Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 03, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Line Items] | |||
Entity Registrant Name | PROSPER MARKETPLACE, INC | ||
Entity Central Index Key | 1,416,265 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 69,509,045 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Prosper Funding LLC [Member] | |||
Document And Entity Information [Line Items] | |||
Entity Registrant Name | Prosper Funding LLC | ||
Entity Central Index Key | 1,542,574 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and Cash Equivalents | $ 66,295,000 | $ 50,557,000 |
Restricted Cash | 151,223,000 | 81,300,000 |
Available for Sale Investments, at Fair Value | 73,187,000 | |
Accounts Receivable | 2,434,000 | 3,152,000 |
Loans Held for Sale, at Fair Value | 32,000 | 8,463,000 |
Borrower Loans, at Fair Value | 297,273,000 | 273,243,000 |
Property and Equipment, Net | 24,965,000 | 14,424,000 |
Prepaid and Other Assets | 6,433,000 | 4,856,000 |
Servicing Assets | 14,363,000 | 4,163,000 |
Goodwill | 36,368,000 | 0 |
Intangible Assets, Net | 13,051,000 | 0 |
Total Assets | 685,624,000 | 440,158,000 |
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' DEFICIT | ||
Accounts Payable and Accrued Liabilities | 22,409,000 | 12,787,000 |
Payable to Investors | 136,507,000 | 64,494,000 |
Notes, at Fair Value | 297,405,000 | 273,783,000 |
Other Liabilities | 20,735,000 | 13,323,000 |
Total Liabilities | $ 477,056,000 | $ 364,387,000 |
Commitments and Contingencies (see Note 16) | ||
Convertible Preferred Stock – $0.01 par value; 177,388,425 shares authorized; 177,388,425 issued and outstanding as of December 31, 2015; 160,775,110 shares authorized; 153,499,785 issued and outstanding as of December 31, 2014. Aggregate liquidation preference of $325,952 and $160,952 as of December 31, 2015 and 2014, respectively. | $ 275,938,000 | $ 111,145,000 |
Stockholders' Deficit | ||
Common Stock – $0.01 par value; 270,326,075 shares authorized; 70,367,425 shares issued and 69,431,490 outstanding as of December 31, 2015; 239,644,415 shares authorized; 72,243,500 issued and outstanding as of December 31, 2014 | 127,000 | 102,000 |
Additional Paid-In Capital | 102,971,000 | 86,340,000 |
Less: Treasury Stock | (23,417,000) | (303,000) |
Accumulated Deficit | (146,907,000) | (121,513,000) |
Accumulated Other Comprehensive Income | (144,000) | |
Total Stockholders' Deficit | (67,370,000) | (35,374,000) |
Total Liabilities, Convertible Preferred Stock and Stockholders' Deficit | 685,624,000 | 440,158,000 |
Prosper Funding LLC [Member] | ||
ASSETS | ||
Cash and Cash Equivalents | 15,026,000 | 23,777,000 |
Restricted Cash | 139,937,000 | 73,103,000 |
Short Term Investments | 1,277,000 | 1,274,000 |
Loans Held for Sale, at Fair Value | 32,000 | 8,463,000 |
Borrower Loans, at Fair Value | 297,273,000 | 273,243,000 |
Property and Equipment, Net | 8,419,000 | 1,125,000 |
Related Party Receivable | 1,135,000 | |
Servicing Assets | 13,605,000 | 3,116,000 |
Other assets | 122,000 | 4,000 |
Total Assets | 475,691,000 | 385,240,000 |
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' DEFICIT | ||
Accounts Payable and Accrued Liabilities | 2,122,000 | 612,000 |
Payable to Related Party | 2,989,000 | |
Payable to Investors | 135,661,000 | 63,809,000 |
Notes, at Fair Value | 297,405,000 | 273,783,000 |
Other Liabilities | 1,209,000 | 745,000 |
Total Liabilities | 439,386,000 | 338,949,000 |
Stockholders' Deficit | ||
Member's Equity | 29,619,000 | |
