=

Third Quarter 2016 Results

November 7, 2016

Privileged and Confidential

Safe Harbor
Some of the statements in this presentation, including statements regarding investor demand and anticipated future financial results are "forward-looking
statements." The words "anticipate," "believe," "estimate," "expect," "intend," "may," outlook, "plan," "predict," "project," "will," "would" and similar
expressions may identify forward-looking statements, although not all forward-looking statements contain these identifying words. Factors that could
cause actual results to differ materially from those contemplated by these forward statements include: the outcomes of pending governmental
investigations and pending or threatened litigation, which are inherently uncertain; the impact of recent management changes and the ability to continue to
retain key personnel; ability to achieve cost savings from recent restructurings; the Companys ability to continue to attract and retain new and existing
retail and institutional investors; competition; overall economic conditions; demand for the types of loans facilitated by the Company; default rates and
those factors set forth in the section titled Risk Factors in the Companys most recent Quarterly Report on Form 10-Q and Annual Report on Form 10-K,
each filed with the SEC. The Company may not actually achieve the plans, intentions or expectations disclosed in forward-looking statements, and you
should not place undue reliance on forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations
disclosed in forward-looking statements. The Company does not assume any obligation to update any forward-looking statements, whether as a result of
new information, future events or otherwise, except as required by law.
This presentation contains non-GAAP measures relating to our performance. In addition, we have included certain pro forma adjustments in our
presentation of non-GAAP operating expenses, non-GAAP adjusted earnings per diluted share, non-GAAP contribution margin, non-GAAP contribution
as a percentage of originations, non-GAAP adjusted EBITDA, non-GAAP adjusted servicing and management fee and associated year over year growth
rates in this presentation. We have chosen to present non-GAAP measures because we believe that these measures provide investors a consistent basis
for assessing our performance, and help to facilitate comparisons of our operating results, across different periods. The Company believes these nonGAAP measures provide useful information as to the effectiveness of the Companys marketing initiatives in driving revenue as well as the effectiveness
of the expenses of originating and servicing the revenues. The amounts used to arrive at these non-GAAP measures all appear on the face of the
Companys consolidated statement of operations or in the notes to the financial statements (for stock-based compensation) and do not otherwise
eliminate or accelerate any amounts in contravention of GAAP.
These measures may be different from non-GAAP financial measures used by other companies. The presentation of this financial information, which is
not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation of, or as a substitute for, the
financial information prepared and presented in accordance with generally accepted accounting principles. You can find the reconciliation of these nonGAAP financial measures to the most directly comparable GAAP measures in the Appendix at the end of this presentation.

Information in this presentation is not an offer to sell securities or the solicitation of an offer to buy securities, nor shall there be any sale of securities in
any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
Additional information about Lending Club is available in the prospectus for Lending Clubs notes, which can be obtained on Lending Clubs website at
https://www.lendingclub.com/info/prospectus.action.

Privileged and Confidential

Our mission is to transform the banking

system to make credit more affordable and
investing more rewarding.

Privileged and Confidential

Disciplined Growth
Marketplace Loan Originations
($ in millions)
$1,972 million
Marketplace loans originated since inception:

$22,660 million

2,750
2,579
2,236
1,912

1,955

1,635
1,415
1,165
1,006
698

791

567

46

56

69

87

110

137

207

264

353

446

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16
Note: as of September 30, 2016

An Online Marketplace

Borrowers

Investors
Capital

Principal + Interest

All Loans originated and issued by our federally regulated issuing bank partners.

Business Model Driving Lower Costs

Traditional Lender
Operating Expense1: 5-7%

Operating Expense2: 2-3%

Reserve Requirements
Branch Infrastructure

Customer Acquisition

Technology and business model

drive cost down

Underwriting

Origination
Servicing

Customer Acquisition
Underwriting
Origination
Servicing

1. Operating expenses as a percentage of outstanding loan balance. The analysis used Q2 2016 and included Citi, Wells Fargo & Co., Capital One Financial, Discover Financial Services, Bank of America and
JPMorgan. 2. Estimated operating expenses on a run rate basis based on operating expenses for the quarter ended June 30, 2016 annualized, assuming no growth in monthly rate of origination volume.

