LendingClub Corp (LC) 2021 Q1 法說會逐字稿

Good day, and welcome to the LendingClub Q1 '21 Earnings Conference Call. (Operator Instructions) Please note this event is being recorded.

美好的一天，歡迎來到 LendingClub Q1 '21 收益電話會議。 （操作員說明）請注意正在記錄此事件。

I would now like to turn the conference over to Sameer Gokhale, Head of Investor Relations. Please go ahead.

我現在想將會議轉交給投資者關係主管 Sameer Gokhale。請繼續。

Thank you, and good afternoon. Welcome to LendingClub's First Quarter 2021 Earnings Conference Call. Joining me today to talk about our results and recent events are Scott Sanborn, CEO; and Tom Casey, CFO.

謝謝，下午好。歡迎來到 LendingClub 的 2021 年第一季度收益電話會議。今天和我一起談論我們的結果和最近發生的事件的是首席執行官 Scott Sanborn；和首席財務官湯姆凱西。

Our remarks today will include forward-looking statements that are based on our current expectations and forecasts and involve risks and uncertainties. These statements include but are not limited to, the timing and benefits from our acquisition of Radius and resulting bank charter, platform volume and the future performance of our business and products. Our actual results may differ materially from those contemplated by these forward-looking statements.

我們今天的評論將包括基於我們當前預期和預測並涉及風險和不確定性的前瞻性陳述。這些陳述包括但不限於我們收購 Radius 的時間和收益以及由此產生的銀行章程、平台數量以及我們業務和產品的未來表現。我們的實際結果可能與這些前瞻性陳述中預期的結果存在重大差異。

Factors that could cause these results to differ materially are described in today's press release and our most recent forms 10-K and 10-Q, each is filed with the SEC. Any forward-looking statements that we make on this call are based on assumptions as of today, and we undertake no obligation to update these statements.

今天的新聞稿和我們最近提交給美國證券交易委員會的 10-K 和 10-Q 表格中描述了可能導致這些結果出現重大差異的因素。我們在此次電話會議上所做的任何前瞻性陳述均基於截至今日的假設，我們不承擔更新這些陳述的義務。

Also during this call, we will present and discuss both GAAP and non-GAAP financial measures. A description of non-GAAP measures and reconciliation to GAAP measures are included in today's earnings release and related slide presentation. You can find both the press release and slide presentation on the Investor Relations section of our website at ir.lendingclub.com.

同樣在本次電話會議中，我們將介紹和討論 GAAP 和非 GAAP 財務措施。非 GAAP 措施的描述以及與 GAAP 措施的對賬包含在今天的收益發布和相關幻燈片演示中。您可以在我們網站 ir.lendingclub.com 的投資者關係部分找到新聞稿和幻燈片演示。

And now I'd like to turn the call over to Scott.

現在我想把電話轉給斯科特。

Okay. Thank you, Sameer. Good afternoon, everyone, and thank you for joining us. When we last talked, I told you that with our acquisition complete, we would be evolving to a new business model, that of a digital marketplace bank. And I shared that this model would be positioned to outperform and deliver sustained growth and profit, fueled by our leadership in personal loans and our considerable strategic advantages.

好的。謝謝你，薩米爾。大家下午好，感謝您加入我們。當我們上次談話時，我告訴過你，隨著我們的收購完成，我們將演變為一種新的商業模式，即數字市場銀行。我分享說，在我們在個人貸款領域的領導地位和我們相當大的戰略優勢的推動下，這種模式將能夠超越並實現持續增長和利潤。

Accordingly, I'm happy to report that we are off to a great start to the year. Our Q1 results came in above the high end of our guidance as we accelerated originations 63% quarter-on-quarter and increased revenues 40% to $106 million. What's even more exciting is that our Q1 activities will deliver an additional $70 million in interest income in the quarters to come, representing a new recurring revenue stream that will continue to grow as we build our loan portfolio. This is just one clear example of the benefits of adding the digital bank.

因此，我很高興地向大家報告，我們今年開局不錯。我們的第一季度業績高於我們指導的高端，因為我們的原創業務環比增長了 63%，收入增長了 40% 至 1.06 億美元。更令人興奮的是，我們第一季度的活動將在未來幾個季度帶來額外的 7000 萬美元利息收入，這代表了一個新的經常性收入來源，它將隨著我們建立貸款組合而繼續增長。這只是添加數字銀行的好處的一個明顯例子。

As I have said previously, personal loans will be our near-term economic driver and will pave the road to our broader future as a full-service digital bank. It is a great time to be launching a digital bank, and we are starting from a position of strength given our ability to attract valuable, creditworthy customers at scale and to save them money through a seamless experience.

