Shares in Lending Club dropped by more than 21% after the company announced it expected revenues next year of between $680m-$705m, shy of analyst estimates of $715.4m-$719m.
In presentation materials for its investor day, Lending Club said that it expected a $3m hit to its revenue and adjusted earnings before interest, taxes, depreciation, and amortization (Ebitda), as a result of holding the residual from the company's recent securitisation.
It also said it plans to lower its losses next year to a range of between $53m to $38m, down from $72m to $68m that it expects in 2017.
Large and growing market
In the presentation it said: "Unsecured online lending is a large and growing market, serving a critical customer need LendingClub as the leader is uniquely positioned to go after this market. The marketplace model is the right one with broad consumer demand and investor appetite and we have strong credit, tech and product capabilities that are difficult to replicate at this scale.
"We have the right blend of team and culture to win and a solid plan to deliver growth, while investing for the future."