Providing Value to Both Borrowers and Investors

20.0%

21.0%1
Big Savings for Borrowers

15.0%

14.6%3
10.0%

Traditional Bank
Lenders

5.4%4
5.0%

Better Returns for Investors

0.0%

0.06%2

1. Based on responses from 14,827 borrowers in a survey of 76,365 randomly selected borrowers conducted by Lending Club from January 1, 2016 September 30, 2016. Borrowers who received a loan to
consolidate existing debt or pay off their credit card balance reported that the interest rate on outstanding debt or credit cards was on average, approximately 21% 2. National average APY paid on savings accounts
by U.S. depository institutions for non-jumbo deposits as of October 24, 2016 (Source: FDIC) 3. Average interest rate for borrowers who received a loan to consolidate existing debt or pay off their credit card
balance per the Lending Club Survey 4. As of Q3 2016. Median Adjusted Net Annualized Return for investors with 100+ notes, note concentration of <2.5% of portfolio value, all loan grades, and portfolio age of 1218 months (Source: Lending Club)

Investor Mix Trending Back to More Balanced Levels

Completion of diligence and ending incentives
drove monthly improvement
Banks and Other Institutional investors
regaining share

Origination by Funding Source

Q2

Q3

100%

Target mix for the fourth quarter is to have

Banks back to 2015 levels, at ~25% of
total volume

20%
80%

16%

14%

12%

12%

19%

21%

13%

15%

57%

48%

25%

Overall, Retail continues to be resilient,

with over 142,000 active investors

60%
54%
40%

58%

40%
20%
15%

18%

15%

11%

2015

Post- 5/9

July

Aug

17%

0%
Other Institutional

Banks

Managed Accounts

Sept

Self-Managed, Individuals

Variety of Investors Across the Lending Club Platform

Q3 funding mix impacted by due diligence and incentives

Origination Mix by Funding Source

Platform Originations by Funding Source

(as a % of total platform originations)

($ in millions)
$3,000

100%

13%

16%

23%

26%

21%

20%

$2,750
$2,579

18%
Other Institutional

$2,500

$659

13%

24%
28%

26%
60%

23%

28%

41%

36%

38%

Managed Accounts

35%

$601

$206
$399

55%

44%

$1,955 $1,972
$504

$1,635 $307

Banks
$1,500

40%

$1,912

$2,000

34%

$572

$2,236

80%

$531

$394

$355
$265

$586

$546

$1,000

30%

20%

$947

$807

$985

$811

$1,079

$723

$791

$308

$282

$340

$334

$419

$327

$273

1Q15

2Q15

3Q15

4Q15

1Q16

2Q16

3Q16

$688

$500
19%

15%

15%

13%

15%

17%

14%

Self-Managed,
Individuals
$0

0%
1Q15

2Q15

3Q15

4Q15

1Q16

2Q16

3Q16

Large Addressable Auto Refinance Opportunity

Millions of Americans could save money by
refinancing their loan into the rate they qualify for
$525 billion annually

$225 billion new

car originations
Used
captive
$22B

$283 billion
used car
originations

Immediately Addressable Market

Consumers refinanced more than $40
billion last year, but we estimate that at
least twice as many could have
refinanced if the process had been easier.
The market is currently underpenetrated due to
high-friction experience and existing lender
channel conflicts

Source: TransUnion, Experian; 2015 annual originations

10

Lending Club Approach

Lending Club is bringing the same commitment to transparency and
consumer-friendly lending that exists in its personal loan program

8.78%

U.S. Average APR

6.78%
Base APR

1-3%

Dealer Markup

$25 Billion

In potential savings by
eliminating the dealer markup

Auto is 2nd largest purchase for most consumers

Loan amount4

Between $5K and $50k

Consumer-friendly approach, leveraging Lending Clubs

technology-driven model to deliver a fair, easy process
and save customers money

APR

2.24% - 19.99%

Term

24-72 months

Similar competitive advantages to successful core

personal loan business

FICO

640+

Target Savings

~1% 3%

1. Experian Automotive Finance Market, Q4 2015 2. Dealer sales figures from NADA Data 2010 report; rate markup volume calculated from 2010 National Automotive Finance Association survey and CNW
Marketing data; 3. Dealer sales figures from NADA Data 2010 report; rate markup volume calculated from 2010 National Automotive Finance Association survey and CNW Marketing data; 4. All Loans originated
and issued by our federally regulated issuing bank partners.

11

Lending Club Auto Refinance Value, Ease, Fairness

Takes less than 1 minute to apply, with

no impact to credit score

Instantly receive offers a borrower

qualifies for and see the savings

Complete the process online

from virtually anywhere

No application fees, origination fees,

or prepayment penalties

Lender 1

Lender 2

12

Auto Refinance Consumer Savings

Real
Savings
1-3%
Lower APR on
refinanced auto
loans through
Lending Club.1

A 2.5% interest
rate reduction could
translate to $1,350
in savings on the life
of the loan.1

1. Based on analysis of 300,000 consumer accounts from Q4 2012 to Q3 2013 using credit bureau data. Assumes the consumer refinances with the lowest rate for which they are eligible and does not extend the
term of the loan. Savings figure is based on a refinance from an average APR of 11.45% to an average APR of 8.2% and 60 months remaining on the term of the loan. Your actual savings may be different. A
representative example of payment terms are as follows: an Amount Financed of $18,000 with an APR of 8.20% and a term of 60 months would have a monthly payment of $366.70. All loans made by WebBank,
member FDIC. APR is the Annual Percentage Rate. A borrowers actual rate depends upon individual credit score and other key financing characteristics, including but not limited to the amount financed, term, a
loan-to-value (LTV) ratio and other vehicle characteristics. Best APR is available to borrowers with excellent credit. APRs range from 2.49% - 19.99%.