正如我之前所說，個人貸款將成為我們近期的經濟驅動力，並將為我們成為全方位服務數字銀行的更廣闊未來鋪平道路。現在是推出數字銀行的好時機，鑑於我們有能力大規模吸引有價值、信譽良好的客戶，並通過無縫體驗為他們省錢，我們正處於有利地位。

In addition to our new lower funding costs, LendingClub has multiple competitive advantages, and both our Q1 results and our sustained growth over the long-term will be built on how we leverage these differentiators. So our advantages include: our large and loyal base of members; our data supremacy based on information on over $60 billion in loans; our tech platform that allows us to deliver a fast and frictionless experience; our marketplace model, which allows us to efficiently serve a broad range of customers; and now our digital bank, which provides structural, financial and strategic benefits to expand customer lifetime value and to accelerate earnings growth and diversification.

除了我們新的更低的融資成本外，LendingClub 還擁有多項競爭優勢，我們第一季度的業績和我們長期的持續增長都將建立在我們如何利用這些差異化因素的基礎上。所以我們的優勢包括：我們龐大而忠誠的會員基礎；我們基於超過 600 億美元貸款信息的數據優勢；我們的技術平台使我們能夠提供快速、順暢的體驗；我們的市場模式，使我們能夠有效地服務於廣泛的客戶；現在是我們的數字銀行，它提供結構、財務和戰略優勢，以擴大客戶的生命週期價值並加速收益增長和多元化。

Let me spend a minute on each of these. First, our members. Our results demonstrate the continued benefit of having a large and loyal installed base of 3 million members. The majority of our loans in Q1 were to our existing member base, and this drove significant marketing efficiencies as they're originated at a fraction of the cost compared to loans to new members, and they also demonstrate lower credit risk.

讓我花一分鐘時間來了解這些。首先，我們的會員。我們的結果表明，擁有 300 萬會員的龐大而忠誠的安裝基礎會帶來持續的好處。我們在第一季度的大部分貸款都提供給了我們現有的會員群，這大大提高了營銷效率，因為與向新會員提供的貸款相比，它們的成本僅為一小部分，而且它們還表現出較低的信用風險。

As the economic outlook has improved and with our digital bank acquisition complete, we have ramped marketing back up to deliver a 63% increase in total loan originations, which includes a 135% increase in originations to new customers. While consumer demand is currently below pre-pandemic levels and the competitive market is dynamic, we believe that we are well positioned to outpace the market's overall growth rate and to capture significant share.

隨著經濟前景的改善以及我們數字銀行收購的完成，我們加大了營銷力度，使總貸款發放量增加了 63%，其中新客戶發放量增加了 135%。雖然消費者需求目前低於大流行前的水平並且競爭激烈的市場充滿活力，但我們相信我們有能力超越市場的整體增長率並佔據重要份額。

Our second key differentiator is our data and technology leadership, supported by 15 years of significant investments and our experience on more than $60 billion in loans. This provides us with an enormous data advantage in both originations and servicing. We take this huge data set and apply the latest analytical techniques, including neural networks and machine learning, to inform our decisions. We deployed dozens of models to drive our targeting, fraud, underwriting, pricing, servicing and user experience and to manage outcomes for distinct customer segments. This allows us to make compelling offers to customers while providing competitive returns for platform investors. It also allows us to automate originations and efficiently grow loan volume without a proportional increase in head count.

我們的第二個關鍵差異化因素是我們在數據和技術方面的領先地位，這得益於我們 15 年的重大投資和我們在超過 600 億美元貸款方面的經驗。這為我們在發起和服務方面提供了巨大的數據優勢。我們利用這個龐大的數據集並應用最新的分析技術（包括神經網絡和機器學習）來為我們的決策提供信息。我們部署了數十種模型來推動我們的定位、欺詐、承保、定價、服務和用戶體驗，並管理不同客戶群的結果。這使我們能夠為客戶提供有吸引力的報價，同時為平台投資者提供有競爭力的回報。它還使我們能夠自動化發起並有效地增加貸款量，而無需按比例增加人數。

As the economy recovers and we normalize our underwriting, we expect more than 2/3 of our loans to be automatically approved while maintaining fraud rates in the low single-digit basis points that's one of the lowest in the industry. Our ability to assess and manage risk and to quickly adapt to the environment is evident in the results during the pandemic.

