LC - Earnings call transcript Q3 2018 | LendingClub Corporation

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Operator

Good afternoon, and welcome to the LendingClub's Third Quarter Earnings Call. All participants will be in a listen-only mode. [Operator Instructions]. Please note this event is being recorded. I'd like to turn the conference over to Simon Mays-Smith, Head of Investor Relations. sir. ahead, go Please

Simon Mays-Smith

and XXXX everyone. earnings Carl, third to quarter of conference good you, Welcome afternoon, LendingClub's Thank call.

the CEO; Joining our me Tom Sanborn, results about Casey, and and recent today events are to CFO. talk Scott

Before we remind this internet. call conference the like being on everyone broadcast that is started, get I'd to

that Also, the statements statements will presentation of our through available to, expectations, the Relations section are a forward-looking four We our and based are are have current slide provided today both call commentary website risks limited our XXXX. at the forecasts on involve and quarter and and ir.lendingclub.com. our year and our accompany not include include, assumptions guidance for to the uncertainties. full remarks presentation and These Investor but

from press may reconciliation call Scott. non-GAAP both recent materially we and like And is slide and to the new and statements related or that of the SEC. results those by results financial items to cause all amortization press to slide assumptions call, that undertake I'd that to earnings these these and future presentation. legacy, XX-Q these to this events. included excludes impairment differ expenses presentation GAAP turn Factors our our exclude discuss release related will actual obligation regulatory and non-GAAP discuss stock-based during measures related will of earnings present Relations call the result this differ today's a we impact. forward-looking Further, also release, the today operating compensation, could to Any EBITDA in expenses contemplated filed A and and based as website matters. tax are Also, statements. no with over Our measures. Adjusted in Form and Investor most these on related depreciation, are described now, make on today's statements GAAP and we update forward-looking information we Form as of XX-K and materially on

Scott Sanborn

to on team. welcome and Simon, everybody the Thanks call. hello right. to And LendingClub All the

see, delivering revenue As we EBITDA. and can you another originations, great record record record had adjusted quarter,

the Our year-to-date achieve because a that positioned we're execute need very year have reflect and the I'd real thank like knows for results Investor outlook LendingClub raising plan to laid for three results also their to performance to today strong means for at and We because our Day out these and that to meet efforts. against EBITDA they at reflect uniquely year. attributes team are adjusted marketplace. a last outstanding of December we're how consumer them All here our unique you delivery we we in LendingClub's

a spectrum First, of our ability broad to borrowers serve efficiently.

risk innovate consumer data give unique and the operating to leverage. test category credit remains expand our market of business, history and increase and ability and Second, to growing of fastest which varying our platform appetite. investors its in the and scale. broad opportunity range attributes cost our LendingClub of core based with our our advantage strengths These XX to And on capital third, technology our their on years of

about talk our let's So strengths.

For have more now rates generate credit borrowers, savings versus than to their to we're highest levels their cards, where a risen able consistent interest in decade.

our through short capital to right returns by cost the targeted deliver matching of assets best we investors, For high the yield, duration borrowers.

that enables while responsibly returns. we investor prices our applications And grow leverage even we targeted grow generate to its test scale to tightening this credit more to deliver more to volumes data us Our innovate loan can like raising effectively efficiently. marketing by and ability year and therefore we and and did ensure

of XX across months, our reduce and our basis by raised to volumes portfolio the XXX charge-off XX% are our grew interest points innovation. program clearly marketplace. QX, our the significant we've product XX rates XX%. loan our between XX%, These and credit points. standard back In up of process applications we've results strength and Despite were Over these on rates actions, credit our XX% on the our and year-over-year illustrate last loan tightened by results basis spectrum revenue grew our

optimization to For from on generation product features has as in and conversion direct demand marketing example our focus benefited and benefited off. improvements of both rollout new expanded year-to-date payoff. the continues Demand generation pay from conversion such channel and

our improvements faster We mean material XX% average, within hours. we're continuing majority ran expect the process our strength the our innovate. for our recently In in scale significantly loan to to the year industry back, marketplace. by approve process has the addition, the to in environment, XX potential and Turbo we improvements application approve flexibility already make to and advantage. demonstrating a leveraging And rate And to to a to able of easier XX of tests personal announced further with able third proprietary we customers. than auto our are we're the Intuit loans further dynamic are data end. quarter, and multiple model in credit loans now where make rising we which Tax to partnership integrate Stepping add And we both

