Street | |
Entity Address, Address Line Two | 3rd Floor | |
Entity Address, City or Town | San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94105 | |
City Area Code | 415 | |
Local Phone Number | 593-5400 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 68,455,641 | |
Prosper Funding LLC | ||
Entity Information [Line Items] | ||
Entity File Number | 333-225797 | |
Entity Registrant Name | PROSPER FUNDING LLC | |
Entity Central Index Key | 0001542574 | |
Current Fiscal Year End Date | --12-31 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 45-4526070 | |
Entity Address, Address Line One | 221 Main Street | |
Entity Address, Address Line Two | 3rd Floor | |
Entity Address, City or Town | San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94105 | |
City Area Code | 415 | |
Local Phone Number | 593-5400 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 0 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | |
Assets | |||
Cash and Cash Equivalents | $ 46,575 | $ 64,635 | |
Restricted Cash (1) | [1] | 143,318 | 155,773 |
Accounts Receivable (1) | [1] | 1,047 | 1,695 |
Loans Held for Sale, at Fair Value (1) | [1] | 216,243 | 142,026 |
Borrower Loans, at Fair Value | [1] | 457,487 | 634,019 |
Property and Equipment, Net | 30,490 | 31,296 | |
Prepaid and Other Assets (1) | [1] | 6,528 | 5,694 |
Servicing Assets | 10,073 | 12,602 | |
Goodwill | 36,368 | 36,368 | |
Intangible Assets, Net | 610 | 720 | |
Total Assets | 948,739 | 1,084,828 | |
Liabilities, Convertible Preferred Stock and Stockholders' Deficit | |||
Accounts Payable and Accrued Liabilities | 12,044 | 19,937 | |
Payable to Investors | 102,405 | 101,092 | |
Notes, at Fair Value | 209,987 | 244,171 | |
Notes Issued by Securitization Trust (1) | [1] | 235,353 | 347,662 |
Certificates Issued by Securitization Trust, at Fair Value | [1] | 31,571 | 52,168 |
Warehouse Lines (1) | [1] | 198,857 | 131,583 |
Other Liabilities | 27,248 | 21,726 | |
Convertible Preferred Stock Warrant Liability | 74,998 | 149,996 | |
Total Liabilities | 892,463 | 1,068,335 | |
Commitments and Contingencies (see Note 17) | |||
Convertible Preferred Stock – $0.01 par value; 444,760,848 shares authorized as of June 30, 2020 and December 31, 2019; 209,613,570 issued and outstanding as of June 30, 2020 and December 31, 2019. Aggregate liquidation preference of $370,456 as of June 30, 2020 and December 31, 2019. | 322,748 | 322,748 | |
Stockholders' Deficit | |||
Common Stock – $0.01 par value; 625,000,000 shares authorized; 69,391,576 shares issued and 68,455,641 shares outstanding, as of June 30, 2020; 69,387,836 shares issued and 68,451,901 shares outstanding, as of December 31, 2019. | 208 | 208 | |
Additional Paid-In Capital | 152,428 | 151,416 | |
Less: Treasury Stock | (23,417) | (23,417) | |
Accumulated Deficit | (395,691) | (434,462) | |
Total Stockholders' Deficit | (266,472) | (306,255) | |
Total Liabilities, Convertible Preferred Stock and Stockholders' Deficit | 948,739 | 1,084,828 | |
Prosper Funding LLC | |||
Assets | |||
Cash and Cash Equivalents | 7,813 | 7,462 | |
Restricted Cash (1) | 113,647 | 110,399 | |
Borrower Loans, at Fair Value | 211,775 | 245,137 | |
Servicing Assets | 12,063 | 14,888 | |
Other Assets | 647 | 749 | |
Total Assets | 353,797 | 386,184 | |
Liabilities, Convertible Preferred Stock and Stockholders' Deficit | |||
Accounts Payable and Accrued Liabilities | 2,520 | 2,133 | |
Payable to Related Party | 7,183 | 2,679 | |
Payable to Investors | 105,591 | 105,287 | |
Notes, at Fair Value | 209,986 | 244,171 | |
Other Liabilities | 2,907 | 3,727 | |
Total Liabilities | 328,187 | 357,997 | |
Stockholders' Deficit | |||
Member's Equity | 11,404 | 15,904 | |
Accumulated Deficit | 14,206 | 12,283 | |
Total Stockholders' Deficit | 25,610 | 28,187 | |
Total Liabilities, Convertible Preferred Stock and Stockholders' Deficit | 353,797 | 386,184 | |
Primary Beneficiary | |||
Assets | |||
Restricted Cash (1) | [2] | 27,090 | 39,118 |
Accounts Receivable (1) | [2] | 0 | 73 |
Loans Held for Sale, at Fair Value (1) | [2] | 216,243 | 142,026 |
Borrower Loans, at Fair Value | [2] | 245,712 | 388,882 |
Prepaid and Other Assets (1) | [2] | 2,487 | 2,928 |
Total Assets | [2] | 491,532 | 573,027 |
Liabilities, Convertible Preferred Stock and Stockholders' Deficit | |||
Notes Issued by Securitization Trust (1) | [2] | 235,353 | 347,662 |
Certificates Issued by Securitization Trust, at Fair Value | [2] | 31,571 | 52,168 |
Warehouse Lines (1) | [2] | 198,857 | 131,583 |
Total Liabilities | [2] | $ 465,781 | $ 531,413 |
[1] | (1) Includes amounts in consolidated varia ble interest entities (VIEs) presented separately in the table below. | ||
[2] | The following table presents the assets and liabilities of consolidated variable interest entities (VIEs), which are included in the condensed consolidated balance sheets above. The assets in the table below may only be used to settle obligations of consolidated VIEs and are in excess of those obligations. Additionally, the assets and liabilities in the table below include third-party assets and liabilities of consolidated VIEs only and exclude intercompany balances that eliminate in consolidation. See Note 6, Securitizations, and Note 10, Debt, to our Notes to Condensed Consolidated Financial Statements for add itional information. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 20, 2017 |
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) | 444,760,848 | 444,760,848 | |
Convertible preferred stock, shares issued (in shares) | 209,613,570 | ||
Convertible preferred stock, shares outstanding (in shares) | 209,613,570 | ||
Convertible preferred stock, aggregate liquidation preference | $ 370,456 | $ 370,456 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 625,000,000 | 625,000,000 | 625,000,000 |
Common stock, shares issued (in shares) | 69,391,576 | 69,387,836 | |
Common stock, shares outstanding (in shares) | 68,455,641 | 68,451,901 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Operating Revenues | ||||
Revenues | $ 17,244,000 | $ 36,990,000 | $ 46,470,000 | $ 63,472,000 |
Gain (Loss) on Sale of Borrower Loans | 617,000 | 3,559,000 | 2,361,000 | 6,256,000 |
Fair Value of Warrants Vested on Sale of Borrower Loans | 0 | (7,805,000) | 0 | (17,553,000) |
Interest Income | ||||
Interest Income on Borrower Loans and Loans Held for Sale | 26,645,000 | 23,543,000 | 54,289,000 | 41,972,000 |
Interest Expense on Financial Instruments | (15,270,000) | (15,645,000) | (31,953,000) | (28,765,000) |
Net Interest Income | 11,375,000 | 7,898,000 | 22,336,000 | 13,207,000 |
Change in Fair Value of Financial Instruments, Net | (2,362,000) | (1,958,000) | (39,304,000) | (3,671,000) |
Total Net Revenue | 26,257,000 | 42,930,000 | 29,502,000 | 73,008,000 |
Expenses | ||||
Origination and Servicing | 7,365,000 | 9,427,000 | 15,811,000 | 17,589,000 |
Sales and Marketing | 5,022,000 | 21,450,000 | 16,264,000 | 37,791,000 |
General and Administrative | 15,720,000 | 17,908,000 | 33,882,000 | 36,677,000 |
Impairment Expense | 228,000 | 0 | 228,000 | 0 |
Restructuring Charges, Net | 0 | 5,000 | 0 | 86,000 |
Change in Fair Value of Convertible Preferred Stock Warrants | (19,549,000) | (4,729,000) | (74,998,000) | 5,327,000 |
Other Income, Net | (204,000) | (591,000) | (524,000) | (1,237,000) |
Total Expenses | 8,582,000 | 43,470,000 | (9,337,000) | 96,233,000 |
Net Income (Loss) Before Taxes | 17,675,000 | (540,000) | 38,839,000 | (23,225,000) |
Income Tax Expense | 34,000 | 29,000 | 68,000 | 58,000 |
Net Income (Loss) | 17,641,000 | (569,000) | 38,771,000 | (23,283,000) |
Less: Net Income Allocated to Participating Securities | (13,153,000) | 0 | (28,908,000) | 0 |
Net Income (Loss) Attributable to Common Stockholders | $ 4,488,000 | $ (569,000) | $ 9,863,000 | $ (23,283,000) |
Net Income (Loss) Per Share - Basic (in shares) | $ 0.07 | $ (0.01) | $ 0.14 | $ (0.33) |
Net Income (Loss) Per Share - Diluted (in shares) | $ 0.02 | $ (0.01) | $ 0.03 | $ (0.33) |
Weighted-Average Shares - Basic (in shares) | 68,455,641 | 70,502,797 | 68,454,872 | 70,494,945 |
Weighted-Average Shares - Diluted (in shares) | 281,847,412 | 70,502,797 | 282,057,163 | 70,494,945 |
Prosper Funding LLC | ||||
Operating Revenues | ||||
Revenues | $ 10,344,000 | $ 18,804,000 | $ 24,818,000 | $ 35,655,000 |
Gain (Loss) on Sale of Borrower Loans | 1,182,000 | (4,053,000) | 3,182,000 | (10,879,000) |
Interest Income | ||||
Interest Income on Borrower Loans and Loans Held for Sale | 9,309,000 | 10,403,000 | 19,147,000 | 20,734,000 |
Interest Expense on Financial Instruments | (8,728,000) | (9,735,000) | (17,944,000) | (19,384,000) |
Net Interest Income | 581,000 | 668,000 | 1,203,000 | 1,350,000 |
Change in Fair Value on Borrower Loans, Loans Held for Sale and Notes, Net | 194,000 | (131,000) | 257,000 | (218,000) |
Total Net Revenue | 11,119,000 | 19,341,000 | 26,278,000 | 36,787,000 |
Expenses | ||||
Administration Fee - Related Party | 9,494,000 | 16,773,000 | 21,858,000 | 31,765,000 |
Servicing | 1,137,000 | 1,304,000 | 2,330,000 | 2,372,000 |
General and Administrative | 113,000 | 34,000 | 167,000 | 129,000 |
Total Expenses | 10,744,000 | 18,111,000 | 24,355,000 | 34,266,000 |
Income Tax Expense | 0 | 0 | ||
Net Income (Loss) | 375,000 | 1,230,000 | 1,923,000 | 2,521,000 |
Administration Fee Revenue - Related Party | Prosper Funding LLC | ||||
Operating Revenues | ||||
Revenues | 3,740,000 | 16,640,000 | 9,575,000 | 33,615,000 |
Transaction Fees, Net | ||||
Operating Revenues | ||||
Revenues | 11,401,000 | 33,876,000 | 31,814,000 | 60,171,000 |
Servicing Fees, Net | ||||
Operating Revenues | ||||
Revenues | 4,660,000 | 5,172,000 | 10,717,000 | 11,375,000 |
Servicing Fees, Net | Prosper Funding LLC | ||||
Operating Revenues | ||||
Revenues | 5,257,000 | 6,231,000 | 11,716,000 | 12,876,000 |
Other Revenue | ||||
Operating Revenues | ||||
Revenues | 566,000 | 2,188,000 | 1,578,000 | 3,223,000 |
Other Revenue | Prosper Funding LLC | ||||
Operating Revenues | ||||
Revenues | $ 165,000 | $ (14,000) | $ 345,000 | $ 43,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Other Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income (Loss) | $ 17,641 | $ (569) | $ 38,771 | $ (23,283) |
Other Comprehensive Income | ||||
Change in Net Unrealized Gain on Available for Sale Investments, at Fair Value | 0 | 11 | 0 | 21 |
Other Comprehensive Income, Before Tax | 0 | 11 | 0 | 21 |
Income Tax Effect | 0 | 0 | 0 | 0 |
Other Comprehensive Income, Net of Tax | 0 | 11 | 0 | 21 |
Comprehensive Income (Loss), Net of Tax | $ 17,641 | $ (558) | $ 38,771 | $ (23,262) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders’ Deficit - USD ($) $ in Thousands | Total | Convertible Preferred Stock | Common Stock | Treasury Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income | Retained Earnings (Accumulated Deficit) | Prosper Funding LLC | Prosper Funding LLCRetained Earnings (Accumulated Deficit) | Prosper Funding LLCMember's Equity |
Beginning balance (in shares) at Dec. 31, 2018 | 214,637,925 | |||||||||
Beginning balance at Dec. 31, 2018 | $ 323,793 | |||||||||
Ending balance (in shares) at Mar. 31, 2019 | 214,637,925 | |||||||||
Ending balance at Mar. 31, 2019 | $ 323,793 | |||||||||
Beginning balance (in shares) at Dec. 31, 2018 | 75,652,445 | (5,177,235) | ||||||||
Beginning balance at Dec. 31, 2018 | $ (298,466) | $ 229 | $ (23,417) | $ 145,486 | $ (13) | $ (420,751) | $ 31,245 | $ 6,341 | $ 24,904 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Exercise of vested stock options (in shares) | 16,085 | |||||||||
Exercise of vested stock options | 4 | 4 | ||||||||
Stock-based Compensation Expense | 1,714 | 1,714 | ||||||||
Change in net unrealized loss on available for sale investments, at fair value | 10 | 10 | ||||||||
Net Income (Loss) | (22,714) | (22,714) | 1,291 | 1,291 | ||||||
Ending balance (in shares) at Mar. 31, 2019 | 75,668,530 | (5,177,235) | ||||||||
Ending balance at Mar. 31, 2019 | (319,452) | $ 229 | $ (23,417) | 147,204 | (3) | (443,465) | 32,536 | 7,632 | 24,904 | |
Beginning balance (in shares) at Dec. 31, 2018 | 214,637,925 | |||||||||
Beginning balance at Dec. 31, 2018 | $ 323,793 | |||||||||
Ending balance (in shares) at Jun. 30, 2019 | 214,637,925 | |||||||||
Ending balance at Jun. 30, 2019 | $ 323,793 | |||||||||
Beginning balance (in shares) at Dec. 31, 2018 | 75,652,445 | (5,177,235) | ||||||||
Beginning balance at Dec. 31, 2018 | (298,466) | $ 229 | $ (23,417) | 145,486 | (13) | (420,751) | 31,245 | 6,341 | 24,904 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net Income (Loss) | (23,283) | 2,521 | ||||||||
Ending balance (in shares) at Jun. 30, 2019 | 75,743,761 | (5,177,235) | ||||||||
Ending balance at Jun. 30, 2019 | (318,685) | $ 230 | $ (23,417) | 148,528 | 8 | (444,034) | 33,766 | 8,862 | 24,904 | |
Beginning balance (in shares) at Mar. 31, 2019 | 214,637,925 | |||||||||
Beginning balance at Mar. 31, 2019 | $ 323,793 | |||||||||
Ending balance (in shares) at Jun. 30, 2019 | 214,637,925 | |||||||||
Ending balance at Jun. 30, 2019 | $ 323,793 | |||||||||
Beginning balance (in shares) at Mar. 31, 2019 | 75,668,530 | (5,177,235) | ||||||||
Beginning balance at Mar. 31, 2019 | (319,452) | $ 229 | $ (23,417) | 147,204 | (3) | (443,465) | 32,536 | 7,632 | 24,904 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Exercise of vested stock options (in shares) | 75,231 | |||||||||
Exercise of vested stock options | 9 | $ 1 | 8 | |||||||
Stock-based Compensation Expense | 1,316 | 1,316 | ||||||||
Change in net unrealized loss on available for sale investments, at fair value | 11 | 11 | ||||||||
Net Income (Loss) | (569) | (569) | 1,230 | 1,230 | ||||||
Ending balance (in shares) at Jun. 30, 2019 | 75,743,761 | (5,177,235) | ||||||||
Ending balance at Jun. 30, 2019 | (318,685) | $ 230 | $ (23,417) | 148,528 | $ 8 | (444,034) | 33,766 | 8,862 | 24,904 | |
Beginning balance (in shares) at Dec. 31, 2019 | 209,613,570 | |||||||||
Beginning balance at Dec. 31, 2019 | 322,748 | $ 322,748 | ||||||||
Ending balance (in shares) at Mar. 31, 2020 | 209,613,570 | |||||||||
Ending balance at Mar. 31, 2020 | $ 322,748 | |||||||||
Beginning balance (in shares) at Dec. 31, 2019 | 73,629,136 | (5,177,235) | ||||||||
Beginning balance at Dec. 31, 2019 | (306,255) | $ 208 | $ (23,417) | 151,416 | (434,462) | 28,187 | 12,283 | 15,904 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Exercise of vested stock options (in shares) | 3,740 | |||||||||
Exercise of vested stock options | 1 | 1 | ||||||||
Stock-based Compensation Expense | 557 | 557 | ||||||||
Net Income (Loss) | 21,130 | 21,130 | 1,548 | 1,548 | ||||||
Ending balance (in shares) at Mar. 31, 2020 | 73,632,876 | (5,177,235) | ||||||||
Ending balance at Mar. 31, 2020 | (284,567) | $ 208 | $ (23,417) | 151,974 | (413,332) | 29,735 | 13,831 | 15,904 | ||
Beginning balance (in shares) at Dec. 31, 2019 | 209,613,570 | |||||||||
Beginning balance at Dec. 31, 2019 | $ 322,748 | $ 322,748 | ||||||||
Ending balance (in shares) at Jun. 30, 2020 | 209,613,570 | 209,613,570 | ||||||||
Ending balance at Jun. 30, 2020 | $ 322,748 | $ 322,748 | ||||||||
Beginning balance (in shares) at Dec. 31, 2019 | 73,629,136 | (5,177,235) | ||||||||
Beginning balance at Dec. 31, 2019 | (306,255) | $ 208 | $ (23,417) | 151,416 | (434,462) | 28,187 | 12,283 | 15,904 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net Income (Loss) | 38,771 | 1,923 | ||||||||
Ending balance (in shares) at Jun. 30, 2020 | 73,632,876 | (5,177,235) | ||||||||
Ending balance at Jun. 30, 2020 | $ (266,472) | $ 208 | $ (23,417) | 152,428 | (395,691) | 25,610 | 14,206 | 11,404 | ||
Beginning balance (in shares) at Mar. 31, 2020 | 209,613,570 | |||||||||
Beginning balance at Mar. 31, 2020 | $ 322,748 | |||||||||
Ending balance (in shares) at Jun. 30, 2020 | 209,613,570 | 209,613,570 | ||||||||
Ending balance at Jun. 30, 2020 | $ 322,748 | $ 322,748 | ||||||||
Beginning balance (in shares) at Mar. 31, 2020 | 73,632,876 | (5,177,235) | ||||||||
Beginning balance at Mar. 31, 2020 | (284,567) | $ 208 | $ (23,417) | 151,974 | (413,332) | 29,735 | 13,831 | 15,904 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock-based Compensation Expense | 454 | 454 | ||||||||
Distribution to Parent | (4,500) | (4,500) | ||||||||
Net Income (Loss) | 17,641 | 17,641 | 375 | 375 | ||||||
Ending balance (in shares) at Jun. 30, 2020 | 73,632,876 | (5,177,235) | ||||||||
Ending balance at Jun. 30, 2020 | $ (266,472) | $ 208 | $ (23,417) | $ 152,428 | $ (395,691) | $ 25,610 | $ 14,206 | $ 11,404 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from Operating Activities: | ||
Net Income (Loss) | $ 38,771 | $ (23,283) |
Adjustments to Reconcile Net Income (Loss) to Net Cash Used in Operating Activities: | ||
Change in Fair Value of Financial Instruments, Net | 39,300 | 5,045 |
Depreciation and Amortization | 4,041 | 3,743 |
Amortization of Operating Lease Right-of-Use Asset | 1,752 | 1,632 |
Impairment of Operating Lease Right-of-Use Asset | 228 | 0 |
Gain on Sales of Borrower Loans | (2,703) | (6,378) |
Change in Fair Value of Servicing Rights | 5,232 | 6,621 |
Stock-Based Compensation Expense | 897 | 2,850 |
Fair Value of Warrants Vested on Sale of Borrower Loans | 0 | 17,553 |
Change in Fair Value of Convertible Preferred Stock Warrants | (74,998) | 5,327 |
Other, Net | 264 | 1,303 |
Changes in Operating Assets and Liabilities: | ||
Purchase of Loans Held for Sale at Fair Value | (622,122) | (1,161,237) |
Proceeds from Sales and Principal Payments of Loans Held for Sale at Fair Value | 568,402 | 1,108,814 |
Accounts Receivable | 648 | 4,035 |
Prepaid and Other Assets | (834) | (601) |
Accounts Payable and Accrued Liabilities | (7,599) | 601 |
Payable to Investors | 1,313 | (12,727) |
Other Liabilities | (2,804) | (2,632) |
Net Cash Used in Operating Activities | (50,212) | (49,334) |
Cash Flows from Investing Activities: | ||
Purchase of Borrower Loans Held at Fair Value | (65,664) | (86,064) |
Proceeds from Sales and Principal Payments of Borrower Loans Held at Fair Value | 150,262 | 106,940 |
Purchases of Property and Equipment | (5,286) | (5,032) |
Purchases of Available for Sale Investments, at Fair Value | 0 | (1,488) |
Maturities of Available for Sale Investments | 0 | 22,271 |
Net Cash Provided by Investing Activities | 79,312 | 36,627 |
Cash Flows from Financing Activities: | ||
Proceeds from Issuance of Notes Held at Fair Value | 65,043 | 86,713 |
Payments of Notes Held at Fair Value | (77,107) | (85,728) |
Principal Payments on Notes Issued by Securitization Trust | (113,423) | (30,221) |
Principal Payments on Certificates Issued by Securitization Trust | (9,875) | (4,272) |
Proceeds from Securitization Issuance | 0 | 5,454 |
Proceeds from Warehouse Lines | 73,299 | 69,411 |
Principal payments on Warehouse Lines | (6,000) | 0 |
Proceeds from Paycheck Protection Program loan | 8,447 | 0 |
Payment for Debt Issuance Costs | 0 | (6,608) |
Proceeds from Exercise of Warrants and Stock Options | 1 | 13 |
Net Cash (Used in) Provided by Financing Activities | (59,615) | 34,762 |
Net (Decrease) Increase in Cash, Cash Equivalents and Restricted Cash | (30,515) | 22,055 |
Cash, Cash Equivalents and Restricted Cash at Beginning of the Period | 220,408 | 207,059 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Ending Balance | 189,893 | 229,114 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash Paid for Interest | 30,522 | 27,560 |
Non-Cash Investing Activity - Accrual for Property and Equipment, Net | 413 | 411 |
Non-Cash Investing Activity - Consolidation of Borrower Loans, at Fair Value | 0 | 262,565 |
Non-Cash Financing Activity - Issuance of Securitization Notes and Certificates | 0 | 395,544 |
Non-Cash Financing Activity - Derecognition of Warehouse Line debt | 0 | (130,322) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||
Total Cash, Cash Equivalents and Restricted Cash | 189,893 | 229,114 |
Prosper Funding LLC | ||
Cash flows from Operating Activities: | ||
Net Income (Loss) | 1,923 | 2,521 |
Adjustments to Reconcile Net Income (Loss) to Net Cash Used in Operating Activities: | ||
Change in Fair Value of Financial Instruments, Net | (258) | 217 |
Other Non-Cash Changes in Borrower Loans, Loans Held for Sale and Notes | 4 | (403) |
Depreciation and Amortization | 2,051 | 2,203 |
Gain on Sales of Borrower Loans | (3,402) | (6,796) |
Change in Fair Value of Servicing Rights | 6,227 | 6,877 |
Changes in Operating Assets and Liabilities: | ||
Purchase of Loans Held for Sale at Fair Value | (622,122) | (1,161,237) |
Proceeds from Sales and Principal Payments of Loans Held for Sale at Fair Value | 622,122 | 1,161,237 |
Other Assets | 102 | 179 |
Accounts Payable and Accrued Liabilities | 387 | (2,466) |
Payable to Investors | 304 | (9,553) |
Net Related Party Receivable/Payable | 3,419 | (1,131) |
Other Liabilities | (820) | 97 |
Net Cash Used in Operating Activities | 9,937 | (8,255) |
Cash Flows from Investing Activities: | ||
Purchase of Borrower Loans Held at Fair Value | (65,664) | (86,062) |
Proceeds from Sales and Principal Payments of Borrower Loans Held at Fair Value | 77,160 | 84,137 |
Purchases of Property and Equipment | (1,269) | (2,337) |
Net Cash Provided by Investing Activities | 10,227 | (4,262) |
Cash Flows from Financing Activities: | ||
Proceeds from Issuance of Notes Held at Fair Value | 65,043 | 86,713 |
Payments of Notes Held at Fair Value | (77,108) | (85,728) |
Cash Distributions to Parent | (4,500) | 0 |
Net Cash (Used in) Provided by Financing Activities | (16,565) | 985 |
Net (Decrease) Increase in Cash, Cash Equivalents and Restricted Cash | 3,599 | (11,532) |
Cash, Cash Equivalents and Restricted Cash at Beginning of the Period | 117,861 | 147,181 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Ending Balance | 121,460 | 135,649 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash Paid for Interest | 17,700 | 19,986 |
Non-Cash Investing Activity - Accrual for Property and Equipment, Net | 1,331 | 35 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||
Total Cash, Cash Equivalents and Restricted Cash | $ 121,460 | $ 135,649 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2020 | |
Entity Information [Line Items] | |
Basis of Presentation | 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 PMI, “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 accounting principles generally accepted in the United States of America (“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, 2019. The balance sheet at December 31, 2019 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 US 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. The accompanying interim condensed consolidated financial statements include the accounts of PMI, its wholly-owned subsidiaries and consolidated variable interest entities (“VIEs”). All intercompany balances have been eliminated in consolidation. Securitization Notes are notes held by certain third party investors pursuant to Prosper’s securitization transactions, and are distinguishable from the borrower payment dependent Notes available to investors through our Note Channel. |
Prosper Funding LLC | |
Entity Information [Line Items] | |
Basis of Presentation | Basis of Presentation Prosper Funding LLC (“PFL”) was formed in the state of Delaware in February 2012 as a limited liability company with the Prosper Marketplace, Inc. (“PMI”) as its sole equity member. Except as the context otherwise requires, as used in these Notes to the condensed consolidated financial statements of PFL, “Prosper Funding,” “we,” “us,” and “our” refers to PFL and its wholly owned subsidiary, Prosper Depositor LLC, 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, 2019. The balance sheet at December 31, 2019 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 or loss for any of the periods presented in the condensed consolidated financial statements as of and for the six months ended June 30, 2020 and June 30, 2019. The preparation of Prosper Funding's condensed consolidated financial statements and related disclosures in conformity with US 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Entity Information [Line Items] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Prosper’s significant accounting policies are included in Note 2, Summary of Significant Accounting Policies, in Prosper’s Annual Report on Form 10-K for the year ended December 31, 2019. There have been no changes to these accounting policies during the first six months of 2020 unless noted below. Fair Value Measurements Financial instruments measured at fair value consist principally of Borrower Loans, Loans Held for Sale, Servicing Assets, Notes, Certificates Issued by Securitization Trust and Convertible Preferred Stock Warrant Liability. The estimated fair values of other financial instruments, including 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. The estimated fair values of Notes Issued by Securitization Trust and Warehouse Lines do not approximate their carrying values due primarily to differences in the stated and market rates associated with these instruments. Refer to Note 7 for additional fair value disclosures. Restricted Cash Restricted Cash consists primarily of cash deposits, money market funds and short term certificate of deposit accounts held as collateral as required for long term leases, loan funding and servicing activities, and cash that investors have on our marketplace that has not yet been invested in Borrower Loans or disbursed to the investor. Borrower Loans, Loans Held for Sale, Notes and Certificates Issued by Securitization Trust Borrower Loans are funded either through the Note Channel or through the Whole Loan Channel. 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. In 2019, Prosper began refinancing the purchase of Borrower Loans through the Whole Loan Channel through securitization transactions, which issue senior notes, risk retention interests and residual certificates. Associated securitization trusts are deemed consolidated VIEs, and as a result the Borrower Loans held in the securitization trusts are included in “Borrower Loans, at Fair Value,” senior notes sold to third party investors are included in “Notes Issued by Securitization Trust,” and the risk retention interest and residual certificates held by third party investors are included in “Certificates Issued by Securitization Trust, at Fair Value” on the accompanying condensed consolidated balance sheets. Refer to Note 6, Securitization for additional disclosures. Prosper uses Warehouse Lines to purchase Loans Held for Sale that may be subsequently contributed to securitization transactions or sold to investors. Loans Held for Sale are included in “Loans Held for Sale, at Fair Value” on the Consolidated Balance Sheets. See Note 10, Debt for more details on Warehouse Lines. Borrower Loans and Loans Held for Sale are purchased from WebBank. Prosper places Borrower Loans and Loans Held for Sale on non-accrual status when they are 120 days past due. When a loan is placed on non-accrual status, Prosper stops accruing interest and reverses all accrued but unpaid interest as of such date. Additionally, Prosper charges-off Borrower Loans and Loans Held for Sale when they are 120 days past due. The fair value of loans 120 or more days past due generally consists of the expected recovery from debt sales in subsequent periods. Prosper has elected the fair value option for Borrower Loans, Loans Held for Sale, Notes, and Certificates Issued by Securitization Trust. Changes in fair value of Borrower Loans funded through the Note Channel are largely offset by the changes in fair value of Notes due to the borrower payment-dependent design of the Notes. Changes in fair value of Borrower Loans held in consolidated securitization trusts are partially offset by changes in fair value of the Certificates Issued by Securitization Trust. Changes in fair value of Loans Held for Sale are recorded through Proper's earnings and Prosper collects interest on Loans Held for Sale. Changes in the fair values of Borrower Loans, Loans Held for Sale, Notes, and Certificates Issued by Securitization Trust are included in “Change in Fair Value of Financial Instruments, Net” on the Consolidated Statements of Operations. Prosper primarily uses a discounted cash flow model to estimate the fair value of Borrower Loans, Loans Held for Sale, Notes, and Certificates Issued by Securitization Trust. The key assumptions used in the valuation include default rates and prepayment rates derived primarily from historical performance, and discount rates based on estimates of the rates of return that investors would require when investing in financial instruments with similar characteristics. Leases Management determines if an arrangement is a lease at inception. Operating lease right-of-use (“ROU”) assets and operating lease liabilities are included on the Consolidated Balance Sheets in Property and Equipment, Net and in Other Liabilities, respectively. For certain leases with original terms of twelve months or less, PMI recognizes the lease expense as incurred and does not record ROU assets and lease liabilities. If a contract contains a lease, management evaluates whether it should be classified as an operating or finance lease. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. As most of PMI's leases do not provide an implicit rate, management uses an incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The operating lease ROU assets are evaluated for impairment utilizing the same impairment model used for Property and Equipment. Consolidation of Variable Interest Entities The determination of whether to consolidate a VIE in which we have a variable interest requires a significant amount of analysis and judgment regarding whether we are the primary beneficiary of a VIE due to our holding a controlling financial interest in the VIE. A controlling financial interest in a VIE exists if we have both the power to direct the VIE’s activities that most significantly affect the VIE’s economic performance and a potentially significant economic interest in the VIE. The determination of whether an entity is a VIE considers factors, such as (i) whether the entity’s equity investment at risk is insufficient to allow the entity to finance its activities without additional subordinated financial support and (ii) whether a holder’s equity investment at risk lacks any of the following characteristics of a controlling financial interest: the direct or indirect ability through voting rights or similar rights to make decisions about a legal entity’s activities that have a significant effect on the entity’s success, the obligation to absorb the expected losses of the entity or the right to receive the expected residual returns of the legal entity. Management regularly reviews and reconsiders its previous conclusions regarding the status of an entity as a VIE and whether we are required to consolidate such VIE in the consolidated financial statements. Recent Accounting Pronouncements Accounting Standards Adopted by the Company in the Current Year In June 2016, the Financial Accounting Standards Board (“FASB”) amended guidance related to impairment of financial instruments as part of Accounting Standards Update (“ASU”) No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which is effective for interim and annual periods beginning after December 15, 2019. Prosper adopted the standard in the first quarter of 2020. For loans accounted for at amortized cost, the guidance replaces the incurred loss impairment methodology with an expected credit loss model for which a company recognizes an allowance based on the estimate of expected credit loss. Because Prosper accounts for Borrower Loans at fair value through net income there was no impact on Prosper loan portfolios upon adoption. For certain available for sale investments, the guidance requires recognition of expected credit losses through recording an allowance for credit losses. The recognition of this allowance is limited to the difference between the security’s amortized cost basis and fair value. The amendments to the available for sale debt securities impairment model did not have a material impact on the Company's consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” Prior to ASU No. 2017-04, the goodwill impairment test was a two-step assessment, if indicators of impairment existed. The standard eliminates Step 2 from the goodwill impairment test, which requires a hypothetical purchase price allocation. Instead, entities will record a goodwill impairment charge based on the excess of a reporting unit's carrying amount over its fair value. The standard is effective for interim and annual periods beginning after December 15, 2019 and early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. Prosper adopted the guidance on a prospective basis in the first quarter of 2020, and there was no impact on the Company's consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement.” Entities are no longer required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but public companies will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU No. 2018-13 is effective for all entities for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years, but entities are permitted to early adopt either the entire standard or only the provisions that eliminate or modify the requirements. Prosper adopted the guidance in the first quarter of 2020. The guidance only affects disclosures in the notes to the consolidated financial statements and it had no effect on Prosper’s balance sheet or statement of operations. In August 2018, the FASB issued ASU No. 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within that fiscal year and early adoption is permitted. The Company adopted the new guidance in the first quarter of 2020, and will prospectively capitalize all eligible costs related to cloud computing arrangements starting January 1, 2020. There was, however, no impact on the Company’s consolidated financial statements for the first six months of 2020. Accounting Standards Issued, to be Adopted by the Company in Future Periods In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” This ASU simplifies the accounting for income taxes by removing certain exceptions related to the incremental approach for intraperiod tax allocation, the requirement to recognize or derecognize deferred tax liabilities related to equity method investments that are also foreign subsidiaries and the methodology for calculating income taxes in an interim period. The guidance also clarifies and simplifies other aspects of the accounting for income taxes, including a modification in the guidance for franchise taxes that are partially based on income and recognizing deferred taxes for a subsequent step-up in the tax basis of goodwill. This ASU is effective for annual periods beginning after December 15, 2020, including interim periods within those annual periods. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact this new standard will have on the Company’s consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848),” which provides optional expedients and exceptions for applying GAAP on contract modifications and hedge accounting, in order to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative referenced rates, such as the Secured Overnight Financing Rate. This ASU can be adopted after its issuance date through December 31, 2022. The Company is currently evaluating the impact reference rate reform will have on its contracts that reference LIBOR in order to determine whether to adopt this guidance. |