13

0%
Apr-2006
Jul-2006
Oct-2006
Jan-2007
Apr-2007
Jul-2007
Oct-2007
Jan-2008
Apr-2008
Jul-2008
Oct-2008
Jan-2009
Apr-2009
Jul-2009
Oct-2009
Jan-2010
Apr-2010
Jul-2010
Oct-2010
Jan-2011
Apr-2011
Jul-2011
Oct-2011
Jan-2012
Apr-2012
Jul-2012
Oct-2012
Jan-2013
Apr-2013
Jul-2013
Oct-2013
Jan-2014
Apr-2014
Jul-2014
Oct-2014
Jan-2015
Apr-2015
Jul-2015
Oct-2015
Jan-2016
Apr-2016

Secured Auto is a Resilient Asset Class

Through credit cycles, Auto (including non-prime) has been a
resilient asset class
Comparison of default volatility across Auto and
Mortgage loans

6%

5%

4%

Auto

3%

Mortgage

2%

1%

Source: S&P U.S. Auto Loan ABS Tracker: October 2013, http://morningconsult.com/opinions/columns-subprime-auto-loans/

14

Efficient Regulatory Framework

Consumer Protection

Capital Efficiency

No
Deposits

No FDIC
Insurance

Low Capital
at Risk

No Capital
Reserves

Matched Assets &

Liabilities
No
Systemic
Risk

15

Financials

Origination Growth by Product Category

Annual(1)

Quarterly(1)

($ in millions)

($ in millions)
8,362

2,750
2,579

2,236

6,677

Personal loans - standard

Personal loans - custom

1,912

1,955

1,972

1,443

1,405

296

353

Other
1,635

6,418
4,378

2,087
1,973

1,415
4,935

1,702
1,165
1,452

1,006
1,290

2,065

791

3,524

1,108
890
818

1,244

1,983

1,108

708

487
367

700

634

83

85
103

345

417

459

286

143

175

195

132

132

150

173

189

189

204

216

214

2013

2014

2015

2016 YTD

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

3Q15

4Q15

1Q16

2Q16

3Q16

Y/Y

188%

112%

91%

15%

124%

125%

105%

103%

107%

90%

92%

82%

68%

2%

(12%)

Q/Q

--

--

--

--

13%

27%

16%

21%

16%

17%

17%

15%

7%

(29%)

1%

Growth (%)

(1)

There may be differences between the sum of the quarterly results and the total annual results due to rounding.

17

Operating Revenue
Annual(1)

Quarterly(1)

($ in millions)

($ in millions)
426.7

Includes $14mm of investor

incentives in Q2 and $11mm
in Q3 (contra revenue)

366.3

151.3
134.5

115.1

112.6
102.4

96.1
213.4

81.0
69.6
56.5
48.6
38.7

98.0

2013

2014

2015

2016 YTD

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

3Q15

4Q15

1Q16

2Q16

3Q16

Y/Y

188%

116%

100%

25%

138%

133%

106%

108%

109%

98%

104%

93%

87%

7%

(2%)

Q/Q

--

--

--

--

16%

26%

16%

23%

16%

19%

20%

17%

12%

(32%)

10%

Growth (%)

(1)

There may be differences between the sum of the quarterly results and the total annual results due to rounding.

18

Expenses that Impact Contribution Margin(2)

Annual(1)

Quarterly(1)

($ in millions)

222.9

($ in millions)

83.1

209.9
68.7

58.6

53.7

57.8
51.8

44.6

115.8
36.3
35.7
164.3

53.8

17.6

156.2

7.1

8.1

9.4

16.8

18.4

23.9

80.2

36.3
2013

26.5

29.2

2014

2015

2016 YTD

14.0

25.2

68.3
58.5

16.9

20.0
15.3

16.1

11.6
64.7

11.1

19.8

18.5

33.0

37.8

41.7

51.8

48.3

43.2

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16

Sales &
Marketing
% of Originations

1.76%

1.83%

1.96%

2.34%

2.12%

1.83%

1.70%

1.78%

2.02%

1.98%

1.87%

2.01%

2.35%

2.47%

2.19%

Origination &
Servicing
% of Originations

0.85%

0.81%

0.70%

0.80%

0.89%

0.80%

0.81%

0.79%

0.71%

0.73%

0.72%

0.66%

0.67%

1.02%

0.78%

Total % of
Originations

2.61%

2.65%

2.67%

3.14%

3.01%

2.63%

2.51%

2.57%

2.73%

2.71%

2.59%

2.66%

3.02%

3.49%

2.97%

Total % of
Revenues

55.0%

54.3%

52.2%

57.3%

61.6%

54.5%

51.7%

52.2%

55.0%

53.9%

50.2%

51.1%

55.0%

66.6%

52.0%

(1)
(2)