Accumulated Deficit | 36,305,000 | 16,672,000 |
Total Stockholders' Deficit | 36,305,000 | 46,291,000 |
Total Liabilities, Convertible Preferred Stock and Stockholders' Deficit | $ 475,691,000 | $ 385,240,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | May. 15, 2014 |
Statement Of Financial Position [Abstract] | |||
Convertible preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Convertible preferred stock, shares authorized (in shares) | 177,388,425 | 160,775,110 | 184,663,750 |
Convertible preferred stock, shares issued (in shares) | 177,388,425 | 153,499,785 | |
Convertible preferred stock, shares outstanding (in shares) | 177,388,425 | 153,499,785 | |
Convertible preferred stock, aggregate liquidation preference | $ 325,952 | $ 160,952 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 270,326,075 | 239,644,415 | 270,326,075 |
Common stock, shares issued (in shares) | 70,367,425 | 72,243,500 | |
Common stock, shares outstanding (in shares) | 69,431,490 | 72,243,500 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Revenues | ||
Transaction Fees, Net | $ 161,708,000 | $ 68,229,000 |
Servicing Fees, Net | 17,238,000 | 4,552,000 |
Gain on Sale of Borrower Loans | 14,151,000 | 3,227,000 |
Other Revenues | 7,687,000 | 1,828,000 |
Total Operating Revenues | 200,784,000 | 77,836,000 |
Interest Income | ||
Interest Income on Borrower Loans | 41,606,000 | 42,087,000 |
Interest Expense on Notes | (38,174,000) | (38,734,000) |
Net Interest Income | 3,432,000 | 3,353,000 |
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net | 59,000 | 128,000 |
Total Net Revenues | 204,275,000 | 81,317,000 |
Expenses | ||
Origination and Servicing | 31,139,000 | 14,098,000 |
Sales and Marketing | 112,284,000 | 41,971,000 |
General and Administrative | 86,480,000 | 27,917,000 |
Total Expenses | 229,903,000 | 83,986,000 |
Net Loss Before Taxes | (25,628,000) | (2,669,000) |
Income Tax Expense | 340,000 | |
Net Income (Loss) | (25,968,000) | (2,669,000) |
Excess Return to Preferred Shareholders on Repurchase | (14,892,000) | |
Net Loss Applicable to Common Shareholders | $ (25,968,000) | $ (17,561,000) |
Net Loss Per Share – Basic and Diluted | $ (0.47) | $ (0.39) |
Weighted-Average Shares - Basic and Diluted | 55,547,408 | 44,484,005 |
Prosper Funding LLC [Member] | ||
Operating Revenues | ||
Administration Fee Revenue - Related Party | $ 57,919,000 | $ 28,519,000 |
Servicing Fees, Net | 16,218,000 | 4,168,000 |
Gain on Sale of Borrower Loans | 14,151,000 | 3,733,000 |
Other Revenues | 1,500,000 | |
Total Operating Revenues | 89,788,000 | 36,420,000 |
Interest Income | ||
Interest Income on Borrower Loans | 41,380,000 | 42,370,000 |
Interest Expense on Notes | (38,174,000) | (38,734,000) |
Net Interest Income | 3,206,000 | 3,636,000 |
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net | 59,000 | 209,000 |
Total Net Revenues | 93,053,000 | 40,265,000 |
Expenses | ||
Administration Fee - Related Party | 3,705,000 | 1,509,000 |
Servicing | 62,786,000 | 24,966,000 |
General and Administrative | 1,227,000 | 506,000 |
Total Expenses | 67,718,000 | 26,981,000 |
Income Tax Expense | 0 | 0 |
Net Income (Loss) | $ 25,335,000 | $ 13,284,000 |
Consolidated Statements of Othe
Consolidated Statements of Other Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net Loss | $ (25,968) | $ (2,669) |
Other Comprehensive Income (Loss), Before Tax | ||
Change in Net Unrealized Gain (Loss) on Available for Sale Investments, at Fair Value | (144) | |
