(Bloomberg) — LendingClub Corp., which closed its deal for Radius Bancorp Inc. last year, boosted its revenue outlook as it amassed new members, prompting shares in the consumer finance company to soar.
The company forecast full-year revenue of $1.15 billion to $1.25 billion, it said Wednesday in a statement reporting first-quarter results. The lender had expected in January that it would generate $1.1 billion to $1.2 billion in revenue in 2022. Shares in the company surged by as much as 20% in extended trading.
LendingClub Chief Executive Officer Scott Sanborn is seeking to expand the lender after its Radius acquisition, which gave the company a regulated banking institution. That means LendingClub can now retain a portion of the loans it originates, a practice that earns the company three times as much as the loans it sells, Sanborn said in March. During the first quarter, new originations increased to $3.22 billion compared to $1.48 billion for the year prior, surpassing analyst estimates.
“We grew our member base beyond four million to serve more everyday Americans who are looking to refinance out of higher cost credit card debt, save more of what they earn and find a better way to bank,” Sanborn said in the statement.
The company also boosted its full-year net income outlook with that now ranging from $145 million to $165 million. LendingClub expects net income to total as much as $45 million during the second quarter.
Sanborn previously told Bloomberg News that LendingClub will focus during the second half of this year on the mobile banking experience, as well as its other offerings such as high-yield savings accounts and certificates of deposit.
LendingClub’s stock has been swept up in the market downturn, with shares dropping roughly 43% from the end of the year through Tuesday’s close. The S&P 500 Index was down 12.4% during the same time period.
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