Prosper Funding LLC | |
Entity Information [Line Items] | |
Summary of Significant Accounting Policies | Significant Accounting Policies Prosper Funding's significant accounting policies are included in Note 2, Summary of Significant Accounting Policies, in Prosper Funding’s Annual Report on Form 10-K for the year ended December 31, 2019. There have been no changes to these accounting policies during the first six months of 2020. Fair Value Measurements Financial instruments consist principally of Cash and Cash Equivalents, Restricted Cash, 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. Refer to Note 7 for additional fair value disclosures. Restricted Cash Restricted Cash consists primarily of cash deposits, money market funds and short term certificate of deposit accounts held as collateral as required for long term leases, loan funding and servicing activities, and cash that investors have on our marketplace that has not yet been invested in Borrower Loans or disbursed to the investor. Borrower Loans, Loans Held for Sale and Notes With respect to 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 condensed consolidated balance sheets as assets and liabilities, respectively. Prosper Funding places Borrower Loans and Loans Held for Sale on non-accrual status when they are 120 days past due. When a loan is placed on non-accrual status, Prosper stops accruing interest and reverses all accrued but unpaid interest as of such date. Additionally, Prosper charges-off Borrower Loans and Loans Held for Sale when they are 120 days past due. The fair value of loans 120 days past due generally consists of the expected recovery from debt sales in subsequent periods. Management has elected the fair value option for Borrower Loans, Loans Held for Sale, and Notes. Changes in fair value of Borrower Loans are largely offset by the changes in fair value of Notes due to the borrower payment-dependent design of the Notes. Changes in fair value of Borrower Loans, Loans Held for Sale and Notes are included in “Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net” on the Consolidated Statements of Operations. Prosper Funding primarily uses a discounted cash flow model to estimate the fair value of Borrower Loans, Loans Held for Sale and Notes. The key assumptions used in the valuation include default rates and prepayment rates derived primarily from historical performance and discount rates based on estimates of the rates of return that investors would require when investing in financial instruments with similar characteristics. Recent Accounting Pronouncements Accounting Standards Adopted In The Current Period In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820); Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement.” Entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but public companies will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU No. 2018-13 is effective for all entities for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years, but entities are permitted to early adopt either the entire standard or only the provisions that eliminate or modify the requirements. The guidance only affects disclosures in the notes to the consolidated financial statements and has no effect on Prosper Funding’s balance sheet or statements of operations. Accounting Standards Issued, To Be Adopted By Prosper Funding In Future Periods No issued and pending accounting standards were identified that are expected to have an impact on Prosper Funding. |
Property and Equipment, Net
Property and Equipment, Net | 6 Months Ended |
Jun. 30, 2020 | |
Entity Information [Line Items] | |
Property and Equipment, Net | Property and Equipment, Net Property and Equipment consists of the following at the dates presented (in thousands): June 30, 2020 December 31, 2019 Operating lease right-of-use assets $ 15,694 $ 16,213 Computer equipment 13,724 13,420 Internal-use software and website development costs 32,057 28,904 Office equipment and furniture 2,999 2,999 Leasehold improvements 7,158 7,158 Assets not yet placed in service 3,697 2,445 Property and equipment 75,329 71,139 Less: Accumulated depreciation and amortization (44,839) (39,843) Total Property and Equipment, Net $ 30,490 $ 31,296 Depreciation and amortization expense for Property and Equipment for the three months ended June 30, 2020 and June 30, 2019 was $2.0 million and $1.8 million, respectively. Depreciation and amortization expense for Property and Equipment for the six months ended June 30, 2020 and June 30, 2019 was $3.9 million and $3.6 million, respectively. These charges are included in General and Administrative expenses on the condensed consolidated statements of operations. Prosper capitalized internal-use software and website development costs in the amount of $2.1 million and $2.3 million for the three months ended June 30, 2020 and June 30, 2019, respectively, and $4.8 million and $4.3 million for the six months ended June 30, 2020 and June 30, 2019, respectively. Additionally, disclosures ar ound the operating lease right-of-use ass ets are included in Note 16. |
Prosper Funding LLC | |
Entity Information [Line Items] | |
Property and Equipment, Net | Property and Equipment Property and equipment consist of the following (in thousands): June 30, 2020 December 31, 2019 Internal-use software and web site development costs $ 26,885 $ 24,930 Less accumulated depreciation and amortization (19,033) (17,381) Total property and equipment, net $ 7,852 $ 7,549 Depreciation expense for the three months ended June 30, 2020 and 2019 wa s $1.0 million and $1.1 million, respectively. Depreciation expense for the six months ended June 30, 2020 and 2019 wa |
Borrower Loans, Loans Held for
Borrower Loans, Loans Held for Sale, and Notes Held at Fair Value | 6 Months Ended |
Jun. 30, 2020 | |
Entity Information [Line Items] | |
Borrower Loans, Loans Held for Sale, and Notes Held at Fair Value | 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, 2020 and December 31, 2019, are presented in the following table (in thousands): Borrower Loans Loans Held for Sale Notes June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Aggregate principal balance outstanding $ 497,817 $ 647,209 $ 227,127 $ 143,261 $ (227,675) $ (250,281) Fair value adjustments (40,330) (13,190) (10,884) (1,235) 17,688 6,110 Fair value $ 457,487 $ 634,019 $ 216,243 $ 142,026 $ (209,987) $ (244,171) Borrower Loans At June 30, 2020, outstanding Borrower Loans had original terms to maturity of either 36 or 60 months, had monthly payments with fixed interest rates ranging from 5.31% to 31.92% , and had various maturity dates through June 2025. At December 31, 2019, outstanding Borrower Loans had original maturities of either 36 or 60 months, had mont hly payments with fixed interest rates ranging from 5.31% to 31.92%, and had various maturity dates through December 2024. As of June 30, 2020, Borrower Loans that were 90 days or more delinquent had an aggregate principal amount of $3.9 million and a fair value of $0.4 million. As of December 31, 2019, Borrower Loans that were 90 days or more delinquent had an aggregate principal amount of $6.5 million and a fair value of $1.9 million . Prosper places loans on non-accrual status when they are over 120 days past due. As of June 30, 2020 and December 31, 2019, Borrower Loans in non-accrual status had a fair value of $0.6 million a nd $0.7 million, respectively. Loans Held for Sale At June 30, 2020, outstanding Loans Held for Sale had original terms to maturity between 36 months and 60 months, had monthly payments with fixed interest rates ranging from 5.31% to 31.82% and had various maturity dates through June 2025. At December 31, 2019, outstanding Loans Held for Sale had original terms to maturity between 36 months and 60 months , had monthly payments with fixed interest rates ranging from 5.31% to 31.82% and had various maturity dates through December 2024. Fair value adjustments recorded in earnings on loans invested in by the Company resulted in net losses of $13.8 million and $2.5 million for the six months ended June 30, 2020 and 2019, respectively. Interest income earned on Loans Held for Sale by the Company was $11.6 million and $7.5 million for the six months e nded June 30, 2020 and June 30, 2019, respectively. As of June 30, 2020, Loans Held for Sale that were 90 days or more delinquent had an aggregate principal amount of $0.7 million and a fair value of $0.1 million . As of December 31, 2019, Loans Held for S ale that were 90 days or more delinquent had an aggregate principal amount of $0.7 million and a fair value of $0.2 million . Prosper places loans on non-accrual status when they are over 120 days past due. As of June 30, 2020 and December 31, 2019, Loans Held for Sale in non-accrual status had a fair value of $0.1 million (for both periods). |
Prosper Funding LLC | |
Entity Information [Line Items] | |
Borrower Loans, Loans Held for Sale, and Notes Held at Fair Value | Borrower Loans and Notes Held at Fair Value The aggregate principal balances outstanding and fair values of Borrower Loans and Notes as of June 30, 2020 and December 31, 2019, are presented in the following table (in thousands): Borrower Loans Notes June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Aggregate principal balance outstanding $ 226,599 $ 248,702 $ (227,674) $ (250,281) Fair value adjustments (14,824) (3,565) 17,688 6,110 Fair value $ 211,775 $ 245,137 $ (209,986) $ (244,171) At June 30, 2020, outstanding Borrower Loans had original terms to maturity of either 36 or 60 months, had monthly payments with fixed interest rates ranging from 5.31% to 31.92% and had various maturity dates through June 2025. At December 31, 2019, outstanding Borrower Loans had original maturities of either 36 or 60 months, monthly payments with fixed interest rates ranging from 5.31% to 31.92%, and had various maturity da tes through December 2024. As of June 30, 2020, Borrower Loans that were 90 days or more delinquent had an aggregate principal amount of $1.4 million and a fair value of $0.1 million . As of December 31, 2019, Borrower Loans that were 90 days or more delinquent had an aggregate principal amount of $2.6 million and a fair value of $0.8 million. Prosper Funding places loans on non-accrual status when they are over 120 days past due. As of June 30, 2020 and December 31, 2019, Borrower Loans in non-accrual status had a fair value of $0.2 million a nd $0.3 million, respectively. |
Loan Servicing Assets
Loan Servicing Assets | 6 Months Ended |
Jun. 30, 2020 | |
Entity Information [Line Items] | |
Loan Servicing Assets | Loan Servicing Assets Prosper accounts for Servicing Assets 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 are measured at fair value throughout the servicing period. The total gain recognized on the sale of such Borrower Loans for the three months ended June 30, 2020 was $0.7 million , recognized in Gain on Sale of Borrower Loans on the condensed consolidated statement of operations . The total gains and losses recognized on the sale of such Borrower Loans for the three months ended June 30, 2019 consisted of a gain of $3.6 million, and a loss of $7.8 million from the Fair Value of Warrants Vested on the Sale of Borrower Loans to the Consortium. The total gain recognized on the sale of such Borrower Loans for the six months ended June 30, 2020 was $2.7 million , recognized in Gain on Sale of Borrower Loans on the condensed consolidated statement of operations . The total gains and losses recognized on the sale of such Borrower Loans for the six months ended June 30, 2019 was a gain of $6.3 million, and a loss of $17.6 million from the Fair Value of Warrants Vested on the Sale of Borrower Loans to the Consortium. As of June 30, 2020, Borrower Loans that were sold but for which Prosper retained servicing rights had a total outstanding principal balance of $2.6 billion, original terms of either 36 or 60 months, monthly payments with fixed interest rates ranging from 5.31% to 31.92%, and various maturity dates through June 2025. A t December 31, 2019, Borrower Loans that were sold but for which Prosper retained servicing rights had a total outstanding principal balance of $3.1 billion, original terms of either 36 or 60 months, monthly payments with fixed interest rates ranging from 5.31% to 31.92%, and various maturity dates through December 2024. Contractually-specified servicing fees and ancillary fees totaling $7.3 million and $9.4 million for the three months ended June 30, 2020 and 2019, respectively, and $16.5 million and $18.5 million for the six months ended June 30, 2020 and 2019, respectively, are included on the condensed consolidated statements of operations in Servicing Fees, Net. 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. The following is a description of the significant unobservable inputs provided in the table. Market Servicing Rate Prosper estimates adequate market servicing rates that would fairly compensate a substitute servicer should one be required, which includes the profit that would be demanded in the marketplace. This rate is stated as a fixed percentage of outstanding principal balance on a per annum basis. Prosper estimated these market servicing rates based on observable market rates for other loan types in the industry and bids from subservicing providers, adjusted for the unique loan attributes that are present in the specific loans that Prosper sells and services and information from backup service providers. Discount Rate The discount rate is a rate of return used to discount future expected cash flows to arrive at a present value, which represents the fair value of the loan servicing rights. We used a range of discount rates for the Servicing Assets based on comparable observed valuations of similar assets and publicly available disclosures related to servicing valuations, with comparability adjustments made to account for differences with Prosper’s servicing assets. Default Rate The default rate presented in Note 7 is an annualized, average estimate considering all Borrower Loan categories (i.e., risk ratings and duration), and represents an aggregate of conditional default rate curves for each credit grade or Borrower Loan category. Each point on a particular Borrower Loan category’s curve represents the percentage of principal expected to default per period based on the term and age of the underlying Borrower Loans. The assumption regarding defaults directly reduces servicing revenues because the amount of servicing revenues received is based on the amount collected each period. Prepayment Rate The prepayment rate presented in Note 7 is an annualized, average estimate considering all Borrower Loan categories (i.e., risk ratings and duration), and represents an aggregate of conditional prepayment rate curves for each credit grade or Borrower Loan category. Each point on a particular Borrower Loan category’s curve represents the percentage of principal expected to prepay per period based on the term and age of the underlying Borrower Loans. Prepayments reduce servicing revenues as they shorten the period over which we expect to collect fees on the Borrower Loans, which is used to project future servicing revenues. |
Prosper Funding LLC | |
Entity Information [Line Items] | |
Loan Servicing Assets | Loan Servicing Assets Prosper Funding accounts for Servicing Assets at their estimated fair values with changes in fair values recorded in Servicing Fees, Net on the condensed consolidated statements of operations. The initial asset or liability is recognized when Prosper Funding sells Borrower Loans to unrelated third-party buyers through the Whole Loa n Channel and the servicing rights are retained. The total recognized gains and losses on the sale of such Borrower Loans was a $1.2 million gain and a $4.1 million loss for the three months ended June 30, 2020 and 2019 , respectively. The total recognized gains and losses on the sale of such Borrower Loans was a $3.2 million gain and a $10.9 million loss for the six months ended June 30, 2020 and 2019 , respectively. As of June 30, 2020, Borrower Loans that were sold, but for which Prosper Funding retained servicing rights, had a total outstanding principal balance of $3.1 billion, original terms of either 36 or 60 months , monthly payments with fixed interest rates ranging from 5.31% to 31.92% , and various maturity dates th rough June 2025. At December 31, 2019, Borrower Loans that were sold, but for which Prosper Funding retained servicing rights, had a total outstanding principal balance of $3.7 billion, original terms of either 36 or 60 months, monthly payments with fixed interest rates ranging from 5.31% to 31.92%, and various maturity dates through December 2024. Contractually-specified servicing fees and ancillary fees totaled $10.5 million and $10.2 million for the three months ended June 30, 2020 and 2019, respectively, and $23.0 million and $20.2 million for the six months ended June 30, 2020 and 2019, respectively, and are included on the condensed consolidated statements of operations in Servicing Fees, Net. 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 are those that Prosper Funding considers significant to the estimated fair values of the Level 3 Servicing Assets. The following is a description of the significant unobservable inputs provided in the table. Market Servicing Rate Prosper Funding estimates adequate market servicing rates that would fairly compensate a substitute servicer should one be required, which includes the profit that would be demanded in the marketplace. This rate is stated as a fixed percentage of outstanding principal balance on a per annum basis. Prosper Funding estimates these market servicing rates based on observable market rates for other loan types in the industry and bids from sub-servicing providers, adjusted for the unique loan attributes that are present in the specific loans that Prosper Funding sells and services and information from backup service providers. Discount Rate The discount rate is a rate of return used to discount future expected cash flows to arrive at a present value, which represents the fair value of the loan servicing rights. Management used a range of discount rates for the Servicing Assets based on comparable observed valuations of similar assets and publicly available disclosures related to servicing valuations, with comparability adjustments made to account for differences with Prosper Funding’s Servicing Assets. Default Rate The default rate presented in Note 7 is an annualized, average estimate considering all Borrower Loan categories (i.e., risk ratings and duration), and represents an aggregate of conditional default rate curves for each credit grade or Borrower Loan category. Each point on a particular Borrower Loan category’s curve represents the percentage of principal expected to default per period based on the term and age of the underlying Borrower Loans. The assumption regarding defaults directly reduces servicing revenues because the amount of servicing revenues received is based on the amount collected each period. Prepayment Rate The prepayment rate presented in Note 7 is an annualized, average estimate considering all Borrower Loan categories (i.e., risk ratings and duration), and represents an aggregate of conditional prepayment rate curves for each credit grade or Borrower Loan category. Each point on a particular Borrower Loan category’s curve represents the percentage of principal expected to prepay per period based on the term and age of the underlying Borrower Loans. Prepayments reduce servicing revenues as they shorten the period over which Prosper Funding expects to collect fees on the Borrower Loans, which is used to project future servicing revenues. |
Securitization
Securitization | 6 Months Ended |
Jun. 30, 2020 | |
Transfers and Servicing [Abstract] | |
Securitization | Securitizations In 2019, Prosper co-sponsored and retained residual certificates in securitizations of unsecured personal whole loans facilitated through our marketplace with an aggregate outstanding principal balance of $573.0 million through three securitization trusts (PMIT 2019-1, PMIT 2019-2, and PMIT 2019-4). Each securitization trust issued senior notes, a risk retention interest and residual certificates to finance the purchase of Borrower Loans. The risk retention interest represents the right to receive 5.0% of all amounts collected on the Borrower Loans held by the securitization trusts. The resulting senior notes were sold to third party investors. Prosper retained 65.5%, 16.4%, and 19.6% of the residual certificates issued by PMIT 2019-1, PMIT 2019-2, and PMIT 2019-4, respectively. The remaining residual certificates and all the risk retention interests are held by third-party investors. In addition to the retained residual certificates, Prosper's continued involvement includes loan servicing responsibilities over the life of the underlying loans. PMIT 2019-1, 2019-2 and 2019-4 are deemed VIEs. Prosper consolidated the VIEs as the primary beneficiary because Prosper, through its role as the servicer, has both the power to direct the activities that most significantly affect the VIEs' economic performance and a variable interest that could potentially be significant to the VIEs through holding the retained residual certificates. In evaluating whether Prosper is the primary beneficiary, management considers both qualitative and quantitative factors regarding the nature, size and form of our involvement with the VIEs. Management assesses whether Prosper is the primary beneficiary of the VIEs on an on-going basis. For these VIEs, the creditors have no recourse to the general credit of Prosper and the liabilities of the VIEs can only be settled by the respective VIEs' assets. Additionally, the assets of the VIEs can be used only to settle obligations of the VIEs. Because Prosper consolidates the securitization trusts, the loans held in the securitization trusts are included in “Borrower Loans, at Fair Value”, the notes sold to third party investors recorded in “Notes Issued by Securitization Trust”, and the risk retention interests and residual certificates held by third party investors in “Certificates Issued by Securitization Trust, at Fair Value” in the condensed consolidated balance sheets. PMIT 2019-1 The notes under the PMIT 2019-1 securitization were issued in three classes: Class A in the amount of $127.3 million, Class B in the amount of $25.0 million and Class C in the amount of $19.3 million (collectively, the “2019-1 Notes”). The Class A, Class B and Class C notes bear interest at a fixed rate of 3.54%, 4.03% and 5.27%, respectively. Principal and interest payments began in March 2019 and are payable monthly. These notes are recorded at amortized cost on the balance sheet. The associated debt issuance costs of $2.3 million are deferred and amortized into interest expense over the contractual life of the notes. The notes held by third-party investors and the unamortized debt issuance costs are included in “Notes Issued by Securitization Trust” with a balance of $59.1 million on the condensed consolidated balance sheets as of June 30, 2020 and are secured by Borrower Loans at fair value of $60.4 million included in “Borrower Loans, at Fair Value” on the condensed consolidated balance sheets as of June 30, 2020. The risk retention and residual certificates held by third party investors at fair value of $5.5 million are included in “Certificates Issued by Securitization Trust, at Fair Value” on the condensed consolidated balance sheets as of June 30, 2020. PMIT 2019-2 The notes under the PMIT 2019-2 securitization were issued in three classes: Class A in the amount of $110.1 million, Class B in the amount of $31.4 million and Class C in the amount of $32.7 million (collectively, the “2019-2 Notes”). The Class A, Class B and Class C notes bear interest at a fixed rate of 3.20%, 3.69% and 5.05%, respectively. Principal and interest payments began in July 2019 and are payable monthly. These notes are recorded at amortized cost on the balance sheet. The associated debt issuance costs of $1.9 million are deferred and amortized into interest expense over the contractual life of the notes. The notes held by third-party investors and the unamortized debt issuance costs are included in “Notes Issued by Securitization Trust” with a balance of $83.8 million on the condensed consolidated balance sheets as of June 30, 2020 and are secured by Borrower Loans at fair value of $87.8 million of included in “Borrower Loans, at Fair Value” on the condensed consolidated balance sheets as of June 30, 2020. The risk retention and residual certificates held by third party investors at fair value of $12.4 million are included in “Certificates Issued by Securitization Trust, at Fair Value” on the condensed consolidated balance sheets as of June 30, 2020. PMIT 2019-4 The notes under the PMIT 2019-4 securitization were issued in three classes: Class A in the amount of $102.6 million, Class B in the amount of $19.5 million and Class C in the amount of $16.8 million (collectively, the “2019-4 Notes”). The Class A, Class B and Class C notes bear interest at a fixed rate of 2.48%, 3.2% and 4.95% respectively. Principal and interest payments began in December 2019 and are payable monthly. These notes are recorded at amortized cost on the balance sheet. The associated debt issuance costs of $1.2 million are deferred and amortized into interest expense over the contractual life of the notes. The notes held by third-party investors and the unamortized debt issuance costs are included in Notes Issued by Securitization Trust with a balance of $92.4 million and are secured by Borrower Loans with a fair value of $97.6 million as of June 30, 2020. The risk retention interest and residual certificates held by third party investors at fair value of $13.6 million are included in “Certificates Issued by Securitization Trust, at Fair Value” in the condensed consolidated balance sheets as of June 30, 2020. |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 6 Months Ended |
Jun. 30, 2020 | |
Entity Information [Line Items] | |
Fair Value of Assets and Liabilities | 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. The Company applies 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. Prosper did not transfer any assets or liabilities in or out of Level 3 for the three and six months ended June 30, 2020 or 2019. Financial Instruments Recorded at Fair Value The fair value of the Borrower Loans, Loans Held for Sale, Notes, Certificates Issued by Securitization Trust, Servicing Rights and loan trailing fee liability are estimated using discounted cash flow methodologies based upon a set of valuation assumptions. The primary assumptions used in the discounted cash flow model include default and prepayment rates primarily derived from historical performance and discount rates applied to each credit grade based on the perceived credit risk of each credit grade. The Convertible Preferred Stock Warrant Liability is valued using a Black-Scholes option pricing model. Refer to Note 12 for further details. The following tables present the fair value hierarchy for assets and liabilities measured at fair value (in thousands): June 30, 2020 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Assets: Borrower Loans $ — $ — $ 457,487 $ 457,487 Loans Held for Sale — — 216,243 216,243 Servicing Assets — — 10,073 10,073 Total Assets $ — $ — $ 683,803 $ 683,803 Liabilities: Notes $ — $ — $ 209,987 $ 209,987 Certificates Issued by Securitization Trust, at Fair Value — — 31,571 31,571 Convertible Preferred Stock Warrant Liability — — 74,998 74,998 Loan Trailing Fee Liability — — 2,403 2,403 Total Liabilities $ — $ — $ 318,959 $ 318,959 December 31, 2019 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Assets: Borrower Loans $ — $ — $ 634,019 $ 634,019 Loans Held for Sale — — 142,026 142,026 Servicing Assets — — 12,602 12,602 Total Assets $ — $ — $ 788,647 $ 788,647 Liabilities: Notes $ — $ — $ 244,171 $ 244,171 Certificates Issued by Securitization Trust — — 52,168 52,168 Convertible Preferred Stock Warrant Liability — — 149,996 149,996 Loan Trailing Fee Liability — — 2,997 2,997 Total Liabilities $ — $ — $ 449,332 $ 449,332 As Prosper’s Borrower Loans, Loans Held for Sale, Notes, Certificates Issued by Securitization Trust, Convertible Preferred Stock Warrant Liability, servicing rights and loan trailing fee liability do not trade in an active market with readily observable prices, the Company 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, 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 ranges of significant unobservable inputs used for the Company’s Level 3 fair value measurements at June 30, 2020 and December 31, 2019: Range Borrower Loans, Loans Held for Sale and Notes June 30, 2020 December 31, 2019 Discount rate 6.4% - 15.9% 4.4% - 12.2% Default rate 2.3% - 19.0% 2.1% - 18.6% Range Certificates Issued by Securitization Trust June 30, 2020 December 31, 2019 Discount rate 8.8% - 19.9% 4.0% - 15.0% Default rate 3.2% - 17.7% 2.0% - 17.0% Prepayment rate 11.1% - 34.2% 14.5% - 33.0% Range Servicing Assets June 30, 2020 December 31, 2019 Discount rate 15.0% - 25.0% 15.0% - 25.0% Default rate 1.9% - 19.4% 1.7% - 18.8% Prepayment rate 15.3% - 28.5% 16.5% - 28.1% Market servicing rate (1) (2) 0.625% - 0.818% 0.625 % (1) Servicing assets associated with loans enrolled in a relief program offered by the Company in response to the COVID-19 pandemic as of June 30, 2020 were measured using a market servicing rate assumption of 81.8 basis points. This rate was estimated using a multiplier consistent with observable market rates for other loan types, applied to the base market servicing rate assumption of 62.5 basis points. (2) Excludes collection fees that would be passed on to a hypothetical third-party servicer. As of June 30, 2020 and December 31, 2019, the market rate for collection fees and non-sufficient fund fees was assumed to be 4 basis points and 6 basis points, respectively, for a total market servicing rate range of 66.5 - 85.8 basis points and a total market servicing rate of 68.5 basis points, respectively. Range Loan Trailing Fee Liability June 30, 2020 December 31, 2019 Discount rate 15.0% - 25.0% 15.0% - 25.0% Default rate 1.9% - 19.4% 1.7% - 18.8% Prepayment rate 15.3% - 28.5% 16.5% - 28.1% At June 30, 2020 and December 31, 2019, the discounted cash flow methodology used to estimate the Notes fair values used the same projected cash flows as the related Borrower Loans. Changes in Level 3 Fair Value Assets and Liabilities 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) Assets Liabilities Borrower Loans Loans Held For Sale Notes Certificates Issued by Securitization Trust Total Balance at January 1, 2020 $ 634,019 $ 142,026 $ (244,171) $ (52,168) $ 479,706 Purchase of Borrower Loans/Issuance of Notes 65,664 622,122 (65,043) — 622,743 Principal repayments (179,552) (43,076) 77,107 9,875 (135,646) Borrower Loans sold to third parties (4,254) (491,782) — — (496,036) Other changes (158) 779 (257) 341 705 Change in fair value (58,232) (13,826) 22,377 10,381 (39,300) Balance at June 30, 2020 $ 457,487 $ 216,243 $ (209,987) $ (31,571) $ 432,172 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Assets Liabilities Borrower Loans Loans Held for Sale Notes Certificates Issued by Securitization Trust Total Balance at January 1, 2019 $ 263,522 $ 183,788 $ (264,003) $ — $ 183,307 Purchase of Borrower Loans/Issuance of Notes 348,629 1,161,237 (86,713) (51,595) 1,371,558 Transfers in (Transfers out) 147,773 (147,773) — — — Principal repayments (134,031) (26,529) 85,728 4,272 (70,560) Borrower Loans sold to third parties (1,886) (1,053,308) — — (1,055,194) Other changes 91 89 603 (603) 180 Change in fair value (17,299) (2,542) 10,960 3,836 (5,045) Balance at June 30, 2019 $ 606,799 $ 114,962 $ (253,425) $ (44,090) $ 424,246 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Assets Liabilities Borrower Loans Loans Held For Sale Notes Certificates Issued by Securitization Trust Total Balance at April 1, 2020 $ 522,404 $ 153,236 $ (225,491) $ (35,316) $ 414,833 Purchase of Borrower Loans/Issuance of Notes 24,363 222,572 (24,468) — 222,467 Principal repayments (82,837) (24,516) 36,520 5,042 (65,791) Borrower Loans sold to third parties (1,991) (136,148) — — (138,139) Other changes 584 673 (396) 303 1,164 Change in fair value (5,036) 426 3,848 (1,600) (2,362) Balance at June 30, 2020 $ 457,487 $ 216,243 $ (209,987) $ (31,571) $ 432,172 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Assets Liabilities Borrower Loans Loans Held for Sale Notes Certificates Issued by Securitization Trust Total Balance at April 1, 2019 $ 448,710 $ 106,640 $ (258,722) $ (19,134) $ 277,494 Purchase of Borrower Loans/Issuance of Notes 213,370 670,382 (41,774) (30,979) 810,999 Transfers in (Transfers out) 33,457 (33,457) — — — Principal repayments (77,402) (11,790) 41,611 3,139 (44,442) Borrower Loans sold to third parties (912) (615,835) — — (616,747) Other changes (48) 255 2 (436) (227) Change in fair value (10,376) (1,233) 5,458 3,320 (2,831) Balance at June 30, 2019 $ 606,799 $ 114,962 $ (253,425) $ (44,090) $ 424,246 The following tables present additional information about Level 3 Servicing Assets measured at fair value on a recurring basis for the three and six month periods ending June 30, 2020 and 2019 (in thousands): Servicing Assets Fair Value at January 1, 2020 $ 12,602 Additions 2,703 Less: Changes in fair value (5,232) Fair Value at June 30, 2020 $ 10,073 Servicing Assets Fair Value at January 1, 2019 $ 14,687 Additions 6,378 Derecognition (1,049) Less: Changes in fair value (6,629) Fair Value at June 30, 2019 $ 13,387 Servicing Assets Fair Value at April 1, 2020 $ 11,742 Additions 729 Less: Changes in fair value (2,398) Fair Value at June 30, 2020 $ 10,073 Servicing Assets Fair Value at April 1, 2019 $ 13,814 Additions 3,636 Derecognition (685) Less: Changes in fair value (3,378) Fair Value at June 30, 2019 $ 13,387 The following tables present additional information about the Level 3 Convertible Preferred Stock Warrant Liability measured at fair value on a recurring basis for the three and six month periods ending June 30, 2020 and 2019 (in thousands): Convertible Preferred Stock Balance as of January 1, 2020 $ 149,996 Change in fair value (74,998) Balance as of June 30, 2020 $ 74,998 Convertible Preferred Stock Balance as of January 1, 2019 $ 143,679 Issuance of Stock Warrants 17,553 Change in fair value 5,327 Balance as of June 30, 2019 $ 166,559 Convertible Preferred Stock Balance as of April 1, 2020 $ 94,547 Change in fair value (19,549) Balance as of June 30, 2020 $ 74,998 Convertible