OnDeck Capital (NYSE: ONDK) reported second-quarter adjusted earnings of 9 cents per share, which was 3 cents lower than what the street expected. Meanwhile, revenues were up 15% year-over-year, driven by higher interest and finance income.
Q2 revenue of $110.2 million was slightly better than the analysts’ projection of $109.2 million.
Loans and finance receivables increased 15% from a year ago to $1.2 billion, reflecting annual growth in all loan types and the closing of the Evolocity transaction in April 2019.
ONDK shares closed their last trading session up 1.28% on Friday. The stock has declined 34% in the year-to-date period.
For the third quarter, the company expects adjusted net income between $4 million and $8 million on gross revenue of $108 million to $112 million.
For the full year, adjusted net income is projected in the range of $22 million to $30 million on revenues of $438 million to $448 million.
CEO Noah Breslow said, “After careful consideration and analysis, we have decided to pursue a bank charter, which will enable us to offer our small business customers a wider range of products while improving our financial profile.”