Other Comprehensive Income (Loss), Before Tax | (144) | |
Other Comprehensive Income (Loss), Net of Tax | (144) | |
Comprehensive Income/(Loss) | $ (26,112) | $ (2,669) |
Consolidated Statements of Conv
Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Prosper Funding LLC [Member] | Prosper Funding LLC [Member]Member's Equity [Member] | Restricted Stock | Convertible Preferred Stock [Member] | Convertible Preferred Stock [Member]Series C Convertible Preferred Stock [Member] | Convertible Preferred Stock [Member]Series D Preferred Stock [Member] | Common Stock [Member] | Common Stock [Member]Restricted Stock | Treasury Stock [Member] | Treasury Stock [Member]Restricted Stock | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Income [Member] | Accumulated Deficit [Member] | Accumulated Deficit [Member]Prosper Funding LLC [Member] |
Balance at Dec. 31, 2013 | $ (20,492) | $ 19,224 | $ 15,836 | $ 44,822 | $ 75 | $ (291) | $ 83,676 | $ (103,952) | $ 3,388 | ||||||
Balance (in shares) at Dec. 31, 2013 | 136,370,340 | 67,944,015 | (911,320) | ||||||||||||
Issuance Of Convertible Preferred Stock Series C, net of issuance costs | $ 69,958 | ||||||||||||||
Issuance Of Convertible Preferred Stock Series C, net of issuance costs (in shares) | 24,404,770 | ||||||||||||||
Exercise of vested stock options | 77 | $ 1 | 76 | ||||||||||||
Exercise of vested stock options (in shares) | 295,750 | ||||||||||||||
Exercise of nonvested stock options (in shares) | 4,328,585 | ||||||||||||||
Repurchase of stock | (14,892) | $ (12) | $ (3,635) | $ (12) | (14,892) | ||||||||||
Repurchase of stock (in shares) | (7,275,325) | (909,465) | (24,615) | ||||||||||||
Restricted stock vested | 345 | $ 25 | 320 | ||||||||||||
Exercise of warrants | 227 | $ 1 | 226 | ||||||||||||
Exercise of warrants (in shares) | 584,615 | ||||||||||||||
Stock-based compensation expense | 2,042 | 2,042 | |||||||||||||
Net Income (Loss) | (2,669) | 13,284 | (2,669) | 13,284 | |||||||||||
Balance at Dec. 31, 2014 | (35,374) | 46,291 | 29,619 | $ 111,145 | $ 102 | $ (303) | 86,340 | (121,513) | 16,672 | ||||||
Balance (in shares) at Dec. 31, 2014 | 153,499,785 | 72,243,500 | (935,935) | ||||||||||||
Capital Infusion from Parent | 15,000 | 15,000 | |||||||||||||
Transfer of Servicing Rights to Parent | (1,217) | (1,217) | |||||||||||||
Cumulative effect of adoption of fair value method for servicing rights | 574 | 574 | |||||||||||||
Issuance Of Convertible Preferred Stock Series C, net of issuance costs | $ 164,793 | ||||||||||||||
Issuance Of Convertible Preferred Stock Series C, net of issuance costs (in shares) | 23,888,640 | ||||||||||||||
Exercise of vested stock options | 779 | $ 8 | 771 | ||||||||||||
Exercise of vested stock options (in shares) | 3,125,890 | ||||||||||||||
Exercise of nonvested stock options (in shares) | 76,045 | ||||||||||||||
Repurchase of stock | (23,114) | $ (23,114) | |||||||||||||
Repurchase of stock (in shares) | (1,493,775) | (4,241,300) | |||||||||||||
Restricted stock vested | 488 | $ 17 | 471 | ||||||||||||
Restricted stock units sold | 1,630 | 1,630 | |||||||||||||
Restricted stock units sold (in shares) | 450,000 | ||||||||||||||
Exercise of warrants | 125 | 125 | |||||||||||||
Exercise of warrants (in shares) | 207,065 | ||||||||||||||
Stock-based compensation expense | 13,634 | 13,634 | |||||||||||||
Change in net unrealized loss on available for sale investments, at fair value | (144) | $ (144) | |||||||||||||
