Fourth Quarter 2017 Results February 20, 2018
Disclaimer Some of the statements in this presentation, including statements regarding investor demand and anticipated future financial results are "forward-looking statements." The words "anticipate,” “appear,” "believe,“ “continue,” “could,” "estimate," "expect," "intend," "may," “outlook,” "plan," " pre dict," "project,“ “target,” "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-looking statements include: the outcomes of pending governmental investigations and pending or threatened litigation, which are inherently uncertain; developments in the state and federal regulatory environment impacting our business, the impact of recent management changes and the ability to continue to retain key personnel; ability to achieve cost savings from recent restructurin gs; the Company’s 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 Company’s 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 investor fees, non-GAAP sales and marketing expense, non-GAAP origination and servicing expense, non-GAAP engineering and product development expense, non-GAAP general and administrative expense 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 non-GAAP measures provide useful information as to the effectiveness of the Company’s marketing initiatives in driving revenue as well as the effectiveness of originating and servi cing loans in driving revenue. The amounts used to arrive at these non- GAAP measures all appear on the face of the Company’s consolidated statements of operations or in th e 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 non-GAAP 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 LendingClub is available in the prospectus for LendingClub’s notes, which can be obtained on LendingClub’s website at https://www.lendingclub.com/info/prospectus.action. 2
An Online Marketplace Borrowers Investors Capital Principal + Interest All loans originated and issued by our federally regulated issuing bank partners. 3
Variety of Investors Across the LendingClub Platform Diverse investor mix provides breadth of credit appetite and flexibility to adapt to various market conditions Originations Mix by Funding Source Platform Originations by Funding Source 1 (as a % of total platform originations) ($ in millions) $2,438 $2,443 12% 12% 13% 15% 17% $2,147 $377 $424 $1,987 $1,959 $261 $259 $228 31% 40% 44% 36% $880 42% $1,017 $615 $955 $787 43% 26% $632 33% 24% $582 31% $850 $647 $655 10% $230 10% $249 15% 13% 13% $297 11% $263 $276 $272 9% $217 4Q16 1Q17 2Q17 3Q17 4Q17 4Q16 1Q17 2Q17 3Q17 4Q17 Other Institutional Banks Managed Accounts Self-Managed Individuals LC Structured Programs (1) There may be differences between the sum of the quarterly results due to rounding. 4
Originations & Revenue Grew quarterly originations by 23% annually while delivering highest revenue quarter in company history, up 20% YoY Quarterly Originations 1 Quarterly Total Net Revenue 1 ($ in millions) ($ in millions) Personal loans - standard 2,443 2,438 156.5 Personal loans - custom 154.0 Other 2,147 139.6 130.5 1,987 1,959 124.5 1,791 1,817 1,538 1,465 1,438 447 407 391 329 301 220 218 214 193 204 4Q16 1Q17 2Q17 3Q17 4Q17 4Q16 1Q17 2Q17 3Q17 4Q17 Growth (%) Growth (%) YoY (23%) (29%) 10% 24% 23% YoY (4%) (18%) 35% 34% 20% QoQ 1% (1%) 10% 14% 0% QoQ 14% (5%) 12% 10% 2% Yield 6.57% 6.36% 6.50% 6.31% 6.42% (1) (1) There may be differences between the sum of the quarterly results due to rounding. 5
Contribution Margin 2 Achieved a contribution margin over 48%, at the high end of our 45-50% target Quarterly expenses impacting Contribution Margin 1 Quarterly Contribution Margin 1,2 ($ in millions) ($ in millions) 75.9 75.4 81.2 78.3 73.5 66.0 71.3 69.8 22.9 20.3 60.7 Origination & 19.9 19.0 16.9 Servicing (O&S) 53.2 Sales & 58.0 58.3 53.6 52.9 52.3 Marketing (M&S) 4Q16 1Q17 2Q17 3Q17 4Q17 O&S % of 0.85% 0.97% 0.93% 0.83% 0.94% Originations 4Q16 1Q17 2Q17 3Q17 4Q17 M&S % of 2.66% 2.67% 2.50% 2.37% 2.39% Originations Total % of Margin % of 3.51% 3.64% 3.42% 3.20% 3.33% 46.5% 42.7% 47.3% 49.3% 48.2% Originations Revenue Total % of 53.5% 57.3% 52.7% 50.8% 51.9% Revenues (1) (1) There may be differences between the sum of the quarterly results due to rounding. (2) Contribution is a non-GAAP financial measure that we calculate as net income (loss), excluding general and administrative expense, class action litigation settlement, goodwill impairment, stock-based compensation expense, income tax expense (benefit) and (income) loss attributable to noncontrolling interests. Contribution margin is calculated by dividing contribution by total net revenue. See Appendix for a reconciliation of this non-GAAP measure. 6
Adjusted EBITDA Margin 2 Delivered $19M in Adjusted EBITDA while making key Engineering & Product Development investments to support future growth Quarterly Adjusted EBITDA Margin 1 Quarterly Expenses impacting Adjusted EBITDA Margin 1 ($ in millions) ($ in millions) 61.6 61.5 56.3 55.0 20.9 Engineering & 53.0 Product 19.0 19.7 21.5 Development 19.2 21.4 21.4 Other G&A 42.0 40.1 35.8 34.9 4.5 31.6 0.2 4Q16 1Q17 2Q17 3Q17 4Q17 (0.9) Eng. & PD 17.2% 15.4% 12.5% 13.7% 15.1% 4Q16 1Q17 2Q17 3Q17 4Q17 (% of Rev.) Other G&A 32.1% 25.4% 28.7% 23.3% 22.3% (% of Rev.) Margin % of Total % of (0.7%) 0.1% 3.2% 13.6% 12.2% 47.2% 42.6% 44.1% 35.7% 36.0% Revenue Revenue (1) (1) There may be differences between the sum of the quarterly results due to rounding. (2) (2) Adjusted EBITDA is a non-GAAP financial measure that we calculate as net income (loss), excluding acquisition and related expense, depreciation and impairment expense, amortization of intangible assets, legal and regulatory expense related to legacy issues, goodwill impairment, stock-based compensation expense, income tax expense (benefit) and (income) loss attributable to noncontrolling interests. Adjusted EBITDA margin is calculated as adjusted EBITDA divided by total net revenue. See Appendix for a reconciliation of this non-GAAP measure. 7
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