隨著經濟復甦和我們的承銷正常化，我們預計超過 2/3 的貸款將自動獲得批准，同時將欺詐率保持在業內最低的個位數基點。我們評估和管理風險以及快速適應環境的能力在大流行期間的結果中顯而易見。

Looking at the latest performance data from dv01, LendingClub is outperforming the market in all credit segments in which we compete, with delinquency rates that are over 35% better than the average. In addition to our outperformance, the asset class more broadly has validated its place in the payment hierarchy. A recently released study from TransUnion confirms our internal data that customers prioritize payment of their personal loan obligations above many others, including credit cards.

從 dv01 的最新業績數據來看，LendingClub 在我們競爭的所有信貸領域都優於市場，拖欠率比平均水平低 35% 以上。除了我們的出色表現外，資產類別更廣泛地驗證了其在支付層次結構中的地位。 TransUnion 最近發布的一項研究證實了我們的內部數據，即客戶優先考慮支付他們的個人貸款義務，而不是其他許多人，包括信用卡。

These compelling results for the category in general and for LendingClub, in particular, are boosting loan investor demand for our assets. This is critical because even with the addition of our digital bank, the majority of our personal loans continue to be funded through our marketplace, which is our third key differentiator. Our broad range of investors allows us to serve a wide range of customers at competitive prices, which helps support our industry-leading marketing efficiency.

總體而言，LendingClub 的這些引人注目的結果正在推動貸款投資者對我們資產的需求。這一點很關鍵，因為即使增加了我們的數字銀行，我們的大部分個人貸款仍繼續通過我們的市場提供資金，這是我們的第三個關鍵差異化因素。我們廣泛的投資者使我們能夠以具有競爭力的價格為廣泛的客戶提供服務，這有助於支持我們行業領先的營銷效率。

Our final differentiator is our digital bank, where we are immediately capturing the following financial benefits: one, funding costs are down approximately 300 basis points versus what we paid in 2020; two, we lowered our origination cost by eliminating fees to third-party banks; and three, as I already mentioned, we're building a significant new revenue stream from retained loans that will drive higher revenue per loan and accelerate our growth.

我們的最後一個區別是我們的數字銀行，我們立即獲得了以下經濟利益：第一，融資成本比我們在 2020 年支付的成本下降了大約 300 個基點；第二，我們通過取消對第三方銀行的費用來降低我們的發起成本；第三，正如我已經提到的，我們正在從保留貸款中建立一個重要的新收入來源，這將推動每筆貸款的收入增加並加速我們的增長。

We also continue to win accolades. In March, CNET recognized our consumer checking account as best overall, beating out both traditional and online-only banks. And our digital bank was recognized by Celent, a leading research firm focused on technology for financial institutions for our innovation on PPP. In just 6 days, we released an offering that has cumulatively delivered over $870 million in loans that help small businesses keep more than 75,000 people employed.

我們也繼續贏得讚譽。 3 月，CNET 將我們的消費者支票賬戶評為整體最佳賬戶，擊敗了傳統銀行和在線銀行。我們的數字銀行得到了 Celent 的認可，Celent 是一家專注於金融機構技術的領先研究公司，我們在 PPP 方面的創新。在短短 6 天內，我們發布了一項產品，累計提供超過 8.7 億美元的貸款，幫助小型企業保住 75,000 多名員工。

So taken together, our large and loyal member base, our data and technology leadership, the marketplace itself and, of course, our digital bank create a powerful new business model. Relative to banks, we expect to grow more rapidly and be more efficient at customer acquisition. Compared to traditional fintechs, we will be higher earning and more resilient. We are on a mission to help our members manage their lending, spending and savings and to make it easy for them to make the smart choices with their money.

因此，我們龐大而忠誠的會員基礎、我們的數據和技術領導地位、市場本身，當然還有我們的數字銀行，共同創造了一個強大的新商業模式。相對於銀行，我們期望增長更快，在客戶獲取方面更有效率。與傳統的金融科技公司相比，我們將獲得更高的收入和更強的彈性。我們的使命是幫助我們的會員管理他們的貸款、支出和儲蓄，並使他們能夠輕鬆地用他們的錢做出明智的選擇。

In closing, I'd like to thank all the LendingClub employees who worked to get us off to such a strong start and especially thank the team at Radius Bank, who are now LendingClubbers and are working hard to accomplish our [Zoom-based] integration.

最後，我要感謝所有 LendingClub 員工，他們為我們取得瞭如此良好的開端而努力，尤其要感謝 Radius Bank 的團隊，他們現在是 LendingClubbers，正在努力完成我們的 [基於 Zoom 的] 集成.

With that, I'll pass it over to you, Tom.

