LendingClub Corp. shares rallied more than 40% in the extended session Wednesday after the company reported a surprise quarterly profit and revenue above Wall Street expectations.
said it earned $9.4 million, or 9 cents a share, in the second quarter, contrasting with a loss of $78.5 million, or 87 cents a share, in the year-ago quarter.
Revenue rose to $204.4 million, from $40.4 million a year ago.
Analysts polled by FactSet had expected LendingClub to report a loss of 40 cents a share on sales of $130.2 million.
“Our first full quarter operating a digital bank was the most profitable quarter in LendingClub’s history,” Chief Executive Scott Sanborn said in a statement.
“Our earnings are being bolstered by our bank, which is generating a new stream of recurring net interest income that is only beginning to contribute to our bottom line results.”
The company guided for full-year 2021 revenue between $750 million and $780 million.
LendingClub earlier this month settled with the Federal Trade Commission, agreeing to pay $18 million to settle charges that it “fleeced” and “deceived consumers about hidden fees that it charged and about whether their loan applications were approved,” the FTC said.