Preferred Stock Balance as of April 1, 2019 $ 163,483 Issuance of Stock Warrants 7,805 Change in fair value (4,729) Balance as of June 30, 2019 $ 166,559 Loan Trailing Fee The fair value of the Loan Trailing Fee represents the present value of the expected monthly Loan Trailing Fee payments, which takes into consideration certain assumptions related to expected prepayment rates and default rates using a discounted cash flow model. The assumptions used are the same as those used for the valuation of Servicing Assets, as described below. The following tables present additional information about the Level 3 Loan Trailing Fee Liability measured at fair value on a recurring basis for the three and six month periods ending June 30, 2020 and 2019 (in thousands): Loan Trailing Fee Liability Balance at January 1, 2020 $ 2,997 Issuances 625 Cash Payment of Loan Trailing Fee (1,271) Change in Fair Value 52 Balance at June 30, 2020 $ 2,403 Loan Trailing Fee Liability Balance at January 1, 2019 $ 3,118 Issuances 1,297 Cash Payment of Loan Trailing Fee (1,298) Change in Fair Value 132 Balance at June 30, 2019 $ 3,249 Loan Trailing Fee Liability Balance at April 1, 2020 $ 2,646 Issuances 240 Cash Payment of Loan Trailing Fee (596) Change in Fair Value 113 Balance at June 30, 2020 $ 2,403 Loan Trailing Fee Liability Balance at April 1, 2019 $ 3,084 Issuances 731 Cash Payment of Loan Trailing Fee (640) Change in Fair Value 74 Balance at June 30, 2019 $ 3,249 Significant Recurring Level 3 Fair Value Input Sensitivity Key economic assumptions and the sensitivity of the fair value to immediate changes in those assumptions at June 30, 2020 and December 31, 2019 for Borrower Loans and Loans Held for Sale are presented in the following table (in thousands, except percentages). Borrower Loans and Loans Held for Sale June 30, 2020 December 31, 2019 Fair value, using the following assumptions: $ 673,730 $ 776,045 Weighted-average discount rate 11.59 % 7.00 % Weighted-average default rate 13.15 % 12.63 % Fair value resulting from: 100 basis point increase in discount rate $ 667,986 $ 768,924 200 basis point increase in discount rate $ 662,372 $ 761,971 Fair value resulting from: 100 basis point decrease in discount rate $ 679,607 $ 783,344 200 basis point decrease in discount rate $ 685,623 $ 790,823 Fair value resulting from: 10 percent increase in default rate $ 666,236 $ 765,894 20 percent increase in default rate $ 658,771 $ 756,007 Fair value resulting from: 10 percent decrease in default rate $ 681,254 $ 786,541 20 percent decrease in default rate $ 688,814 $ 797,065 Key economic assumptions and the sensitivity of the fair value to immediate changes in those assumptions at June 30, 2020 and December 31, 2019 for Notes are presented in the following table (in thousands, except percentages). Notes June 30, 2020 December 31, 2019 Fair value, using the following assumptions: $ 209,987 $ 244,171 Weighted-average discount rate 11.23 % 6.43 % Weighted-average default rate 13.60 % 13.68 % Fair value resulting from: 100 basis point increase in discount rate $ 208,194 $ 241,927 200 basis point increase in discount rate $ 206,441 $ 239,737 Fair value resulting from: 100 basis point decrease in discount rate $ 211,821 $ 246,471 200 basis point decrease in discount rate $ 213,698 $ 248,828 Fair value resulting from: 10 percent increase in default rate $ 207,637 $ 240,958 20 percent increase in default rate $ 205,297 $ 237,831 Fair value resulting from: 10 percent decrease in default rate $ 212,345 $ 247,489 20 percent decrease in default rate $ 214,715 $ 250,817 Key economic assumptions and the sensitivity of the fair value to immediate changes in those assumptions at June 30, 2020 and December 31, 2019 for Certificates Issued by Securitization Trust are presented in the following table (in thousands, except percentages). Certificates Issued by Securitization Trust June 30, 2020 December 31, 2019 Fair value, using the following assumptions: $ 31,571 $ 52,168 Weighted-average discount rate 14.55 % 9.59 % Weighted-average default rate 13.86 % 10.12 % Weighted-average prepayment rate 22.40 % 21.41 % Fair value resulting from: 100 basis point increase in discount rate $ 31,313 $ 51,813 200 basis point increase in discount rate $ 31,060 $ 51,466 Fair value resulting from: 100 basis point decrease in discount rate $ 31,836 $ 52,533 200 basis point decrease in discount rate $ 32,108 $ 52,909 Fair value resulting from: 10 percent increase in default rate $ 29,670 $ 48,986 20 percent increase in default rate $ 27,777 $ 45,926 Fair value resulting from: 10 percent decrease in default rate $ 33,482 $ 55,369 20 percent decrease in default rate $ 35,405 $ 58,613 Fair value resulting from: 10 percent increase in prepayment rate $ 31,514 $ 52,085 20 percent increase in prepayment rate $ 31,451 $ 52,008 Fair value resulting from: 10 percent decrease in prepayment rate $ 31,631 $ 52,253 20 percent decrease in prepayment rate $ 31,693 $ 52,340 Key economic assumptions and the sensitivity of the fair value to immediate changes in those assumptions at June 30, 2020 and December 31, 2019 for Servicing Assets is presented in the following table (in thousands, except percentages). Servicing Assets June 30, 2020 December 31, 2019 Fair value, using the following assumptions $ 10,073 $ 12,602 Weighted-average market servicing rate 0.632 % 0.625 % Weighted-average prepayment rate 20.67 % 20.99 % Weighted-average default rate 13.47 % 12.67 % Fair value resulting from: Market servicing rate increase of 0.025% $ 9,467 $ 11,825 Market servicing rate decrease of 0.025% $ 10,680 $ 13,387 Fair value resulting from: Applying a 1.1 multiplier to prepayment rate $ 9,872 $ 12,348 Applying a 0.9 multiplier to prepayment rate $ 10,276 $ 12,868 Fair value resulting from: Applying a 1.1 multiplier to default rate $ 9,925 $ 12,377 Applying a 0.9 multiplier to default rate $ 10,222 $ 12,840 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. Assets and Liabilities Not Recorded at Fair Value The following table presents the fair value hierarchy for assets, and liabilities not recorded at fair value (in thousands): June 30, 2020 Carrying Amount Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Fair Value Assets: Cash and Cash Equivalents $ 46,575 $ 46,575 $ — $ — $ 46,575 Restricted Cash 143,318 — 143,318 — 143,318 Accounts Receivable 1,047 — 1,047 — 1,047 Total Assets $ 190,940 $ 46,575 $ 144,365 $ — $ 190,940 Liabilities: Accounts Payable and Accrued Liabilities $ 12,044 $ — $ 12,044 $ — $ 12,044 Payable to Investors 102,405 — 102,405 — 102,405 Notes Issued by Securitization Trust 235,353 — 228,924 — 228,924 Warehouse Lines 198,857 — 198,212 — 198,212 Total Liabilities $ 548,659 $ — $ 541,585 $ — $ 541,585 |
Prosper Funding LLC | |
Entity Information [Line Items] | |
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities Prosper Funding has elected to record certain financial instruments at fair value on the balance sheet. Prosper Funding classifies Borrower Loans, Loans Held for Sale and Notes as financial instruments and assesses their fair value each on a quarterly basis for financial statement presentation purposes. Gains and losses on these financial instruments are shown separately on the condensed consolidated statements of operations. At June 30, 2020 and December 31, 2019, the discounted cash flow methodology used to estimate the Notes fair values used the same projected cash flows as the related Borrower Loans. As demonstrated in the table below, 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. 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. Prosper Funding did not transfer any assets or liabilities in or out of Level 3 for the six months ended June 30, 2020 or 2019. Financial Instruments Recorded at Fair Value The fair value of the Borrower Loans 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 and Notes include default and prepayment rates derived primarily from historical performance and discount rates that reflect estimates of the rates of return that investors would require when investing in financial instruments with similar characteristics. The following tables present the fair value hierarchy for assets and liabilities measured at fair value (in thousands): June 30, 2020 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Assets: Borrower Loans $ — $ — $ 211,775 $ 211,775 Servicing Assets — — 12,063 12,063 Total Assets $ — $ — $ 223,838 $ 223,838 Liabilities: Notes $ — $ — $ 209,986 $ 209,986 Loan Trailing Fee Liability — — 2,403 2,403 Total Liabilities $ — $ — $ 212,389 $ 212,389 December 31, 2019 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Assets: Borrower Loans $ — $ — $ 245,137 $ 245,137 Servicing Assets — — 14,888 14,888 Total Assets $ — $ — $ 260,025 $ 260,025 Liabilities: Notes $ — $ — $ 244,171 $ 244,171 Loan Trailing Fee Liability — — 2,997 2,997 Total Liabilities $ — $ — $ 247,168 $ 247,168 As Prosper Funding’s Borrower Loans, Notes, Servicing Assets and loan trailing fee liability 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 the dates presented: Range Borrower Loans and Notes June 30, 2020 December 31, 2019 Discount rate 8.2% - 15.9% 4.4% - 12.1% Default rate 2.7% - 17.7% 2.4% - 17.7% Range Servicing Assets June 30, 2020 December 31, 2019 Discount rate 15.0% - 25.0% 15.0% - 25.0% Default rate 1.9% - 19.4% 1.7% - 18.8% Prepayment rate 15.3% - 28.5% 16.5% - 28.1% Market servicing rate (1) (2) 0.625% - 0.818% 0.625 % (1) Servicing assets associated with loans enrolled in a relief program offered by the Company in response to the COVID-19 pandemic as of June 30, 2020 were measured using a market servicing rate assumption of 81.8 basis points. This rate was estimated using a multiplier consistent with observable market rates for other loan types, applied to the base market servicing rate assumption of 62.5 basis points. (2) Excludes collection fees that would be passed on to a hypothetical third-party servicer. As of June 30, 2020 and December 31, 2019, the market rate for collection fees and non-sufficient fund fees was assumed to be 4 basis points and 6 basis points, respectively, for a total market servicing rate range of 66.5 - 85.8 basis points and a total market servicing rate of 68.5 basis points, respectively. Range Loan Trailing Fee Liability June 30, 2020 December 31, 2019 Discount rate 15.0% - 25.0% 15.0% - 25.0% Default rate 1.9% - 19.4% 1.7% - 18.8% Prepayment rate 15.3% - 28.5% 16.5% - 28.1% Changes in Level 3 Fair Value Assets and Liabilities 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 for three months ended June 30, 2020 and 2019 (in thousands): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Assets Liabilities Borrower Loans Loans Held for Sale Notes Total Balance at January 1, 2020 $ 245,137 $ — $ (244,171) $ 966 Originations 65,664 622,122 (65,043) 622,743 Principal repayments (75,596) — 77,108 1,512 Borrower Loans sold to third parties (1,564) (622,122) — (623,686) Other changes 253 — (257) (4) Change in fair value (22,119) — 22,377 258 Balance at June 30, 2020 $ 211,775 $ — $ (209,986) $ 1,789 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Assets Liabilities Borrower Loans Loans Held for Sale Notes Total Balance at January 1, 2019 $ 263,522 $ — $ (264,003) $ (481) Originations 86,062 1,161,237 (86,713) 1,160,586 Principal repayments (82,414) — 85,728 3,314 Borrower Loans sold to third parties (1,723) (1,161,237) — (1,162,960) Other changes (200) — 603 403 Change in fair value (11,177) — 10,960 (217) Balance at June 30, 2019 $ 254,070 $ — $ (253,425) $ 645 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Assets Liabilities Borrower Loans Loans Held for Sale Notes Total Balance at April 1, 2020 $ 227,659 $ — $ (225,491) $ 2,168 Originations 24,363 222,572 (24,468) 222,467 Principal repayments (36,256) — 36,520 264 Borrower Loans sold to third parties (682) (222,572) — (223,254) Other changes 344 — (395) (51) Change in fair value (3,653) — 3,848 195 Balance at June 30, 2020 $ 211,775 $ — $ (209,986) $ 1,789 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Assets Liabilities Borrower Loans Loans Held for Sale Notes Total Balance at April 1, 2019 $ 259,899 $ — $ (258,722) $ 1,177 Originations 41,839 670,382 (41,774) 670,447 Principal repayments (41,215) — 41,611 396 Borrower Loans sold to third parties (749) (670,382) — (671,131) Other changes (115) — 2 (113) Change in fair value (5,589) — 5,458 (131) Balance at June 30, 2019 $ 254,070 $ — $ (253,425) $ 645 The following tables present additional information about Level 3 Servicing Assets recorded at fair value (in thousands): Servicing Assets Fair Value at January 1, 2020 $ 14,888 Additions 3,402 Less: Changes in fair value (6,227) Fair Value at June 30, 2020 $ 12,063 Servicing Assets Fair Value at January 1, 2019 $ 15,550 Additions 6,796 Less: Changes in fair value (6,885) Fair Value at June 30, 2019 $ 15,461 Servicing Assets Fair Value at April 1, 2020 $ 13,690 Additions 1,206 Less: Changes in fair value (2,833) Fair Value at June 30, 2020 $ 12,063 Servicing Assets Fair Value at April 1, 2019 $ 15,174 Additions 3,830 Less: Changes in fair value (3,543) Fair Value at June 30, 2019 $ 15,461 Loan Trailing Fee Liability The fair value of the Loan Trailing Fee Liability represents the present value of the expected monthly Loan Trailing Fee payments, which takes into consideration certain assumptions related to expected prepayment rates and default rates using a discounted cash flow model. The assumptions used are the same as those used for the valuation of Servicing Assets, as described below. The following tables present additional information about Level 3 Loan Trailing Fee Liability measured at fair value on a recurring basis (in thousands): Loan Trailing Fee Liability Fair Value at January 1, 2020 $ 2,997 Issuances 625 Cash payment of Loan Trailing Fee (1,271) Change in fair value 52 Fair Value at June 30, 2020 $ 2,403 Loan Trailing Fee Liability Fair Value at January 1, 2019 $ 3,118 Issuances 1,297 Cash payment of Loan Trailing Fee (1,298) Change in fair value 132 Fair Value at June 30, 2019 $ 3,249 Loan Trailing Fee Liability Fair Value at April 1, 2020 $ 2,646 Issuances 240 Cash payment of Loan Trailing Fee (596) Change in fair value 113 Fair Value at June 30, 2020 $ 2,403 Loan Trailing Fee Liability Fair Value at April 1, 2019 $ 3,084 Issuances 731 Cash payment of Loan Trailing Fee (640) Change in fair value 74 Fair Value at June 30, 2019 $ 3,249 Significant Recurring Level 3 Fair Value Asset and Liability Input Sensitivity Key economic assumptions are used to compute the fair value of Borrower Loans. The sensitivity of the fair value to immediate changes in assumptions at June 30, 2020 and December 31, 2019 for Borrower Loans are presented in the following table (in thousands, except percentages). Borrower Loans June 30, 2020 December 31, 2019 Fair value, using the following assumptions: $ 211,775 $ 245,137 Weighted-average discount rate 11.23 % 6.43 % Weighted-average default rate 13.60 % 13.68 % Fair value resulting from: 100 basis point increase in discount rate $ 209,970 $ 242,888 200 basis point increase in discount rate 208,205 240,691 Fair value resulting from: 100 basis point decrease in discount rate $ 213,623 $ 247,442 200 basis point decrease in discount rate 215,514 249,805 Fair value resulting from: 10 percent increase in default rate $ 209,420 $ 241,930 20 percent increase in default rate 207,073 238,807 Fair value resulting from: 10 percent decrease in default rate $ 214,140 $ 248,453 20 percent decrease in default rate 216,517 251,777 Key economic assumptions are used to compute the fair value of Notes. The sensitivity of the fair value to immediate changes in assumptions at June 30, 2020 and December 31, 2019 for Notes funded through the Note Channel are presented in the following table (in thousands, except percentages). Notes June 30, 2020 December 31, 2019 Fair value, using the following assumptions: $ 209,986 $ 244,171 Weighted-average discount rate 11.23 % 6.43 % Weighted-average default rate 13.60 % 13.68 % Fair value resulting from: 100 basis point increase in discount rate $ 208,194 $ 241,927 200 basis point increase in discount rate 206,441 239,737 Fair value resulting from: 100 basis point decrease in discount rate $ 211,821 $ 246,471 200 basis point decrease in discount rate 213,698 248,828 Fair value resulting from: 10 percent increase in default rate $ 207,637 $ 240,958 20 percent increase in default rate 205,297 237,831 Fair value resulting from: 10 percent decrease in default rate $ 212,345 $ 247,489 20 percent decrease in default rate 214,715 250,817 Key economic assumptions are used to compute the fair value of Servicing Assets. The sensitivity of the current fair value to immediate changes in assumptions at June 30, 2020 and December 31, 2019 for Servicing Assets are presented in the following table (in thousands, except percentages). Servicing Assets June 30, 2020 December 31, 2019 Fair value, using the following assumptions: $ 12,063 $ 14,888 Weighted-average market servicing rate 0.632 % 0.625 % Weighted-average prepayment rate 20.67 % 20.99 % Weighted-average default rate 13.47 % 12.67 % Fair value resulting from: Market servicing rate increase of 0.025% $ 11,336 $ 13,966 Market servicing rate decrease of 0.025% 12,789 15,811 Fair value resulting from: Applying a 1.1 multiplier to prepayment rate $ 11,822 $ 14,583 Applying a 0.9 multiplier to prepayment rate 12,306 15,197 Fair value resulting from: Applying a 1.1 multiplier to default rate $ 11,885 $ 14,618 Applying a 0.9 multiplier to default rate 12,241 15,165 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. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill Prosper’s goodwill balance of $36.4 million at December 31, 2019 did not change during the six months ended June 30, 2020. The Company did not record goodwill impairment expense for the six months ended June 30, 2020 and 2019. Other Intangible Assets The following table presents the detail of other intangible assets subject to amortization for the period presented (dollars in thousands): June 30, 2020 Gross Carrying Value Accumulated Amortization Net Carrying Value Remaining Useful Life (In Years) Developed technology $ 3,060 $ (3,060) $ — — User base and customer relationships 5,050 (4,440) 610 4.8 Brand name 60 (60) — — Total Intangible Assets subject to amortization $ 8,170 $ (7,560) $ 610 Prosper’s intangible asset balance w as $0.6 million and $0.7 million at June 30, 2020 and December 31, 2019, respectively. The user base and customer relationships intangible assets are being amortized on an accelerated basis over a three ten Amortization expense for the three months ended June 30, 2020 and 2019 was $0.1 million and $0.1 million, respectively. Amortization expense for the six months ended June 30, 2020 and 2019 was $0.1 million and $0.1 million, respectively. Estimated amortization of purchased intangible assets for future periods is as follows (in thousands): Year Ending December 31, 2020 (remainder thereof) $ 110 2021 172 2022 136 2023 107 2024 85 Total $ 610 |
Other Liabilities
Other Liabilities | 6 Months Ended |
Jun. 30, 2020 | |
Other Liabilities [Abstract] | |
Other Liabilities | Other Liabilities Other Liabilities consist of the following (in thousands): June 30, 2020 December 31, 2019 Loan trailing fee $ 2,403 $ 2,997 Deferred revenue 132 241 Deferred income tax liability 473 405 Operating lease liability 15,311 17,507 Paycheck Protection Program loan (Note 10) 8,447 — Other 482 576 Total Other Liabilities $ 27,248 $ 21,726 Additionally, disclosures around the operating lease liabilities are included in Note 16. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt PWIT Warehouse Trust Agreements Prosper’s consolidated VIEs, PWIT and PWIIT (together, “Warehouse VIEs”), each entered into an agreement (together, “Warehouse Agreements”) with certain lenders for committed revolving lines of credit (“Warehouse Lines”) during 2019 and 2018. In connection with the Warehouse Agreements, the Warehouse VIEs each entered into a security agreement with a bank as administrative agent and a national banking association as collateral trustee and paying agent. Proceeds under the Warehouse Lines may only be used to purchase certain unsecured consumer loans and related rights and documents from Prosper and to pay fees and expenses related to the Warehouse Lines. Both Warehouse VIEs are consolidated because Prosper is the primary beneficiary of the VIEs. The creditors of the Warehouse Lines have no recourse to the general credit of Prosper. Additionally, the assets of the VIEs can be used only to settle obligations of the VIEs. The loans held in the Warehouse VIEs are included in Loans Held for Sale, at Fair Value and Warehouse Lines are in Warehouse Lines in the condensed consolidated balance sheets. Both Warehouse Agreements contain the same certain covenants including restrictions on each Warehouse VIE's ability to incur indebtedness, pledge assets, merge or consolidate and enter into certain affiliate transactions. Each Warehouse Agreement also requires Prosper to maintain a minimum tangible net worth of $25 million, minimum net liquidity of $15 million and a maximum leverage ratio of 5:1. Tangible net worth is defined as the sum of (i) (A) Convertible Preferred Stock, (B) total Stockholders’ Deficit and (C) Convertible Preferred Stock Warrant Liability, less the sum of (ii) (A) goodwill and (B) intangible assets. Net liquidity is defined as the sum of cash, cash equivalents and Available for Sale Investments. The leverage ratio is defined as the ratio of total consolidated indebtedness other than non-recourse securitization indebtedness, non-recourse or limited recourse warehouse indebtedness and borrower dependent notes, to tangible net worth. As of June 30, 2020, Prosper was in compliance with the covenants under each Warehouse Agreement. PWIT Warehouse Line On January 19, 2018, through PWIT, Prosper entered into a Warehouse Agreement for a Warehouse Line. Effective June 12, 2018, the Warehouse Agreement was amended. The amendments included increasing the committed line of credit from $100 million to $200 million, extending the term of the PWIT Warehouse Line (including the final maturity date), amending the monthly unused commitment fee and reducing the rate at which the PWIT Warehouse Line bears interest. Subsequently the Warehouse Agreement was amended on June 20, 2019 to extend the facility, to reduce the interest rate and unused commitment fee and to expand the eligibility criteria for unsecured consumer loans that can be financed through the PWIT Warehouse Line. Under the amended agreement, proceeds of loans made under the PWIT Warehouse Line may be borrowed, repaid and reborrowed until the earlier of June 20, 2021 and at the occurrence of any accelerated amortization event or event of default. Repayment of any outstanding proceeds will be made over the 24 month period ending June 20, 2023, excluding the occurrence of any accelerated amortization event or event of default. Under the amended agreement, the PWIT Warehouse Line bears interest at a rate of LIBOR plus 2.9% and has an advance rate of 89%. Additionally, the PWIT Warehouse Line bears a monthly unused commitment fee of 0.50% per annum on the undrawn portion available under the PWIT Warehouse Line. As of June 30, 2020, Prosper had $100.3 million in debt and accrued interest outstanding under the PWIT Warehouse Line. This debt is secured by an aggregate outstanding principal balance of $114.6 million included in “Loans Held for Sale, at Fair Value” on the condensed consolidated balance sheets. At June 30, 2020 the undrawn portion available under the Warehouse Line was $99.7 million. Prosper incurred $1.8 million of deferred debt issuance costs, which are included in “Prepaids and Other Assets” and amortized to interest expense over the term of the revolving arrangement. Prosper purchased a swaption to limit the Company's exposure to increases in LIBOR. The swaption is recorded on the consolidated balance sheet at fair value in Prepaids and Other Assets. Any changes in the fair value are recorded in the Change in Fair Value of Financial Instruments, Net on the Consolidated Statement of Operations. The fair value of the swaption was not material at June 30, 2020. PWIIT Warehouse Line On March 28, 2019, through PWIIT, Prosper entered into a second Warehouse Agreement for a $300 million Warehouse Line with a national banking association different than that of PWIT. Under the PWIIT Warehouse Agreement, proceeds of loans made under the PWIIT Warehouse Line may be borrowed, repaid, and reborrowed until the earlier of March 28, 2021 and at the occurrence of any accelerated amortization event or event of default. Repayment of any outstanding proceeds will be made over the 24 month period ending March 28, 2023, excluding the occurrence of any accelerated amortization event or event of default. Under the agreement, the PWIIT Warehouse Line bears interest at a rate of LIBOR, or the lender's asset-backed commercial paper rate, plus a spread of 2.9%. The spread increases by 0.375% during the first twelve months immediately following the termination of the revolving period with an additional increase of 0.375% one year later. The PWIIT Warehouse Line has an advance rate of 90%. Additionally, the PWIIT Warehouse Line bears a monthly unused commitment fee of 0.50% per annum on the undrawn portion available under the PWIIT Warehouse Line. As of June 30, 2020, Prosper had $98.5 million in debt and accrued interest outstanding under the PWIIT Warehouse Line. This debt is secured by an aggregate outstanding principal balance of $110.8 million included in Loans Held for Sale, at Fair Value on the Consolidated Balance Sheets. At June 30, 2020 the undrawn portion available under the PWIIT Warehouse Line was $201.5 million. Prosper incurred $2.1 million of deferred debt issuance costs, which are included in Prepaids and Other Assets and amortized to interest expense over the term of the revolving arrangement. Paycheck Protection Program Loan The Paycheck Protection Program (“PPP”), established by the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) and sponsored by the U.S. Small Business Administration (“SBA”), provides small businesses – sole proprietors, independent contractors, and, with certain industry exceptions, businesses with fewer than 500 employees – the opportunity to apply for a loan of up to $10 million to cover up to 24 weeks (the “covered period”) of payroll costs, including benefits. Funds may also be used to cover interest on mortgage obligations, leases, and utilities incurred or in place before February 15, 2020. PPP loan payments are deferred as described below, and, based on SBA guidance, will be forgiven as long as (i) loan proceeds are used for covered expenses, (ii) full-time employee headcount is maintained during the eight-week period covered by the PPP loan and (iii) compensation for employees who earned less than $100,000 on an annualized basis in 2019 is not reduced by more than 25% during the covered period. For purposes of calculating maximum loan eligibility, payroll costs per employee are capped at $100,000 on an annualized basis. Due to anticipated high PPP participation rates, the SBA expects that not more than 40% of any forgiven loan amount may be for non-payroll costs. In April 2020, the Company obtained an $8.4 million loan under the PPP. The loan accrues interest at one percent per annum and has a two year term. Payments under the loan are deferred until the earlier of (a) August 2021 or (b) receipt of forgiveness of the loan from the lender and the SBA. The Company used the PPP Loan proceeds to cover payroll costs, rent and utilities in accordance with the relevant terms and conditions of the CARES Act. As of June 30, 2020, principal and interest outstanding under the PPP loan totaled $8.5 million and is included in Other Liabilities on the accompanying condensed consolidated balance sheet. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per ShareProsper computes Net Income (Loss) Per Share in accordance with ASC Topic 260, Earnings Per Share (“ASC Topic 260”). Under ASC Topic 260, basic Net Income (Loss) Per Share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period and excludes the effects of any potentially dilutive securities. Proper computes its earnings (loss) per share using the two-class method in ASC Topic 260. The two-class method allocates earnings that otherwise would have been available to common shareholders to holders of participating securities. Management considers all series of our Convertible Preferred Stock to be participating securities due to their rights to participate in dividends with Common Stock. As such, earnings allocated to these participating securities, which include participation rights in undistributed earnings, are subtracted from net income to determine total undistributed earnings to be allocated to common stockholders. All participating securities are excluded from basic weighted-average common shares outstanding. Prior to any conversion to common shares, each series of Prosper’s Convertible Preferred Stock was entitled to participate on an if-converted basis in distributions of earnings, when and if declared by the board of directors, that were made to common stockholders and consequently, these shares were considered participating securities. During the periods ended June 30, 2020 and 2019, certain shares issued as a result of the early exercise of stock options which are subject to a repurchase right by PMI were entitled to receive non-forfeitable dividends during the vesting period and consequently, are considered participating securities. The weighted average shares used in calculating basic and diluted Net Income (Loss) Per Share excludes certain shares that are disclosed as outstanding shares in the 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 income (loss) per share was calculated as follows for the periods presented (in thousands, except share and per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Numerator: Net Income (Loss) $ 17,641 $ (569) $ 38,771 $ (23,283) Less: net income allocated to participating securities (13,153) — (28,908) — Net income (loss) available to common stockholders $ 4,488 $ (569) $ 9,863 $ (23,283) Denominator: Weighted average shares used in computing net income (loss) per share - basic 68,455,641 70,502,797 68,454,872 70,494,945 Effect of dilutive securities: Stock options 126,926 — 337,446 — Convertible preferred stock warrants 213,264,845 — 213,264,845 — Weighted average shares used in computing diluted net income (loss) per share - diluted 281,847,412 70,502,797 282,057,163 70,494,945 Net income (loss) per share - basic $ 0.07 $ (0.01) $ 0.14 $ (0.33) Net income (loss) per share - diluted $ 0.02 $ (0.01) $ 0.03 $ (0.33) The following common stock equivalents were excluded from the computation of diluted net income (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, 2020 2019 2020 2019 (shares) (shares) (shares) (shares) Excluded securities: Convertible preferred stock issued and outstanding 209,613,570 214,637,925 209,613,570 214,637,925 Stock options issued and outstanding 73,045,220 73,234,877 72,460,458 71,592,576 Warrants issued and outstanding 1,080,349 1,080,349 1,080,349 1,080,349 Series E-1 convertible preferred stock warrants — 35,544,141 — 35,544,141 Series F convertible preferred stock warrants — 177,720,704 — 177,720,704 Total common stock equivalents excluded from diluted net income (loss) per common share computation 283,739,139 502,217,996 283,154,377 500,575,695 |
Convertible Preferred Stock, Wa
Convertible Preferred Stock, Warrant Liability and Stockholders’ Deficit | 6 Months Ended |
Jun. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