有了這個，我會把它傳遞給你，湯姆。

Thank you, Scott, and good afternoon, everyone. As Scott mentioned, we delivered a strong quarter and grew originations by 63%, with 40% growth in revenues and an entirely new revenue stream building -- beginning to build.

謝謝斯科特，大家下午好。正如 Scott 提到的那樣，我們交付了一個強勁的季度，原始收入增長了 63%，收入增長了 40%，並且一個全新的收入流正在建立——開始建立。

Our results came in well above the upper end of our guidance range for originations, revenue and earnings. We have lowered our funding costs and eliminated our issuance costs. And as we continue growing originations, we expect commensurate growth in our marketplace revenue. Strong growth in marketplace revenue will generate capital, which will allow us to fund growth in our highly profitable consumer loan portfolio. This will accelerate our overall revenue growth and prime the pump for recurring, high-margin earnings for years to come.

我們的結果遠高於我們對發起、收入和收益的指導範圍的上限。我們降低了融資成本並消除了發行成本。隨著我們繼續增加起源，我們預計我們的市場收入也會相應增長。市場收入的強勁增長將產生資本，這將使我們能夠為高利潤的消費貸款組合的增長提供資金。這將加速我們的整體收入增長，並為未來幾年的經常性、高利潤率收入註入活力。

So with our differentiated marketplace bank model, we benefit from the best of both worlds, our capital-light fee-based marketplace business and our high-margin bank model.

因此，憑藉我們差異化的市場銀行模式，我們受益於兩全其美，我們的輕資本收費市場業務和我們的高利潤銀行模式。

Now let me walk you through the new financial reporting format we adopted with the closing of the digital bank acquisition. We believe the new format will help facilitate a better understanding of the key drivers of profitability and comparisons to our peers. And we're moving away from our historical focus on adjusted EBITDA and shifting our focus to managing to GAAP financial results.

現在讓我向您介紹我們在完成對數字銀行的收購後採用的新財務報告格式。我們相信新格式將有助於更好地理解盈利能力的主要驅動因素並與同行進行比較。我們正在擺脫過去對調整後 EBITDA 的關注，並將重點轉移到管理 GAAP 財務業績上。

Let's walk through the financials. Again, Q1 revenues grew 40% sequentially compared to our expectations of 15% to 25%, reflecting stronger loan origination growth as we opened some of our marketing channels. The difference between our origination growth and revenue growth is due to the deferral of fees associated with loans we retained on the balance sheet, which will generate recurring revenue over time. Adjusted for these deferrals, revenue growth for the quarter would have been in line with origination growth at 64%.

讓我們來看看財務。同樣，與我們預期的 15% 至 25% 相比，第一季度收入環比增長 40%，反映出隨著我們開放一些營銷渠道，貸款發放增長更加強勁。我們的原始增長和收入增長之間的差異是由於與我們保留在資產負債表上的貸款相關的費用遞延，這將隨著時間的推移產生經常性收入。針對這些延期進行調整後，本季度的收入增長將與 64% 的原始增長保持一致。

Net interest income for the quarter was $18.5 million, up from $2.9 million in the prior quarter. This reflects 2 months of interest income from Radius assets as well as the interest income from consumer loans we started to retain during the quarter. In Q1, we recorded a CECL provision of $21 million, which included $7 million for day 1 CECL expense to build credit loss reserves for the acquired Radius portfolio.

本季度的淨利息收入為 1850 萬美元，高於上一季度的 290 萬美元。這反映了來自 Radius 資產的 2 個月利息收入以及我們在本季度開始保留的消費貸款利息收入。在第一季度，我們記錄了 2100 萬美元的 CECL 撥備，其中包括用於為收購的 Radius 投資組合建立信用損失準備金的第 1 天 CECL 費用的 700 萬美元。

Operating expenses for the quarter were $134 million. Approximately $10 million reflected Radius' OpEx for 2 months as well as an increase in compensation expenses as employee salaries returned to pre-pandemic levels on January 1. Marketing expenses also increased for the quarter, reflecting the opening of marketing channels I mentioned earlier. And lastly, we incurred approximately $9 million in nonrecurring acquisition-related expenses.

本季度的運營費用為 1.34 億美元。大約 1000 萬美元反映了 Radius 兩個月的運營支出以及隨著員工工資在 1 月 1 日恢復到大流行前水平而增加的補償費用。該季度的營銷費用也有所增加，這反映了我之前提到的營銷渠道的開放。最後，我們產生了大約 900 萬美元的非經常性收購相關費用。

So just to recap, we had 3 items that drove almost all our GAAP loss for the quarter: revenue deferrals net of cost of $14 million, $21 million of CECL provisions over actual credit losses; and nonrecurring acquisition expense of $9 million. Taken together, these items represent $44 million of our GAAP loss of $47 million.