are quality assets. higher credit, shorter Some investors others seeking want duration

both. delivering is marketplace Our

innovative programs. These our of lower the in quality of personal with the in grade community combine near who surface worth risk is explain already investor it's and both growth. that proprietary launch deposits ago. or to a models the our high managed to warehouse funded believe most loans super for expand over You end At borrowers and enabling that This to spending we clearly us partners lines of that are our worth our growth program. income we're prime savings is XX% in broker Certificates fixed Certificates CLUB our X rising yield than CLUB rates issued high trillion benefits program. rates the a participating bank billion liquidity low other yield In borrowers. Certificates of competitors year yield, evidenced cost core assets in can in available core We with nearly who spectrum, structure together from product This our our our We many regional can the encouraging duration offer B than many capital super high and in out the assets. customer the base. underlie are diversify come this at than in increase and less and in to phenomenal seek for just are originations, loans, our better We've the as a significantly growth short year-over-year competitors accounts, deposits these cost It's prime the investors are prime scratching and CDs near the prime of quality moment and looking since investors CLUB growth dynamics noting of banks A demand their and X see this higher deposits.

City. An site good we're more Now our also EBITDA opening Lake our of A shift operating than to expenses growing after. margins announcement on let opportunity our me is have process have margins. increasing near more adjusted improvement to efficiency. focus additional Year-to-date, doubled example means a our Salt lot today's go we combined with and

to pool with continue it's tremendous and service beyond drive time it's our quarter efficiency Francisco when to will we and initiative of our to talent clearly enhance you GAAP Operating growth. diversify customers us to our last it like for new review our told access and about part revenue on resiliency, will San the the growth headquarters. fully of As existing focus as towards supporting profitability. lower region's broader And business we provide and this cost of cost our operational, site continuity. our operating increase we business opportunities the The are comp improvements our all

our grow strength revenues of the us expand marketplace closing, rate and enabling in responsibly rising a in environment. competitive is So margins and to

and term borrower conversion, loyal delivers meet is products members efficiency. and execution services base and our Much and more to growth diverse in growing profitability. remains broadening and with generate on operating serve long their with strategy products to that the our focused operating that revenue club leverage investor and Our driving GAAP generation also needs opportunity demand

I update issues. with Before it to you over legacy an with our I hand wanted provide to Tom, on

and and SEC FTC. with we're the by the and now engage Class We lawsuits the DOJ investigations settled have both the constructively Action

We will that our updated for With and financials full QX and Tom, our course of details on year. progress. keep outlook the of for over you to QX you

Tom Casey

Thank Scott.

marketplace. margin XX% our adjusted up points XX% year-year-over. million, adjusted year-over-year. As million, QX the Scott revenue mentioned, execution All our we to margin our $XXX.X borrower and EBITDA driven to both was contribute by was strong basis had improving quarter, another solid investor up was XXX record XX.X% year-over-year. $XX.X of EBITDA this platform sides up on with demand balancing Contribution XX.X%

$XXX.X detail XX% results higher to to that back quality these as in of slightly Transaction with was on originations fee $X.X revenue a transaction originations through fees walk Let's the quarter, revenue. in the million fees. growth more our X.XX% loans which in third down XX% sequentially, lower percentage of starting the billion. have up reflected Transaction the were growth in year-of-year

in million Other for average Some from volume $X.X were quarter. $XXX,XXX sequentially value $X.X income $XXX super supplement. was of to in the benefiting adjustments on Net compared prime quarter in million up XQ sold million, $X.X portfolio of our that million our page Investor servicing from XX% year. that interest $XX.X from as up loans million revenue same personal million, came the last growth in at Gain the our better this up and sequential growth higher came increase from million, $X.X earnings performance were the in XX $XX.X reflects billion. are our rates. at sale area fair and custom revenue strong can in up year-over-year. X% Most program fees This XX% on you our see category. loan performance to in servicing loan included of loan came at structured in improvement $XX.X year-over-year year-over-year

let which margins. expand expenses, expense to our turn issues for bit management as company, a the as remain drive efficiency across a me priority way I know operating Before you about under we us talk the and