Convertible Preferred Stock, Warrant Liability and Stockholders’ Deficit | Convertible Preferred Stock, Warrant Liability and Stockholders’ Deficit Convertible Preferred Stock and Warrants Under PMI’s amended and restated certificate of incorporation, preferred stock is issuable in series, and the Board of Directors is authorized to determine the rights, preferences, and terms of each series. 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, 2020 are disclosed in the table below (amounts in thousands except share and par value amounts): Convertible Preferred Stock Par Value Authorized Shares Outstanding and Issued Shares Liquidation Preference (Outstanding Shares) Series A $ 0.01 68,558,220 66,428,185 $ 19,160 Series A-1 $ 0.01 24,760,915 22,515,315 45,031 Series B $ 0.01 35,775,880 35,127,160 21,190 Series C $ 0.01 24,404,770 24,404,770 70,075 Series D $ 0.01 23,888,640 23,888,640 165,000 Series E-1 $ 0.01 35,544,141 — — Series E-2 $ 0.01 16,858,078 — — Series F $ 0.01 177,720,707 3 — Series G $ 0.01 37,249,497 37,249,497 50,000 Total 444,760,848 209,613,570 $ 370,456 Dividends Dividends on shares of the Series A, Series B, Series C, Series D, Series E-1, Series E-2, Series F and Series G convertible preferred stock are payable only when, as, and if declared by the Board of Directors. No dividends will be paid with respect to the common stock until any declared dividends on the Series A, Series B, Series C, Series D, Series E-1, Series E-2, Series F, and Series G convertible preferred stock have been paid or set aside for payment to the Series A, Series B, Series C, Series D, Series E-1, Series E-2, Series F, and Series G convertible preferred stockholders. After payment of any such dividends, any additional dividends or distributions will be distributed among all holders of common stock and preferred stock in proportion to the number of shares of common stock that would be held by each such holder if all shares of preferred stock were converted to common stock at the then-effective conversion rate. The Series A-1 convertible preferred shares have no dividend rights. To date, no dividends have been declared on any of PMI’s preferred stock or common stock. Conversion Under the terms of PMI’s amended and restated certificate of incorporation, the holders of preferred stock have the right to convert such preferred stock into common stock at any time. In addition, all preferred stock automatically converts into common stock (i) immediately prior to the closing of an initial public offering that values Prosper at least at $2 billion and that results in aggregate proceeds to Prosper of at least $100 million or (ii) upon a written request from the holders of at least 60% of the voting power of the outstanding preferred stock (on an as-converted basis), provided that (i) the Series A-1 convertible preferred stock shall not be converted without at least 14% of the voting power of the outstanding Series A-1 convertible preferred stock; (ii) the Series D shall not be converted without at least 60% of the voting power of the outstanding Series D; (iii) the Series E-1 and Series E-2 shall not be converted without at least 60% of the voting power of the outstanding Series E-1 and Series E-2, voting together as a single class; (iv) the Series F shall not be converted without at least 60% of the voting power of the outstanding Series F, and (v) the shares of Series G Preferred Stock will not be automatically converted unless the holders of at least 60% of the outstanding shares of Series G Preferred Stock approve such conversion. In addition, if a holder of the Series A convertible preferred stock has converted any of the Series A convertible preferred stock, then all of such holder’s shares of Series A-1 convertible preferred stock also will be converted upon a liquidation event. In lieu of any fractional shares of common stock to which a holder would otherwise be entitled, PMI shall pay such holder cash in an amount equal to the fair market value of such fractional shares, as determined by its Board of Directors. At present, each of the Series A, Series B, Series C, Series D, Series E-1, Series E-2, and Series F convertible preferred stock converts into PMI common stock at a 1:1 ratio. The Series A-1 convertible preferred stock converts into common stock at a 1,000,000:1 ratio and the Series G convertible preferred stock converts into common stock at a 1:1.36 ratio. The Series G convertible preferred stock conversion ratio reflects the Series G true-up that occurred at end of the vesting period for the Series E-2 and Series F Preferred Stock warrants. For the Series G true-up, the conversion price of the Series G Convertible Preferred Stock was reduced to a number equal to the Series G Preferred Stock original issuance price, divided by the quotient obtained by dividing the Series G true-up amount by the total number of Series G Preferred Stock issued as of the Series G closing date. The Series G true-up amount means the aggregate number of shares of Series G Preferred Stock that would have been issued to the purchasers of the Series G Preferred Stock on the Series G closing date, if warrants to purchase shares of Series E-2 Preferred Stock or Series F Preferred Stock that were exercisable or exercised as of the true-up time (end of vesting period) had been exercisable or exercised as of such Series G closing date. Liquidation Rights PMI’s convertible preferred stock has been classified as temporary equity on the condensed consolidated balance sheets. The preferred stock is not redeemable; however, in the event of a voluntary or involuntary liquidation, dissolution, change in control or winding up of PMI, holders of the convertible preferred stock may have the right to receive its liquidation preference under the terms of PMI’s certificate of incorporation. Each holder of Series E-1, Series E-2, and Series F convertible preferred stock is entitled to receive prior and in preference to any distribution of proceeds from a liquidation event to the holders of Series A, Series B, Series C, Series D, Series G and Series A-1 convertible preferred stock or common stock, an amount per share for (i) each share of Series E-1 convertible preferred stock equal to the sum of the liquidation preference specified for such share and all declared but unpaid dividends, if any, on such share, (ii) each share of Series E-2 convertible preferred stock equal to the sum of two-thirds the liquidation preference specified for such share and all declared but unpaid dividends, if any, on such share, and (iii) each share of Series F convertible preferred stock equal to the sum of two-thirds of the liquidation preference specified for such share and all declared but unpaid dividends, if any, on such share. After the payment or setting aside for payment to the holders of Series E-1, Series E-2, and Series F convertible preferred stock, each holder of Series A, Series B, Series C and Series D, Series E-2, Series F, and Series G convertible preferred stock is entitled to receive, on a pari passu basis, prior to and in preference to any distribution of proceeds from a liquidation event to the holders of Series A-1 convertible preferred stock or common stock, (i) an amount per share for each share of Series E-2 and Series F convertible preferred stock equal to the sum of one-third of the liquidation preference specified for such share and all declared but unpaid dividends, if any, on such share, and (ii) an amount per share for each share of Series A, Series B, Series C, Series D and Series G convertible preferred stock equal to the sum of the liquidation preference specified for such share and all declared but unpaid dividends, if any, on such share. After the payment or setting aside for payment to the holders of Series A, Series B, Series C, Series D, Series E-1, Series E-2, Series F, and Series G convertible preferred stock, the holders of Series A-1 convertible preferred stock are entitled to receive, prior and in preference to any distribution of proceeds to the holders of common stock, an amount per share for each such share of Series A-1 convertible preferred stock equal to the sum of the liquidation preference specified for such share and all declared but unpaid dividends, if any, on such share. After the payment or setting aside for payment to the holders of Series A, Series B, Series C, Series D, Series E-1, Series E-2, Series F, Series G, and Series A-1 convertible preferred stock, the entire remaining proceeds legally available for distribution will be distributed pro rata to the holders of Series A convertible preferred stock and common stock in proportion to the number of shares of common stock held by them assuming the Series A convertible preferred stock has been converted into shares of common stock at the then effective conversion rate, provided that the maximum aggregate amount per share of Series A convertible preferred stock which the holders of Series A convertible preferred stock shall be entitled to receive is three times the original issue price for the Series A convertible preferred stock. At present, the liquidation preferences are equal to $0.29 per share for the Series A convertible preferred stock, $2.00 per share for the Series A-1 convertible preferred stock, $0.60 per share for the Series B convertible preferred stock, $2.87 per share for the Series C convertible preferred stock, $6.91 per share for the Series D convertible preferred stock, $0.84 per share for the Series E-1 convertible preferred stock, $0.84 per share for the Series E-2 convertible preferred stock, $0.84 per share for the Series F convertible preferred stock and $1.34 per share for the Series G convertible preferred stock. Voting Each holder of shares of convertible preferred stock is entitled to the number of votes equal to the number of shares of common stock into which such shares of convertible preferred stock could be converted and has voting rights and powers equal to the voting rights and powers of the common stock. The holders of convertible preferred stock and the holders of common stock vote together as a single class (except with respect to certain matters that require separate votes or as required by law), and are entitled to notice of any stockholders’ meeting in accordance with the Bylaws of PMI. Convertible Preferred Stock Warrant Liability Series E-1 Warrants In connection with the Settlement and Release Agreement dated November 17, 2016 among PMI, its wholly owned subsidiary Prosper Funding LLC (“PFL”) and Colchis, on December 16, 2016, PMI issued the First Series E-1 Warrant. The Second Series E-1 Warrant for an additional 15,277,006 shares of Series E-1 convertible preferred stock was granted on the signing of the Consortium Purchase Agreement (as defined in Note 15) on February 27, 2017. The warrants expire ten years from the dat e of issuance. For the three months ended June 30, 2020 and 2019, Prosper recognized $3.6 million and $1.1 million of income, respectively, from the re-measurement of the fair value of the warrants. For the six months ended June 30, 2020 and 2019, Prosper recognized $12.8 million of income and $1.0 million of expense, respectively, from the re-measurement of the fair value of the warrants. The income or expense resulted from the remeasurement of the fair value of the warrants is recorded through Change in Fair Value of Convertible Preferred Stock Warrants on the condensed consolidated statements of operations. To determine the fair value of the Series E-1 Warrants, the Company first determined the value of a share of a Series E-1 Convertible Preferred Stock. To determine the fair value of the Convertible Preferred Stock, the Company first derived the business enterprise value (“BEV”) of the Company using a variety of valuation methods, including discounted cash flow models and market based methods, as deemed appropriate under the circumstances applicable at the valuation date. Once the Company determined an estimated BEV, the option pricing method ("OPM") was used to allocate the BEV to the various classes of our equity, including our preferred stock. The concluded per share value for the Series E-1 Convertible Preferred Stock was utilized as an input to the Black-Scholes option pricing model. The Company determined the fair value of the outstanding Series E-1 Warrants utilizing the following assumptions as of the following dates: June 30, 2020 December 31, 2019 Volatility 66.0 % 46.0 % Risk-free interest rate 0.20 % 1.60 % Expected term (in years) 2.75 2.75 Dividend yield — % — % The above assumptions were determined as follows: Volatility . The volatility is derived from historical volatilities of several unrelated publicly listed peer companies over a period approximately equal to the term of the warrant as the Company has limited information on the volatility of its preferred stock since there is currently no trading history. When making the selections of industry peer companies to be used in the volatility calculation, the Company considered the size, operational, and economic similarities to the Company’s principal business operations. Risk-Free Interest Rate . The risk-free interest rate is based on the U.S. Treasury yield in effect as of the period end date and for zero coupon U.S. Treasury notes with maturities approximately equal to the term of the warrant. Expected Term . The expected term is the period of time for which the warrants are expected to be outstanding. Dividend Yield . The expected dividend assumption is based on the Company’s current expectations about the Company’s anticipated dividend policy. Series F Warrants In connection with the Consortium Purchase Agreement (as described in Note 15), PMI issued warrants to purchase up to 177,720,706 shares of PMI's Series F convertible preferred stock at $0.01 per share. For the three months ended June 30, 2020 and 2019, Prosper recognized $16.0 million and $3.6 million of income, respectively, from the re-measurement of the fair value of the warrants. For the six months ended June 30, 2020 and 2019, Prosper recognized $62.2 million of income and $4.3 million of expense, respectively, from the re-measurement of the fair value of the warrants. The income or expense resulting from changes in the fair value of the warrant is recorded through Change in Fair Value of Convertible Preferred Stock Warrants on the condensed consolidated statements of operations . To determine the fair value of the Series F Warrants, the Company first determined the value of a share of a Series F Convertible Preferred Stock. To determine the fair value of the Convertible Preferred Stock, the Company first derived the BEV using valuation methods, including a combination of methods, as deemed appropriate under the circumstances applicable at the valuation date. Once the Company determined an estimated BEV, the OPM was used to allocate the BEV to the various classes of Prosper's equity, including our preferred stock. The concluded per share value for the Series F Convertible Preferred Stock warrants utilized the Black-Scholes option pricing model. The Company determined the fair value of the outstanding Series F Warrants utilizing the following assumptions as of the following dates: June 30, 2020 December 31, 2019 Volatility 66.0 % 46.0 % Risk-free interest rate 0.20 % 1.60 % Expected term (in years) 2.75 2.75 Dividend yield — % — % The above assumptions were determined using the same criteria described above for the Series E-1 Warrants. The combined activity of the Convertible Preferred Stock Warrant Liability for the six months ended June 30, 2020 and 2019 are as follows (in thousands): Warrant Activity Balance at January 1, 2020 $ 149,996 Change in fair value (74,998) Balance at June 30, 2020 $ 74,998 Warrant Activity Balance at January 1, 2019 $ 143,679 Warrants vested 17,553 Change in fair value 5,327 Balance at June 30, 2019 $ 166,559 Common Stock PMI, through its Amended and Restated Certificate of Incorporation, is the sole issuer of common stock and related options, restricted stock units ("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 September 20, 2017, 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 1,069,760,848, consisting of 625,000,000 shares of common stock, $0.01 par value per share, and 444,760,848 shares of preferred stock, $0.01 par value per share. As of June 30, 2020, 69,391,576 shares of common stock were issued and 68,455,641 shares of common stock were outstanding. As of December 31, 2019, 69,387,836 shares of common stock were issued and 68,451,901 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 |
Share Based Incentive Plan and
Share Based Incentive Plan and Compensation | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share Based Incentive Plan and Compensation | Share Based Incentive Plan and CompensationPMI grants equity awards primarily through its Amended and Restated 2005 Stock Option Plan (the “2005 Plan”), which was approved as amended and restated by its stockholders on December 1, 2010; and its 2015 Equity Incentive Plan, which was approved by its stockholders on April 7, 2015 and subsequently amended by an Amendment No. 1, Amendment No. 2 and Amendment No. 3, which were approved by PMI's stockholders effective as of February 15, 2016, May 31, 2016, and September 5, 2018 respectively (as amended, the “2015 Plan”). In March 2015, the 2005 Plan expired, except that any awards granted under the 2005 Plan prior to its expiration remain in effect pursuant to their terms. Stock Option Reprice On May 3, 2016, the Compensation Committee of the Board of Directors of PMI approved a stock option repricing program (the “2016 Repricing”), 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. On March 17, 2017, the Compensation Committee of the Board of Directors of PMI approved a stock option repricing program (the “2017 Repricing” and together with the 2016 Repricing, the “Repricings”), 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 2017 Repricing was effected on March 17, 2017 for eligible directors and employees. Prosper believes that the Repricings 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 the Repricings. The financial statement impact of the above Repricings was not material for the three and six months ended June 30, 2020, and the unamortized Repricings amount (net of forfeitures) is also not material as of June 30, 2020. Stock Option Activity Stock option activity under the 2005 Plan and 2015 Plan is summarized for the six months ended June 30, 2020 below: Options Issued and Outstanding Weighted- Average Exercise Price Balance as of January 1, 2020 76,236,757 $ 0.31 Options issued 4,125,900 0.14 Options exercised (3,740) 0.38 Options forfeited (5,573,980) 0.36 Options expired (3,329,460) 0.13 Balance as of June 30, 2020 71,455,477 0.30 Options vested and expected to vest as of June 30, 2020 58,749,776 0.30 Options vested and exercisable at June 30, 2020 48,934,035 0.30 Other Information Regarding Stock Options The weighted-average remaining life for options outstanding as of June 30, 2020 was 7.37 years . 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. As PMI’s stock is not publicly traded, volatility for stock options is based on an average of the historical volatilities of the common stock of several entities with characteristics similar to those of Prosper. The expected term assumptions were determined based on the vesting terms, exercise terms and contractual lives of the options using the simplified method. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected life of the option. Prosper uses an expected dividend yield of zero as it does not anticipate paying any dividends in the foreseeable future. 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 and six months ended June 30, 2020 and 2019 was estimated at the date of grant using the Black-Scholes model with the following average assumptions: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Volatility of common stock 55.37 % 46.72 % 47.93 % 46.72 % Risk-free interest rate 0.44 % 2.28 % 0.66 % 2.28 % Expected life 6.0 years 5.9 years 6.0 years 5.9 years Dividend yield — % — % — % — % Restricted Stock Unit Activity For the six months ended June 30, 2020, PMI did not grant any RSUs to employees. In previous reporting periods, PMI granted certain employees RSUs that are subject to three four The following table summarizes the number of PMI’s outstanding RSUs and their weighted-average grant date fair value for the six months ended June 30, 2020: Number of Shares Weighted-Average Grant Date Fair Value Unvested - January 1, 2020 4,803,141 $ 0.95 Forfeited (141,500) $ 2.18 Unvested - June 30, 2020 4,661,641 $ 0.91 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 for the periods presented (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Origination and servicing $ 34 $ 108 $ 72 $ 304 Sales and marketing 15 63 26 145 General and administrative 343 1,064 799 2,401 Total stock-based compensation $ 392 $ 1,235 $ 897 $ 2,850 Prosper capitalized stock-based compensation as internal-use software and website development costs of $0.1 million for both the three months ended June 30, 2020 and 2019, and $0.1 million and $0.2 million for the six months ended June 30, 2020 and 2019, respectively. As of June 30, 2020 , the unamortized stock- based compensation expense adjusted for forfeiture estimates related to our employees’ unvested stock-based awards was approximately $2.6 million, which will be recognized over the remaining weighted-average vesting period of approximately 2.0 years. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Entity Information [Line Items] | |
Income Taxes | Income Taxes For the three months ended June 30, 2020 and 2019, Prosper reco gnized $34 thousand and $29 thousand of income tax expense, respectively. For the six months ended June 30, 2020 and 2019, Prosper reco gnized $68 thousand and $58 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 three and six month periods ended June 30, 2020 and June 30, 2019 due to a full valuation allowance recorded against the Company’s 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 | |
Entity Information [Line Items] | |
Income Taxes | Income TaxesProsper Funding incurred no income tax provision for the six months ended June 30, 2020 and June 30, 2019. Prosper Funding is a U.S. disregarded entity and its income and loss are included in the income tax reporting of its parent, PMI. Since PMI is in a cumulative loss position, is not currently subject to income taxes, and has fully reserved against its deferred tax asset, the net effective tax rate for Prosper Funding is 0%. |
Consortium Purchase Agreement
Consortium Purchase Agreement | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Consortium Purchase Agreement | Consortium Purchase Agreement On February 27, 2017, Prosper entered into a series of agreements (the “Consortium Purchase Agreement”) with a consortium of investors (the “Consortium”), pursuant to which the Consortium agreed to purchase Borrower Loans in an aggregate principal amount of up to $5.0 billion (including certain loans purchased by one of the investors prior to the date of the Consortium Purchase Agreement). PFL was obligated to offer for purchase minimum monthly volumes of eligible loans to the Consortium, for the Consortium to elect to purchase. The obligation to offer for purchase minimum monthly volumes of eligible loans and the related vesting ended upon the expiration of the Consortium Purchase Agreement in May 2019. In connection with the Consortium Purchase Agreement, PMI issued to the Consortium three warrants to purchase up to an aggregate 177,720,706 shares of PMI’s Series F Preferred Stock at an exercise price of $0.01 per share (the “Warrant Shares”). The Consortium's right to exercise these Series F Warrants was subject to monthly vesting and was fully vested in May 2019. On vesting of the Series F Warrants, Prosper recorded a liability as Convertible Preferred Stock Warrant Liability on the condensed consolidated balance sheets at fair value and a corresponding amount as Fair Value of Warrants Vested on Sale of Borrower Loans on the condensed consolidated statement of operations. Subsequent changes in the fair value of the vested warrants are recorded in Change in Fair Value of Convertible Preferred Stock Warrants on the condensed consolidated statement of operations. Additionally, in connection with the execution of the Consortium Purchase Agreement, certain previously issued rebates were settled by an issuance of vested Series F Convertible Preferred Stock Warrants. The difference in fair value of these warrants over the cash settlement price is recorded in Change in Fair Value of Convertible Preferred Stock Warrants on the condensed consolidated statement of operations. Through its expiration in May 2019, $3.3 billion in loans were acquired and 177.7 million warrants vested under the Consortium Purchase Agreement. In addition to the $3.3 billion of loans acquired above, warrants vested on signing of the Consortium Purchase Agreement were issued to settle certain rebates on $0.3 billion of whole loan purchases by members of the Consortium prior to the signing of the Consortium Purchase Agreement. This $0.3 billion also reduced the up to $5.0 billion aggregate amount under the Consortium Purchase Agreement. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Leases | Leases Prosper has operating leases for corporate offices and datacenters. Our leases have remaining lease terms of one year to seven years. Some of the lease agreem ents include options to extend the lease term for up to an additional five $1.5 million and $1.4 million for the three months ended June 30, 2020 and 2019, respectively. Rental expense under operating lease arrangements was $3.0 million and $2.7 million for the six months ended June 30, 2020 and 2019, respectively. Additionally, Prosper subleases certain leased office space to third parties when it determines there is excess leased capacity. Sublease income from operating lease arrangements was $0.2 million and $0.2 million for the three months ended June 30, 2020 and 2019, respectively. Sublease income from operating lease arrangements was $0.3 million and $0.5 million for the six months ended June 30, 2020 and 2019, respectively. Operating Lease Right-of-Use (“ROU”) Assets As of June 30, 2020, PMI’s operating lease right-of-use assets consist only of leases for office buildings. The following table summarizes the operating lease right-of-use assets as of June 30, 2020, which are included in “Property and Equipment, Net” on the condensed consolidated balance sheets. June 30, 2020 Gross Carrying Value Accumulated Amortization Net Carrying Value ROU Assets - Office buildings $ 15,694 $ 4,955 $ 10,739 The Company identified certain impairment triggers related to its ROU assets in the second quarter of 2020, primarily due to the non-renewal of certain sublease agreements and the time expected to find new subtenants. As a result of impairment testing performed on these ROU assets, the Company recorded an impairment charge of $0.2 million for the three months ended June 30, 2020. Lease Liabilities Future maturities of operating lease liabilities as of June 30, 2020 were as follows (in thousands). The present value of the future minimum lease payments represent our lease liabilities as of June 30, 2020 and are included in "Other Liabilities" on the condensed consolidated balance sheets. Minimum Lease Payments Remainder of 2020 $ 2,593 2021 5,130 2022 5,014 2023 1,562 2024 871 Thereafter 1,820 Total future minimum lease payments $ 16,990 Less imputed interest (1,679) Present value of future minimum lease payments $ 15,311 Because the rate implicit in each lease is not readily determinable, we use our incremental borrowing rate to determine the present value of the lease payments. Other information related to leases was as follows ($ in thousands): June 30, 2020 Cash paid for operating leases year-to-date $ 2,704 Right of use assets obtained in exchange for new operating lease obligations $ — Weighted average remaining lease term (in years) 3.77 Weighted average discount rate 5.54 % |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Entity Information [Line Items] | |
Commitments and Contingencies | Commitments and Contingencies In the normal course of its operations, Prosper becomes involved in various legal actions. Prosper maintains provisions it considers to be adequate for such actions. Prosper does not believe it is probable that the ultimate liability, if any, arising out of any such matters will have a material effect on Prosper's financial condition, results of operations or cash flows. Operating Commitments Prosper entered into an agreement with WebBank, under which all Borrower Loans originated through the marketplace are made by WebBank under its bank charter. Pursuant to the agreement, the marketing fee that Prosper receives in connection with the origination of each loan is partially reduced by an amount (the “Designated Amount”) calculated as a percentage of the principal amount of such loan based on the aggregate principal amount of loans originated for the applicable month. To the extent the aggregate Designated Amount for all loans originated during any month is less than $143,500, Prosper is required to pay WebBank an amount equal to such deficiency. Accordingly, the minimum fee for the remaining six months of 2020 is $0.9 million. The minimum fees are $1.7 million and $0.1 million for the years 2021 and 2022, respectively. Additionally, under the agreement with WebBank, Prosper is required to maintain minimum net liquidity of $15.0 million at all times during the term of the agreement. Net liquidity is defined as the sum of Cash, Cash Equivalents and Available for Sale Investments. Violation of this covenan t can result in termination of the contract with WebBank. As of June 30, 2020, Prosper was in compliance with the covenant. Loan Purchase Commitments Prosper entered into an agreement with WebBank to purchase $8.6 million of Borrower Loans that WebBank originated during the last two business days of the quarter ended June 30, 2020. Prosper will purchase these Borrower Loans within the first three business days of the quarter ending September 30, 2020. Repurchase Obligation 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. Prosper recognizes a liability at fair value for the repurchase obligation when the Borrower Loans are sold. The fair value of the repurchase obligation is estimated based on historical experience. 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. The maximum potential amount of future payments associated with this obligation is the outstanding balances of the Borrower Loans issued through the Whole Loan Channel, which at June 30, 2020 is $2.6 billion . Pros per has accrued $0.3 million and $0.4 million as of June 30, 2020 and December 31, 2019, respectively, in regard to this obligation. Regulatory Contingencies Prosper accrues for contingencies when a loss from such contingencies is probable and the amount of loss can be reasonably estimated. In determining whether a loss is probable and if it is possible to quantify the amount of the estimated loss, Prosper reviews and evaluates its litigation and regulatory matters on at least a quarterly basis in light of potentially relevant factual and legal developments. If Prosper determines that an unfavorable outcome is not probable or that the amount of a loss cannot be reasonably estimated, Prosper does not accrue for a potential litigation loss. If an unfavorable outcome is probable and Prosper can estimate a range of outcomes, an amount is recorded which management considers to be the best estimate within the range of potential losses that are both probable and estimable; however, if management cannot quantify the amount of the estimated loss, then the low end of the range of the potential losses is recorded. SEC Inquiry In April 2017, we became aware of an error in the annualized net return and seasoned annualized net return numbers displayed to Note investors. Prosper was advised by the SEC that it was investigating whether violations of federal securities laws had occurred in connection with the error. On April 19, 2019, the SEC accepted an offer of settlement from PFL to resolve the matter. Under the settlement, the SEC alleged a violation of Section 17(a)(2) of the Securities Act and ordered PFL to cease and desist from any future violations of that provision. PFL neither admitted nor denied any wrongdoing, and agreed to pay a civil monetary penalty of $3.0 million. The penalty of $3.0 million was paid in full in April 2019. West Virginia Matter In January 2018, the Attorney General of the State of West Virginia (the “Attorney General”) initiated discussions regarding certain acts and practices of PMI and PFL that the Attorney General asserts may have violated the West Virginia Consumer Credit and Protection Act (the “Consumer Act”), to which Prosper responded with such information as was requested by the Attorney General. Following a period of more than a year with limited to no communication, in February 2020, Prosper received a proposed Assurance of Discontinuance (an “AOD”) from the Attorney General requesting that, without in any way admitting that any of its prior practices were in violation of the Consumer Act, Prosper agree to certain terms and conditions regarding its past and potential future conduct of its business with respect to customers in West Virginia, including a release by the Attorney General of any claims it may have related to the matters identified in the AOD. Prosper is evaluating and intends to discuss the proposed terms in the AOD with the Attorney General. We cannot predict the outcome of the matter and any potential fines or penalties, if any, that may arise from the matter. Further, we are unable to estimate a range of outcomes and as a result no accrual has been made. No loans have been originated through the Prosper platform to West Virginians since June 2016. |
Prosper Funding LLC | |
Entity Information [Line Items] | |
Commitments and Contingencies | Commitments and Contingencies Operating Commitments Prosper entered into an agreement with WebBank, under which all Borrower Loans originated through the marketplace are made by WebBank under its bank charter. Pursuant to the agreement, the marketing fee that Prosper receives in connection with the origination of each loan is partially reduced by an amount (the “Designated Amount”) calculated as a percentage of the principal amount of such loan based on the aggregate principal amount of loans originated for the applicable month. To the extent the aggregate Designated Amount for all loans originated during any month is less than $143,500, Prosper is required to pay WebBank an amount equal to such deficiency. Accordingly, the minimum fee for the remaining six months of 2020 is $0.9 million. The minimum fees are $1.7 million and $0.1 million for the years 2021 and 2022, respectively. Additionally, under the agreement with WebBank, Prosper is required to maintain minimum net liquidity of $15 million at all times during the term of the agreement. Net liquidity is defined as the sum of Cash, Cash Equivalents and Available for Sale Investments. Violation of this covenant can result in termination of the contract with WebBank. As of June 30, 2020, we were in compliance with the covenant. Loan Purchase Commitments Under the terms of Prosper Funding’s agreement with WebBank, Prosper Funding is committed to purchase $8.6 million of Borrower Loans that WebBank originated during the last two business days of the quarter ended June 30, 2020. Prosper Funding will purchase these Borrower Loans within the first three business days of the quarter ending September 30, 2020. Repurchase Obligation Under the terms of the loan purchase agreements between Prosper Funding and investors that participate in the Whole Loan Channel, Prosper Funding 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. 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 as of June 30, 2020 is $3.1 billion. P rosper Funding has acc rued $0.3 million and $0.4 million as of June 30, 2020 and December 31, 2019, respectively, in regard to this obligation. Regulatory Contingencies Prosper accrues for contingencies when a loss from such contingencies is probable and the amount of loss can be reasonably estimated. In determining whether a loss is probable and if it is possible to quantify the amount of the estimated loss, Prosper reviews and evaluates its litigation and regulatory matters on at least a quarterly basis in light of potentially relevant factual and legal developments. If Prosper determines that an unfavorable outcome is not probable or that the amount of a loss cannot be reasonably estimated, Prosper does not accrue for a potential litigation loss. If an unfavorable outcome is probable and Prosper can estimate a range of outcomes, we record the amount we consider to be the best estimate within the range of potential losses that are both probable and estimable; however, if we cannot quantify the amount of the estimated loss, then we record the low end of the range of those potential losses. SEC Inquiry In April 2017, we became aware of an error in the annualized net return and seasoned annualized net return numbers displayed to Note investors. Prosper was advised by the SEC that it was investigating whether violations of federal securities laws had occurred in connection with the error. On April 19, 2019, the SEC accepted an offer of settlement from PFL to resolve the matter. Under the settlement, the SEC alleged a violation of Section 17(a)(2) of the Securities Act and ordered PFL to cease and desist from any future violations of that provision. PFL neither admitted nor denied any wrongdoing, and agreed to pay a civil monetary penalty of $3.0 million. The penalty of $3.0 million was paid in full in April 2019. West Virginia Matter In January 2018, the Attorney General of the State of West Virginia (the “Attorney General”) initiated discussions regarding certain acts and practices of PMI and PFL that the Attorney General asserts may have violated the West Virginia Consumer Credit and Protection Act (the “Consumer Act”), to which Prosper responded with such information as was requested by the Attorney General. Following a period of more than a year with limited to no communication, in February 2020, Prosper received a proposed Assurance of Discontinuance (an “AOD”) from the Attorney General requesting that, without in any way admitting that any of its prior practices were in violation of the Consumer Act, Prosper agree to certain terms and conditions regarding its past and potential future conduct of its business with respect to customers in West Virginia, including a release by the Attorney General of any claims it may have related to the matters identified in the AOD. Prosper is evaluating and intends to discuss the proposed terms in the AOD with the Attorney General. We cannot predict the outcome of the matter and any potential fines or penalties, if any, that may arise from the matter. Further, we are unable to estimate a range of outcomes and as a result no accrual has been made. No loans have been originated through the Prosper platform to West Virginians since June 2016. |
