Q4 CEO Noah Breslow said publication of results, “Our fourth quarter closed a year of significant progress at OnDeck, evidenced by strong US loan growth, advancement of our strategic initiatives and improved capital efficiency.”
During a call with analysts, Breslow said the company almost doubled the number of customers who signed up for its instant finance option. As he noted on the call, “customers who have this feature enabled have higher usage than other customers with a line of credit.”
Breslow pointed out that the company’s analytical capabilities were enhanced in 2019 with innovations in its fraud prevention capabilities. He also said the company has made “long-term investments in our next-generation technology infrastructure, which will allow us to bring new products and features to market faster in 2020 and beyond.”
Adjusted net income was $ 3.3 million, or 5 cents per diluted share, which is lower than the analyst’s estimates of 9 cents. Loan origination totaled $ 618 million, down 2% from the previous quarter and 6% from the previous year quarter. Interest and finance income amounted to $ 108.8 million.
For the full year 2020, OnDeck forecasts adjusted net income of $ 25 million to $ 35 million. Gross revenue is expected to be between $ 465 million and $ 485 million. And the company is forecasting a net profit of $ 25-35 million.
As previously stated, OnDeck exceed expectations with its third quarter earnings report on October 24, with an increase in loan origination volume. Adjusted net income was $ 7.8 million, or 10 cents per diluted share, which is higher than analyst forecasts of 7 cents at the time.
Loan origination stood at $ 629 million, up 6% from the previous quarter and down 3% from the previous year quarter. Interest and finance income amounted to $ 108.2 million.