Our efforts sites We grow. or BPO more across lower multiple business providing costs. now than with to have supporting continue members representatives process flexibility operating XXX and us outsourcing

in dramatically the among last leverage. where scalability costs have expensive to our which drivers real give address second us greater next build base, our estate the City step is benefit a cost on the so most location are site of far, fixed staffing will decade Lake from us commercial operating rates and today the Francisco, and Salt announcement near over San of of logical one and estate the Our real country. key the of our enables We'll increased success initiatives long term lower to

footprint, In addition our operations. to to our we're at opportunities streamline looking

represent contributors LCAM year management. For about X% result be example asset funding savings. only we're more winding by the in and funds managed also them total down this to achieving one will and is important our X.X% incremental Additions down this our will like leverage enhancing operating and profitability. cost to LendingClub of like GAAP additional

of our slightly detail. helping mass quarter, $XX.X let's fine-tune achieve higher resulting expense Now loan $XX.X our to expenses M&S XQ. third million were areas marketing promising increasing portfolio, quarter our quarter was been benefits initiatives, jump to growing about are incense benefits. with continue from and third flat the mentioned which of us other testing testing marketing sequentially will year-over-year. Sales Origination service I efforts the the both impact or basis were would sequentially back or test third certain with operating XX.X% The operating and earlier. and costs partially Adjusting costs and flat with BPO service from of X.XX% further we million $XX.X the in gain offset the originations, have to from marketing that our of for XX our expenses the point timing we our improving into million of revenue, in sequentially. and by Engineering were

were Turning year-over-year. basis equally $XX.X XX.X% points points for the about improving to G&A, million X.X revenue, XX and expenses quarter or

$XX.X year-over-year adjusted EBITDA loss making on our additional progress EBITDA basis million with $XX.X $X.X adjusted million costs. of third for margins, GAAP including to up points expand margins up XXX we're the $XX.X legacy quarter to was $XX.X million and quarter So million. efforts our to good million net

adjustments of amortization as as these and GAAP concluding Action SEC are the final Class based costs As wrap compensation, totaled the with settlement for the you investigations. the To up associate DOJ $XX.X recall, and legacy suits costs for well stock associated our results, quarter. the million with the depreciation

thinking fourth we how we're XXXX. about want guidance your to you Before take questions, provide our for I quarter and the

around revenue guidance to midpoint million. at For That $XXX our tightened quarter $XXX million. million to to the full guidance year, range we've revenue the million our $XXX $XXX puts of fourth

million million fourth guide our million. to EBITDA, $XX from For to $XX $XX to $XX increased we've million quarter to our This $XX guidance full about EBITDA year million puts million. $XX at

We depreciation, $XXX That compensation, reflects about means expect between million year settlement is EBITDA million net stock GAAP which higher which the by be million million, expected between offset $XX amortization QX results loss now quarter GAAP $X $XXX $XX partially net full charges, based million. the loss guidance. for to will to the additional in fourth and

you part on I reflect earnings is see the $XXX our of performance. the out quarterly impact continue will year. can does operation about issues that outlook nonrecurring and GAAP so for Our stock-based Please amortization break to for underlying million call, and you not compensation depreciation legacy them of costs. the any guidance remember

to while we XXXX, growth expect managing forward Looking continue credit. closely

opportunities additional identifying have drive to nonrecurring as savings and are accelerate some we expect these to our cost We initiatives cost profitability.

We I take to on finish, and moment our delivering last leverage Investor in at margin to we of XX% XX%, I to our want reflect year. expanding significantly revenues December growing operating committed XX% EBITDA Day our contribution to in a business. shareholders our against to committed demonstrating margin to commitments made Before we and our the progress

see to for from these on outlook can on you results As firmly we and the all are year-to-date the commitments. full-year, deliver track

fixed to X.X cost. we we three in grown was a put points X%. our points factor in the revenues that over margin. Investor margin To adjusted have line example, items points year-to-date engineering only year-to-date, engineering Through in X grown these perspective, G&A quarters, said would the have our EBITDA two our first one G&A and Day while XXX our key EBITDA XX% As This have cost of contributed savings adjusted improvement behind from out generate and XX.X%. that basis

of about profitability, ahead have while GAAP a we to back we lot at work to to and excited of While do, place in we're healthy Scott, believe, foundation achieve right have still us you. the continue a road the revenues grow rate. to

Scott Sanborn

Tom. right. All Thanks

another EBITDA quarter So our and to summarize, we had raised guidance. adjusted great

data the product towards implementing driven improvements are on and process our We of and drive build strengths profitability. GAAP marketplace to

well and Our flexibility is model demonstrating LendingClub believe its positioned. the environment is we and responding to well remains dynamic

to it that, and So to up I'd Q&A, like with open for answer questions. any

Operator

from question-and-answer the And Please begin our first Berning go now [Operator Brad your will comes with ahead Craig-Hallum. We Instructions] question question. session. with

Brad Berning

afternoon, Good guys.

a going On the industry. first from about Intuit deeper is This lessons of helps so of application happen, standpoint a this of this learned to data little forward the of from timing give when helps bit business them standpoint, about does relationship, kind practical of this far I an ease kind actual of of was the you've what a some the kind just you from what wondering just some this fundamental is a how going if on perspective? actually then on use timing you in thoughts it out, obviously from us talk credit rolling what could little getting? mean go how people, And for means. you're a what Could give

Scott Sanborn

Yes.