因此，回顧一下，我們有 3 個項目導致了本季度幾乎所有的 GAAP 虧損：收入遞延扣除成本 1400 萬美元，CECL 準備金超過實際信用損失 2100 萬美元；以及 900 萬美元的非經常性收購費用。總的來說，這些項目占我們 4700 萬美元的 GAAP 虧損中的 4400 萬美元。

In terms of capital, we capitalized the bank with $250 million of cash, and we held $76 million of unrestricted cash at the holding company. At the end of the quarter, the bank had a CET ratio of 22.2% and Tier 1 leverage ratio of 12.9%. The difference between these ratios primarily reflects the significant amount of cash and securities on the bank's balance sheet. We intend to redeploy a significant amount of the excess liquidity into loans over time, driving higher net interest income. And we will remain prudent about how we manage our capital.

在資本方面，我們向銀行注資 2.5 億美元現金，我們在控股公司持有 7600 萬美元的非限制性現金。本季度末，該行CET比率為22.2%，一級槓桿比率為12.9%。這些比率之間的差異主要反映了銀行資產負債表上的大量現金和證券。隨著時間的推移，我們打算將大量過剩流動性重新部署到貸款中，從而推動更高的淨利息收入。我們將在如何管理我們的資本方面保持謹慎。

We've had a very good start to the year. Looking at the second quarter and the rest of 2021, we expect continued strong growth in the marketplace, and we'll continue to build our portfolio, driving a very profitable recurring earnings stream. Marketing channels that were shut down at last year are up and running, and we're seeing strong loan investor demand.

我們今年的開局非常好。展望第二季度和 2021 年剩餘時間，我們預計市場將繼續強勁增長，我們將繼續建立我們的投資組合，推動非常有利可圖的經常性收益流。去年關閉的營銷渠道正在運行，我們看到了強勁的貸款投資者需求。

Now let's turn to our outlook for 2Q and the full year. We expect 2Q revenue to be in the range of $130 million to $140 million, up 23% to 32% sequentially, with full year guidance increasing from $488 million to a range of $500 million to $530 million. With the success we saw in 1Q, we are projecting 2Q originations to a range between $1.7 billion and $1.9 billion, up 15% to 28%. And for the full year, we're increasing our outlook from $6.3 billion to a range of $6.8 million to $7.3 billion.

現在讓我們談談我們對第二季度和全年的展望。我們預計第二季度收入將在 1.3 億美元至 1.4 億美元之間，環比增長 23% 至 32%，全年指引將從 4.88 億美元增加至 5 億美元至 5.3 億美元。憑藉我們在第一季度取得的成功，我們預計第二季度的發起金額將在 17 億美元至 19 億美元之間，增長 15% 至 28%。對於全年，我們將預期從 63 億美元提高到 680 萬至 73 億美元。

Our GAAP earnings will continue to reflect deferred revenue and CECL provisions depending on the amount of loans we retain. We expect 2Q GAAP net loss to be between $40 million and $30 million and, for the full year, are guiding to an improvement in our full year results from our previous range of $200 million to $175 million to our current outlook of $167 million to $142 million.

我們的 GAAP 收益將繼續反映遞延收入和 CECL 準備金，具體取決於我們保留的貸款數額。我們預計第二季度 GAAP 淨虧損將在 4000 萬美元至 3000 萬美元之間，並且就全年而言，我們的全年業績將從之前的 2 億美元至 1.75 億美元的範圍改善到我們目前的 1.67 億美元至 142 美元的預期範圍百萬。

This quarter, you've gotten a glimpse of what our new marketplace bank model can do, and we look forward to sharing more with you as we progress throughout the year. With that, let me open it up to Q&A.

本季度，您已經了解了我們新的市場銀行模式的功能，我們期待在全年取得進展的同時與您分享更多信息。有了這個，讓我打開它進行問答。

(Operator Instructions)

（操作員說明）

Our first question comes from Henry Coffey with Wedbush.

我們的第一個問題來自 Henry Coffey 和 Wedbush。

Yes. Good afternoon, everyone. And Scott and Tom and Sameer, congratulations on a job well done, and I'm sure the whole team has worked really hard. A couple of questions. First, in trying to understand the bank, can you tell us what that portfolio is made up of? And how outside -- excluding the consumer loan held-for-investment business, how that portfolio is likely to change in size over time?

