Prosper Files 10-Q for Q3-2013

[Xenon481]

http://www.sec.gov/Archives/edgar/data/1416265/000114036113042963/form10q.htm

Q2 2009 - Loss before other income: $2,617,400
Q3 2009 - Loss before other income: $2,289,092
Q4 2009 - Loss before other income: $2,868,908
Q1 2010 - Loss before other income: $2,747,524
Q2 2010 - Loss before other income: $2,787,434
Q3 2010 - Loss before other income: $2,404,217
Q4 2010 - Loss before other income: $2,566,804
Q1 2011 - Loss before other income: $3,097,283
Q2 2011 - Loss before other income: $2,837,560
Q3 2011 - Loss before other income: $2,837,290
Q4 2011 - Loss before other income: $3,519,037
Q1 2012 - Loss before other income: $4,690,488
Q2 2012 - Loss before other income: $3,545,603
Q3 2012 - Loss before other income: $4,448,773
Q4 2012 - Loss before other income: $4,764,596
Q1 2013 - Loss before other income: $4,516,630
Q2 2013 - Loss before other income: $16,175,000 * and **
Q3 2013 - Loss before other income: $5,375,000

* = Prosper recorded the entire $10million settlement cost in Q2 of 2013.
** = Prosper's Q2 2013 quarterly operating loss (not counting the $10million settlement) is $6,175,000.

The two most recent quarters have been Prosper's biggest losses in their history.

Prosper currently has (as of September 30th, 2013) a combined "Cash and Cash Equivalents" of $29,300,000, but this is before having made any payments for the Class Action Lawsuit settlement. This is enough to last on the order of about 5 quarters at the current burn rate before needing an additional venture capital cash infusion.

- Prosper spent over half a million dollars more in advertisement and marketing during the quarter than they received in net revenue.

[Bohb Daishi]

Q1 2013 - Loss before other income: $4,516,630
Q2 2013 - Loss before other income: $16,175,000 * and **
Q3 2013 - Loss before other income: $5,375,000

I wonder how much of this is because of their TV ad campaign.

[Paisan]

I was looking into opening a prosper IRA. I see the 10-Q and I get a bit worried...

I know that prosper has a backup plan if it should go bankrupt (another company will take over) but if that happens, I can see borrowers thinking that they can skip on loans b/c the company that loaned money to them is bk.

Really, how many more multi-million dollar losing quarters can this company take?

[Peter]

As I have said on the blog these large losses are about to change and change dramatically. I have had several conversations with the Prosper president about this. In September Prosper made some major changes to their borrower acquisition channel that has driven down costs considerably. We should see marked improvement in Q4 2013 and again in Q1 2014.

I am happy to go on the record saying I expect Prosper to post a profit in Q2 or Q3 2014 and for their bottom line numbers to improve every quarter from here on. I do hope Xenon you keep posting these quarterly updates as their numbers improve. 

[DanB]

As I have said on the blog these large losses are about to change and change dramatically. I have had several conversations with the Prosper president about this. In September Prosper made some major changes to their borrower acquisition channel that has driven down costs considerably. We should see marked improvement in Q4 2013 and again in Q1 2014.

I am happy to go on the record saying I expect Prosper to post a profit in Q2 or Q3 2014 and for their bottom line numbers to improve every quarter from here on. I do hope Xenon you keep posting these quarterly updates as their numbers improve. 

Peter is correct, as far as the improvement & the trend is concerned. Even though I'm often the first to remind myself that one quarters results don't necessarily mean anything, in this case I think the trend towards a substantial improvement is very much in place. In fact  excluding the one time Q2 2013 charge for the settlement you will notice a decline in losses from Q2 2013 to Q3 2013 of around 13% which in itself is already significant considering the rapid increase in volume...............which in the past would have suggested a rapid increase in losses in tandem. I'm confident that we will see a clean break from that past pattern going forward.

[bobeubanks]

The Motley Fool says to Avoid Prosper Like The Plague.

Do you really think this five+ year old article is really still relevant?