Net Income (Loss) | (25,968) | 25,335 | (25,968) | 25,335 | |||||||||||
Balance at Dec. 31, 2015 | $ (67,370) | 36,305 | $ 275,938 | $ 127 | $ (23,417) | $ 102,971 | $ (144) | $ (146,907) | 36,305 | ||||||
Balance (in shares) at Dec. 31, 2015 | 177,388,425 | 74,608,725 | (5,177,235) | ||||||||||||
Transfer of Servicing Rights to Parent | (249) | (249) | |||||||||||||
Distributions to Parent | (35,500) | $ (29,370) | (6,130) | ||||||||||||
Adjustment to Servicing Rights on Transition to Fair Value | $ 428 | $ 428 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Flows from Operating Activities: | ||
Net Income (Loss) | $ (25,968) | $ (2,669) |
Adjustments to Reconcile Net Income (Loss) to Net Cash Used in Operating Activities: | ||
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes | (59) | (596) |
Depreciation and Amortization | 7,649 | 2,097 |
Gain on Sales of Borrower Loans | (14,561) | (4,048) |
Amortization and Change in Fair Value of Servicing Rights | 4,860 | 792 |
Stock-Based Compensation Expense | 13,011 | 2,021 |
Change in Fair Value of Contingent Consideration | 1,001 | |
Other, Net | 216 | 444 |
Changes in Operating Assets and Liabilities: | ||
Purchase of Loans Held for Sale at Fair Value | (3,517,467) | (1,416,715) |
Proceeds from Sales and Principal Payments of Loans Held for Sale at Fair Value | 3,525,759 | 1,411,531 |
Restricted Cash Except for those Related to Investing Activities | (68,896) | (28,125) |
Accounts Receivable | 865 | (2,856) |
Prepaid and Other Assets | (1,360) | (2,840) |
Accounts Payable and Accrued Liabilities | 6,493 | 8,047 |
Payable to Investors | 72,013 | 26,469 |
Other Liabilities | 1,888 | 1,797 |
Net Cash Provided by (Used in) Operating Activities | 5,444 | (4,651) |
Cash Flows from Investing Activities: | ||
Purchase of Borrower Loans Held at Fair Value | (197,436) | (177,088) |
Principal Payments of Borrower Loans Held at Fair Value | 151,893 | 121,082 |
Purchases of Property and Equipment | (15,977) | (12,246) |
Maturities of Short Term Investments | 1,274 | 1,271 |
Purchases of Short Term Investments | (1,277) | (1,274) |
Purchases of Available for Sale Investments, at Fair Value | (77,538) | |
Proceeds from Sale of Available for Sale Securities | 4,022 | |
Acquisition of Businesses, Net of Cash Acquired | (38,147) | |
Changes in Restricted Cash Related to Investing Activities | (1,027) | (3,351) |
Net Cash Used in Investing Activities | (174,213) | (71,606) |
Cash Flows from Financing Activities: | ||
Proceeds from Issuance of Notes Held at Fair Value | 197,228 | 176,865 |
Payments of Notes Held at Fair Value | (151,838) | (120,909) |
Repayment of Borrowings | (5,047) | |
Proceeds from Issuance of Convertible Preferred Stock, Net | 164,793 | 69,958 |
Proceeds from Exercise of Warrants and Stock Options including Early Exercise, and Issuance of Restricted Stock | 2,617 | 1,118 |
Repurchase of Preferred Stock | (18,527) | |
Repurchase of Common Stock and Restricted Stock | (23,246) | (30) |
Net Cash Provided by Financing Activities | 184,507 | 108,475 |
Net Increase (Decrease) in Cash and Cash Equivalents | 15,738 | 32,218 |
Cash and Cash Equivalents at Beginning of the Year | 50,557 | 18,339 |
Cash and Cash Equivalents at End of the Year | 66,295 | 50,557 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash Paid for Interest | 38,168 | 41,053 |
Non-Cash Investing Activity- Accrual for Property and Equipment, Net | 1,483 | 1,550 |
Non-Cash Investing Activity- Amount Payable for the Acquisition of Business | 4,488 | |