是的。大家下午好。 Scott、Tom 和 Sameer，祝賀他們出色地完成了工作，我相信整個團隊都非常努力。幾個問題。首先，在嘗試了解銀行時，您能否告訴我們該投資組合由什麼組成？在外部——不包括為投資而持有的消費貸款業務，該投資組合的規模可能如何隨時間變化？

Yes. Thanks, Henry, and just a couple of details. We did do a schedule in the earnings release for your reference. On Page 9, we broke out the assets of the bank and the holdco. So it's a lot easier for you to see where the [typical] earnings are going to be coming from.

是的。謝謝，亨利，還有一些細節。我們確實在收益發布中做了一個時間表供您參考。在第 9 頁，我們列出了銀行和控股公司的資產。因此，您可以更輕鬆地了解 [典型] 收入的來源。

So the total loans in the bank are just about $2.1 billion. Those are made up of about $324 million we had at the end of the quarter of consumer loans. And then the remaining were the commercial business that we acquired from Radius. Keep in mind that about $661 million of that was PPP loans. So obviously, the balance sheet is slightly higher because of the growth of the PPP loans. That's it. That's the makeup of the earning assets.

因此，銀行的貸款總額僅為 21 億美元左右。這些包括我們在本季度末的消費貸款中獲得的約 3.24 億美元。然後剩下的是我們從 Radius 收購的商業業務。請記住，其中約 6.61 億美元是 PPP 貸款。很明顯，由於 PPP 貸款的增長，資產負債表略有增加。就是這樣。這就是盈利資產的構成。

We do obviously have some securities that we also hold, about $151 million. And then we do have about $792 million in cash sitting in the bank.

我們顯然也持有一些證券，大約 1.51 億美元。然後我們在銀行里確實有大約 7.92 億美元的現金。

Should we expect the bank-related loans, and I'm separating all this from the LendingClub consumer business, to decline over time? Or is that also going to be a growing business?

我們是否應該預期與銀行相關的貸款（我將所有這些與 LendingClub 消費者業務分開）會隨著時間的推移而下降？或者這也將是一個不斷增長的業務？

I think we're going to see -- the fastest-growing piece of the business will be the consumer because we don't have anything in there right now. So we just started building that portfolio. We expect that to be about 15% to 25% of our volumes per quarter. And so that will grow faster than the...

我認為我們將會看到——增長最快的業務將是消費者，因為我們現在沒有任何東西。因此，我們剛剛開始構建該投資組合。我們預計這將占我們每季度銷量的 15% 至 25%。所以它的增長速度會比...

Origination volume of the consumer loans.

消費貸款的發起量。

That's right, of our origination volume. But all the portfolios are expected to grow some in 2021.

沒錯，我們的原始卷。但預計所有投資組合都將在 2021 年有所增長。

And then finally, and this is the question I get most frequently, as you look at balancing growth and integration costs and all these different moving parts that you articulated for us, what is the path to GAAP profitability? And how long does that take? How do you balance that against growth? Because obviously, there's a lot of growth to be had from putting the loans on balance sheet versus selling them to somebody else.

最後，這是我最常收到的問題，當你考慮平衡增長和整合成本以及你為我們闡述的所有這些不同的移動部分時，GAAP 盈利的途徑是什麼？這需要多長時間？你如何平衡它與增長？因為很明顯，將貸款放在資產負債表上而不是將其出售給其他人會帶來很大的增長。

Yes. So Henry, it's Scott. I'll start. Tom, maybe you can come over at the top with any details. But and what we're trying to show with both the prepared remarks and then in the materials we shared separately is the model is highly profitable, right, where it's supported by a new revenue stream that, for the same activities we were doing prior to the acquisition, we're now generating significant revenue and we've lowered our cost base also pretty substantially.

是的。亨利，是斯科特。我會開始。湯姆，也許你可以在頂部過來提供任何詳細信息。但是，我們試圖通過準備好的評論和我們分別分享的材料來展示的是，該模型是高利潤的，對的，它得到了新收入流的支持，對於我們之前所做的相同活動通過收購，我們現在產生了可觀的收入，而且我們也大幅降低了成本基礎。

So for us, there's obviously a trade-off between the timing to profit versus the size of the eventual profits. And we're going for the latter, right? So our end period results are going to be impacted by loan retention, but that's going to maximize our long-term profit. And we plan to -- we're building this business for the long term. We want to maximize that long-term profit. So -- and we think, as I said in the call, we feel really good about the credit we're generating and about the returns we're going to get on this. And we think that sets us up for long-term significant growth and profit.