There may be differences between the sum of the quarterly results and the total annual results due to rounding.
Contribution is a non-GAAP financial measure that we calculate as net income (loss), excluding net interest expense (income) and other adjustments, general and administrative expense, stock-based
compensation expense and income tax expense (benefit). Contribution margin is calculated by dividing contribution by total operating revenue. See Appendix for a reconciliation of this Non-GAAP measure.

19

Contribution Margin(2)
Annual(1)

Quarterly(1)

($ in millions)

($ in millions)

203.8

65.7

68.1

57.3

54.1

156.3

44.3
36.5

34.1

33.3

97.6
27.3
22.1
14.8

44.1

Margin
(% of
Revenue)

(1)
(2)

2013

2014

2015

2016 YTD

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

3Q15

4Q15

1Q16

2Q16

3Q16

45.0%

45.7%

47.8%

42.7%

38.4%

45.5%

48.3%

47.8%

45.0%

46.1%

49.8%

48.9%

45.0%

33.3%

48.0%

There may be differences between the sum of the quarterly results and the total annual results due to rounding.
Contribution is a non-GAAP financial measure that we calculate as net income (loss), excluding net interest expense (income) and other adjustments, general and administrative expense, stock-based
compensation expense and income tax expense (benefit). Contribution margin is calculated by dividing contribution by total operating revenue. See Appendix for a reconciliation of this Non-GAAP measure.

20

Expenses that Impact Adjusted EBITDA Margin(2)

Annual(1)

Quarterly(1)

($ in millions)

($ in millions)

Includes $15mm of unusual

expenses in Q2 and $14mm in
Q3 related to the board review

172.4

64.2

65.3

44.4

46.1

19.8

19.1

134.1

41.1
36.1

117.5
76.3

30.9

82.2

25.4
18.1

28.9

49.4
54.9

17.1
11.9

26.9

2013

2014

2015

2016 YTD

8.3
4.7

6.3

24.7

26.9

16.4

16.0

22.0
18.9
16.5

11.9

25.9

19.8

13.0
51.9

42.9

16.5

12.8
7.0

8.9

9.4

12.0

14.1

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16

Engineering &
Product Dev
(% of Revenue)

12.1%

12.6%

12.2%

15.0%

12.2%

12.9%

12.4%

12.7%

11.5%

12.5%

12.3%

12.2%

10.6%

19.3%

17.0%

Other G&A
(% of Revenue)

17.4%

23.1%

19.3%

32.1%

21.3%

24.4%

22.6%

23.7%

20.3%

19.7%

19.1%

18.4%

17.8%

43.4%

41.0%

Total % of
Revenues

29.5%

35.7%

31.4%

47.1%

33.5%

37.3%

35.0%

36.5%

36.4%

31.9%

31.4%

30.6%

28.4%

62.7%

58.0%

(1)
(2)

There may be differences between the sum of the quarterly results and the total annual results due to rounding.
Adjusted EBITDA is a non-GAAP financial measure that we calculate as net income (loss), excluding net interest expense (income) and other adjustments, acquisition and related expense, depreciation and
amortization, amortization of intangible assets, stock-based compensation expense and income tax expense (benefit). Adjusted EBITDA margin is calculated as adjusted EBITDA divided by total operating
revenue. See Appendix for a reconciliation of this Non-GAAP measure.

21

Adjusted EBITDA Margin(2)

Annual(1)

Quarterly(1)

($ in millions)

($ in millions)
69.8

24.6

25.2

21.2

7.5
1.9

7.9

10.6

13.4

4.0

21.3

15.2
(11.1)

(30.1)

(16.0)

Margin
(% of
Revenue)

(1)
(2)

2013

2014

2015

2016 YTD

15.5%

10.0%

16.3%

(4.4%)

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16
1.8%

8.2%

13.3% 11.4% 13.1% 13.9% 18.4% 18.3% 16.7% (29.4%) (9.9%)

There may be differences between the sum of the quarterly results and the total annual results due to rounding.
Adjusted EBITDA is a non-GAAP financial measure that we calculate as net income (loss), excluding net interest expense (income) and other adjustments, acquisition and related expense, depreciation and
amortization, amortization of intangible assets, stock-based compensation expense and income tax expense (benefit). Adjusted EBITDA margin is calculated as adjusted EBITDA divided by total operating
revenue. See Appendix for a reconciliation of this Non-GAAP measure.

