OnDeck (ONDK) saw its loss widen to $35.86 million, or $0.50 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $4.64 million, or $0.07 a share. On the other hand, adjusted net loss for the quarter widened to $31.36 million, or $0.44 a share from a loss of $1.13 million or $0.02 a share, a year ago. Revenue during the quarter grew 21.05 percent to $81.83 million from $67.60 million in the previous year period. Gross margin for the quarter contracted 4270 basis points over the previous year period to 19.87 percent. Operating margin for the quarter stood at negative 44.28 percent as compared to a negative 7.53 percent for the previous year period.
Operating loss for the quarter was $36.23 million, compared with an operating loss of $5.09 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $29.16 million compared with $0.32 million in the prior year period. At the same time, adjusted EBITDA margin stood at negative 35.64 percent for the quarter compared to 0.47 percent in the last year period.
"OnDeck made further progress executing our long-term plan during the fourth quarter of 2016," said Noah Breslow, OnDeck's chief executive officer. "We continued to benefit from steady growth of Loans Under Management, the expansion of our funding sources, and the signing of new strategic partners. We also drove continued efficiencies across our operating expense base as our Adjusted Expense Ratio* improved over 400 basis points from the prior year."
For the first-quarter, OnDeck projects revenue to be in the range of $89 million to $93 million. On Deck Capital Inc projects revenue to be in the range of $377 million to $387 million for financial year 2017.
Debt increases substantially
OnDeck has witnessed an increase in total debt over the last one year. It stood at $754.60 million as on Dec. 31, 2016, up 99.32 percent or $376.02 million from $378.58 million on Dec. 31, 2015. On Deck Capital Inc has witnessed an increase in long-term debt over the last one year. It stood at $754.60 million as on Dec. 31, 2016, up 99.32 percent or $376.02 million from $378.58 million on Dec. 31, 2015. Total debt was 70.92 percent of total assets as on Dec. 31, 2016, compared with 50.53 percent on Dec. 31, 2015. Debt to equity ratio was at 2.86 as on Dec. 31, 2016, up from 1.15 as on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