So - focused kind is right. of way an about to The on, things think this Brad. example we're thanks, the of really partnership as

experience. focused incredible credit driven data a we're that very customer delivering an on company is So

a example of can of of an vision is kind partnership this advance couple So how that on we fronts.

millions need is application in customers information the Americans have tax tax to turbo ability that which one because do, the of ingest with seamlessly is who there to tens and your loan, essentially essentially information seamless so application So apply create documents for degree a account you to or more what determine kind a of do for high that is overlap of can right. a a data, actually you of

typical So in inform can loan addition some obviously a what of tax we to the would our application model. have ingest underwriting data to further

and of and useful in expect a the type early of economy WX be - we That gig days at this the of there to great also easier be from both We're that same stream see data learn This the be experience. customer Americans having as of make really the workers, risk for learn to kind place powerful will kind where be we have. would this from from we'll have the splitting have but we still number who process would very the kind would historically can customer don't growing perspective. income the So place first most could more just this application.

Brad Berning

Can specifically in both loans. little the Appreciate on you a more standpoint that growth business that bit follow-up How that overall dive quarter a rest personal mix is custom a from as areas demand market in big the to, it's that appetite XX% it. One faster from you had company? go opportunity of the obviously the seeing standpoint capital for you're sequentially the mix? well growing the what into the can of as than of

Scott Sanborn

a of so supply this really couple talking really in pressure the things. Yeah, of prime. for couple We've a been it's risk creating a on higher market combination years side risk side about of of now

So middle that essentially as the you're of growth areas that outside seeing if of you to we've fat kind will. in responded

this match we're of right kind the of pivot where that marketplace right flexibility so kind returns to seeing is where to And and of with risk the investors. the the adjusted

demand a higher stable of of so as over people regional where overwhelmingly the And the are has in the rates very all, program side the about going things, it's so near participate super end, in lot of in are the - lot as think prime, cycle. higher to there and up shorter is a we kind of custom asset there's community part prime duration the there yield is and managers that. from there's for the on been that So banks of interest really

think is marketplace marketplace this So work. I you're the just of kind at the seeing

Tom Casey

the prime that saw quarters, chunk growth customer really of we that the nice program Brad, super growth in program And and custom split. in drove a see very good

Brad Berning

queue. on in the Congrats get guys. the progress back I'll

Operator

And question. question our your Kelly next comes Oppenheimer. ahead Jed with with from go Please

Jed Kelly

Great, taking question. thanks my for

I margins sequentially. implies compressed guess one guidance First EBITDA

expansion behind some EBITDA of we about as that You about be thinking think the drivers the the mean of then about I sort margin trajectory to XXXX? rate XXXX, talked and how should we into of potentially

Tom Casey

things, our quarter. Two Jed. guidance But that the third out. lower margin, now, us we'll about always XX.X% but margin quarter to the margins. Clearly, seasonally the good expansion it a the reflecting really thanks on strong how be towards right EBITDA very Right our quarter dependent Yeah, put mind we to on our quarter, keep to do tends in that drive margin. fourth adjusted somewhere so like better continue than quarter the EBITDA grows we will $XX.X again be around feel in full overall showing higher

is year, think focus As we next this area. a

heard earnings an we're doing you some specific We his those. that expect more You Scott towards February to to tactical requires us area our what I that This be gave XX% will in expand EBITDA did get spending guidance of comments, us up do We time that couple give But we're things is update specifics as continue talk to and will about well. and detail that a type to you on. help our on it a can goal to range. is to little in we able do. on get profitability bit our in

margins think where to two we need amount are and comp when be. stock-based those the correlated you of appreciation the have So that's highly about

are credit with it, investments. growth balancing we're as focused well as obviously we on that the So risk

clearly around. something lot a focused but we've it a act, on got it's So it's that effort and of are balancing we