22

Q4 Outlook

($ in millions)

Operating Revenue
Q/Q Growth (midpoint)

Q4 2016
$116 - $123
6%

GAAP Net Income

($48) ($38)

Adjusted EBITDA1

($15) ($5)

1.

Non-GAAP Reconciling Items consisting of stock based compensation of

approximately $25 million, approximately $7 million of depreciation and
amortization, amortization of intangibles, net interest income and taxes, and other
net adjustments of approximately $1M.

23

Appendix:
Financial Recons & Metrics
24

GAAP to Non-GAAP Reconciliation

Operating Expenses
Year Ended Dec. 31,

Three Months Ended

Nine Months Ended

(in thousands, except percentages)

(unaudited)

2014

2015

1Q15

2Q15

Total Operating Revenue

$213,412

$426,697

$ 81,045

$ 96,119 $ 115,062 $ 134,471

$151,265 $ 102,391 $ 112,609

GAAP Sales & Marketing

$ 85,652

$ 171,526

$ 34,470

$ 39,501

$ 44,018

$ 53,537

$ 66,575

$ 49,737

5,476

7,250

1,508

1,713

2,283

1,746

1,904

1,413

$ 80,176

$ 164,276

$ 32,962

$ 37,788

$ 41,735

$ 51,791

$ 64,671

37.6%

38.5%

40.7%

39.3%

36.3%

38.5%

$ 37,326

$ 61,335

$ 12,201

$ 14,706

$ 16,732

1,653

2,735

606

719

662

$ 35,673

$ 58,600

$ 11,595

$ 13,987

16.7%

13.7%

14.3%

14.6%

$ 38,518

$ 77,062

$ 13,898

Stock-based Compensation Expense

6,445

11,335

Depreciation & Amortization

5,194

13,820

$ 26,879

Stock-based Compensation Expense

Non-GAAP Sales & Marketing
% Total Operating Revenue

GAAP Origination & Servicing

Stock-based Compensation Expense

Non-GAAP Origination & Servicing

% Total Operating Revenue
GAAP Engineering & Product Development

Non-GAAP Engineering & Product

Development
% Total Operating Revenue
GAAP Other G&A and Goodwill Impairment
Stock-based Compensation Expense

3Q15

4Q15

1Q16

2Q16

3Q16

3Q15

3Q16

$ 292,226

$ 366,265

$ 44.901

117,989

161,213

1,699

5,504

5,016

$ 48,324

$ 43,202

112,485

156,179

42.8%

47.1%

38.4%

38.4%

42.6%

$ 17,696

$ 19,198

$ 20,934

$ 16,332

43,639

56,464

748

746

963

1,013

1,987

2,722

$ 16,070

$ 16,948

$ 18,452

$ 19,971

$ 15,319

41,652

53,743

14.0%

12.6%

12.2%

19.5%

13.6%

14.3%

14.7%

$ 18,214

$ 21,063

$ 23,887

$ 24,198

$ 29,209

$29,428

53,175

82,835

1,798

2,943

3,145

3,449

3,723

4,480

4,931

7,886

13,134

2,744

3,261

3,808

4,007

4,493

4,917

5,362

9,813

14,772

$ 51,907

$ 9,356

$ 12,010

$ 14,110

$ 16,431

$ 15,982

$ 19,812

$ 19,135

35,476

54,929

12.6%

12.2%

11.5%

12.5%

12.3%

12.2%

10.6%

19.3%

17.0%

12.1%

15.0%

$ 81,136

$ 122,182

$ 26,410

$ 28,247

$ 32,280

$ 35,245

$ 38,035

$ 88,857

$ 60,590

86,937

187,482

23,576

29,902

7,681

7,111

7,389

7,721

8,648

6,591

10,279

22,181

25,518

Depreciation

1,166

2,426

404

524

708

790

906

993

1,104

1,636

3,003

Acquisition and Related Expenses

3,113

2,367

294

403

937

733

293

293

294

1,634

880

Amortization of Intangibles

3,898

5,331

1,545

1,274

1,256

1,256

1,256

1,180

1,163

4,075

3,599

Goodwill Impairment
Non-GAAP Other G&A
% Total Operating Revenue

35,400

1,650

37,050

$ 49,383

$ 82,156

$ 16,486

$ 18,935

$ 21,990

$ 24,745

$ 26,932

$ 44,400

$ 46,100

57,413

117,432

23.1%

19.3%

20.3%

19.7%

19.1%

18.4%

17.8%

43.4%

40.9%

19.6%

32.1%

25

Adjusted EPS Reconciliation

Adjusted EPS is a non-GAAP financial measure that we calculate as net income (loss), excluding acquisition and related expense,
amortization of intangible assets, goodwill impairment, income tax expense (benefit), and stock-based compensation expense.