Related Parties
Related Parties | 6 Months Ended |
Jun. 30, 2020 | |
Entity Information [Line Items] | |
Related Parties | 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, 2020 and 2019, as well as the Notes and Borrower Loans outstanding as of June 30, 2020 and December 31, 2019 are summarized below (in thousands): Aggregate Amount of Interest Earned on Related Party 2020 2019 2020 2019 Executive officers and management $ 6 $ 11 $ 1 $ 2 Directors (excluding executive officers and management) 110 208 14 24 Total $ 116 $ 219 $ 15 $ 26 Aggregate Amount of Interest Earned on Related Party 2020 2019 2020 2019 Executive officers and management $ 12 $ 5 $ 3 $ 1 Directors (excluding executive officers and management) 231 99 29 12 Total $ 243 $ 104 $ 32 $ 13 Notes Balance as of Related Party June 30, 2020 December 31, 2019 Executive officers and management $ 36 $ 35 Directors (excluding executive officers and management) 684 682 $ 720 $ 717 |
Prosper Funding LLC | |
Entity Information [Line Items] | |
Related Parties | Related Parties Since inception, Prosper Funding has engaged in various transactions with its directors, executive officers, 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 for the three and six months ended June 30, 2020 and 2019 are summarized below (in thousands): Aggregate Purchases Interest Earned Three Months Ended June 30, Three Months Ended June 30, Related Party 2020 2019 2020 2019 Executive officers and management $ 6 $ 5 $ 1 $ 1 Directors (excluding executive officers and management) — — — — Total $ 6 $ 5 $ 1 $ 1 Aggregate Purchases Interest Earned Six Months Ended June 30, Six Months Ended June 30, Related Party 2020 2019 2020 2019 Executive officers and management $ 12 $ 11 $ 3 $ 2 Directors (excluding executive officers and management) — — — — Total $ 12 $ 11 $ 3 $ 2 The balance of Notes held by officers and directors who are not executive officers are as follows (in thousands): Related Party June 30, 2020 December 31, 2019 Executive officers and management $ 36 $ 35 Directors (excluding executive officers and management) — — $ 36 $ 35 |
Significant Concentrations
Significant Concentrations | 6 Months Ended |
Jun. 30, 2020 | |
Risks and Uncertainties [Abstract] | |
Significant Concentrations | Significant Concentrations Prosper is dependent on third party funding sources such as banks, asset managers, investment funds and Warehouse Lines to provide the funds to allow WebBank to originate Borrower Loans that the third party funding sources will later purchase. Of all Borrower Loans originated in the three months ended June 30, 2020, three individual parties purchased 12.8%, 17.9% and 19.0% of such loans, and the Company’s Warehouse VIEs purchased 38.8% of such loans. Of all Borrower Loans originated in the six months ended June 30, 2020, those same three parties purchased 10.6%, 17.1% and 13.5%, respectively, of such loans, and the Company’s Warehouse VIEs purchased 20.1% of such loans. For the three months ended June 30, 2019, two parties purchased 17.5% and 19.4% of such loans, and for the six months ended June 30, 2019, those same two parties purchased 10.0% and 17.4%, respectively, of such loans. These purchases reflect that a significant portion of our business is dependent on funding through the Whole Loan Channel, through which 91% and 93% of Borrower Loans were originated in the six months ended June 30, 2020 and 2019, respectively. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Share Transfer In July 2020, the Company established a trust, and through that trust entered into a Stock Transfer Agreement with an investor to purchase 34,670,420 of Series A convertible preferred stock and 16,577,495 shares of Series B convertible preferred stock for nominal consideration. The Company does not plan to retire the shares and instead the shares will be held by the trust for the future benefit of PMI’s employees. Stock Option Reprice On August 11, 2020, the Compensation Committee of the Board of Directors of PMI approved a stock option repricing program (the “2020 Repricing”), 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. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Entity Information [Line Items] | |
Basis of Presentation | 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 PMI, “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 accounting principles generally accepted in the United States of America (“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, 2019. The balance sheet at December 31, 2019 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 US 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. The accompanying interim condensed consolidated financial statements include the accounts of PMI, its wholly-owned subsidiaries and consolidated variable interest entities (“VIEs”). All intercompany balances have been eliminated in consolidation. Securitization Notes are notes held by certain third party investors pursuant to Prosper’s securitization transactions, and are distinguishable from the borrower payment dependent Notes available to investors through our Note Channel. |
Fair Value Measurements | Fair Value Measurements Financial instruments measured at fair value consist principally of Borrower Loans, Loans Held for Sale, Servicing Assets, Notes, Certificates Issued by Securitization Trust and Convertible Preferred Stock Warrant Liability. The estimated fair values of other financial instruments, including 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. The estimated fair values of Notes Issued by Securitization Trust and Warehouse Lines do not approximate their carrying values due primarily to differences in the stated and market rates associated with these instruments. Refer to Note 7 for additional fair value disclosures. |
Restricted Cash | Restricted Cash Restricted Cash consists primarily of cash deposits, money market funds and short term certificate of deposit accounts held as collateral as required for long term leases, loan funding and servicing activities, and cash that investors have on our marketplace that has not yet been invested in Borrower Loans or disbursed to the investor. |
Borrower Loans, Loans Held for Sale, Notes and Certificates Issued by Securitization Trust | Borrower Loans, Loans Held for Sale, Notes and Certificates Issued by Securitization Trust Borrower Loans are funded either through the Note Channel or through the Whole Loan Channel. 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. In 2019, Prosper began refinancing the purchase of Borrower Loans through the Whole Loan Channel through securitization transactions, which issue senior notes, risk retention interests and residual certificates. Associated securitization trusts are deemed consolidated VIEs, and as a result the Borrower Loans held in the securitization trusts are included in “Borrower Loans, at Fair Value,” senior notes sold to third party investors are included in “Notes Issued by Securitization Trust,” and the risk retention interest and residual certificates held by third party investors are included in “Certificates Issued by Securitization Trust, at Fair Value” on the accompanying condensed consolidated balance sheets. Refer to Note 6, Securitization for additional disclosures. Prosper uses Warehouse Lines to purchase Loans Held for Sale that may be subsequently contributed to securitization transactions or sold to investors. Loans Held for Sale are included in “Loans Held for Sale, at Fair Value” on the Consolidated Balance Sheets. See Note 10, Debt for more details on Warehouse Lines. Borrower Loans and Loans Held for Sale are purchased from WebBank. Prosper places Borrower Loans and Loans Held for Sale on non-accrual status when they are 120 days past due. When a loan is placed on non-accrual status, Prosper stops accruing interest and reverses all accrued but unpaid interest as of such date. Additionally, Prosper charges-off Borrower Loans and Loans Held for Sale when they are 120 days past due. The fair value of loans 120 or more days past due generally consists of the expected recovery from debt sales in subsequent periods. Prosper has elected the fair value option for Borrower Loans, Loans Held for Sale, Notes, and Certificates Issued by Securitization Trust. Changes in fair value of Borrower Loans funded through the Note Channel are largely offset by the changes in fair value of Notes due to the borrower payment-dependent design of the Notes. Changes in fair value of Borrower Loans held in consolidated securitization trusts are partially offset by changes in fair value of the Certificates Issued by Securitization Trust. Changes in fair value of Loans Held for Sale are recorded through Proper's earnings and Prosper collects interest on Loans Held for Sale. Changes in the fair values of Borrower Loans, Loans Held for Sale, Notes, and Certificates Issued by Securitization Trust are included in “Change in Fair Value of Financial Instruments, Net” on the Consolidated Statements of Operations. Prosper primarily uses a discounted cash flow model to estimate the fair value of Borrower Loans, Loans Held for Sale, Notes, and Certificates Issued by Securitization Trust. The key assumptions used in the valuation include default rates and prepayment rates derived primarily from historical performance, and discount rates based on estimates of the rates of return that investors would require when investing in financial instruments with similar characteristics. |
Leases | Leases Management determines if an arrangement is a lease at inception. Operating lease right-of-use (“ROU”) assets and operating lease liabilities are included on the Consolidated Balance Sheets in Property and Equipment, Net and in Other Liabilities, respectively. For certain leases with original terms of twelve months or less, PMI recognizes the lease expense as incurred and does not record ROU assets and lease liabilities. If a contract contains a lease, management evaluates whether it should be classified as an operating or finance lease. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. As most of PMI's leases do not provide an implicit rate, management uses an incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The operating lease ROU assets are evaluated for impairment utilizing the same impairment model used for Property and Equipment. |
Consolidation of Variable Interest Entities | Consolidation of Variable Interest Entities The determination of whether to consolidate a VIE in which we have a variable interest requires a significant amount of analysis and judgment regarding whether we are the primary beneficiary of a VIE due to our holding a controlling financial interest in the VIE. A controlling financial interest in a VIE exists if we have both the power to direct the VIE’s activities that most significantly affect the VIE’s economic performance and a potentially significant economic interest in the VIE. The determination of whether an entity is a VIE considers factors, such as (i) whether the entity’s equity investment at risk is insufficient to allow the entity to finance its activities without additional subordinated financial support and (ii) whether a holder’s equity investment at risk lacks any of the following characteristics of a controlling financial interest: the direct or indirect ability through voting rights or similar rights to make decisions about a legal entity’s activities that have a significant effect on the entity’s success, the obligation to absorb the expected losses of the entity or the right to receive the expected residual returns of the legal entity. Management regularly reviews and reconsiders its previous conclusions regarding the status of an entity as a VIE and whether we are required to consolidate such VIE in the consolidated financial statements. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Standards Adopted by the Company in the Current Year In June 2016, the Financial Accounting Standards Board (“FASB”) amended guidance related to impairment of financial instruments as part of Accounting Standards Update (“ASU”) No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which is effective for interim and annual periods beginning after December 15, 2019. Prosper adopted the standard in the first quarter of 2020. For loans accounted for at amortized cost, the guidance replaces the incurred loss impairment methodology with an expected credit loss model for which a company recognizes an allowance based on the estimate of expected credit loss. Because Prosper accounts for Borrower Loans at fair value through net income there was no impact on Prosper loan portfolios upon adoption. For certain available for sale investments, the guidance requires recognition of expected credit losses through recording an allowance for credit losses. The recognition of this allowance is limited to the difference between the security’s amortized cost basis and fair value. The amendments to the available for sale debt securities impairment model did not have a material impact on the Company's consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” Prior to ASU No. 2017-04, the goodwill impairment test was a two-step assessment, if indicators of impairment existed. The standard eliminates Step 2 from the goodwill impairment test, which requires a hypothetical purchase price allocation. Instead, entities will record a goodwill impairment charge based on the excess of a reporting unit's carrying amount over its fair value. The standard is effective for interim and annual periods beginning after December 15, 2019 and early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. Prosper adopted the guidance on a prospective basis in the first quarter of 2020, and there was no impact on the Company's consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement.” Entities are no longer required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but public companies will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU No. 2018-13 is effective for all entities for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years, but entities are permitted to early adopt either the entire standard or only the provisions that eliminate or modify the requirements. Prosper adopted the guidance in the first quarter of 2020. The guidance only affects disclosures in the notes to the consolidated financial statements and it had no effect on Prosper’s balance sheet or statement of operations. In August 2018, the FASB issued ASU No. 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within that fiscal year and early adoption is permitted. The Company adopted the new guidance in the first quarter of 2020, and will prospectively capitalize all eligible costs related to cloud computing arrangements starting January 1, 2020. There was, however, no impact on the Company’s consolidated financial statements for the first six months of 2020. Accounting Standards Issued, to be Adopted by the Company in Future Periods In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” This ASU simplifies the accounting for income taxes by removing certain exceptions related to the incremental approach for intraperiod tax allocation, the requirement to recognize or derecognize deferred tax liabilities related to equity method investments that are also foreign subsidiaries and the methodology for calculating income taxes in an interim period. The guidance also clarifies and simplifies other aspects of the accounting for income taxes, including a modification in the guidance for franchise taxes that are partially based on income and recognizing deferred taxes for a subsequent step-up in the tax basis of goodwill. This ASU is effective for annual periods beginning after December 15, 2020, including interim periods within those annual periods. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact this new standard will have on the Company’s consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848),” which provides optional expedients and exceptions for applying GAAP on contract modifications and hedge accounting, in order to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative referenced rates, such as the Secured Overnight Financing Rate. This ASU can be adopted after its issuance date through December 31, 2022. The Company is currently evaluating the impact reference rate reform will have on its contracts that reference LIBOR in order to determine whether to adopt this guidance. |
Prosper Funding LLC | |
Entity Information [Line Items] | |
Basis of Presentation | Basis of Presentation Prosper Funding LLC (“PFL”) was formed in the state of Delaware in February 2012 as a limited liability company with the Prosper Marketplace, Inc. (“PMI”) as its sole equity member. Except as the context otherwise requires, as used in these Notes to the condensed consolidated financial statements of PFL, “Prosper Funding,” “we,” “us,” and “our” refers to PFL and its wholly owned subsidiary, Prosper Depositor LLC, 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, 2019. The balance sheet at December 31, 2019 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 or loss for any of the periods presented in the condensed consolidated financial statements as of and for the six months ended June 30, 2020 and June 30, 2019. The preparation of Prosper Funding's condensed consolidated financial statements and related disclosures in conformity with US 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. |
Fair Value Measurements | Fair Value Measurements Financial instruments consist principally of Cash and Cash Equivalents, Restricted Cash, 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. Refer to Note 7 for additional fair value disclosures. |
Restricted Cash | Restricted Cash Restricted Cash consists primarily of cash deposits, money market funds and short term certificate of deposit accounts held as collateral as required for long term leases, loan funding and servicing activities, and cash that investors have on our marketplace that has not yet been invested in Borrower Loans or disbursed to the investor. |
Borrower Loans, Loans Held for Sale, Notes and Certificates Issued by Securitization Trust | Borrower Loans, Loans Held for Sale and Notes With respect to 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 condensed consolidated balance sheets as assets and liabilities, respectively. Prosper Funding places Borrower Loans and Loans Held for Sale on non-accrual status when they are 120 days past due. When a loan is placed on non-accrual status, Prosper stops accruing interest and reverses all accrued but unpaid interest as of such date. Additionally, Prosper charges-off Borrower Loans and Loans Held for Sale when they are 120 days past due. The fair value of loans 120 days past due generally consists of the expected recovery from debt sales in subsequent periods. Management has elected the fair value option for Borrower Loans, Loans Held for Sale, and Notes. Changes in fair value of Borrower Loans are largely offset by the changes in fair value of Notes due to the borrower payment-dependent design of the Notes. Changes in fair value of Borrower Loans, Loans Held for Sale and Notes are included in “Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net” on the Consolidated Statements of Operations. Prosper Funding primarily uses a discounted cash flow model to estimate the fair value of Borrower Loans, Loans Held for Sale and Notes. The key assumptions used in the valuation include default rates and prepayment rates derived primarily from historical performance and discount rates based on estimates of the rates of return that investors would require when investing in financial instruments with similar characteristics. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Standards Adopted In The Current Period In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820); Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement.” Entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but public companies will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU No. 2018-13 is effective for all entities for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years, but entities are permitted to early adopt either the entire standard or only the provisions that eliminate or modify the requirements. The guidance only affects disclosures in the notes to the consolidated financial statements and has no effect on Prosper Funding’s balance sheet or statements of operations. Accounting Standards Issued, To Be Adopted By Prosper Funding In Future Periods |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Entity Information [Line Items] | |
Property and Equipment, Net | Property and Equipment consists of the following at the dates presented (in thousands): June 30, 2020 December 31, 2019 Operating lease right-of-use assets $ 15,694 $ 16,213 Computer equipment 13,724 13,420 Internal-use software and website development costs 32,057 28,904 Office equipment and furniture 2,999 2,999 Leasehold improvements 7,158 7,158 Assets not yet placed in service 3,697 2,445 Property and equipment 75,329 71,139 Less: Accumulated depreciation and amortization (44,839) (39,843) Total Property and Equipment, Net $ 30,490 $ 31,296 |
Prosper Funding LLC | |
Entity Information [Line Items] | |
Property and Equipment, Net | Property and equipment consist of the following (in thousands): June 30, 2020 December 31, 2019 Internal-use software and web site development costs $ 26,885 $ 24,930 Less accumulated depreciation and amortization (19,033) (17,381) Total property and equipment, net $ 7,852 $ 7,549 |
Borrower Loans, Loans Held fo_2
Borrower Loans, Loans Held for Sale, and Notes Held at Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Entity Information [Line Items] | |
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, 2020 and December 31, 2019, are presented in the following table (in thousands): Borrower Loans Loans Held for Sale Notes June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Aggregate principal balance outstanding $ 497,817 $ 647,209 $ 227,127 $ 143,261 $ (227,675) $ (250,281) Fair value adjustments (40,330) (13,190) (10,884) (1,235) 17,688 6,110 Fair value $ 457,487 $ 634,019 $ 216,243 $ 142,026 $ (209,987) $ (244,171) |
Prosper Funding LLC | |
Entity Information [Line Items] | |
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 and Notes as of June 30, 2020 and December 31, 2019, are presented in the following table (in thousands): Borrower Loans Notes June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Aggregate principal balance outstanding $ 226,599 $ 248,702 $ (227,674) $ (250,281) Fair value adjustments (14,824) (3,565) 17,688 6,110 Fair value $ 211,775 $ 245,137 $ (209,986) $ (244,171) |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Entity Information [Line Items] | |
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, 2020 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Assets: Borrower Loans $ — $ — $ 457,487 $ 457,487 Loans Held for Sale — — 216,243 216,243 Servicing Assets — — 10,073 10,073 Total Assets $ — $ — $ 683,803 $ 683,803 Liabilities: Notes $ — $ — $ 209,987 $ 209,987 Certificates Issued by Securitization Trust, at Fair Value — — 31,571 31,571 Convertible Preferred Stock Warrant Liability — — 74,998 74,998 Loan Trailing Fee Liability — — 2,403 2,403 Total Liabilities $ — $ — $ 318,959 $ 318,959 December 31, 2019 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Assets: Borrower Loans $ — $ — $ 634,019 $ 634,019 Loans Held for Sale — — 142,026 142,026 Servicing Assets — — 12,602 12,602 Total Assets $ — $ — $ 788,647 $ 788,647 Liabilities: Notes $ — $ — $ 244,171 $ 244,171 Certificates Issued by Securitization Trust — — 52,168 52,168 Convertible Preferred Stock Warrant Liability — — 149,996 149,996 Loan Trailing Fee Liability — — 2,997 2,997 Total Liabilities $ — $ — $ 449,332 $ 449,332 |
Quantitative Information About Significant Unobservable Inputs | The following tables present quantitative information about the ranges of significant unobservable inputs used for the Company’s Level 3 fair value measurements at June 30, 2020 and December 31, 2019: Range Borrower Loans, Loans Held for Sale and Notes June 30, 2020 December 31, 2019 Discount rate 6.4% - 15.9% 4.4% - 12.2% Default rate 2.3% - 19.0% 2.1% - 18.6% Range Certificates Issued by Securitization Trust June 30, 2020 December 31, 2019 Discount rate 8.8% - 19.9% 4.0% - 15.0% Default rate 3.2% - 17.7% 2.0% - 17.0% Prepayment rate 11.1% - 34.2% 14.5% - 33.0% Range Servicing Assets June 30, 2020 December 31, 2019 Discount rate 15.0% - 25.0% 15.0% - 25.0% Default rate 1.9% - 19.4% 1.7% - 18.8% Prepayment rate 15.3% - 28.5% 16.5% - 28.1% Market servicing rate (1) (2) 0.625% - 0.818% 0.625 % (1) Servicing assets associated with loans enrolled in a relief program offered by the Company in response to the COVID-19 pandemic as of June 30, 2020 were measured using a market servicing rate assumption of 81.8 basis points. This rate was estimated using a multiplier consistent with observable market rates for other loan types, applied to the base market servicing rate assumption of 62.5 basis points. (2) Excludes collection fees that would be passed on to a hypothetical third-party servicer. As of June 30, 2020 and December 31, 2019, the market rate for collection fees and non-sufficient fund fees was assumed to be 4 basis points and 6 basis points, respectively, for a total market servicing rate range of 66.5 - 85.8 basis points and a total market servicing rate of 68.5 basis points, respectively. Range Loan Trailing Fee Liability June 30, 2020 December 31, 2019 Discount rate 15.0% - 25.0% 15.0% - 25.0% Default rate 1.9% - 19.4% 1.7% - 18.8% Prepayment rate 15.3% - 28.5% 16.5% - 28.1% |
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) Assets Liabilities Borrower Loans Loans Held For Sale Notes Certificates Issued by Securitization Trust Total Balance at January 1, 2020 $ 634,019 $ 142,026 $ (244,171) $ (52,168) $ 479,706 Purchase of Borrower Loans/Issuance of Notes 65,664 622,122 (65,043) — 622,743 Principal repayments (179,552) (43,076) 77,107 9,875 (135,646) Borrower Loans sold to third parties (4,254) (491,782) — — (496,036) Other changes (158) 779 (257) 341 705 Change in fair value (58,232) (13,826) 22,377 10,381 (39,300) Balance at June 30, 2020 $ 457,487 $ 216,243 $ (209,987) $ (31,571) $ 432,172 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Assets Liabilities Borrower Loans Loans Held for Sale Notes Certificates Issued by Securitization Trust Total Balance at January 1, 2019 $ 263,522 $ 183,788 $ (264,003) $ — $ 183,307 Purchase of Borrower Loans/Issuance of Notes 348,629 1,161,237 (86,713) (51,595) 1,371,558 Transfers in (Transfers out) 147,773 (147,773) — — — Principal repayments (134,031) (26,529) 85,728 4,272 (70,560) Borrower Loans sold to third parties (1,886) (1,053,308) — — (1,055,194) Other changes 91 89 603 (603) 180 Change in fair value (17,299) (2,542) 10,960 3,836 (5,045) Balance at June 30, 2019 $ 606,799 $ 114,962 $ (253,425) $ (44,090) $ 424,246 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Assets Liabilities Borrower Loans Loans Held For Sale Notes Certificates Issued by Securitization Trust Total Balance at April 1, 2020 $ 522,404 $ 153,236 $ (225,491) $ (35,316) $ 414,833 Purchase of Borrower Loans/Issuance of Notes 24,363 222,572 (24,468) — 222,467 Principal repayments (82,837) (24,516) 36,520 5,042 (65,791) Borrower Loans sold to third parties (1,991) (136,148) — — (138,139) Other changes 584 673 (396) 303 1,164 Change in fair value (5,036) 426 3,848 (1,600) (2,362) Balance at June 30, 2020 $ 457,487 $ 216,243 $ (209,987) $ (31,571) $ 432,172 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Assets Liabilities Borrower Loans Loans Held for Sale Notes Certificates Issued by Securitization Trust Total Balance at April 1, 2019 $ 448,710 $ 106,640 $ (258,722) $ (19,134) $ 277,494 Purchase of Borrower Loans/Issuance of Notes 213,370 670,382 (41,774) (30,979) 810,999 Transfers in (Transfers out) 33,457 (33,457) — — — Principal repayments (77,402) (11,790) 41,611 3,139 (44,442) Borrower Loans sold to third parties (912) (615,835) — — (616,747) Other changes (48) 255 2 (436) (227) Change in fair value (10,376) (1,233) 5,458 3,320 (2,831) Balance at June 30, 2019 $ 606,799 $ 114,962 $ (253,425) $ (44,090) $ 424,246 |
Schedule of Servicing Assets and Liabilities Measured at Fair Value | The following tables present additional information about Level 3 Servicing Assets measured at fair value on a recurring basis for the three and six month periods ending June 30, 2020 and 2019 (in thousands): Servicing Assets Fair Value at January 1, 2020 $ 12,602 Additions 2,703 Less: Changes in fair value (5,232) Fair Value at June 30, 2020 $ 10,073 Servicing Assets Fair Value at January 1, 2019 $ 14,687 Additions 6,378 Derecognition (1,049) Less: Changes in fair value (6,629) Fair Value at June 30, 2019 $ 13,387 Servicing Assets Fair Value at April 1, 2020 $ 11,742 Additions 729 Less: Changes in fair value (2,398) Fair Value at June 30, 2020 $ 10,073 Servicing Assets Fair Value at April 1, 2019 $ 13,814 Additions 3,636 Derecognition (685) Less: Changes in fair value (3,378) Fair Value at June 30, 2019 $ 13,387 The following tables present additional information about the Level 3 Convertible Preferred Stock Warrant Liability measured at fair value on a recurring basis for the three and six month periods ending June 30, 2020 and 2019 (in thousands): Convertible Preferred Stock Balance as of January 1, 2020 $ 149,996 Change in fair value (74,998) Balance as of June 30, 2020 $ 74,998 Convertible Preferred Stock Balance as of January 1, 2019 $ 143,679 Issuance of Stock Warrants 17,553 Change in fair value 5,327 Balance as of June 30, 2019 $ 166,559 Convertible Preferred Stock Balance as of April 1, 2020 $ 94,547 Change in fair value (19,549) Balance as of June 30, 2020 $ 74,998 Convertible Preferred Stock Balance as of April 1, 2019 $ 163,483 Issuance of Stock Warrants 7,805 Change in fair value (4,729) Balance as of June 30, 2019 $ 166,559 |
Fair Value, Liabilities Measured on Recurring Basis | The following tables present additional information about the Level 3 Loan Trailing Fee Liability measured at fair value on a recurring basis for the three and six month periods ending June 30, 2020 and 2019 (in thousands): Loan Trailing Fee Liability Balance at January 1, 2020 $ 2,997 Issuances 625 Cash Payment of Loan Trailing Fee (1,271) Change in Fair Value 52 Balance at June 30, 2020 $ 2,403 Loan Trailing Fee Liability Balance at January 1, 2019 $ 3,118 Issuances 1,297 Cash Payment of Loan Trailing Fee (1,298) Change in Fair Value 132 Balance at June 30, 2019 $ 3,249 Loan Trailing Fee Liability Balance at April 1, 2020 $ 2,646 Issuances 240 Cash Payment of Loan Trailing Fee (596) Change in Fair Value 113 Balance at June 30, 2020 $ 2,403 Loan Trailing Fee Liability Balance at April 1, 2019 $ 3,084 Issuances 731 Cash Payment of Loan Trailing Fee (640) Change in Fair Value 74 Balance at June 30, 2019 $ 3,249 |
Fair Value Assumptions for Loans Held for Sale, Borrower Loans and Notes | Key economic assumptions and the sensitivity of the fair value to immediate changes in those assumptions at June 30, 2020 and December 31, 2019 for Borrower Loans and Loans Held for Sale are presented in the following table (in thousands, except percentages). Borrower Loans and Loans Held for Sale June 30, 2020 December 31, 2019 Fair value, using the following assumptions: $ 673,730 $ 776,045 Weighted-average discount rate 11.59 % 7.00 % Weighted-average default rate 13.15 % 12.63 % Fair value resulting from: 100 basis point increase in discount rate $ 667,986 $ 768,924 200 basis point increase in discount rate $ 662,372 $ 761,971 Fair value resulting from: 100 basis point decrease in discount rate $ 679,607 $ 783,344 200 basis point decrease in discount rate $ 685,623 $ 790,823 Fair value resulting from: 10 percent increase in default rate $ 666,236 $ 765,894 20 percent increase in default rate $ 658,771 $ 756,007 Fair value resulting from: 10 percent decrease in default rate $ 681,254 $ 786,541 20 percent decrease in default rate $ 688,814 $ 797,065 Key economic assumptions and the sensitivity of the fair value to immediate changes in those assumptions at June 30, 2020 and December 31, 2019 for Notes are presented in the following table (in thousands, except percentages). Notes June 30, 2020 December 31, 2019 Fair value, using the following assumptions: $ 209,987 $ 244,171 Weighted-average discount rate 11.23 % 6.43 % Weighted-average default rate 13.60 % 13.68 % Fair value resulting from: 100 basis point increase in discount rate $ 208,194 $ 241,927 200 basis point increase in discount rate $ 206,441 $ 239,737 Fair value resulting from: 100 basis point decrease in discount rate $ 211,821 $ 246,471 200 basis point decrease in discount rate $ 213,698 $ 248,828 Fair value resulting from: 10 percent increase in default rate $ 207,637 $ 240,958 20 percent increase in default rate $ 205,297 $ 237,831 Fair value resulting from: 10 percent decrease in default rate $ 212,345 $ 247,489 20 percent decrease in default rate $ 214,715 $ 250,817 Key economic assumptions and the sensitivity of the fair value to immediate changes in those assumptions at June 30, 2020 and December 31, 2019 for Certificates Issued by Securitization Trust are presented in the following table (in thousands, except percentages). Certificates Issued by Securitization Trust June 30, 2020 December 31, 2019 Fair value, using the following assumptions: $ 31,571 $ 52,168 Weighted-average discount rate 14.55 % 9.59 % Weighted-average default rate 13.86 % 10.12 % Weighted-average prepayment rate 22.40 % 21.41 % Fair value resulting from: 100 basis point increase in discount rate $ 31,313 $ 51,813 200 basis point increase in discount rate $ 31,060 $ 51,466 Fair value resulting from: 100 basis point decrease in discount rate $ 31,836 $ 52,533 200 basis point decrease in discount rate $ 32,108 $ 52,909 Fair value resulting from: 10 percent increase in default rate $ 29,670 $ 48,986 20 percent increase in default rate $ 27,777 $ 45,926 Fair value resulting from: 10 percent decrease in default rate $ 33,482 $ 55,369 20 percent decrease in default rate $ 35,405 $ 58,613 Fair value resulting from: 10 percent increase in prepayment rate $ 31,514 $ 52,085 20 percent increase in prepayment rate $ 31,451 $ 52,008 Fair value resulting from: 10 percent decrease in prepayment rate $ 31,631 $ 52,253 20 percent decrease in prepayment rate $ 31,693 $ 52,340 |