因此，對我們來說，獲利時機與最終利潤規模之間顯然存在權衡。我們選擇後者，對吧？因此，我們的期末結果將受到貸款保留的影響，但這將使我們的長期利潤最大化。我們計劃 - 我們正在長期建立這項業務。我們希望最大化長期利潤。所以 - 我們認為，正如我在電話中所說的那樣，我們對我們正在產生的信用以及我們將要獲得的回報感到非常滿意。我們認為這為我們的長期顯著增長和利潤奠定了基礎。

What are you talking about the mix? I'm sorry. Go on, Tom.

你在說什麼混音？對不起。繼續，湯姆。

No, I was going to say, Henry, just to call out some things I said in my prepared remarks. The $47 million loss, we did have a number of items in there, obviously the nonrecurring item of $9 million just related to the closing of the transaction. And then we had about $28 million of items related to CECL for loans being put on the books and deferral of the origination fee. So you can see that a lot of that impact on the GAAP results were the result of this accounting convention, recurring fees and having to book losses. So we feel very good about the line of sight, but we're going to continue to put loans on the books, and we'll continue to have this impact on our revenue and earnings because of the accounting convention.

不，亨利，我只是想說出我在準備好的發言稿中說的一些話。 4700 萬美元的損失，我們確實有一些項目在那裡，顯然是與交易結束有關的 900 萬美元的非經常性項目。然後我們有大約 2800 萬美元的項目與 CECL 相關，用於將貸款放在賬簿上並推遲發起費用。所以你可以看到，對 GAAP 結果的影響很大程度上是這種會計慣例、經常性費用和必須記賬損失的結果。所以我們對視線感覺很好，但我們將繼續把貸款記在賬面上，而且由於會計慣例，我們將繼續對我們的收入和收益產生這種影響。

So we've indicated 15% to 25% is the right number for us right now. We think that's a good balance between the growth and profitability. But as Scott said, it's really about how much profitability we think we can generate and how that will fuel the rest of our ambitions by having a very, very nice revenue stream coming at us.

所以我們已經指出 15% 到 25% 是目前適合我們的數字。我們認為這是增長和盈利能力之間的良好平衡。但正如斯科特所說，這實際上是關於我們認為我們可以產生多少盈利能力，以及如何通過擁有非常非常好的收入流來推動我們的其他雄心壯志。

Great. And congratulations on all the work that went into this process.

偉大的。並祝賀此過程中所做的所有工作。

Thanks, Henry.

謝謝，亨利。

(Operator Instructions) Our next question comes from Steven Kwok with KBW.

（操作員說明）我們的下一個問題來自 Steven Kwok 和 KBW。

I guess the first question I have was just around the strong originations growth and expected that to continue by your raised guidance. Can you just talk about the competitive landscape? What are you seeing there? And what's the secret sauce behind the strong originations growth?

我想我的第一個問題是關於強勁的起源增長，並希望在你提出的指導下繼續下去。你能談談競爭格局嗎？你在那裡看到什麼？強大的起源增長背後的秘訣是什麼？

You got it. As we mentioned last quarter, we -- in Q1, we really just relit up the marketing channels for the first time. And we're in the process of going back out into the market and really optimizing and tuning on a channel-by-channel basis. And we feel very good about how we're positioned. I mean the secret sauce, if you will, is both the data advantage I talked about, the fact that we have a combination of new customers we're bringing in but also our existing member base that's generating some of our volume.

你說對了。正如我們上個季度提到的，我們 - 在第一季度，我們真的第一次重新啟動了營銷渠道。我們正在重新進入市場，並在逐個渠道的基礎上進行真正的優化和調整。我們對自己的定位感到非常滿意。我的意思是秘訣，如果你願意的話，既是我談到的數據優勢，事實上我們有我們正在引入的新客戶的組合，還有我們現有的會員群正在產生我們的一些數量。

And if you recall, last year, we had mentioned that we rebuilt our decision infrastructure. And that's enabled us to really increase the speed and the dynamism with which we can respond to signals we're getting in the market. And we've been able to do that as we go through the different marketing channels.

如果您還記得的話，去年我們曾提到我們重建了我們的決策基礎設施。這使我們能夠真正提高速度和活力，我們可以藉此響應我們進入市場的信號。當我們通過不同的營銷渠道時，我們已經能夠做到這一點。

Now in terms of the environment, I will say it is competitive. Basically, everyone who is out there pre-COVID is back. I don't know if we're post-COVID yet, but they're back in the current environment, and there's even some new players. And we expect the environment to continue to be fairly intense in that a lot of people are looking for yield. And consumer demand is below pre-COVID levels. We think that's temporary, and we're certainly seeing spending start to recover. But within that framework of temporarily reduced consumer demand and a lot of competition, we believe we could not possibly be better positioned for all the reasons we articulated.

