Of the 7 retail investor friendly platforms out there today, we found big news from 2 of them this week. That's on top of Lending Club's positive earnings surprise last week. The two platforms in question: Prosper and AHP.
Prosper Q2 Earnings
Prosper surprised everyone with their earnings that start with them posting a cash flow positive quarter. Cash flow comes from Net Income with non-cash expenses like Depreciation added back as these are expensed for tax purposes but not true cash outlays. Instead of -$18 million in operating cash flow in Q2 2016, Prosper posted a cash flow of $8.5 million. Here are some other highlights of the quality of their quarter:
- 74% year over year loan origination growth to $775 million
- Transaction fee revenue up 84% year over year
- Servicing fees dropped by $1 million in the quarter
- Prosper closed a $500 million securitization, part of the huge $5 billion deal they signed earlier this year
Prosper had a terrific quarter and everything is going in the right direction for them. After LC's slight surprise, some thought Prosper might do better than expected, but not this much better. This was a great quarter for them and the 2 consumer lending platforms for retail investors are in good health.
AHP Suspends New Investments
In a case of more isn't always better, AHP is growing so fast that they had to suspend new investments into their 2015A+ fund. All investors got an email from them with this announcement saying it's temporary and they expect to re-open funds back up in a couple weeks after they catch up. Here are a couple additional highlights from this announcement:
- Automatic reinvestment of investor distributions, which take place on the 10th of each month, still take place
- Automatic and recurring investments, which take place on the 5th or the 20th based on your choice, are still taking place
- IRA based investments are continuing, too
You can join a waitlist if you want to invest but haven't yet to get notified of what investment reopens
Only new money from new investors is cut off for now. Given the interest I've seen and heard about them in the market, I believe them when they say it's temporary and about growing too much too fast.
Things change in p2p lending all the time so this is a case where getting in early is a big advantage since current investors can still invest but new ones cannot.
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