Schedule of Prosper's and Prosper Funding's Estimated Fair Value of Servicing Assets and Liabilities | Key economic assumptions and the sensitivity of the fair value to immediate changes in those assumptions at June 30, 2020 and December 31, 2019 for Servicing Assets is presented in the following table (in thousands, except percentages). Servicing Assets June 30, 2020 December 31, 2019 Fair value, using the following assumptions $ 10,073 $ 12,602 Weighted-average market servicing rate 0.632 % 0.625 % Weighted-average prepayment rate 20.67 % 20.99 % Weighted-average default rate 13.47 % 12.67 % Fair value resulting from: Market servicing rate increase of 0.025% $ 9,467 $ 11,825 Market servicing rate decrease of 0.025% $ 10,680 $ 13,387 Fair value resulting from: Applying a 1.1 multiplier to prepayment rate $ 9,872 $ 12,348 Applying a 0.9 multiplier to prepayment rate $ 10,276 $ 12,868 Fair value resulting from: Applying a 1.1 multiplier to default rate $ 9,925 $ 12,377 Applying a 0.9 multiplier to default rate $ 10,222 $ 12,840 |
Financial Instruments, Assets And Liabilities Not Recorded At Fair Value | The following table presents the fair value hierarchy for assets, and liabilities not recorded at fair value (in thousands): June 30, 2020 Carrying Amount Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Fair Value Assets: Cash and Cash Equivalents $ 46,575 $ 46,575 $ — $ — $ 46,575 Restricted Cash 143,318 — 143,318 — 143,318 Accounts Receivable 1,047 — 1,047 — 1,047 Total Assets $ 190,940 $ 46,575 $ 144,365 $ — $ 190,940 Liabilities: Accounts Payable and Accrued Liabilities $ 12,044 $ — $ 12,044 $ — $ 12,044 Payable to Investors 102,405 — 102,405 — 102,405 Notes Issued by Securitization Trust 235,353 — 228,924 — 228,924 Warehouse Lines 198,857 — 198,212 — 198,212 Total Liabilities $ 548,659 $ — $ 541,585 $ — $ 541,585 December 31, 2019 Carrying Amount Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Fair Value Assets: Cash and Cash Equivalents $ 64,635 $ 64,635 $ — $ — $ 64,635 Restricted Cash 155,773 — 155,773 — 155,773 Accounts Receivable 1,695 — 1,695 — 1,695 Total Assets $ 222,103 $ 64,635 $ 157,468 $ — $ 222,103 Liabilities: Accounts Payable and Accrued Liabilities $ 19,937 $ — $ 19,937 $ — $ 19,937 Payable to Investors 101,092 — 101,092 — 101,092 Notes Issued by Securitization Trust 347,662 — 353,028 — 353,028 Warehouse Lines 131,583 — 131,090 — 131,090 Total Liabilities $ 600,274 $ — $ 605,147 $ — $ 605,147 |
Prosper Funding LLC | |
Entity Information [Line Items] | |
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, 2020 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Assets: Borrower Loans $ — $ — $ 211,775 $ 211,775 Servicing Assets — — 12,063 12,063 Total Assets $ — $ — $ 223,838 $ 223,838 Liabilities: Notes $ — $ — $ 209,986 $ 209,986 Loan Trailing Fee Liability — — 2,403 2,403 Total Liabilities $ — $ — $ 212,389 $ 212,389 December 31, 2019 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Assets: Borrower Loans $ — $ — $ 245,137 $ 245,137 Servicing Assets — — 14,888 14,888 Total Assets $ — $ — $ 260,025 $ 260,025 Liabilities: Notes $ — $ — $ 244,171 $ 244,171 Loan Trailing Fee Liability — — 2,997 2,997 Total Liabilities $ — $ — $ 247,168 $ 247,168 |
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 the dates presented: Range Borrower Loans and Notes June 30, 2020 December 31, 2019 Discount rate 8.2% - 15.9% 4.4% - 12.1% Default rate 2.7% - 17.7% 2.4% - 17.7% Range Servicing Assets June 30, 2020 December 31, 2019 Discount rate 15.0% - 25.0% 15.0% - 25.0% Default rate 1.9% - 19.4% 1.7% - 18.8% Prepayment rate 15.3% - 28.5% 16.5% - 28.1% Market servicing rate (1) (2) 0.625% - 0.818% 0.625 % (1) Servicing assets associated with loans enrolled in a relief program offered by the Company in response to the COVID-19 pandemic as of June 30, 2020 were measured using a market servicing rate assumption of 81.8 basis points. This rate was estimated using a multiplier consistent with observable market rates for other loan types, applied to the base market servicing rate assumption of 62.5 basis points. (2) Excludes collection fees that would be passed on to a hypothetical third-party servicer. As of June 30, 2020 and December 31, 2019, the market rate for collection fees and non-sufficient fund fees was assumed to be 4 basis points and 6 basis points, respectively, for a total market servicing rate range of 66.5 - 85.8 basis points and a total market servicing rate of 68.5 basis points, respectively. Range Loan Trailing Fee Liability June 30, 2020 December 31, 2019 Discount rate 15.0% - 25.0% 15.0% - 25.0% Default rate 1.9% - 19.4% 1.7% - 18.8% Prepayment rate 15.3% - 28.5% 16.5% - 28.1% |
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 for three months ended June 30, 2020 and 2019 (in thousands): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Assets Liabilities Borrower Loans Loans Held for Sale Notes Total Balance at January 1, 2020 $ 245,137 $ — $ (244,171) $ 966 Originations 65,664 622,122 (65,043) 622,743 Principal repayments (75,596) — 77,108 1,512 Borrower Loans sold to third parties (1,564) (622,122) — (623,686) Other changes 253 — (257) (4) Change in fair value (22,119) — 22,377 258 Balance at June 30, 2020 $ 211,775 $ — $ (209,986) $ 1,789 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Assets Liabilities Borrower Loans Loans Held for Sale Notes Total Balance at January 1, 2019 $ 263,522 $ — $ (264,003) $ (481) Originations 86,062 1,161,237 (86,713) 1,160,586 Principal repayments (82,414) — 85,728 3,314 Borrower Loans sold to third parties (1,723) (1,161,237) — (1,162,960) Other changes (200) — 603 403 Change in fair value (11,177) — 10,960 (217) Balance at June 30, 2019 $ 254,070 $ — $ (253,425) $ 645 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Assets Liabilities Borrower Loans Loans Held for Sale Notes Total Balance at April 1, 2020 $ 227,659 $ — $ (225,491) $ 2,168 Originations 24,363 222,572 (24,468) 222,467 Principal repayments (36,256) — 36,520 264 Borrower Loans sold to third parties (682) (222,572) — (223,254) Other changes 344 — (395) (51) Change in fair value (3,653) — 3,848 195 Balance at June 30, 2020 $ 211,775 $ — $ (209,986) $ 1,789 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Assets Liabilities Borrower Loans Loans Held for Sale Notes Total Balance at April 1, 2019 $ 259,899 $ — $ (258,722) $ 1,177 Originations 41,839 670,382 (41,774) 670,447 Principal repayments (41,215) — 41,611 396 Borrower Loans sold to third parties (749) (670,382) — (671,131) Other changes (115) — 2 (113) Change in fair value (5,589) — 5,458 (131) Balance at June 30, 2019 $ 254,070 $ — $ (253,425) $ 645 |
Schedule of Servicing Assets and Liabilities Measured at Fair Value | The following tables present additional information about Level 3 Servicing Assets recorded at fair value (in thousands): Servicing Assets Fair Value at January 1, 2020 $ 14,888 Additions 3,402 Less: Changes in fair value (6,227) Fair Value at June 30, 2020 $ 12,063 Servicing Assets Fair Value at January 1, 2019 $ 15,550 Additions 6,796 Less: Changes in fair value (6,885) Fair Value at June 30, 2019 $ 15,461 Servicing Assets Fair Value at April 1, 2020 $ 13,690 Additions 1,206 Less: Changes in fair value (2,833) Fair Value at June 30, 2020 $ 12,063 Servicing Assets Fair Value at April 1, 2019 $ 15,174 Additions 3,830 Less: Changes in fair value (3,543) Fair Value at June 30, 2019 $ 15,461 Loan Trailing Fee Liability The fair value of the Loan Trailing Fee Liability represents the present value of the expected monthly Loan Trailing Fee payments, which takes into consideration certain assumptions related to expected prepayment rates and default rates using a discounted cash flow model. The assumptions used are the same as those used for the valuation of Servicing Assets, as described below. The following tables present additional information about Level 3 Loan Trailing Fee Liability measured at fair value on a recurring basis (in thousands): Loan Trailing Fee Liability Fair Value at January 1, 2020 $ 2,997 Issuances 625 Cash payment of Loan Trailing Fee (1,271) Change in fair value 52 Fair Value at June 30, 2020 $ 2,403 Loan Trailing Fee Liability Fair Value at January 1, 2019 $ 3,118 Issuances 1,297 Cash payment of Loan Trailing Fee (1,298) Change in fair value 132 Fair Value at June 30, 2019 $ 3,249 Loan Trailing Fee Liability Fair Value at April 1, 2020 $ 2,646 Issuances 240 Cash payment of Loan Trailing Fee (596) Change in fair value 113 Fair Value at June 30, 2020 $ 2,403 Loan Trailing Fee Liability Fair Value at April 1, 2019 $ 3,084 Issuances 731 Cash payment of Loan Trailing Fee (640) Change in fair value 74 Fair Value at June 30, 2019 $ 3,249 |
Fair Value Assumptions for Loans Held for Sale, Borrower Loans and Notes | Key economic assumptions are used to compute the fair value of Borrower Loans. The sensitivity of the fair value to immediate changes in assumptions at June 30, 2020 and December 31, 2019 for Borrower Loans are presented in the following table (in thousands, except percentages). Borrower Loans June 30, 2020 December 31, 2019 Fair value, using the following assumptions: $ 211,775 $ 245,137 Weighted-average discount rate 11.23 % 6.43 % Weighted-average default rate 13.60 % 13.68 % Fair value resulting from: 100 basis point increase in discount rate $ 209,970 $ 242,888 200 basis point increase in discount rate 208,205 240,691 Fair value resulting from: 100 basis point decrease in discount rate $ 213,623 $ 247,442 200 basis point decrease in discount rate 215,514 249,805 Fair value resulting from: 10 percent increase in default rate $ 209,420 $ 241,930 20 percent increase in default rate 207,073 238,807 Fair value resulting from: 10 percent decrease in default rate $ 214,140 $ 248,453 20 percent decrease in default rate 216,517 251,777 Key economic assumptions are used to compute the fair value of Notes. The sensitivity of the fair value to immediate changes in assumptions at June 30, 2020 and December 31, 2019 for Notes funded through the Note Channel are presented in the following table (in thousands, except percentages). Notes June 30, 2020 December 31, 2019 Fair value, using the following assumptions: $ 209,986 $ 244,171 Weighted-average discount rate 11.23 % 6.43 % Weighted-average default rate 13.60 % 13.68 % Fair value resulting from: 100 basis point increase in discount rate $ 208,194 $ 241,927 200 basis point increase in discount rate 206,441 239,737 Fair value resulting from: 100 basis point decrease in discount rate $ 211,821 $ 246,471 200 basis point decrease in discount rate 213,698 248,828 Fair value resulting from: 10 percent increase in default rate $ 207,637 $ 240,958 20 percent increase in default rate 205,297 237,831 Fair value resulting from: 10 percent decrease in default rate $ 212,345 $ 247,489 20 percent decrease in default rate 214,715 250,817 |
Schedule of Prosper's and Prosper Funding's Estimated Fair Value of Servicing Assets and Liabilities | Key economic assumptions are used to compute the fair value of Servicing Assets. The sensitivity of the current fair value to immediate changes in assumptions at June 30, 2020 and December 31, 2019 for Servicing Assets are presented in the following table (in thousands, except percentages). Servicing Assets June 30, 2020 December 31, 2019 Fair value, using the following assumptions: $ 12,063 $ 14,888 Weighted-average market servicing rate 0.632 % 0.625 % Weighted-average prepayment rate 20.67 % 20.99 % Weighted-average default rate 13.47 % 12.67 % Fair value resulting from: Market servicing rate increase of 0.025% $ 11,336 $ 13,966 Market servicing rate decrease of 0.025% 12,789 15,811 Fair value resulting from: Applying a 1.1 multiplier to prepayment rate $ 11,822 $ 14,583 Applying a 0.9 multiplier to prepayment rate 12,306 15,197 Fair value resulting from: Applying a 1.1 multiplier to default rate $ 11,885 $ 14,618 Applying a 0.9 multiplier to default rate 12,241 15,165 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 subject to amortization for the period presented (dollars in thousands): June 30, 2020 Gross Carrying Value Accumulated Amortization Net Carrying Value Remaining Useful Life (In Years) Developed technology $ 3,060 $ (3,060) $ — — User base and customer relationships 5,050 (4,440) 610 4.8 Brand name 60 (60) — — Total Intangible Assets subject to amortization $ 8,170 $ (7,560) $ 610 |
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, 2020 (remainder thereof) $ 110 2021 172 2022 136 2023 107 2024 85 Total $ 610 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Other Liabilities [Abstract] | |
Schedule of Other Liabilities | Other Liabilities consist of the following (in thousands): June 30, 2020 December 31, 2019 Loan trailing fee $ 2,403 $ 2,997 Deferred revenue 132 241 Deferred income tax liability 473 405 Operating lease liability 15,311 17,507 Paycheck Protection Program loan (Note 10) 8,447 — Other 482 576 Total Other Liabilities $ 27,248 $ 21,726 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Loss Per Share | Basic and diluted income (loss) per share was calculated as follows for the periods presented (in thousands, except share and per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Numerator: Net Income (Loss) $ 17,641 $ (569) $ 38,771 $ (23,283) Less: net income allocated to participating securities (13,153) — (28,908) — Net income (loss) available to common stockholders $ 4,488 $ (569) $ 9,863 $ (23,283) Denominator: Weighted average shares used in computing net income (loss) per share - basic 68,455,641 70,502,797 68,454,872 70,494,945 Effect of dilutive securities: Stock options 126,926 — 337,446 — Convertible preferred stock warrants 213,264,845 — 213,264,845 — Weighted average shares used in computing diluted net income (loss) per share - diluted 281,847,412 70,502,797 282,057,163 70,494,945 Net income (loss) per share - basic $ 0.07 $ (0.01) $ 0.14 $ (0.33) Net income (loss) per share - diluted $ 0.02 $ (0.01) $ 0.03 $ (0.33) |
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 income (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, 2020 2019 2020 2019 (shares) (shares) (shares) (shares) Excluded securities: Convertible preferred stock issued and outstanding 209,613,570 214,637,925 209,613,570 214,637,925 Stock options issued and outstanding 73,045,220 73,234,877 72,460,458 71,592,576 Warrants issued and outstanding 1,080,349 1,080,349 1,080,349 1,080,349 Series E-1 convertible preferred stock warrants — 35,544,141 — 35,544,141 Series F convertible preferred stock warrants — 177,720,704 — 177,720,704 Total common stock equivalents excluded from diluted net income (loss) per common share computation 283,739,139 502,217,996 283,154,377 500,575,695 |
Convertible Preferred Stock, _2
Convertible Preferred Stock, Warrant Liability and Stockholders’ Deficit (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Class of Stock [Line Items] | |
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, 2020 are disclosed in the table below (amounts in thousands except share and par value amounts): Convertible Preferred Stock Par Value Authorized Shares Outstanding and Issued Shares Liquidation Preference (Outstanding Shares) Series A $ 0.01 68,558,220 66,428,185 $ 19,160 Series A-1 $ 0.01 24,760,915 22,515,315 45,031 Series B $ 0.01 35,775,880 35,127,160 21,190 Series C $ 0.01 24,404,770 24,404,770 70,075 Series D $ 0.01 23,888,640 23,888,640 165,000 Series E-1 $ 0.01 35,544,141 — — Series E-2 $ 0.01 16,858,078 — — Series F $ 0.01 177,720,707 3 — Series G $ 0.01 37,249,497 37,249,497 50,000 Total 444,760,848 209,613,570 $ 370,456 |
Schedule of Stockholders' Equity Note, Warrants or Rights | The combined activity of the Convertible Preferred Stock Warrant Liability for the six months ended June 30, 2020 and 2019 are as follows (in thousands): Warrant Activity Balance at January 1, 2020 $ 149,996 Change in fair value (74,998) Balance at June 30, 2020 $ 74,998 Warrant Activity Balance at January 1, 2019 $ 143,679 Warrants vested 17,553 Change in fair value 5,327 Balance at June 30, 2019 $ 166,559 |
Series E-1 Preferred Stock | |
Class of Stock [Line Items] | |
Schedule of Assumptions Used | The Company determined the fair value of the outstanding Series E-1 Warrants utilizing the following assumptions as of the following dates: June 30, 2020 December 31, 2019 Volatility 66.0 % 46.0 % Risk-free interest rate 0.20 % 1.60 % Expected term (in years) 2.75 2.75 Dividend yield — % — % |
Series F convertible preferred stock warrants (in shares) | |
Class of Stock [Line Items] | |
Schedule of Assumptions Used | The Company determined the fair value of the outstanding Series F Warrants utilizing the following assumptions as of the following dates: June 30, 2020 December 31, 2019 Volatility 66.0 % 46.0 % Risk-free interest rate 0.20 % 1.60 % Expected term (in years) 2.75 2.75 Dividend yield — % — % |
Share Based Incentive Plan an_2
Share Based Incentive Plan and Compensation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
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, 2020 below: Options Issued and Outstanding Weighted- Average Exercise Price Balance as of January 1, 2020 76,236,757 $ 0.31 Options issued 4,125,900 0.14 Options exercised (3,740) 0.38 Options forfeited (5,573,980) 0.36 Options expired (3,329,460) 0.13 Balance as of June 30, 2020 71,455,477 0.30 Options vested and expected to vest as of June 30, 2020 58,749,776 0.30 Options vested and exercisable at June 30, 2020 48,934,035 0.30 |
Fair Value of Stock Option Awards | The fair value of PMI’s stock option awards granted during the three and six months ended June 30, 2020 and 2019 was estimated at the date of grant using the Black-Scholes model with the following average assumptions: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Volatility of common stock 55.37 % 46.72 % 47.93 % 46.72 % Risk-free interest rate 0.44 % 2.28 % 0.66 % 2.28 % Expected life 6.0 years 5.9 years 6.0 years 5.9 years Dividend yield — % — % — % — % |
Summarized Activities for RSU's | The following table summarizes the number of PMI’s outstanding RSUs and their weighted-average grant date fair value for the six months ended June 30, 2020: Number of Shares Weighted-Average Grant Date Fair Value Unvested - January 1, 2020 4,803,141 $ 0.95 Forfeited (141,500) $ 2.18 Unvested - June 30, 2020 4,661,641 $ 0.91 |
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 for the periods presented (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Origination and servicing $ 34 $ 108 $ 72 $ 304 Sales and marketing 15 63 26 145 General and administrative 343 1,064 799 2,401 Total stock-based compensation $ 392 $ 1,235 $ 897 $ 2,850 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Operating Lease Right-of-Use Assets | The following table summarizes the operating lease right-of-use assets as of June 30, 2020, which are included in “Property and Equipment, Net” on the condensed consolidated balance sheets. June 30, 2020 Gross Carrying Value Accumulated Amortization Net Carrying Value ROU Assets - Office buildings $ 15,694 $ 4,955 $ 10,739 |
Future Minimum Lease Payments Under Topic 842 | Future maturities of operating lease liabilities as of June 30, 2020 were as follows (in thousands). The present value of the future minimum lease payments represent our lease liabilities as of June 30, 2020 and are included in "Other Liabilities" on the condensed consolidated balance sheets. Minimum Lease Payments Remainder of 2020 $ 2,593 2021 5,130 2022 5,014 2023 1,562 2024 871 Thereafter 1,820 Total future minimum lease payments $ 16,990 Less imputed interest (1,679) Present value of future minimum lease payments $ 15,311 |
Other Information Related to Leases | Other information related to leases was as follows ($ in thousands): June 30, 2020 Cash paid for operating leases year-to-date $ 2,704 Right of use assets obtained in exchange for new operating lease obligations $ — Weighted average remaining lease term (in years) 3.77 Weighted average discount rate 5.54 % |
Related Parties (Tables)
Related Parties (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Entity Information [Line Items] | |
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, 2020 and 2019, as well as the Notes and Borrower Loans outstanding as of June 30, 2020 and December 31, 2019 are summarized below (in thousands): Aggregate Amount of Interest Earned on Related Party 2020 2019 2020 2019 Executive officers and management $ 6 $ 11 $ 1 $ 2 Directors (excluding executive officers and management) 110 208 14 24 Total $ 116 $ 219 $ 15 $ 26 Aggregate Amount of Interest Earned on Related Party 2020 2019 2020 2019 Executive officers and management $ 12 $ 5 $ 3 $ 1 Directors (excluding executive officers and management) 231 99 29 12 Total $ 243 $ 104 $ 32 $ 13 Notes Balance as of Related Party June 30, 2020 December 31, 2019 Executive officers and management $ 36 $ 35 Directors (excluding executive officers and management) 684 682 $ 720 $ 717 |
Prosper Funding LLC | |
Entity Information [Line Items] | |
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 for the three and six months ended June 30, 2020 and 2019 are summarized below (in thousands): Aggregate Purchases Interest Earned Three Months Ended June 30, Three Months Ended June 30, Related Party 2020 2019 2020 2019 Executive officers and management $ 6 $ 5 $ 1 $ 1 Directors (excluding executive officers and management) — — — — Total $ 6 $ 5 $ 1 $ 1 Aggregate Purchases Interest Earned Six Months Ended June 30, Six Months Ended June 30, Related Party 2020 2019 2020 2019 Executive officers and management $ 12 $ 11 $ 3 $ 2 Directors (excluding executive officers and management) — — — — Total $ 12 $ 11 $ 3 $ 2 The balance of Notes held by officers and directors who are not executive officers are as follows (in thousands): Related Party June 30, 2020 December 31, 2019 Executive officers and management $ 36 $ 35 Directors (excluding executive officers and management) — — $ 36 $ 35 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | ||
Entity Information [Line Items] | ||||||
Cash and Cash Equivalents | $ 46,575 | $ 64,635 | $ 68,124 | |||
Restricted Cash | 143,318 | [1] | 155,773 | [1] | 160,990 | |
Total Cash, Cash Equivalents and Restricted Cash | 189,893 | 220,408 | 229,114 | $ 207,059 | ||
Prosper Funding LLC | ||||||
Entity Information [Line Items] | ||||||
Cash and Cash Equivalents | 7,813 | 7,462 | 12,269 | |||
Restricted Cash | 113,647 | 110,399 | 123,380 | |||
Total Cash, Cash Equivalents and Restricted Cash | $ 121,460 | $ 117,861 | $ 135,649 | $ 147,181 | ||
[1] | (1) Includes amounts in consolidated varia ble interest entities (VIEs) presented separately in the table below. |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 75,329 | $ 71,139 |
Less: Accumulated depreciation and amortization | (44,839) | (39,843) |
Total Property and Equipment, Net | 30,490 | 31,296 |
Prosper Funding LLC | ||
Property, Plant and Equipment [Line Items] | ||
Less: Accumulated depreciation and amortization | (19,033) | (17,381) |
Total Property and Equipment, Net | 7,852 | 7,549 |
Operating lease right-of-use assets | ||
Property, Plant and Equipment [Line Items] | ||
Operating lease right-of-use assets | 15,694 | 16,213 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 13,724 | 13,420 |
Internal-use software and website development costs | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 32,057 | 28,904 |
Internal-use software and website development costs | Prosper Funding LLC | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 26,885 | 24,930 |
Office equipment and furniture | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 2,999 | 2,999 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 7,158 | 7,158 |
Assets not yet placed in service | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 3,697 | $ 2,445 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation and Amortization | $ 4,041 | $ 3,743 | ||
Prosper Funding LLC | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation and Amortization | $ 1,000 | $ 1,100 | 2,051 | 2,203 |
Property Plant And Equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation and Amortization | 2,000 | 1,800 | 3,900 | 3,600 |
Internal-use software and website development costs | ||||
Property, Plant and Equipment [Line Items] | ||||
Capitalized internal-use software and website development costs | $ 2,100 | $ 2,300 | $ 4,800 | $ 4,300 |
Borrower Loans, Loans Held fo_3
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Borrower Loans, at Fair Value | [1] | $ 457,487 | $ 634,019 | |
Loans held-for-sale, at fair value | [1] | 216,243 | 142,026 | |
Notes, at Fair Value | (209,987) | (244,171) | ||
Prosper Funding LLC | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Borrower Loans, at Fair Value | 211,775 | 245,137 | ||
Notes, at Fair Value | (209,986) | (244,171) | ||
Senior Notes | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Aggregate principal balance outstanding, Notes | (227,675) | $ (250,281) | ||
Fair value adjustments, Notes | 17,688 | 6,110 | ||
Notes, at Fair Value | (209,987) | (244,171) | ||
Senior Notes | Prosper Funding LLC | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Aggregate principal balance outstanding, Notes | (227,674) | (250,281) | ||
Fair value adjustments, Notes | 17,688 | 6,110 | ||
Notes, at Fair Value | (209,986) | (244,171) | ||
Borrower Loans | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Aggregate principal balance outstanding | 497,817 | 647,209 | ||
Fair value adjustments | (40,330) | (13,190) | ||
Borrower Loans, at Fair Value | 457,487 | 634,019 | ||
Borrower Loans | Prosper Funding LLC | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Aggregate principal balance outstanding | 226,599 | 248,702 | ||
Fair value adjustments | (14,824) | (3,565) | ||
Borrower Loans, at Fair Value | 211,775 | 245,137 | ||
Loans Held for Sale | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Fair value adjustments | (10,884) | (1,235) | ||
Aggregate principal balance outstanding, Loans Held for Sale | 227,127 | $ 143,261 | ||
Loans held-for-sale, at fair value | $ 216,243 | $ 142,026 | ||
[1] | (1) Includes amounts in consolidated varia ble interest entities (VIEs) presented separately in the table below. |
Borrower Loans, Loans Held fo_4
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, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||||
Interest income | $ 11,375 | $ 7,898 | $ 22,336 | $ 13,207 | |
Loans Held for Sale | |||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||||
Fair value adjustments | (10,884) | $ (1,235) | |||
Prosper Funding LLC | |||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||||
Interest income | 581 | $ 668 | $ 1,203 | 1,350 | |
Minimum number of days for which loans originated were delinquent | 90 days | 90 days | |||
Aggregate principal amount of loans originated that are 90 days or more delinquent | 1,400 | $ 1,400 | $ 2,600 | ||
Fair value of loans originated that are 90 days or more delinquent | 100 | $ 100 | 800 | ||
Non accrual status past due date | 120 days | ||||
Loans in non-accrual status | 200 | $ 200 | $ 300 | ||
Outstanding Borrower Loans and Underlying Notes | |||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||||
Fixed interest rate, minimum | 5.31% | 5.31% | |||
Fixed interest rate, maximum | 31.92% | 31.92% | |||
Minimum number of days for which loans originated were delinquent | 90 days | 90 days | |||
Aggregate principal amount of loans originated that are 90 days or more delinquent | 3,900 | $ 3,900 | $ 6,500 | ||
Fair value of loans originated that are 90 days or more delinquent | 400 | $ 400 | 1,900 | ||
Non accrual status past due date | 120 days | ||||
Loans in non-accrual status | 600 | $ 600 | $ 700 | ||
Loans Held For Sale Borrower Loans And Underlying Notes | |||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||||
Fixed interest rate, minimum | 5.31% | 5.31% | |||
Fixed interest rate, maximum | 31.82% | 31.82% | |||
Interest income | $ 11,600 | $ 7,500 | |||
Minimum number of days for which loans originated were delinquent | 90 days | ||||
Aggregate principal amount of loans originated that are 90 days or more delinquent | 700 | 700 | $ 700 | ||
Fair value of loans originated that are 90 days or more delinquent | 100 | 100 | 200 | ||
Loans in non-accrual status | $ 100 | $ 100 | $ 100 | ||
Loans Held For Sale Borrower Loans And Underlying Notes | Prosper Funding LLC | |||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||||
Fixed interest rate, minimum | 5.31% | 5.31% | |||
Fixed interest rate, maximum | 31.92% | 31.92% | |||
Minimum | Outstanding Borrower Loans and Underlying Notes | |||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||||
Maturity, in months | 36 months | 36 months | |||
Minimum | Loans Held For Sale Borrower Loans And Underlying Notes | |||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||||
Maturity, in months | 36 months | 36 months | |||
Minimum | Loans Held For Sale Borrower Loans And Underlying Notes | Prosper Funding LLC | |||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||||
Maturity, in months | 36 months | 36 months | |||
Maximum | Outstanding Borrower Loans and Underlying Notes | |||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||||
Maturity, in months | 60 months | 60 months | |||
Maximum | Loans Held For Sale Borrower Loans And Underlying Notes | |||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||||
Maturity, in months | 60 months | 60 months | |||
Maximum | Loans Held For Sale Borrower Loans And Underlying Notes | Prosper Funding LLC | |||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||||
Maturity, in months | 60 months | 60 months |
Loan Servicing Assets (Details)
Loan Servicing Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Servicing Assets And Liabilities Fair Value [Line Items] | |||||||
Gain (loss) on sale of borrower loans | $ 617 | $ 3,559 | $ 2,361 | $ 6,256 | |||
Gain on sale of borrower loans | 3,600 | 6,300 | |||||
Loss on sale of borrower loans | 7,800 | 17,600 | |||||
Fair value of warrants vested on sale of borrower loans | 0 | 7,805 | 0 | 17,553 | |||
Prosper Funding LLC | |||||||
Servicing Assets And Liabilities Fair Value [Line Items] | |||||||
Gain (loss) on sale of borrower loans | 1,182 | (4,053) | 3,182 | (10,879) | |||
Borrower Loans | |||||||
Servicing Assets And Liabilities Fair Value [Line Items] | |||||||
Outstanding principle | 2,600,000 | $ 2,600,000 | $ 3,100,000 | ||||
Fixed interest rate, minimum | 5.31% | 5.31% | |||||
Fixed interest rate, maximum | 31.92% | 31.92% | |||||
Contractually specified servicing fees, late charges and ancillary fees | 7,300 | $ 9,400 | $ 16,500 | 18,500 | |||
Borrower Loans | Prosper Funding LLC | |||||||
Servicing Assets And Liabilities Fair Value [Line Items] | |||||||
Outstanding principle | 3,100,000 | $ 3,100,000 | $ 3,700,000 | ||||
Fixed interest rate, minimum | 5.31% | 5.31% | |||||
Fixed interest rate, maximum | 31.92% | 31.92% | |||||
Contractually specified servicing fees, late charges and ancillary fees | $ (10,500) | $ 10,200 | $ 23,000 | $ 20,200 | |||
Minimum | Borrower Loans | |||||||
Servicing Assets And Liabilities Fair Value [Line Items] | |||||||
Maturity, in months | 36 months | 36 months | |||||
Minimum | Borrower Loans | Prosper Funding LLC | |||||||
Servicing Assets And Liabilities Fair Value [Line Items] | |||||||
Maturity, in months | 36 months | 36 months | |||||
Maximum | Borrower Loans | |||||||
Servicing Assets And Liabilities Fair Value [Line Items] | |||||||
Maturity, in months | 60 months | 60 months | |||||
Maximum | Borrower Loans | Prosper Funding LLC | |||||||
Servicing Assets And Liabilities Fair Value [Line Items] | |||||||
Maturity, in months | 60 months | 60 months |
Securitization - Additional Inf
Securitization - Additional Information (Details) - USD ($) $ in Thousands | May 23, 2019 | Feb. 07, 2019 | Jun. 30, 2020 | Dec. 31, 2019 | Nov. 06, 2019 | |
Variable Interest Entity [Line Items] | ||||||
Notes Issued by Securitization Trust (1) | [1] | $ 235,353 | $ 347,662 | |||
Borrower Loans, at Fair Value | [1] | 457,487 | 634,019 | |||
Risk retention interest and residual certificates held by third party investors at fair value | [1] | 31,571 | 52,168 | |||
Primary Beneficiary | ||||||
Variable Interest Entity [Line Items] | ||||||
Notes Issued by Securitization Trust (1) | [2] | 235,353 | 347,662 | |||
Borrower Loans, at Fair Value | [2] | 245,712 | 388,882 | |||
Risk retention interest and residual certificates held by third party investors at fair value | [2] | 31,571 | 52,168 | |||
PMIT 2019 Securitization Trusts [Member] | Primary Beneficiary | ||||||
Variable Interest Entity [Line Items] | ||||||
Securitization amount | $ 573,000 | |||||
Securtization Trust PMT2019-1 | Primary Beneficiary | ||||||
Variable Interest Entity [Line Items] | ||||||
Ownership percentage | 65.50% | |||||
Debt issuance costs | $ 2,300 | |||||
Unamortized debt issuance costs | 59,100 | |||||
Borrower Loans, at Fair Value | 60,400 | |||||
Risk retention interest and residual certificates held by third party investors at fair value | 5,500 | |||||
2019-1, Class A Notes | Primary Beneficiary | ||||||
Variable Interest Entity [Line Items] | ||||||
Notes Issued by Securitization Trust (1) | $ 127,300 | |||||
Interest rate | 3.54% | |||||
2019-1, Class B Notes | Primary Beneficiary | ||||||
Variable Interest Entity [Line Items] | ||||||
Notes Issued by Securitization Trust (1) | $ 25,000 | |||||
Interest rate | 4.03% | |||||
2019-1, Class C Notes | Primary Beneficiary | ||||||
Variable Interest Entity [Line Items] | ||||||
Notes Issued by Securitization Trust (1) | $ 19,300 | |||||
Interest rate | 5.27% | |||||
Securitization Trust 2019-2 | Primary Beneficiary | ||||||
Variable Interest Entity [Line Items] | ||||||
Ownership percentage | 16.40% | |||||
Debt issuance costs | $ 1,900 | |||||
Unamortized debt issuance costs | 83,800 | |||||
Borrower Loans, at Fair Value | 87,800 | |||||
Risk retention interest and residual certificates held by third party investors at fair value | $ 12,400 | |||||
2019-2, Class A Notes | Primary Beneficiary | ||||||
Variable Interest Entity [Line Items] | ||||||
Notes Issued by Securitization Trust (1) | $ 110,100 | |||||
Interest rate | 3.20% | |||||
2019-2, Class B Notes | Primary Beneficiary | ||||||
Variable Interest Entity [Line Items] | ||||||
Notes Issued by Securitization Trust (1) | $ 31,400 | |||||
Interest rate | 3.69% | |||||
2019-2, Class C Notes | Primary Beneficiary | ||||||
Variable Interest Entity [Line Items] | ||||||
Notes Issued by Securitization Trust (1) | $ 32,700 | |||||
Interest rate | 5.05% | |||||
Securtization Trust PMT2019-4 [Member] | Primary Beneficiary | ||||||
Variable Interest Entity [Line Items] | ||||||
Ownership percentage | 19.60% | |||||
Debt issuance costs | $ 1,200 | |||||
