Prosper Announces First Quarter of 2018 Results: Loan Originations Up 27% Year-over-Year & More Than $2 Billion of Co-Sponsored Securitizations Closed

Prosper, a peer-to-peer lending platform connecting borrowers and investors, reported earlier this week its financial results for the first quarter of 2018. The online lender revealed that loan originations increased 27% year-over-year to $744 million, driven by strong demand for the company’s personal loan product and stable funding. First quarter 2018 financial highlights include:

• Total Net Revenue, which includes the non-cash impact related to warrants to purchase preferred stock, was flat year-over-year at $30.5 million in Q1 2018 compared to $30.8 million in Q1 2017.
• Core Revenue, which excludes the non-cash impact related to warrants to purchase preferred stock, increased $11.6 million or 34% year-over-year to $45.7 million in Q1 2018 compared to $34.2 million in Q1 2017.
• Net Loss decreased by $12.6 million to ($11.4) million in Q1 2018 compared to a Net Loss of ($24.0) million in Q1 2017.
• Adjusted EBITDA increased $13.6 million to $4.5 million in Q1 2018 compared to ($9.0) million in Q1 2017, the fourth consecutive quarter of positive Adjusted EBITDA generated by Prosper.

Prosper also explained during the first quarter it further diversify its funding sources. The company completed its fourth and largest securitization to date from the Prosper Marketplace Issuance Trust, Series 2018-1 (PMIT). With the closing of this approximately $650 million transaction, which featured a pre-funding account, Prosper noted it has now co-sponsored over $2 billion in securitizations across four transactions with over 50 unique participating investors. The lender also completed its first $100 million committed revolving warehouse facility, allowing the company to invest in loans originated through the company’s platform alongside our investors. David Kimball, CEO, Prosper Marketplace, added:

“We are very pleased with our first quarter results as we balanced strong growth with a continued emphasis on driving efficiencies across the business, diversifying our investor base and continuously improving the customer experience. The consumer credit sector continues to present attractive opportunities for us to grow and invest in our personal loan business and also launch new products over time.”