Year Ended Dec. 31,

(in thousands, except per share data)
(unaudited)

1Q15

2Q15

$ (32,894)

$ (4,995)

$ (6,374)

$ (4,140)

$ 950

$ 4,569

Acquisition and Related Expense

3,113

2,367

294

403

937

733

293

293

294

1,634

880

Amortization of Intangible Assets

3,898

5,331

1,545

1,274

1,256

1,256

1,256

1,180

1,163

4,075

3,599

--

--

--

--

--

--

--

35,400

1,650

37,050

37,150

51,222

11,593

12,486

13,479

13,664

15,021

13,447

17,922

37,558

46,390

1,390

2,833

627

389

1,233

584

151

(3,946)

(209)

2,249

(4,004)

$ 12,657

$ 56,758

$ 7,685

$ 10,412

$ 17,855

$ 20,806

$ 20,858 $ (34,977) $ (15,666)

$ 35,952

$ (29,785)

75,574

374,872

371,959

372,842

401,935

402,634

392,398

382,893

391,453

373,605

235,745

40,767

26,717

38,166

32,808

31,144

352,086

401,589

410,125

405,650

401,935

402,634

392,398

382,893

391,453

404,749

385,037

$0.04

$0.14

$0.02

$0.03

$0.04

$0.05

$0.05

$ (0.09)

$ (0.04)

$0.09

$ (0.08)

Goodwill Impairment
Stock-based Compensation Expense
Income Tax Expense
Adjusted Net Income

Weighted-average GAAP Diluted Shares

Weighted-average Diluted Effect of
Preferred Stock Conversion (1)
Weighted-average Other Dilutive Equity
Awards
Non-GAAP Diluted Shares

Adjusted EPS - Diluted

(1)
(2)

(2)

3Q15

4Q15

Nine Months Ended

2015

GAAP Net Income (Loss)

2014

Three Months Ended

1Q16

2Q16

3Q16

3Q15

$ 4,137 $ (81,351) $ (36,486)

3Q16

$ (9,564) $ (113,700)

385,037

Gives effect to the conversion of convertible preferred stock into common stock as though the conversion had occurred at the beginning of the period under the "if converted" method.
Net of shares repurchased in the first quarter of 2016 under the Companys share repurchase program.

26

Contribution Definition and Reconciliation

Contribution is a non-GAAP financial measure that we calculate as net income (loss), excluding net interest expense (income) and
fair value adjustments, general and administrative expense, goodwill impairment, stock-based compensation expense and income
tax expense (benefit). Contribution margin is calculated by dividing contribution by total operating revenue.
Year Ended Dec. 31,
(in thousands, except percentages)
(unaudited)
Net Income (Loss)

2014

Three Months Ended

2015

1Q15

2Q15

3Q15

4Q15

Nine Months Ended

1Q16

2Q16

3Q16

3Q15

3Q16

$ (32,894)

$ (4,995)

$ (6,374)

$ (4,140)

$ 950

$ 4,569

$ 4,137 $ (81,351) $ (36,486)

2,284

(3,246)

(187)

(798)

(1,214)

(1,047)

(1,029)

(1,049)

(1,947)

(2,199)

(4,025)

Engineering & Product

Development

38,518

77,062

13,898

18,214

21,063

23,887

24,198

29,209

29,428

53,175

82,835

Other G&A

81,136

122,182

26,410

28,247

32,280

35,245

38,035

53,457

58,940

86,937

150,432

35,400

1,650

37,050

Sales & Marketing

5,476

7,250

1,508

1,713

2,283

1,746

1,904

1,413

1,699

5,504

5,016

Origination & Servicing

1,653

2,735

606

719

662

748

746

963

1,013

1,987

2,722

1,390

2,833

627

389

1,233

584

151

(3,946)

(209)

2,249

(4,004)

$ 97,563 $ 203,821

$ 36,488

$ 44,344

$ 57,257

$ 65,732

$ 68,142

$ 34,096

$ 54,088

$ 138,089

$ 156,326

$ 213,412 $ 426,697

$ 81,045

$ 96,119 $ 115,062 $ 134,471 $ 151,265 $ 102,391 $ 112,609

$ 292,226

$ 366,265

47.3%

42.7%

Net Interest Expense (Income) and

Fair Value Adjustments

$ (9,564) $ (113,700)

General & Administrative Expense

(GAAP):

Goodwill Impairment
Stock-based Compensation
Expense(1):

Income Tax Expense

Contribution Income(1)
Total Operating Revenue
Contribution Margin(1)

45.7%

47.8%

45.0%

46.1%

49.8%

48.9%

45.0%

33.3%

48.0%

(1) Prior period amounts have been reclassified to conform to current presentation.