現在就環境而言，我會說它是有競爭力的。基本上，在 COVID 之前在那裡的每個人都回來了。我不知道我們是否已經過 COVID 之後，但他們又回到了當前的環境中，甚至還有一些新玩家。我們預計環境將繼續相當緊張，因為很多人都在尋找收益。消費者需求低於 COVID 之前的水平。我們認為這是暫時的，我們肯定會看到支出開始復蘇。但在消費者需求暫時減少和競爭激烈的框架內，我們認為，出於我們闡述的所有原因，我們不可能處於更好的位置。

We're going to have a broader approval rate than the bank competition, and we're going to have higher earnings per loan and lower funding costs than the fintechs, and we've got a big data advantage. So -- and spreads right now, margins are wide. Credit is performing exceptionally well. So we feel good about our ability to compete in this market, and that's why we were confident to increase the guide.

我們將擁有比銀行競爭更廣泛的批准率，我們將擁有比金融科技更高的每筆貸款收益和更低的融資成本，並且我們擁有大數據優勢。所以——現在價差很大，利潤率很高。信貸表現異常出色。因此，我們對自己在這個市場上的競爭能力感到滿意，這就是我們有信心增加指南的原因。

Great. And you mentioned about the increase in sales and marketing. How should we think about the expense base, I think, going forward? It's relatively stable over the last 3 quarters and as we look ahead. If you can help guide us there.

偉大的。你提到了銷售和營銷的增長。我認為，我們應該如何考慮未來的費用基礎？它在過去 3 個季度和我們展望未來時相對穩定。如果你能幫助指導我們到那裡。

Do you want to take that, Tom?

湯姆，你想接受嗎？

Yes. So Steven, you're right. We have a -- we took a big, big effort last year to resize our expense base. You see a little bit of a pickup with the addition of Radius. I commented about $10 million. That was just for 2 months, remember. So it would be a little bit higher on a run rate basis. So expect that in the second quarter. But we feel like we're at a point where we've got a lot of capacity to handle this growth. You'll see us continue to invest in new capabilities, but we feel like we've got a lot of scale that can continue to be utilized as we ramp up our volumes.

是的。所以史蒂文，你是對的。我們有一個 - 去年我們付出了巨大的努力來調整我們的費用基礎。添加 Radius 後，您會看到一點拾音器。我評論了大約 1000 萬美元。記住，那隻是 2 個月。所以在運行率的基礎上會高一點。所以預計在第二季度。但我們覺得我們已經有足夠的能力來應對這種增長。你會看到我們繼續投資於新功能，但我們覺得我們有很多規模可以在我們增加產量時繼續利用。

So we'll obviously continue to monitor that, but we feel very good about the expense base right now. And we didn't really lose a lot of capabilities with our expense actions last year, and we feel good about kind of where we're headed for the rest of the year. We'll have some growth in expenses, but I don't think significant to call out at this time.

因此，我們顯然會繼續對此進行監控，但我們現在對費用基礎感覺非常好。去年我們的開支行動並沒有真正失去很多能力，我們對今年餘下時間的發展方向感到滿意。我們的開支會有一些增長，但我認為此時呼籲並不重要。

Yes, said another way, we preserved the capabilities to get back to the level of originations and drive the growth that we're currently seeing. I guess the only other thing I'd say is the revenue per origination is a number that's going to be growing, right? So it's just another lens. Our denominator will be changing there because we're going to be able to generate more revenue from each loan that we're producing.

是的，換句話說，我們保留了回到原始水平並推動我們目前看到的增長的能力。我想我唯一要說的另一件事是每次發起的收入是一個會增長的數字，對吧？所以這只是另一個鏡頭。我們的分母將在那裡發生變化，因為我們將能夠從我們提供的每筆貸款中獲得更多收入。

This concludes our question-and-answer session. I would like to turn the conference back over to Sameer Gokhale for any closing remarks.

我們的問答環節到此結束。我想將會議轉回給 Sameer Gokhale 作閉幕詞。

Well, thank you very much, everyone, for joining us today. And if you have any further questions, please contact the Investor Relations team, and we'll be happy to assist you.

非常感謝大家今天加入我們。如果您有任何其他問題，請聯繫投資者關係團隊，我們很樂意為您提供幫助。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。