Jed Kelly

of what your sales flat it was or And excluding and comment the it originations. then you marketing, total of in loan on as - in terms can sequentially, you was a said expenses brand was flat percentage advertising offline flat

Tom Casey

of be origination. flat a as percent loan will They

that mailings, may seeing stronger in that's typically we in be some talked and do quarters we testing it about types called investments. some a feel of quarter remember of our what would advertising quarter impact of media in like timing third quarter-over-quarter. making the the information We've we gained that did we So second mass Remember is as our But commenting of M&S that. third lot quarter our we things you these be. from very the those about why on about of was what some being we're the quarter, of I good some well second to flat as out read other

Jed Kelly

then attributes not they work finding you well as brand or that or share worked testing And you found from have well? can any the

Tom Casey

early definitely we it us our I know you know learned It wasn't was for total along do would huge small a test a to things say lot you a marketing. way. the testing, days, we some only of do very comparative test,

from to we going these and level the continue we're we again things and the evaluate think to So pockets and benefit that. read can of timing

Jed Kelly

then deceleration And I call there? first one I guess, to some just up applications mean out anything XX% Okay. from half, are more specifically the

Scott Sanborn

vary broadly is the channel seeing of a And doing there can say demand. rate materially would channels is are I after It how what is adjusting what and the to strong scenes behind going application very consumer one other. we channels. from overall we're the offer we that are those lot optimize we Yeah, what still

So the a over just going products, of back, the a the utility different I good feel they're interest for channels and just see on to stepping up. credit time be demand as rates awareness go overall a to variation about mean lot seeing card of will But product we're continuing what feeling what continuing in into period. you you're consumer their know product we're

Jed Kelly

quarter. nice and you Thank

Operator

go ahead Please your question [Operator with Henry Instructions] with And our from Coffey next comes question. Wedbush.

Henry Coffey

my in the and to add a work been starting hard it's It's lot up let and me numbers. everyone, of congrats. Hello show

of of but know customizing how of would what look super what comfortable terms talking you're you terms you're some us our understand the and same installment maybe you can programs? comment and stuff super cert looks loan into in some about a like prime terms sense for of like, it prime maturity, if the know duration FICO, you of I program it of you're the in that the rate pushing In maybe terms give the in

Scott Sanborn

Yeah.

loans, the prime XXXs. of about in amount loan bankable These tend you're talking into talking you're we the it we're balance there. end, a XXs, looking but are rates shorter single there. loans, looking near And are have APR upper for you're be for borrowers for direction there into on scores program, they're are FICO often like basis super and going solidly to between smaller call as let's purpose something would a customers self-imposed digits. XXs to you home larger XXX the be the So improvement cap, that the that at very the scores up very, be prime FICO and And the at know we rate XX% of as the high XXX a capital

Henry Coffey

And in months? duration, months, is XX XX

Scott Sanborn

majority Vast, XX. XX. is vast

Henry Coffey

For FICO loans? the lower

Scott Sanborn

Correct.

Henry Coffey

cash home a refinanced opportunity challenge? this at be if look market, mortgage are either work. starting data June product cash and just starting you Has how would was that horizon know with you you realize because offering all to doesn't your hit real all your a just at that beginning that programs to because and prime hear real particularly super to see for or are seem you have about talk equity up refight, just we latest the in the XX% companies about we're mortgage you'll What the that's they

Scott Sanborn

that and a process quite this lot of other XXXX which loans, can are with is one we'll develop So the place XX in there's There's sure required play in hassle. trying XXXX, prime extends so program having where certainly have of that who that's hesitation with yet get and at super your fully bit participating. for amount consumers in watching is the seen to recovered. is investor take the their - a of use similar point. a a be compelling still market minimum product really it of haven't we But off work been our really essentially back space that And fully when is you develop not those bank to a for account time has some piece look it's a to within question you at a that is of which to interest where hours case, memory

Henry Coffey

differential a get, gap? the half versus load X%, me So a is X.X% still the I competitive equity month way, the can product track you installment a that's a think that by given X% home express line between time the mean and still percent it - takes offer to you that

Scott Sanborn

That we're playing exactly in right. amounts the At dollar right. that that's

Henry Coffey

And more been curiosity of a is just of then point last question, my intellectual this a for while.

is Your applications up just XX%, or something the revenues are there up your are you there unqualified it could is XX%, XX%, up populating time? system of people volumes are that lot a really exploit over