27

Contribution as a % of Originations

Contribution is a non-GAAP financial measure that we calculate as net income (loss), excluding net interest expense (income) and
fair value adjustments, general and administrative expense, stock-based compensation expense and income tax expense
(benefit). Contribution margin is calculated by dividing contribution by total operating revenue.
Year Ended Dec. 31,

(in thousands, except percentages

or as noted) (unaudited)
Loan Originations ($ mm)

2014

2015

Three Months Ended

1Q15

2Q15

3Q15

4Q15

Nine Months Ended

1Q16

2Q16

$ 6,677

$ 151,265 $ 102,391 $ 112,609

$ 292,226

$ 366,265

5.71%

5.05%

5.49%

$ 48,324

$ 43,202

$ 112,485

$ 156,197

$ 18,452

$ 19,971

$ 15,319

$ 41,652

$ 53,743

$ 68,739

$ 83,123

$ 68,295

$ 58,251

$ 154,137

$ 209,940

2.59%

2.67%

3.02%

3.49%

3.12%

2.67%

3.14%

$ 44,344

$ 57,257

$ 65,732

$ 68,142

$ 34,096

$ 54,088

$ 138,089

$ 156,326

2.32%

2.56%

2.55%

2.48%

1.74%

2.97%

2.39%

2.34%

$ 8,362

$1,635

$ 1,912

$ 2,236

$ 2,579

$ 213,412

$ 426,697

$ 81,045

$ 96,119

$ 115,062

$ 134,471

4.88%

5.10%

4.96%

5.03%

5.15%

5.21%

5.50%

5.24%

Non-GAAP Sales & Marketing(1)

$ 80,176

$ 164,276

$ 32,962

$ 37,788

$ 41,735

$ 51,791

$ 64,671

Non-GAAP Origination & Servicing(1)

$ 35,673

$ 58,600

$ 11,595

$ 13,987

$ 16,070

$ 16,948

$ 115,849

$ 222,876

$ 44,557

$ 51,775

$ 57,805

2.65%

2.67%

2.73%

2.71%

$ 97,563

$ 203,821

$ 36,488

2.23%

2.44%

2.23%

% of Loan Originations

Total Non-GAAP Sales &

Marketing and Origination &
Servicing(1)
% of Loan Originations

Contribution Income(1)

% of Loan Originations

3Q16

$ 5,782

$ 4,378

Total Operating Revenue

3Q15

$ 1,972

$ 2,750

$ 1,955

3Q16

(1) Prior period amounts have been reclassified to conform to current presentation.

28

Adjusted EBITDA Definition and Reconciliation

Adjusted EBITDA is a non-GAAP financial measure that we calculate as net income (loss), excluding net interest expense
(income) and fair value adjustments, acquisition and related expense, depreciation expense, amortization of intangible assets ,
goodwill impairment, stock-based compensation expense and income tax expense (benefit). Adjusted EBITDA margin is
calculated as adjusted EBITDA divided by total operating revenue.
Year Ended Dec. 31,
(in thousands, except percentages)
(unaudited)

3Q15

4Q15

Nine Months Ended

2015

1Q15

2Q15

$ (32,894)

$ (4,995)

$ (6,374)

($4,140)

$ 950

$ 4,569

$ 4,137

Net Interest Expense (Income) and Fair

Value Adjustments

2,284

(3,246)

(187)

(798)

(1,214)

(1,047)

(1,029)

(1,049)

(1,947)

(2,199)

(4,025)

Acquisition and Related Expense

3,113

2,367

294

403

937

733

293

293

294

1,634

880

Engineering & Product

Development

5,194

13,820

2,744

3,261

3,808

4,007

4,493

4,917

5,362

9,813

14,772

Other G&A

1,166

2,426

404

524

708

790

906

993

1,104

1,636

3,003

3,898

5,331

1,545

1,274

1,256

1,256

1,256

1,180

1,163

4,075

3,599

35,400

1,650

37,150

51,222

11,593

12,486

13,479

13,664

15,021

13,447

17,922

37,558

46,390

1,390

2,833

627

389

1,233

584

151

(3,946)

(209)

2,249

(4,004)

$ 21,301

$ 69,758

$ 10,646

$ 13,399

$ 21,157

$ 24,556

$ 25,228 $ (30,116) $ (11,147)

$ 45,202

$ (16,035)

$ 213,412

$ 426,697

$ 81,045

$ 96,119 $ 115,062 $ 134,471 $ 151,265 $ 102,391 $ 112,609

$ 292,226

$ 366,265

10.0%

16.3%

13.1%

15.5%

(4.4%)