Unamortized debt issuance costs | $ 92,400 | |||||
Borrower Loans, at Fair Value | 97,600 | |||||
Risk retention interest and residual certificates held by third party investors at fair value | $ 13,600 | |||||
2019-4, Class A Notes | Primary Beneficiary | ||||||
Variable Interest Entity [Line Items] | ||||||
Securitization amount | $ 102,600 | |||||
Interest rate | 2.48% | |||||
2019-4, Class B Notes | Primary Beneficiary | ||||||
Variable Interest Entity [Line Items] | ||||||
Securitization amount | $ 19,500 | |||||
Interest rate | 3.20% | |||||
2019-4, Class C Notes | Primary Beneficiary | ||||||
Variable Interest Entity [Line Items] | ||||||
Securitization amount | $ 16,800 | |||||
Interest rate | 4.95% | |||||
[1] | (1) Includes amounts in consolidated varia ble interest entities (VIEs) presented separately in the table below. | |||||
[2] | The following table presents the assets and liabilities of consolidated variable interest entities (VIEs), which are included in the condensed consolidated balance sheets above. The assets in the table below may only be used to settle obligations of consolidated VIEs and are in excess of those obligations. Additionally, the assets and liabilities in the table below include third-party assets and liabilities of consolidated VIEs only and exclude intercompany balances that eliminate in consolidation. See Note 6, Securitizations, and Note 10, Debt, to our Notes to Condensed Consolidated Financial Statements for add itional information. |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities - Fair Value Hierarchy for Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | |
Assets: | |||
Borrower Loans | [1] | $ 457,487 | $ 634,019 |
Loans held-for-sale, at fair value | [1] | 216,243 | 142,026 |
Servicing Assets | 10,073 | 12,602 | |
Total Assets | 683,803 | 788,647 | |
Liabilities: | |||
Notes | 209,987 | 244,171 | |
Certificates Issued by Securitization Trust, at Fair Value | [1] | 31,571 | 52,168 |
Convertible Preferred Stock Warrant Liability | 74,998 | 149,996 | |
Loan Trailing Fee Liability | 2,403 | 2,997 | |
Total Liabilities | 318,959 | 449,332 | |
Prosper Funding LLC | |||
Assets: | |||
Borrower Loans | 211,775 | 245,137 | |
Servicing Assets | 12,063 | 14,888 | |
Total Assets | 223,838 | 260,025 | |
Liabilities: | |||
Notes | 209,986 | 244,171 | |
Loan Trailing Fee Liability | 2,403 | 2,997 | |
Total Liabilities | 212,389 | 247,168 | |
Level 1 Inputs | |||
Assets: | |||
Borrower Loans | 0 | 0 | |
Loans held-for-sale, at fair value | 0 | 0 | |
Servicing Assets | 0 | 0 | |
Total Assets | 0 | 0 | |
Liabilities: | |||
Notes | 0 | 0 | |
Certificates Issued by Securitization Trust, at Fair Value | 0 | 0 | |
Convertible Preferred Stock Warrant Liability | 0 | 0 | |
Loan Trailing Fee Liability | 0 | 0 | |
Total Liabilities | 0 | 0 | |
Level 1 Inputs | Prosper Funding LLC | |||
Assets: | |||
Borrower Loans | 0 | 0 | |
Servicing Assets | 0 | 0 | |
Total Assets | 0 | 0 | |
Liabilities: | |||
Notes | 0 | 0 | |
Loan Trailing Fee Liability | 0 | 0 | |
Total Liabilities | 0 | 0 | |
Level 2 Inputs | |||
Assets: | |||
Borrower Loans | 0 | 0 | |
Loans held-for-sale, at fair value | 0 | 0 | |
Servicing Assets | 0 | 0 | |
Total Assets | 0 | 0 | |
Liabilities: | |||
Notes | 0 | 0 | |
Certificates Issued by Securitization Trust, at Fair Value | 0 | 0 | |
Convertible Preferred Stock Warrant Liability | 0 | 0 | |
Loan Trailing Fee Liability | 0 | 0 | |
Total Liabilities | 0 | 0 | |
Level 2 Inputs | Prosper Funding LLC | |||
Assets: | |||
Borrower Loans | 0 | 0 | |
Servicing Assets | 0 | 0 | |
Total Assets | 0 | 0 | |
Liabilities: | |||
Notes | 0 | 0 | |
Loan Trailing Fee Liability | 0 | 0 | |
Total Liabilities | 0 | 0 | |
Level 3 Inputs | |||
Assets: | |||
Borrower Loans | 457,487 | 634,019 | |
Loans held-for-sale, at fair value | 216,243 | 142,026 | |
Servicing Assets | 10,073 | 12,602 | |
Total Assets | 683,803 | 788,647 | |
Liabilities: | |||
Notes | 209,987 | 244,171 | |
Certificates Issued by Securitization Trust, at Fair Value | 31,571 | 52,168 | |
Convertible Preferred Stock Warrant Liability | 74,998 | 149,996 | |
Loan Trailing Fee Liability | 2,403 | 2,997 | |
Total Liabilities | 318,959 | 449,332 | |
Level 3 Inputs | Prosper Funding LLC | |||
Assets: | |||
Borrower Loans | 211,775 | 245,137 | |
Servicing Assets | 12,063 | 14,888 | |
Total Assets | 223,838 | 260,025 | |
Liabilities: | |||
Notes | 209,986 | 244,171 | |
Loan Trailing Fee Liability | 2,403 | 2,997 | |
Total Liabilities | $ 212,389 | $ 247,168 | |
[1] | (1) Includes amounts in consolidated varia ble interest entities (VIEs) presented separately in the table below. |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities - Borrower Loans, Loans Held For Sale and Notes - Quantitative Information about the Significant Unobservable Inputs (Details) | Jun. 30, 2020 | Dec. 31, 2019 |
Discount rate | Minimum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair value measurement inputs | 0.064 | 0.044 |
Discount rate | Minimum | Obligations | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair value measurement inputs | 0.150 | 0.150 |
Discount rate | Minimum | Prosper Funding LLC | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair value measurement inputs | 0.082 | 0.044 |
Discount rate | Minimum | Prosper Funding LLC | Obligations | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair value measurement inputs | 0.150 | 0.150 |
Discount rate | Maximum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair value measurement inputs | 0.159 | 0.122 |
Discount rate | Maximum | Obligations | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair value measurement inputs | 0.250 | 0.250 |
Discount rate | Maximum | Prosper Funding LLC | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair value measurement inputs | 0.159 | 0.121 |
Discount rate | Maximum | Prosper Funding LLC | Obligations | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair value measurement inputs | 0.250 | 0.250 |
Default rate | Minimum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair value measurement inputs | 0.023 | 0.021 |
Default rate | Minimum | Obligations | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair value measurement inputs | 0.019 | 0.017 |
Default rate | Minimum | Prosper Funding LLC | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair value measurement inputs | 0.027 | 0.024 |
Default rate | Minimum | Prosper Funding LLC | Obligations | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair value measurement inputs | 0.019 | 0.017 |
Default rate | Maximum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair value measurement inputs | 0.190 | 0.186 |
Default rate | Maximum | Obligations | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair value measurement inputs | 0.194 | 0.188 |
Default rate | Maximum | Prosper Funding LLC | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair value measurement inputs | 0.177 | 0.177 |
Default rate | Maximum | Prosper Funding LLC | Obligations | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair value measurement inputs | 0.194 | 0.188 |
Prepayment rate | Minimum | Obligations | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair value measurement inputs | 0.153 | 0.165 |
Prepayment rate | Minimum | Prosper Funding LLC | Obligations | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair value measurement inputs | 0.153 | 0.165 |
Prepayment rate | Maximum | Obligations | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair value measurement inputs | 0.285 | 0.281 |
Prepayment rate | Maximum | Prosper Funding LLC | Obligations | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair value measurement inputs | 0.285 | 0.281 |
Fair Value of Assets and Liab_5
Fair Value of Assets and Liabilities - Certificates Issued by Securitzation Trust (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount rate | 8.80% | 4.00% |
Default rate | 3.20% | 2.00% |
Prepayment rate | 11.10% | 14.50% |
Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount rate | 19.90% | 15.00% |
Default rate | 17.70% | 17.00% |
Prepayment rate | 34.20% | 33.00% |
Fair Value of Assets and Liab_6
Fair Value of Assets and Liabilities - Servicing Rights - Quantitative Information about the Significant Unobservable Inputs (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Servicing Rights at Fair Value [Line Items] | |||
Market servicing rate | 0.625% | ||
Collection fee market rate | 0.04% | 0.06% | |
Weighted-average market servicing rate | 0.685% | ||
Prosper Funding LLC | |||
Servicing Rights at Fair Value [Line Items] | |||
Market servicing rate | 0.625% | ||
Collection fee market rate | 0.06% | 0.04% | |
Weighted-average market servicing rate | 0.685% | ||
Minimum | |||
Servicing Rights at Fair Value [Line Items] | |||
Discount rate | 15.00% | 15.00% | |
Default rate | 1.90% | 1.70% | |
Prepayment rate | 15.30% | 16.50% | |
Market servicing rate | 0.625% | ||
Weighted-average market servicing rate | 0.665% | ||
Minimum | Prosper Funding LLC | |||
Servicing Rights at Fair Value [Line Items] | |||
Discount rate | 15.00% | 15.00% | |
Default rate | 1.90% | 1.70% | |
Prepayment rate | 15.30% | 16.50% | |
Market servicing rate | 0.625% | ||
Weighted-average market servicing rate | 0.665% | ||
Maximum | |||
Servicing Rights at Fair Value [Line Items] | |||
Discount rate | 25.00% | 25.00% | |
Default rate | 19.40% | 18.80% | |
Prepayment rate | 28.50% | 28.10% | |
Market servicing rate | 0.818% | ||
Weighted-average market servicing rate | 0.858% | ||
Maximum | Prosper Funding LLC | |||
Servicing Rights at Fair Value [Line Items] | |||
Discount rate | 25.00% | 25.00% | |
Default rate | 19.40% | 18.80% | |
Prepayment rate | 28.50% | 28.10% | |
Market servicing rate | 0.818% | ||
Weighted-average market servicing rate | 0.858% |
Fair Value of Assets and Liab_7
Fair Value of Assets and Liabilities - Loan Trailing Fee Liability (Details) | Jun. 30, 2020 | Dec. 31, 2019 |
Discount rate | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value measurement inputs | 0.064 | 0.044 |
Discount rate | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value measurement inputs | 0.159 | 0.122 |
Discount rate | Prosper Funding LLC | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value measurement inputs | 0.082 | 0.044 |
Discount rate | Prosper Funding LLC | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value measurement inputs | 0.159 | 0.121 |
Discount rate | Obligations | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value measurement inputs | 0.150 | 0.150 |
Discount rate | Obligations | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value measurement inputs | 0.250 | 0.250 |
Discount rate | Obligations | Prosper Funding LLC | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value measurement inputs | 0.150 | 0.150 |
Discount rate | Obligations | Prosper Funding LLC | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value measurement inputs | 0.250 | 0.250 |
Default rate | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value measurement inputs | 0.023 | 0.021 |
Default rate | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value measurement inputs | 0.190 | 0.186 |
Default rate | Prosper Funding LLC | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value measurement inputs | 0.027 | 0.024 |
Default rate | Prosper Funding LLC | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value measurement inputs | 0.177 | 0.177 |
Default rate | Obligations | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value measurement inputs | 0.019 | 0.017 |
Default rate | Obligations | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value measurement inputs | 0.194 | 0.188 |
Default rate | Obligations | Prosper Funding LLC | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value measurement inputs | 0.019 | 0.017 |
Default rate | Obligations | Prosper Funding LLC | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value measurement inputs | 0.194 | 0.188 |
Prepayment rate | Obligations | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value measurement inputs | 0.153 | 0.165 |
Prepayment rate | Obligations | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value measurement inputs | 0.285 | 0.281 |
Prepayment rate | Obligations | Prosper Funding LLC | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value measurement inputs | 0.153 | 0.165 |
Prepayment rate | Obligations | Prosper Funding LLC | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value measurement inputs | 0.285 | 0.281 |
Fair Value of Assets and Liab_8
Fair Value of Assets and Liabilities - Changes in Level 3 Fair Value Assets and Liabilities on a Recurring Basis (Details) - Recurring - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Fair Value Measurement With Unobservable Inputs Reconciliations Recurring Basis Asset And Liability [Roll Forward] | ||||
Beginning balance, Total | $ 414,833 | $ 277,494 | $ 479,706 | $ 183,307 |
Purchase of Borrower Loans/Issuance of Notes | 222,467 | 810,999 | 622,743 | 1,371,558 |
Transfers in (Transfers out) | 0 | 0 | ||
Principal repayments | (65,791) | (44,442) | (135,646) | (70,560) |
Borrower Loans sold to third parties | (138,139) | (616,747) | (496,036) | (1,055,194) |
Other changes | 1,164 | (227) | 705 | 180 |
Change in fair value | (2,362) | (2,831) | (39,300) | (5,045) |
Ending balance, Total | 432,172 | 424,246 | 432,172 | 424,246 |
Prosper Funding LLC | ||||
Fair Value Measurement With Unobservable Inputs Reconciliations Recurring Basis Asset And Liability [Roll Forward] | ||||
Beginning balance, Total | 2,168 | 1,177 | 966 | (481) |
Originations | 222,467 | 670,447 | 622,743 | 1,160,586 |
Principal repayments | 264 | 396 | 1,512 | 3,314 |
Borrower Loans sold to third parties | (223,254) | (671,131) | (623,686) | (1,162,960) |
Other changes | (51) | (113) | (4) | 403 |
Change in fair value | 195 | (131) | 258 | (217) |
Ending balance, Total | 1,789 | 645 | 1,789 | 645 |
Notes | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance, Liabilities | 153,236 | 106,640 | 142,026 | 183,788 |
Purchase of Borrower Loans/Issuance of Notes | 222,572 | 670,382 | 622,122 | 1,161,237 |
Transfers in (Transfers out) | (33,457) | (147,773) | ||
Principal repayments | (24,516) | (11,790) | (43,076) | (26,529) |
Borrower Loans sold to third parties | (136,148) | (615,835) | (491,782) | (1,053,308) |
Other changes | 673 | 255 | 779 | 89 |
Change in fair value | 426 | (1,233) | (13,826) | (2,542) |
Ending balance, Liabilities | (209,987) | (253,425) | (209,987) | (253,425) |
Notes | Prosper Funding LLC | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance, Liabilities | 0 | 0 | 0 | 0 |
Originations | 222,572 | 670,382 | 622,122 | 1,161,237 |
Principal repayments | 0 | 0 | 0 | 0 |
Borrower Loans sold to third parties | (222,572) | (670,382) | (622,122) | (1,161,237) |
Other changes | 0 | 0 | 0 | 0 |
Change in fair value | 0 | 0 | 0 | 0 |
Ending balance, Liabilities | (209,986) | (253,425) | (209,986) | (253,425) |
Certificates Issued by Securitization Trust | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance, Liabilities | (225,491) | (258,722) | (244,171) | (264,003) |
Purchase of Borrower Loans/Issuance of Notes | (24,468) | (41,774) | (65,043) | (86,713) |
Transfers in (Transfers out) | 0 | 0 | ||
Principal repayments | 36,520 | 41,611 | 77,107 | 85,728 |
Borrower Loans sold to third parties | 0 | 0 | 0 | 0 |
Other changes | (396) | 2 | (257) | 603 |
Change in fair value | 3,848 | 5,458 | 22,377 | 10,960 |
Ending balance, Liabilities | (31,571) | (44,090) | (31,571) | (44,090) |
Borrower Loans | ||||
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||||
Beginning balance, Assets | 522,404 | 448,710 | 634,019 | 263,522 |
Purchases | 24,363 | 213,370 | 65,664 | 348,629 |
Transfers in (Transfers out) | 33,457 | 147,773 | ||
Principal repayments | (82,837) | (77,402) | (179,552) | (134,031) |
Borrower loans sold to third parties | (1,991) | (912) | (4,254) | (1,886) |
Other changes | 584 | (48) | (158) | 91 |
Change in fair value | (5,036) | (10,376) | (58,232) | (17,299) |
Ending balance, Assets | 457,487 | 606,799 | 457,487 | 606,799 |
Borrower Loans | Prosper Funding LLC | ||||
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||||
Beginning balance, Assets | 227,659 | 259,899 | 245,137 | 263,522 |
Originations | 24,363 | 41,839 | 65,664 | 86,062 |
Principal repayments | (36,256) | (41,215) | (75,596) | (82,414) |
Borrower loans sold to third parties | (682) | (749) | (1,564) | (1,723) |
Other changes | 344 | (115) | 253 | (200) |
Change in fair value | (3,653) | (5,589) | (22,119) | (11,177) |
Ending balance, Assets | 211,775 | 254,070 | 211,775 | 254,070 |
Loans Held for Sale | ||||
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||||
Beginning balance, Assets | (35,316) | (19,134) | (52,168) | 0 |
Purchases | 0 | (30,979) | 0 | (51,595) |
Transfers in (Transfers out) | 0 | 0 | ||
Principal repayments | 5,042 | 3,139 | 9,875 | 4,272 |
Borrower loans sold to third parties | 0 | 0 | 0 | 0 |
Other changes | 303 | (436) | 341 | (603) |
Change in fair value | (1,600) | 3,320 | 10,381 | 3,836 |
Ending balance, Assets | 216,243 | 114,962 | 216,243 | 114,962 |
Loans Held for Sale | Prosper Funding LLC | ||||
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||||
Beginning balance, Assets | (225,491) | (258,722) | (244,171) | (264,003) |
Originations | (24,468) | (41,774) | (65,043) | (86,713) |
Principal repayments | 36,520 | 41,611 | 77,108 | 85,728 |
Borrower loans sold to third parties | 0 | 0 | 0 | 0 |
Other changes | (395) | 2 | (257) | 603 |
Change in fair value | 3,848 | 5,458 | 22,377 | 10,960 |
Ending balance, Assets | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value of Assets and Liab_9
Fair Value of Assets and Liabilities - Schedule of Servicing Assets and Liabilities, Warrant Liability and Loan Trailing (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Servicing Asset at Fair Value, Beginning Balance | $ 12,602 | |||
Servicing Asset at Fair Value, Ending Balance | $ 10,073 | 10,073 | ||
Prosper Funding LLC | ||||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Servicing Asset at Fair Value, Beginning Balance | 14,888 | |||
Servicing Asset at Fair Value, Ending Balance | 12,063 | 12,063 | ||
44012 | ||||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Servicing Asset at Fair Value, Beginning Balance | 11,742 | $ 13,814 | 12,602 | $ 14,687 |
Additions | 729 | 3,636 | 2,703 | 6,378 |
Derecognition | (685) | (1,049) | ||
Less: Changes in fair value | (2,398) | (3,378) | (5,232) | (6,629) |
Servicing Asset at Fair Value, Ending Balance | 10,073 | 13,387 | 10,073 | 13,387 |
44012 | Prosper Funding LLC | ||||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Servicing Asset at Fair Value, Beginning Balance | 13,690 | 15,174 | 14,888 | 15,550 |
Additions | 1,206 | 3,830 | 3,402 | 6,796 |
Less: Changes in fair value | (2,833) | (3,543) | (6,227) | (6,885) |
Servicing Asset at Fair Value, Ending Balance | 12,063 | 15,461 | 12,063 | 15,461 |
Mandatorily Redeemable Preferred Stock | ||||
Liabilities at Fair Value, Amount [Roll Forward] | ||||
Beginning balance | 94,547 | 163,483 | 149,996 | 143,679 |
Issuances | 7,805 | 17,553 | ||
Change in fair value | (19,549) | (4,729) | (74,998) | 5,327 |
Ending balance | 74,998 | 166,559 | 74,998 | 166,559 |
Loan Trailing Fee Liability | ||||
Liabilities at Fair Value, Amount [Roll Forward] | ||||
Beginning balance | 2,646 | 3,084 | 2,997 | 3,118 |
Issuances | 240 | 731 | 625 | 1,297 |
Cash payment of Loan Trailing Fee | (596) | (640) | (1,271) | (1,298) |
Change in fair value | 113 | 74 | 52 | 132 |
Ending balance | 2,403 | 3,249 | 2,403 | 3,249 |
Loan Trailing Fee Liability | Prosper Funding LLC | ||||
Liabilities at Fair Value, Amount [Roll Forward] | ||||
Beginning balance | 2,646 | 3,084 | 2,997 | 3,118 |
Issuances | 240 | 731 | 625 | 1,297 |
Cash payment of Loan Trailing Fee | 596 | 640 | 1,271 | 1,298 |
Change in fair value | 113 | 74 | 52 | 132 |
Ending balance | 2,403 | $ 3,249 | 2,403 | $ 3,249 |
Level 3 Inputs | ||||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Servicing Asset at Fair Value, Beginning Balance | 12,602 | |||
Servicing Asset at Fair Value, Ending Balance | 10,073 | 10,073 | ||
Level 3 Inputs | Prosper Funding LLC | ||||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Servicing Asset at Fair Value, Beginning Balance | 14,888 | |||
Servicing Asset at Fair Value, Ending Balance | $ 12,063 | $ 12,063 |
Fair Value of Assets and Lia_10
Fair Value of Assets and Liabilities - Fair Value Assumptions for Borrower Loans, Loans Held for Sale and Notes (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Notes, at Fair Value | $ 209,987 | $ 244,171 | |
Certificates Issued by Securitization Trust, at Fair Value | [1] | 31,571 | 52,168 |
Level 3 Inputs | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Notes, at Fair Value | 209,987 | 244,171 | |
Certificates Issued by Securitization Trust, at Fair Value | 31,571 | 52,168 | |
Prosper Funding LLC | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Notes, at Fair Value | 209,986 | 244,171 | |
Prosper Funding LLC | Level 3 Inputs | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Notes, at Fair Value | 209,986 | 244,171 | |
Senior Notes | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Notes, at Fair Value | 209,987 | 244,171 | |
Senior Notes | Prosper Funding LLC | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Notes, at Fair Value | 209,986 | 244,171 | |
Borrower loans and loans held for sale | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Notes, at Fair Value | 673,730 | 776,045 | |
Borrower loans and loans held for sale | Prosper Funding LLC | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Notes, at Fair Value | 211,775 | 245,137 | |
Discount rate assumption | 100 basis point increase | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Expected fair value with change in assumptions | 31,313 | 51,813 | |
Discount rate assumption | 100 basis point increase | Senior Notes | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Notes | 208,194 | 241,927 | |
Discount rate assumption | 100 basis point increase | Senior Notes | Prosper Funding LLC | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Borrower loans | 208,194 | 241,927 | |
Discount rate assumption | 100 basis point increase | Borrower loans and loans held for sale | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Borrower loans | 667,986 | 768,924 | |
Discount rate assumption | 100 basis point increase | Borrower loans and loans held for sale | Prosper Funding LLC | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Borrower loans | 209,970 | 242,888 | |
Discount rate assumption | 200 basis point incease | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Expected fair value with change in assumptions | 31,060 | 51,466 | |
Discount rate assumption | 200 basis point incease | Senior Notes | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Notes | 206,441 | 239,737 | |
Discount rate assumption | 200 basis point incease | Senior Notes | Prosper Funding LLC | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Borrower loans | 206,441 | 239,737 | |
Discount rate assumption | 200 basis point incease | Borrower loans and loans held for sale | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Borrower loans | 662,372 | 761,971 | |
Discount rate assumption | 200 basis point incease | Borrower loans and loans held for sale | Prosper Funding LLC | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Borrower loans | 208,205 | 240,691 | |
Discount rate assumption | 100 basis point decrease | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Expected fair value with change in assumptions | 31,836 | 52,533 | |
Discount rate assumption | 100 basis point decrease | Senior Notes | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Notes | 211,821 | 246,471 | |
Discount rate assumption | 100 basis point decrease | Senior Notes | Prosper Funding LLC | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Borrower loans | 211,821 | 246,471 | |
Discount rate assumption | 100 basis point decrease | Borrower loans and loans held for sale | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Borrower loans | 679,607 | 783,344 | |
Discount rate assumption | 100 basis point decrease | Borrower loans and loans held for sale | Prosper Funding LLC | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Borrower loans | 213,623 | 247,442 | |
Discount rate assumption | 200 basis point decrease | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Expected fair value with change in assumptions | 32,108 | 52,909 | |
Discount rate assumption | 200 basis point decrease | Senior Notes | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Notes | 213,698 | 248,828 | |
Discount rate assumption | 200 basis point decrease | Senior Notes | Prosper Funding LLC | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Borrower loans | 213,698 | 248,828 | |
Discount rate assumption | 200 basis point decrease | Borrower loans and loans held for sale | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Borrower loans | 685,623 | 790,823 | |
Discount rate assumption | 200 basis point decrease | Borrower loans and loans held for sale | Prosper Funding LLC | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Borrower loans | 215,514 | 249,805 | |
Default rate assumption | 100 basis point increase | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Expected fair value with change in assumptions | 29,670 | 48,986 | |
Default rate assumption | 200 basis point incease | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Expected fair value with change in assumptions | 27,777 | 45,926 | |
Default rate assumption | 100 basis point decrease | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Expected fair value with change in assumptions | 33,482 | 55,369 | |
Default rate assumption | 200 basis point decrease | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Expected fair value with change in assumptions | 35,405 | 58,613 | |
Default rate assumption | 10 percent increase | Senior Notes | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Notes | 207,637 | 240,958 | |
Default rate assumption | 10 percent increase | Senior Notes | Prosper Funding LLC | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Borrower loans | 207,637 | 240,958 | |
Default rate assumption | 10 percent increase | Borrower loans and loans held for sale | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Borrower loans | 666,236 | 765,894 | |
Default rate assumption | 10 percent increase | Borrower loans and loans held for sale | Prosper Funding LLC | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Borrower loans | 209,420 | 241,930 | |
Default rate assumption | 20 percent increase | Senior Notes | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Notes | 205,297 | 237,831 | |
Default rate assumption | 20 percent increase | Senior Notes | Prosper Funding LLC | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Borrower loans | 205,297 | 237,831 | |
Default rate assumption | 20 percent increase | Borrower loans and loans held for sale | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Borrower loans | 658,771 | 756,007 | |
Default rate assumption | 20 percent increase | Borrower loans and loans held for sale | Prosper Funding LLC | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Borrower loans | 207,073 | 238,807 | |
Default rate assumption | 10 percent decrease | Senior Notes | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Notes | 212,345 | 247,489 | |
Default rate assumption | 10 percent decrease | Senior Notes | Prosper Funding LLC | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Borrower loans | 212,345 | 247,489 | |
Default rate assumption | 10 percent decrease | Borrower loans and loans held for sale | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Borrower loans | 681,254 | 786,541 | |
Default rate assumption | 10 percent decrease | Borrower loans and loans held for sale | Prosper Funding LLC | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Borrower loans | 214,140 | 248,453 | |
Default rate assumption | 20 percent decrease | Senior Notes | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Notes | 214,715 | 250,817 | |
Default rate assumption | 20 percent decrease | Senior Notes | Prosper Funding LLC | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Borrower loans | 214,715 | 250,817 | |
Default rate assumption | 20 percent decrease | Borrower loans and loans held for sale | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Borrower loans | 688,814 | 797,065 | |
Default rate assumption | 20 percent decrease | Borrower loans and loans held for sale | Prosper Funding LLC | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Borrower loans | 216,517 | 251,777 | |
Prepayment rate assumption | 100 basis point increase | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Expected fair value with change in assumptions | 31,514 | 52,085 | |
Prepayment rate assumption | 200 basis point incease | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Expected fair value with change in assumptions | 31,451 | 52,008 | |
Prepayment rate assumption | 100 basis point decrease | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Expected fair value with change in assumptions | 31,631 | 52,253 | |
Prepayment rate assumption | 200 basis point decrease | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Expected fair value with change in assumptions | $ 31,693 | $ 52,340 | |
Discount rate | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Valuation techniques | 14.55 | 9.59 | |
Discount rate | Discount rate assumption | Senior Notes | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Fair value assumptions | 0.1123 | 0.0643 | |
Discount rate | Discount rate assumption | Senior Notes | Prosper Funding LLC | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Fair value assumptions | 0.1123 | 0.0643 | |
Discount rate | Discount rate assumption | Borrower loans and loans held for sale | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Fair value assumptions | 0.1159 | 0.0700 | |
Discount rate | Discount rate assumption | Borrower loans and loans held for sale | Prosper Funding LLC | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Fair value assumptions | 0.1123 | 0.0643 | |
Default rate | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Valuation techniques | 13.86 | 10.12 | |
Default rate | Default rate assumption | Senior Notes | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Fair value assumptions | 0.1360 | 0.1368 | |
Default rate | Default rate assumption | Senior Notes | Prosper Funding LLC | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Fair value assumptions | 0.1360 | 0.1368 | |
Default rate | Default rate assumption | Borrower loans and loans held for sale | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Fair value assumptions | 0.1315 | 0.1263 | |
Default rate | Default rate assumption | Borrower loans and loans held for sale | Prosper Funding LLC | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Fair value assumptions | 0.1360 | 0.1368 | |
Prepayment rate | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Valuation techniques | 22.40 | 21.41 | |
[1] | (1) Includes amounts in consolidated varia ble interest entities (VIEs) presented separately in the table below. |
Fair Value of Assets and Lia_11
Fair Value of Assets and Liabilities - Fair Value Assumptions for Certificates Issued by Securitization Trust (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Certificates Issued by Securitization Trust, at Fair Value | [1] | $ 31,571 | $ 52,168 |
Discount rate assumption | 100 basis point increase | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Expected fair value with change in assumptions | 31,313 | 51,813 | |
Discount rate assumption | 200 basis point incease | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Expected fair value with change in assumptions | 31,060 | 51,466 | |
Discount rate assumption | 100 basis point decrease | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Expected fair value with change in assumptions | 31,836 | 52,533 | |
Discount rate assumption | 200 basis point decrease | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Expected fair value with change in assumptions | 32,108 | 52,909 | |
Default rate assumption | 100 basis point increase | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Expected fair value with change in assumptions | 29,670 | 48,986 | |
Default rate assumption | 200 basis point incease | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Expected fair value with change in assumptions | 27,777 | 45,926 | |
Default rate assumption | 100 basis point decrease | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Expected fair value with change in assumptions | 33,482 | 55,369 | |
Default rate assumption | 200 basis point decrease | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Expected fair value with change in assumptions | 35,405 | 58,613 | |
Prepayment rate assumption | 100 basis point increase | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Expected fair value with change in assumptions | 31,514 | 52,085 | |
Prepayment rate assumption | 200 basis point incease | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Expected fair value with change in assumptions | 31,451 | 52,008 | |
Prepayment rate assumption | 100 basis point decrease | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Expected fair value with change in assumptions | 31,631 | 52,253 | |
Prepayment rate assumption | 200 basis point decrease | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Expected fair value with change in assumptions | $ 31,693 | $ 52,340 | |
Discount rate | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Valuation techniques | 14.55 | 9.59 | |
Default rate | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Valuation techniques | 13.86 | 10.12 | |
Prepayment rate | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Valuation techniques | 22.40 | 21.41 | |
[1] | (1) Includes amounts in consolidated varia ble interest entities (VIEs) presented separately in the table below. |
Fair Value of Assets and Lia_12
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, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Servicing Assets And Liabilities Fair Value [Line Items] | ||||||
Servicing Asset at Fair Value, Amount | $ 10,073 | $ 12,602 | ||||
Prosper Funding LLC | ||||||
Servicing Assets And Liabilities Fair Value [Line Items] | ||||||
Servicing Asset at Fair Value, Amount | 12,063 | 14,888 | ||||
44012 | ||||||
Servicing Assets And Liabilities Fair Value [Line Items] | ||||||
Servicing Asset at Fair Value, Amount | 10,073 | 12,602 | $ 11,742 | $ 13,387 | $ 13,814 | $ 14,687 |
44012 | Prosper Funding LLC | ||||||
Servicing Assets And Liabilities Fair Value [Line Items] | ||||||
Servicing Asset at Fair Value, Amount | $ 12,063 | $ 14,888 | $ 13,690 | $ 15,461 | $ 15,174 | $ 15,550 |
Market servicing rate | 44012 | Market servicing rate increase of 0.025% | ||||||