Scott Sanborn

in the adjusted two that's we're returns been the current see right been tightening numbers. you really those balance doing making sure delivering on market risk for last we have of investors. we've years really pretty That's have where tightening It's much for as what conditions, reflection we see a and responding know to you Yeah. that you the the

is not. a would of condition? I a permanent kind say definitively that Now

have to features As product thing the allows know better target the to data are you begin we do able to break and that sources split really new better consumers let's and go clicking to areas enhancing and is scale consumers, might down past. create and that it features and allows match some to segments of these that blunter product been us to back look cuts call a into these us risk segment at that's the different those over segments profiles

Henry Coffey

you'll to able be over some think of unserved you grab time, demand? So that

Scott Sanborn

in are depending yes. we the where on but again macro potentially Yeah, overall cycle,

Henry Coffey

you thank very Great, much.

Operator

from ahead And Wildhack with with Please Autonomous Rob our your comes question. Research. next question go

Rob Wildhack

a think yield to from reversed total lower forward? the second quarter-over-quarter, drivers just the was yield you Can that in Yes, early quarter. we these dynamics trying origination should us I walk lines hot trend going was and expect how revenue through the there

Tom Casey

sure. Yeah,

of fee first assets, piece, is mix the majority the origination of the they couple the come the a prime the of there talked product mix things we some just driver really the a about origination. origination So of obviously in lower super is of is of The

quality So That's the went one we the on the the structured of fee. piece lower. origination slightly up the had the execution is in overall program. yield higher regard yield, because With to

rate second at were you manage you important And if where recall as have to quarter-on-quarter. while the - actually the look being very that's million the mention really the an first focused quarter. of well, We've back about we're we series on seeing very, returns the and as we year you're that we and competitive borrower about throughout for If third that investors. environment so keeping the benefiting the talked up changes made to $X rate the how quarter ability match was from in in uprising in to able desired rate and balance quarter platform is now come of through a Scott made what

quarter. So that's performers to some really third in example of June changes the starting what you're the made seeing for we is in rate impact the

Rob Wildhack

specific notable Thanks. or And the any or in you across size border have either amount loan grades? change seen loan in average the

Scott Sanborn

Pretty across board. stable the

Rob Wildhack

you. Thank Okay.

Operator

with question more Faucette Please ahead gentlemen, have and that question. ladies with comes [Operator go Instructions] time Morgan James And for Stanley. question we your one and from

James Faucette

much, of very couple you wanted thank questions. a ask Yeah, I to Scott, Tom. just quick

about offers. there bank how little see loans, making? changes do that to is that in versus loans they're for talk about bit maybe I guess in First purchasing trying your you the you're attributable is what's seen improvements or discernible about changes of obviously to of cetera what or little point to willing in market Can Thanks. others their customers people are was, partners? behavior have question the you you going bit you're or partners And opportunity is color et up at that making then any the to little you are a if look pay on you think concerned anything question behaviors change have when my as second discernible seeing there. not more participation that funding you're so rates and that been you your an guess and a approve where conversion I a extend on much credit the And

Scott Sanborn

move and So I'll latter the start former, to the with James.

with obviously partners, towards combination of the to in desired losses broader their the of return. at bank their of are looking the on get together kind So cost people funds expected portfolio mix

overall our than duration up term those they So within therefore going by going broadly of market. And and funded are of are of the there's but community other capital asset loans the that. slower our going in X rate that I'd towards years cost with say X who mechanisms. for banks deposits a our rates the the these partners versus bank the a portfolio, at banks partners, appetite rest very and key is less the significantly the been are might for deposit while environment up shift are cost core having the because strong of obviously the on to some is up gathering for higher Overall, or more this be continues than regional be

portfolio their adjusted at rebalance and rates reinvest attractive. to the be the to into new So ability continues very assets

As as volume a in - and origination of and you to application we're And variety doing that costs things in the marketing see channel improvements. optimize year growth the of marketing volume stable. actually because our origination for optimize messaging, product pretty market mix, is our managed we've of process targeting, this significant as our pretty while loan can percentage conversion, holding fit

testing. been overall us able and we've good hold we've in So pushing pretty that stable to and to about front the feel of got pipeline continue

James Faucette

guys. you very Great. Thank much,

Operator

session, our attending this for Thank concluding today's conference. And question-and-answer presentation. thus concludes you the

disconnect. now may You

LendingClub (LC) 6 Nov 182018 Q3 Earnings call transcript