Net Income (Loss)

2014

Three Months Ended

1Q16

2Q16

3Q16

($81,351) $ (36,486)

3Q15

3Q16

$ (9,564) $ (113,700)

Depreciation Expense:

Amortization of Intangible Assets

Goodwill Impairment

Stock-based Compensation Expense

Income Tax Expense
Adjusted EBITDA
Total Operating Revenue
Adjusted EBITDA Margin

13.9%

18.4%

18.3%

16.7%

(29.4%)

(9.9%)

37,050

29

Servicing Portfolio Recurring Revenue

Servicing Portfolio Balance(1)

Adjusted Servicing and Management Fee Revenue(2)

($ in millions)

($ in thousands)
0.2 3%

Adj. Servicing and Mgmt Fees

% of Servicing Portfolio (Average)

$10,747 $10,934

Notes

$10,178

0.18%

0.19%

0.18%

0.19%

Certificates
0.1 8%

0.16%

$8,970

Whole loans sold

0.14%

$7,698

$19,328

0.14%

$20,180

$18,177
0.1 3%

$6,548

$15,315

$5,595
$11,496
0.0 8%

$8,475
$7,110
0.0 3%

-0 .02 %

1Q15

2Q15

3Q15

4Q15

1Q16

2Q16

3Q16

1Q15

2Q15

3Q15

4Q15

1Q16

2Q16

3Q16

96%

95%

90%

82%

64%

42%

158%

138%

168%

181%

156%

128%

76%

Growth (%)
Y/Y

(1)
(2)

101%

Servicing Portfolio Balance represents outstanding principal balance of loans that we serviced at the end of the periods indicated, and financed with notes, certificates and whole loans sold.
Adjusted Servicing and Management Fee is a non-GAAP financial measure that we calculate that excludes the impact of changes in fair value of our servicing asset/liability, over the life of the loan.

30

Adjusted Servicing and Management Fee

Adjusted Servicing and Management Fee is a non-GAAP financial measure that we calculate that excludes the impact of
changes in fair value of our servicing assets/liabilities, over the life of the loan.
Year Ended Dec. 31,

(in thousands, except

percentages or as noted)
(unaudited)

2014

2015

Three Months Ended

1Q15

2Q15

3Q15

Nine Months Ended

4Q15

1Q16

2Q16

3Q16

3Q15

3Q16

Originations ($ mm)

$ 4,378

$ 8,362

$1,635

$ 1,912

$ 2,236

$ 2,579

$ 2,750

$ 1,955

$ 1,972

$ 5,782

$ 6,677

Servicing Portfolio Balance

($ mm) (1)

$ 4,726

$ 8,970

$ 5,595

$ 6,548

$ 7,698

$ 8,970

$ 10,178

$ 10,747

$ 10,934

$ 7,698

$ 10,934

$ 11,534

$ 32,811

$ 5,392

$ 6,479

$ 8,999

$ 11,941

$ 16,942

$ 11,603

$ 16,513

$ 20,870

$ 45,058

5,957

10,976

2,215

2,548

2,900

3,313

3,545

3,053

1,964

7,663

8,562

$17,491

$43,787

$ 7,607

$ 9,027

$ 11,899

$ 15,254

$ 20,487

$ 14,656

$ 18,477

28,533

53,620

0.40%

0.52%

0.47%

0.47%

0.53%

0.59%

0.74%

0.75%

0.94%

0.49%

0.80%

Less Change in Fair Value of

Servicing Assets/Liabilities

$ (1,420)

$ (1,391)

$ (497)

$ (552)

$ (403)

$ 61

$ (2,310)

$ 4,672

$ 1,703

($1,452)

$4,065

Total Adjusted Servicing and

Management fees

$ 16,071

$ 42,396

$ 7,110

$ 8,475

$ 11,496

$ 15,315

$ 18,177

$ 19,328

$ 20,180

$ 27,081

$ 57,685

As a % of Originations

0.37%

0.51%

0.43%

0.44%

0.51%

0.59%

0.66%

0.99%

1.01%

0.47%

0.86%

As a % of Average Servicing
Portfolio Balance

0.46%

0.62%

0.14%

0.14%

0.16%

0.18%

0.19%

0.18%

0.19%

0.44%

0.54%

(0.03%)

(0.02%)

(0.03%)

(0.03%)

(0.02%)

(0.00%)

(0.08%)

0.24%

0.09%

(0.03%)

0.06%

Servicing Fees
Management Fees
Total Servicing and
Management fees
As a % of Originations

Change in Fair Value of Servicing

Assets/Liabilities as % of
Originations

(1) Servicing Portfolio Balance represents outstanding principal balance of loans that we serviced at the end of the periods indicated, and financed with notes, certificates and whole loans sold.

31

32