Servicing Assets And Liabilities Fair Value [Line Items] | ||||||
Expected fair value with change in assumptions | 946700000.00% | 1182500000.00% | ||||
Market servicing rate | 44012 | Market servicing rate increase of 0.025% | Prosper Funding LLC | ||||||
Servicing Assets And Liabilities Fair Value [Line Items] | ||||||
Expected fair value with change in assumptions | 1133600000.00% | 1396600000.00% | ||||
Market servicing rate | 44012 | Market servicing rate decrease of 0.025% | ||||||
Servicing Assets And Liabilities Fair Value [Line Items] | ||||||
Expected fair value with change in assumptions | 1068000000.00% | 1338700000.00% | ||||
Market servicing rate | 44012 | Market servicing rate decrease of 0.025% | Prosper Funding LLC | ||||||
Servicing Assets And Liabilities Fair Value [Line Items] | ||||||
Expected fair value with change in assumptions | 1278900000.00% | 1581100000.00% | ||||
Prepayment rate assumption | 44012 | Applying a 1.1 multiplier to prepayment rate | ||||||
Servicing Assets And Liabilities Fair Value [Line Items] | ||||||
Expected fair value with change in assumptions | 987200000.00% | 1234800000.00% | ||||
Prepayment rate assumption | 44012 | Applying a 1.1 multiplier to prepayment rate | Prosper Funding LLC | ||||||
Servicing Assets And Liabilities Fair Value [Line Items] | ||||||
Expected fair value with change in assumptions | 1182200000.00% | 1458300000.00% | ||||
Prepayment rate assumption | 44012 | Applying a 0.9 multiplier to prepayment rate | ||||||
Servicing Assets And Liabilities Fair Value [Line Items] | ||||||
Expected fair value with change in assumptions | 1027600000.00% | 1286800000.00% | ||||
Prepayment rate assumption | 44012 | Applying a 0.9 multiplier to prepayment rate | Prosper Funding LLC | ||||||
Servicing Assets And Liabilities Fair Value [Line Items] | ||||||
Expected fair value with change in assumptions | 1230600000.00% | 1519700000.00% | ||||
Default rate assumption | 44012 | Applying a 1.1 multiplier to default rate | ||||||
Servicing Assets And Liabilities Fair Value [Line Items] | ||||||
Expected fair value with change in assumptions | 992500000.00% | 1237700000.00% | ||||
Default rate assumption | 44012 | Applying a 1.1 multiplier to default rate | Prosper Funding LLC | ||||||
Servicing Assets And Liabilities Fair Value [Line Items] | ||||||
Expected fair value with change in assumptions | 1188500000.00% | 1461800000.00% | ||||
Default rate assumption | 44012 | Applying a 0.9 multiplier to default rate | ||||||
Servicing Assets And Liabilities Fair Value [Line Items] | ||||||
Expected fair value with change in assumptions | 1022200000.00% | 1284000000.00% | ||||
Default rate assumption | 44012 | Applying a 0.9 multiplier to default rate | Prosper Funding LLC | ||||||
Servicing Assets And Liabilities Fair Value [Line Items] | ||||||
Expected fair value with change in assumptions | 1224100000.00% | 1516500000.00% | ||||
Market servicing rate | 44012 | ||||||
Servicing Assets And Liabilities Fair Value [Line Items] | ||||||
Valuation techniques | 0.632% | 0.625% | ||||
Market servicing rate | 44012 | Prosper Funding LLC | ||||||
Servicing Assets And Liabilities Fair Value [Line Items] | ||||||
Valuation techniques | 0.632% | 0.625% | ||||
Prepayment rate | 44012 | ||||||
Servicing Assets And Liabilities Fair Value [Line Items] | ||||||
Valuation techniques | 20.67% | 20.99% | ||||
Prepayment rate | 44012 | Prosper Funding LLC | ||||||
Servicing Assets And Liabilities Fair Value [Line Items] | ||||||
Valuation techniques | 20.67% | 20.99% | ||||
Default rate | 44012 | ||||||
Servicing Assets And Liabilities Fair Value [Line Items] | ||||||
Valuation techniques | 13.47% | 12.67% | ||||
Default rate | 44012 | Prosper Funding LLC | ||||||
Servicing Assets And Liabilities Fair Value [Line Items] | ||||||
Valuation techniques | 13.47% | 12.67% |
Fair Value of Assets and Lia_13
Fair Value of Assets and Liabilities - Schedule of Prosper's and Prosper Funding's Estimated Fair Value of Servicing Assets and Liabilities Additional Info (Details) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Servicing rate increase | 0.025% |
Servicing rate decrease | 0.025% |
Prepayment rate assumption | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Prepayment rate increase | 1.10% |
Prepayment rate decrease | 0.90% |
Default rate assumption | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Default rate increase | 1.10% |
Default rate decrease | 0.90% |
Prosper Funding LLC | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Servicing rate increase | 0.025% |
Servicing rate decrease | 0.025% |
Prosper Funding LLC | Prepayment rate assumption | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Prepayment rate increase | 1.10% |
Prepayment rate decrease | 0.90% |
Prosper Funding LLC | Default rate assumption | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Default rate increase | 1.10% |
Default rate decrease | 0.90% |
Fair Value of Assets and Lia_14
Fair Value of Assets and Liabilities - Financial Instruments, Assets and Liabilities not Recorded at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | |||
Assets | ||||||
Cash and Cash Equivalents | $ 46,575 | $ 64,635 | $ 68,124 | |||
Restricted Cash | 143,318 | [1] | 155,773 | [1] | $ 160,990 | |
Accounts Receivable (1) | [1] | 1,047 | 1,695 | |||
Total Assets | 948,739 | 1,084,828 | ||||
Liabilities: | ||||||
Accounts Payable and Accrued Liabilities | 12,044 | 19,937 | ||||
Payable to Investors | 102,405 | 101,092 | ||||
Notes Issued by Securitization Trust (1) | [1] | 235,353 | 347,662 | |||
Warehouse Lines (1) | [1] | 198,857 | 131,583 | |||
Total Liabilities | 892,463 | 1,068,335 | ||||
Carrying Amount | ||||||
Assets | ||||||
Total Assets | 190,940 | 222,103 | ||||
Liabilities: | ||||||
Total Liabilities | 548,659 | 600,274 | ||||
Balance at Fair Value | ||||||
Assets | ||||||
Cash and Cash Equivalents | 46,575 | 64,635 | ||||
Restricted Cash | 143,318 | 155,773 | ||||
Accounts Receivable (1) | 1,047 | 1,695 | ||||
Total Assets | 190,940 | 222,103 | ||||
Liabilities: | ||||||
Accounts Payable and Accrued Liabilities | 12,044 | 19,937 | ||||
Payable to Investors | 102,405 | 101,092 | ||||
Notes Issued by Securitization Trust (1) | 228,924 | 353,028 | ||||
Warehouse Lines (1) | 198,212 | 131,090 | ||||
Total Liabilities | 541,585 | 605,147 | ||||
Level 1 Inputs | ||||||
Assets | ||||||
Cash and Cash Equivalents | 46,575 | 64,635 | ||||
Restricted Cash | 0 | 0 | ||||
Accounts Receivable (1) | 0 | 0 | ||||
Total Assets | 46,575 | 64,635 | ||||
Liabilities: | ||||||
Accounts Payable and Accrued Liabilities | 0 | 0 | ||||
Payable to Investors | 0 | 0 | ||||
Notes Issued by Securitization Trust (1) | 0 | 0 | ||||
Warehouse Lines (1) | 0 | 0 | ||||
Total Liabilities | 0 | 0 | ||||
Level 2 Inputs | ||||||
Assets | ||||||
Cash and Cash Equivalents | 0 | 0 | ||||
Restricted Cash | 143,318 | 155,773 | ||||
Accounts Receivable (1) | 1,047 | 1,695 | ||||
Total Assets | 144,365 | 157,468 | ||||
Liabilities: | ||||||
Accounts Payable and Accrued Liabilities | 12,044 | 19,937 | ||||
Payable to Investors | 102,405 | 101,092 | ||||
Notes Issued by Securitization Trust (1) | 228,924 | 353,028 | ||||
Warehouse Lines (1) | 198,212 | 131,090 | ||||
Total Liabilities | 541,585 | 605,147 | ||||
Level 3 Inputs | ||||||
Assets | ||||||
Cash and Cash Equivalents | 0 | 0 | ||||
Restricted Cash | 0 | 0 | ||||
Accounts Receivable (1) | 0 | 0 | ||||
Total Assets | 0 | 0 | ||||
Liabilities: | ||||||
Accounts Payable and Accrued Liabilities | 0 | 0 | ||||
Payable to Investors | 0 | 0 | ||||
Notes Issued by Securitization Trust (1) | 0 | 0 | ||||
Warehouse Lines (1) | 0 | 0 | ||||
Total Liabilities | $ 0 | $ 0 | ||||
[1] | (1) Includes amounts in consolidated varia ble interest entities (VIEs) presented separately in the table below. |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Goodwill And Other Intangible Assets [Line Items] | |||||
Goodwill | $ 36,368,000 | $ 36,368,000 | $ 36,368,000 | ||
Goodwill impairment | 0 | $ 0 | |||
Intangible assets, net | 610,000 | 610,000 | $ 720,000 | ||
Amortization of intangible assets | 100,000 | $ 100,000 | 100,000 | $ 100,000 | |
User base and customer relationships | |||||
Goodwill And Other Intangible Assets [Line Items] | |||||
Intangible assets, net | $ 610,000 | $ 610,000 | |||
Intangible assets amortized period | 4 years 9 months 18 days | ||||
User base and customer relationships | Minimum | |||||
Goodwill And Other Intangible Assets [Line Items] | |||||
Intangible assets amortized period | 3 years | ||||
User base and customer relationships | Maximum | |||||
Goodwill And Other Intangible Assets [Line Items] | |||||
Intangible assets amortized period | 10 years |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Summary of Other Intangible Assets for the Period Presented (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 8,170 | |
Accumulated Amortization | (7,560) | |
Net Carrying Value | 610 | $ 720 |
Developed technology | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 3,060 | |
Accumulated Amortization | (3,060) | |
Net Carrying Value | 0 | |
User base and customer relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 5,050 | |
Accumulated Amortization | (4,440) | |
Net Carrying Value | $ 610 | |
Remaining Useful Life (In Years) | 4 years 9 months 18 days | |
Brand name | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 60 | |
Accumulated Amortization | (60) | |
Net Carrying Value | $ 0 |
Goodwill And Other Intangible_5
Goodwill And Other Intangible Assets - Summary of Estimated Amortization of Purchased Intangible Assets (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 (remainder thereof) | $ 110 |
2021 | 172 |
2022 | 136 |
2023 | 107 |
2024 | 85 |
Total | $ 610 |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Other Liabilities [Abstract] | ||
Loan trailing fee | $ 2,403 | $ 2,997 |
Deferred revenue | 132 | 241 |
Deferred income tax liability | 473 | 405 |
Operating lease liability | 15,311 | 17,507 |
Paycheck protection program loan | 8,447 | 0 |
Other | 482 | 576 |
Total Other Liabilities | $ 27,248 | $ 21,726 |
Debt (Details)
Debt (Details) $ in Thousands | Jun. 20, 2019 | Mar. 28, 2019USD ($) | Jun. 12, 2018USD ($) | Jun. 30, 2020USD ($) | Apr. 24, 2020USD ($) | Dec. 31, 2019USD ($) | Jan. 19, 2018USD ($) | |
Line of Credit Facility [Line Items] | ||||||||
Loans held-for-sale, at fair value | [1] | $ 216,243 | $ 142,026 | |||||
PPP loan amount | 8,500 | $ 8,400 | ||||||
Warehouse Agreement | Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Minimum tangible net worth | $ 25,000 | |||||||
Minimum net liquidity | $ 15,000 | |||||||
Maximum leverage ratio | 5 | |||||||
PWIT | Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 100,000 | 100,300 | $ 200,000 | |||||
Repayment period | 24 months | |||||||
Advance rate | 89.00% | |||||||
Loans held-for-sale, at fair value | 114,600 | |||||||
Undrawn portion | 99,700 | |||||||
Capitalized debt issuance cost | 1,800 | |||||||
PWIIT | Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 300,000 | |||||||
Repayment period | 24 months | |||||||
Advance rate | 90.00% | |||||||
Commitment fee percent | 0.50% | |||||||
Warehouse Line | 98,500 | |||||||
Loans held-for-sale, at fair value | 110,800 | |||||||
Undrawn portion | 201,500 | |||||||
Capitalized debt issuance cost | $ 2,100 | |||||||
LIBOR | PWIT | Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Interest rate | 2.90% | |||||||
LIBOR | PWIIT | Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Interest rate | 2.90% | |||||||
Increase to basis spread | 0.375% | |||||||
Minimum | PWIT | Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Commitment fee percent | 0.50% | |||||||
[1] | (1) Includes amounts in consolidated varia ble interest entities (VIEs) presented separately in the table below. |
Net Income (Loss) Per Share - B
Net Income (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, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Numerator: | ||||||
Net Income (Loss) | $ 17,641 | $ 21,130 | $ (569) | $ (22,714) | $ 38,771 | $ (23,283) |
Less: Net Income Allocated to Participating Securities | (13,153) | 0 | (28,908) | 0 | ||
Net Income (Loss) Attributable to Common Stockholders | $ 4,488 | $ (569) | $ 9,863 | $ (23,283) | ||
Denominator: | ||||||
Weighted average shares used in computing net income (loss) per share - basic (in shares) | 68,455,641 | 70,502,797 | 68,454,872 | 70,494,945 | ||
Effect of dilutive securities: | ||||||
Stock options | 126,926 | 0 | 337,446 | 0 | ||
Convertible preferred stock warrants | 213,264,845 | 0 | 213,264,845 | 0 | ||
Weighted-Average Shares - Diluted (in shares) | 281,847,412 | 70,502,797 | 282,057,163 | 70,494,945 | ||
Net Income (Loss) Per Share - Basic (in shares) | $ 0.07 | $ (0.01) | $ 0.14 | $ (0.33) | ||
Net Income (Loss) Per Share - Diluted (in shares) | $ 0.02 | $ (0.01) | $ 0.03 | $ (0.33) |
Net Income (Loss) Per Share - C
Net Income (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, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
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) | 283,739,139 | 502,217,996 | 283,154,377 | 500,575,695 |
Convertible preferred stock issued and outstanding (in shares) | ||||
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) | 209,613,570 | 214,637,925 | 209,613,570 | 214,637,925 |
Stock options issued and outstanding (in shares) | ||||
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) | 73,045,220 | 73,234,877 | 72,460,458 | 71,592,576 |
Warrants issued and outstanding (in shares) | ||||
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) | 1,080,349 | 1,080,349 | 1,080,349 | 1,080,349 |
Series E-1 convertible preferred stock warrants (in shares) | ||||
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) | 0 | 35,544,141 | 0 | 35,544,141 |
Series F convertible preferred stock warrants (in shares) | ||||
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) | 0 | 177,720,704 | 0 | 177,720,704 |
Convertible Preferred Stock, _3
Convertible Preferred Stock, Warrant Liability and Stockholders’ Deficit - Additional Information (Details) $ / shares in Units, $ in Thousands | Dec. 16, 2016 | Feb. 16, 2016 | Jun. 30, 2020USD ($)$ / sharesshares | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)time$ / sharesshares | Jun. 30, 2019USD ($) | Dec. 31, 2019$ / sharesshares | Sep. 20, 2017$ / sharesshares | Feb. 27, 2017$ / sharesshares |
Class of Stock [Line Items] | |||||||||
Common and preferred stock, shares authorized (in shares) | 1,069,760,848 | ||||||||
Common stock, shares authorized (in shares) | 625,000,000 | 625,000,000 | 625,000,000 | 625,000,000 | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||
Preferred stock, shares authorized (in shares) | 444,760,848 | 444,760,848 | 444,760,848 | ||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | ||||||||
Common stock, shares issued (in shares) | 69,391,576 | 69,391,576 | 69,387,836 | ||||||
Common stock, shares outstanding (in shares) | 68,455,641 | 68,455,641 | 68,451,901 | ||||||
Common Stock | |||||||||
Class of Stock [Line Items] | |||||||||
Stock split conversion ratio of 5-for-1 | 5 | ||||||||
Exercise of stock options (in shares) | 3,740 | ||||||||
Cash proceeds | $ | $ 1 | ||||||||
Series B | |||||||||
Class of Stock [Line Items] | |||||||||
IPO value (at least) | $ | 2,000,000 | ||||||||
Aggregate proceeds (at least) | $ | $ 100,000 | ||||||||
Voting power (at least) | 60.00% | ||||||||
Liquidation preference (in dollars per share) | $ / shares | $ 0.60 | $ 0.60 | |||||||
Preferred stock, shares authorized (in shares) | 35,775,880 | 35,775,880 | |||||||
Series A-1 | |||||||||
Class of Stock [Line Items] | |||||||||
Voting power (at least) | 14.00% | ||||||||
Conversion ratio | 1,000,000 | 1,000,000 | |||||||
Liquidation preference (in dollars per share) | $ / shares | $ 2 | $ 2 | |||||||
Preferred stock, shares authorized (in shares) | 24,760,915 | 24,760,915 | |||||||
Series D | |||||||||
Class of Stock [Line Items] | |||||||||
Voting power (at least) | 60.00% | ||||||||
Liquidation preference (in dollars per share) | $ / shares | $ 6.91 | $ 6.91 | |||||||
Series E1 and E2 Preferred Stock | |||||||||
Class of Stock [Line Items] | |||||||||
Voting power (at least) | 60.00% | ||||||||
Series G | |||||||||
Class of Stock [Line Items] | |||||||||
Voting power (at least) | 60.00% | ||||||||
Conversion ratio | 1.36 | 1.36 | |||||||
Liquidation preference (in dollars per share) | $ / shares | $ 1.34 | $ 1.34 | |||||||
Preferred stock, shares authorized (in shares) | 37,249,497 | 37,249,497 | |||||||
Series A | |||||||||
Class of Stock [Line Items] | |||||||||
Conversion ratio | 1 | 1 | |||||||
Times the original issue | time | 3 | ||||||||
Liquidation preference (in dollars per share) | $ / shares | $ 0.29 | $ 0.29 | |||||||
Preferred stock, shares authorized (in shares) | 68,558,220 | 68,558,220 | |||||||
Series C | |||||||||
Class of Stock [Line Items] | |||||||||
Liquidation preference (in dollars per share) | $ / shares | $ 2.87 | $ 2.87 | |||||||
Preferred stock, shares authorized (in shares) | 24,404,770 | 24,404,770 | |||||||
Series E-1 | |||||||||
Class of Stock [Line Items] | |||||||||
Warrant to purchase (in of shares) | 15,277,006 | ||||||||
Liquidation preference (in dollars per share) | $ / shares | $ 0.84 | $ 0.84 | |||||||
Warrant expiration period | 10 years | ||||||||
Income (expense) amount | $ | $ 3,600 | $ 1,100 | $ 12,800 | $ (1,000) | |||||
Preferred stock, shares authorized (in shares) | 35,544,141 | 35,544,141 | |||||||
Series E-2 | |||||||||
Class of Stock [Line Items] | |||||||||
Preferred stock, liquidation preference, conversion basis | 0.666666666666667 | ||||||||
Preferred stock, liquidation preference, conversion basis, after payment | 0.333333333333333 | ||||||||
Liquidation preference (in dollars per share) | $ / shares | $ 0.84 | $ 0.84 | |||||||
Preferred stock, shares authorized (in shares) | 16,858,078 | 16,858,078 | |||||||
Series F | |||||||||
Class of Stock [Line Items] | |||||||||
Exercise price (in dollars per share) | $ / shares | $ 0.01 | ||||||||
Voting power (at least) | 60.00% | ||||||||
Preferred stock, liquidation preference, conversion basis | 0.666666666666667 | ||||||||
Preferred stock, liquidation preference, conversion basis, after payment | 0.333333333333333 | ||||||||
Liquidation preference (in dollars per share) | $ / shares | $ 0.84 | $ 0.84 | |||||||
Income (expense) amount | $ | $ 16,000 | $ 3,600 | $ 62,200 | $ (4,300) | |||||
Preferred stock, shares authorized (in shares) | 177,720,707 | 177,720,707 | |||||||
Consortium Purchase Agreement | Series F Warrant | |||||||||
Class of Stock [Line Items] | |||||||||
Warrant to purchase (in of shares) | 177,720,706 | ||||||||
Exercise price (in dollars per share) | $ / shares | $ 0.01 |
Convertible Preferred Stock, _4
Convertible Preferred Stock, Warrant Liability 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, 2020 | Dec. 31, 2019 | Sep. 20, 2017 |
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) | 444,760,848 | 444,760,848 | |
Convertible preferred stock, shares outstanding (in shares) | 209,613,570 | ||
Convertible preferred stock, shares issued (in shares) | 209,613,570 | ||
Liquidation Preference (Outstanding Shares) | $ 370,456 | $ 370,456 | |
Series A | |||
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) | 66,428,185 | ||
Convertible preferred stock, shares issued (in shares) | 66,428,185 | ||
Liquidation Preference (Outstanding Shares) | $ 19,160 | ||
Series A-1 | |||
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) | 22,515,315 | ||
Convertible preferred stock, shares issued (in shares) | 22,515,315 | ||
Liquidation Preference (Outstanding Shares) | $ 45,031 | ||
Series B | |||
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) | 35,127,160 | ||
Convertible preferred stock, shares issued (in shares) | 35,127,160 | ||
Liquidation Preference (Outstanding Shares) | $ 21,190 | ||
Series C | |||
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 | ||
Liquidation Preference (Outstanding Shares) | $ 70,075 | ||
Series D | |||
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 | ||
Liquidation Preference (Outstanding Shares) | $ 165,000 | ||
Series E-1 | |||
Class of Stock [Line Items] | |||
Convertible preferred stock, par value (in dollars per share) | $ 0.01 | ||
Convertible preferred stock, shares authorized (in shares) | 35,544,141 | ||
Convertible preferred stock, shares outstanding (in shares) | 0 | ||
Convertible preferred stock, shares issued (in shares) | 0 | ||
Liquidation Preference (Outstanding Shares) | $ 0 | ||
Series E-2 | |||
Class of Stock [Line Items] | |||
Convertible preferred stock, par value (in dollars per share) | $ 0.01 | ||
Convertible preferred stock, shares authorized (in shares) | 16,858,078 | ||
Convertible preferred stock, shares outstanding (in shares) | 0 | ||
Convertible preferred stock, shares issued (in shares) | 0 | ||
Liquidation Preference (Outstanding Shares) | $ 0 | ||
Series F | |||
Class of Stock [Line Items] | |||
Convertible preferred stock, par value (in dollars per share) | $ 0.01 | ||
Convertible preferred stock, shares authorized (in shares) | 177,720,707 | ||
Convertible preferred stock, shares outstanding (in shares) | 3 | ||
Convertible preferred stock, shares issued (in shares) | 3 | ||
Liquidation Preference (Outstanding Shares) | $ 0 | ||
Series G | |||
Class of Stock [Line Items] | |||
Convertible preferred stock, par value (in dollars per share) | $ 0.01 | ||
Convertible preferred stock, shares authorized (in shares) | 37,249,497 | ||
Convertible preferred stock, shares outstanding (in shares) | 37,249,497 | ||
Convertible preferred stock, shares issued (in shares) | 37,249,497 | ||
Liquidation Preference (Outstanding Shares) | $ 50,000 |
Convertible Preferred Stock, _5
Convertible Preferred Stock, Warrant Liability and Stockholders’ Deficit - Schedule of Assumptions Used (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Volatility | Series E-1 | |||
Class of Stock [Line Items] | |||
Fair value assumptions | 0.660 | 0.460 | |
Volatility | Series F | |||
Class of Stock [Line Items] | |||
Fair value assumptions | 0.660 | 0.460 | |
Risk-free interest rate | Series E-1 | |||
Class of Stock [Line Items] | |||
Fair value assumptions | 0.0020 | 0.0160 | |
Risk-free interest rate | Series F | |||
Class of Stock [Line Items] | |||
Fair value assumptions | 0.0020 | 0.0160 | |
Expected term (in years) | Series E-1 | |||
Class of Stock [Line Items] | |||
Remaining contractual term (in years) | 2 years 9 months | 2 years 9 months | |
Expected term (in years) | Series F | |||
Class of Stock [Line Items] | |||
Remaining contractual term (in years) | 2 years 9 months | 2 years 9 months | |
Dividend yield | Series E-1 | |||
Class of Stock [Line Items] | |||
Fair value assumptions | 0 | 0 | |
Dividend yield | Series F | |||
Class of Stock [Line Items] | |||
Fair value assumptions | 0 | 0 |
Convertible Preferred Stock, _6
Convertible Preferred Stock, Warrant Liability and Stockholders’ Deficit - Warrant Liability (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Warrants or Rights [Roll Forward] | ||
Change in fair value | $ (74,998) | $ 5,327 |
Convertible Preferred Stock Warrant | ||
Warrants or Rights [Roll Forward] | ||
Balance at January 1, 2020 | 149,996 | 143,679 |
Warrants Vested | 17,553 | |
Change in fair value | (74,998) | 5,327 |
Balance at June 30, 2020 | $ 74,998 | $ 166,559 |
Share Based Incentive Plan an_3
Share Based Incentive Plan and Compensation - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Financial statement impact amount | $ 897,000 | $ 2,850,000 | ||
Options outstanding, term | 7 years 4 months 13 days | |||
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Unrecognized cost of unvested share-based compensation awards. | $ 0 | $ 0 | ||
Unamortized expense related to unvested stock-based awards | 2,600,000 | 2,600,000 | ||
Internal-use software and website development costs | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation capitalized | $ 100,000 | $ 100,000 | $ 100,000 | $ 200,000 |
Restricted stock units (in shares) | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Weighted average vesting period | 2 years | |||
Restricted stock units (in shares) | Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Restricted stock units (in shares) | Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting period | 4 years |
Share Based Incentive Plan an_4
Share Based Incentive Plan and Compensation - Summarized Option Activity under Option Plan (Details) - 2005 Stock Plan and 2015 Stock Option Plan | 6 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Options Issued and Outstanding | |
Options Issued and Outstanding, Beginning Balance (in shares) | shares | 76,236,757 |
Options Issued and Outstanding, Options issued (in shares) | shares | 4,125,900 |
Options Issued and Outstanding, Options exercised (in shares) | shares | (3,740) |
Options Issued and Outstanding, Options forfeited (in shares) | shares | (5,573,980) |
Options Issued and Outstanding, Options expired (in shares) | shares | (3,329,460) |
Options Issued and Outstanding, Ending balance (in shares) | shares | 71,455,477 |
Options Issued and Outstanding, Options vested and expected to vest (in shares) | shares | 58,749,776 |
Options Issued and Outstanding, Options vested and exercisable (in shares) | shares | 48,934,035 |
Weighted- Average Exercise Price | |
Weighted-Average Exercise Price, Beginning balance (in dollars per share) | $ / shares | $ 0.31 |
Weighted-Average Exercise Price, Options issued (in dollars per share) | $ / shares | 0.14 |
Weighted-Average Exercise Price, Options exercised (in dollars per share) | $ / shares | 0.38 |
Weighted-Average Exercise Price, Options forfeited (in dollars per share) | $ / shares | 0.36 |
Weighted-Average Exercise Price, Options expired (in dollars per share) | $ / shares | 0.13 |
Weighted-Average Exercise Price, Ending balance (in dollars per share) | $ / shares | 0.30 |
Weighted-Average Exercise Price, Options vested and expected to vest (in dollars per share) | $ / shares | 0.30 |
Weighted-Average Exercise Price, Options vested and exercisable (in dollars per share) | $ / shares | $ 0.30 |
Share Based Incentive Plan an_5
Share Based Incentive Plan and Compensation - Fair Value of Stock Option Awards (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Fair value of stock option awards [Abstract] | ||||
Volatility of common stock | 55.37% | 46.72% | 47.93% | 46.72% |
Risk-free interest rate | 0.44% | 2.28% | 0.66% | 2.28% |
Expected life (in years) | 6 years | 5 years 10 months 24 days | 6 years | 5 years 10 months 24 days |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Share Based Incentive Plan an_6
Share Based Incentive Plan and Compensation - Summarized Activities for the Company's RSU's (Details) - Restricted stock units (in shares) | 6 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Number of Shares | |
Restricted stock unit, Unvested, Beginning Balance (in shares) | shares | 4,803,141 |
Forfeited (in shares) | shares | (141,500) |
Restricted stock unit, Unvested, Ending Balance (in shares) | shares | 4,661,641 |
Weighted-Average Grant Date Fair Value | |
Restricted stock unit, Unvested, Beginning Balance (in dollars per share) | $ / shares | $ 0.95 |
Forfeited (in dollars per share) | $ / shares | 2.18 |
Restricted stock unit, Unvested, Ending Balance (in dollars per share) | $ / shares | $ 0.91 |
Share Based Incentive Plan an_7
Share 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, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation | $ 392 | $ 1,235 | $ 897 | $ 2,850 |
Origination and servicing | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation | 34 | 108 | 72 | 304 |
Sales and marketing | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation | 15 | 63 | 26 | 145 |
General and administrative | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation | $ 343 | $ 1,064 | $ 799 | $ 2,401 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Taxes [Line Items] | ||||
Income tax expense | $ 34,000 | $ 29,000 | $ 68,000 | $ 58,000 |
Prosper Funding LLC | ||||
Income Taxes [Line Items] | ||||
Income tax expense | $ 0 | $ 0 | ||
Net effective tax rate | 0.00% |
Consortium Purchase Agreement -
Consortium Purchase Agreement - Narrative (Details) - Consortium Purchase Agreement - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | ||
Jun. 30, 2020 | May 31, 2019 | Feb. 27, 2017 | |
Other Commitments [Line Items] | |||
Commitment to purchase borrower loans (up to) | $ 5,000,000 | ||
Loans acquired | $ 3,300,000 | ||
Warrants vested (in shares) | 177,700,000 | ||
Amount settled with rebates | $ 300,000 | ||
Series F Warrant | |||
Other Commitments [Line Items] | |||
Warrant to purchase up to (in shares) | 3 | ||
Warrant to purchase (in of shares) | 177,720,706 | ||
Exercise price (in dollars per share) | $ 0.01 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Lessee, Lease, Description [Line Items] | ||||
Renewal term | 5 years | 5 years | ||
Rental expense under operating lease arrangements | $ 1,500 | $ 1,400 | $ 3,000 | $ 2,700 |
Sublease income | 200 | $ 200 | 300 | 500 |
Right of use assets obtained in exchange for new operating lease obligations | 0 | |||
Impairment of Operating Lease Right-of-Use Asset | $ 200 | $ 228 | $ 0 | |
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease contract term | 1 year | 1 year | ||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease contract term | 7 years | 7 years |
Leases - Operating Lease Right-
Leases - Operating Lease Right-of-Use Assets (Details) - ROU Assets - Office buildings $ in Thousands | Jun. 30, 2020USD ($) |
Lessee, Lease, Description [Line Items] | |
Gross Carrying Value | $ 15,694 |
Accumulated Amortization | 4,955 |
Net Carrying Value | $ 10,739 |
Leases - Schedule of Lease Matu
Leases - Schedule of Lease Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Schedule of Lease Maturity | ||
Remainder of 2020 | $ 2,593 | |
2021 | 5,130 | |
2022 | 5,014 | |
2023 | 1,562 | |
2024 | 871 | |
Thereafter | 1,820 | |
Total future minimum lease payments | 16,990 | |
Less imputed interest | (1,679) | |
Present value of future minimum lease payments | $ 15,311 | $ 17,507 |
Leases - Other Information Rela
Leases - Other Information Related to Leases (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Leases [Abstract] | |
Cash paid for operating leases year-to-date | $ 2,704 |
Right of use assets obtained in exchange for new operating lease obligations | $ 0 |
Weighted average remaining lease term (in years) | 3 years 9 months 7 days |
Weighted average discount rate | 5.54% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | Apr. 19, 2019 | Apr. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Commitments And Contingencies [Line Items] | |||||
Designated Amount for loans (less than) | $ 143,500 | $ 143,500 | |||
Minimum fee, remaining in current year | 900,000 | 900,000 | |||
Minimum fee, 2022 | 1,700,000 | 1,700,000 | |||
Minimum fee, 2023 | 100,000 | ||||
Minimum liquidity covenant | 15,000,000 | 15,000,000 | |||
Purchase of borrower loans | 8,600,000 | ||||
Maximum potential future payments | 2,600,000,000 | 2,600,000,000 | |||
Accrued repurchase and indemnification obligation | 300,000 | 300,000 | $ 400,000 | ||
Amount awarded to other party | $ 3,000,000 | ||||
Accrued penalty | $ 3,000,000 | ||||
Prosper Funding LLC | |||||
Commitments And Contingencies [Line Items] | |||||
Designated Amount for loans (less than) | 143,500 | 143,500 | |||
Minimum fee, 2023 | 100,000 | ||||
Minimum liquidity covenant | 15,000,000 | 15,000,000 | |||
Purchase of borrower loans | 8,600,000 | ||||
Maximum potential future payments | 3,100,000,000 | 3,100,000,000 | |||
Accrued repurchase and indemnification obligation | 300,000 | $ 300,000 | $ 400,000 | ||
Amount awarded to other party | $ 3,000,000 | ||||
Accrued penalty | $ 3,000,000 |
Related Parties - Additional In
Related Parties - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Minimum percentage of voting securities considered for related parties | 10.00% |
Minimum percentage of stockholders 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, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||||
Aggregate Amount of Notes and Borrower Loans Purchased Three Months Ended June 30, | $ 116 | $ 219 | $ 243 | $ 104 | |
Interest Earned on Notes and Borrower Loans Three Months Ended June 30, | 15 | 26 | 32 | 13 | |
Notes balance | 720 | 720 | $ 717 | ||
Prosper Funding LLC | |||||
Related Party Transaction [Line Items] | |||||
Aggregate Amount of Notes and Borrower Loans Purchased Three Months Ended June 30, | 6 | 5 | 12 | 11 | |
Interest Earned on Notes and Borrower Loans Three Months Ended June 30, | 1 | 1 | 3 | 2 | |
Notes balance | 36 | 36 | 35 | ||
Executive officers and management | |||||
Related Party Transaction [Line Items] | |||||
Aggregate Amount of Notes and Borrower Loans Purchased Three Months Ended June 30, | 6 | 11 | 12 | 5 | |
Interest Earned on Notes and Borrower Loans Three Months Ended June 30, | 1 | 2 | 3 | 1 | |
Notes balance | 36 | 36 | 35 | ||
Executive officers and management | Prosper Funding LLC | |||||
Related Party Transaction [Line Items] | |||||
Aggregate Amount of Notes and Borrower Loans Purchased Three Months Ended June 30, | 6 | 5 | 12 | 11 | |
Interest Earned on Notes and Borrower Loans Three Months Ended June 30, | 1 | 1 | 3 | 2 | |
Notes balance | 36 | 36 | 35 | ||
Directors (excluding executive officers and management) | |||||
Related Party Transaction [Line Items] | |||||
Aggregate Amount of Notes and Borrower Loans Purchased Three Months Ended June 30, | 110 | 208 | 231 | 99 | |
Interest Earned on Notes and Borrower Loans Three Months Ended June 30, | 14 | 24 | 29 | 12 | |
Notes balance | 684 | 684 | 682 | ||
Directors (excluding executive officers and management) | Prosper Funding LLC | |||||
Related Party Transaction [Line Items] | |||||
Aggregate Amount of Notes and Borrower Loans Purchased Three Months Ended June 30, | 0 | 0 | 0 | 0 | |
Interest Earned on Notes and Borrower Loans Three Months Ended June 30, | 0 | $ 0 | 0 | $ 0 | |
Notes balance | $ 0 | $ 0 | $ 0 |
Significant Concentrations (Det
Significant Concentrations (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Concentration Risk [Line Items] | ||||
Percentage of funds originating in channel | 91.00% | 93.00% | ||
Party One | ||||
Concentration Risk [Line Items] | ||||
Percentage of loan purchased | 12.80% | 17.50% | 10.60% | 10.00% |
Party Two | ||||
Concentration Risk [Line Items] | ||||
Percentage of loan purchased | 17.90% | 19.40% | 17.10% | 17.40% |
Party Three | ||||
Concentration Risk [Line Items] | ||||
Percentage of loan purchased | 19.00% | 13.50% | ||
Warehouse VIE [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of loan purchased | 38.80% | 20.10% |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event | Jul. 31, 2020shares |
Series A Preferred Stock | |
Subsequent Event [Line Items] | |
Shares authorized for repurchase (in shares) | 34,670,420 |
Series B Preferred Stock | |
Subsequent Event [Line Items] | |
Shares authorized for repurchase (in shares) | 16,577,495 |