Prosper Funding LLC [Member] | ||
Cash Flows from Operating Activities: | ||
Net Income (Loss) | 25,335 | 13,284 |
Adjustments to Reconcile Net Income (Loss) to Net Cash Used in Operating Activities: | ||
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes | (59) | (596) |
Other Non-Cash Changes in Borrower Loans, Loans Held for Sale and Notes | (57) | |
Depreciation and Amortization | 3,161 | 1,331 |
Gain on Sales of Borrower Loans | (14,561) | (4,034) |
Amortization and Change in Fair Value of Servicing Rights | 4,176 | 594 |
Changes in Operating Assets and Liabilities: | ||
Purchase of Loans Held for Sale at Fair Value | (3,517,467) | (1,416,715) |
Proceeds from Sales and Principal Payments of Loans Held for Sale at Fair Value | 3,525,759 | 1,411,531 |
Restricted Cash Except for those Related to Investing Activities | (68,776) | (28,125) |
Other Assets | (118) | 3 |
Accounts Payable and Accrued Liabilities | 1,510 | 405 |
Payable to Investors | 71,852 | 25,788 |
Net Related Party Receivable/Payable | 2,880 | (1,340) |
Other Liabilities | 539 | 90 |
Net Cash Provided by (Used in) Operating Activities | 34,174 | 2,216 |
Cash Flows from Investing Activities: | ||
Purchase of Borrower Loans Held at Fair Value | (197,436) | (177,088) |
Principal Payments of Borrower Loans Held at Fair Value | 151,893 | 121,081 |
Purchases of Property and Equipment | (9,211) | (846) |
Maturities of Short Term Investments | 1,274 | 1,271 |
Purchases of Short Term Investments | (1,277) | (1,274) |
Changes in Restricted Cash Related to Investing Activities | 1,942 | 1,672 |
Net Cash Used in Investing Activities | (52,815) | (55,184) |
Cash Flows from Financing Activities: | ||
Proceeds from Issuance of Notes Held at Fair Value | 197,228 | 176,865 |
Payments of Notes Held at Fair Value | (151,838) | (120,909) |
Cash Distributions to Parent | (35,500) | |
Loan Advances to Parent | (10,000) | |
Loan Repayments from Parent | 10,000 | |
Member’s Equity Capital Infusion from Parent | 15,000 | |
Net Cash Provided by Financing Activities | 9,890 | 70,956 |
Net Increase (Decrease) in Cash and Cash Equivalents | (8,751) | 17,988 |
Cash and Cash Equivalents at Beginning of the Year | 23,777 | 5,789 |
Cash and Cash Equivalents at End of the Year | 15,026 | 23,777 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash Paid for Interest | 38,168 | 41,053 |
Non-Cash Investing Activity- Accrual for Property and Equipment, Net | 1,436 | 192 |
Non-Cash Operating Activity - Servicing Rights Fair Value Adjustment | 428 | |
Non-Cash Financing Activity, Distribution to Parent | $ 249 | $ 1,228 |
Organization and Business
Organization and Business | 12 Months Ended |
Dec. 31, 2015 | |
Organization and Business | 1. Organization and Business Prosper Marketplace, Inc. (“PMI”) was incorporated in the state of Delaware on March 22, 2005. Except as the context requires otherwise, as used in these Notes to Consolidated Financial Statements of Prosper Marketplace, Inc., “Prosper,” “we,” “us,” and “our” refer to PMI and its wholly-owned subsidiaries, on a consolidated basis. PMI developed a peer-to-peer online credit marketplace (the “marketplace”), and, in February 2013, transferred ownership of the marketplace to Prosper Funding LLC (“PFL”), its wholly-owned subsidiary. All of the borrower payment dependent notes (“Notes”) issued and sold through the marketplace today are issued and sold by PFL. PFL also operates the marketplace and facilitates the origination of unsecured, consumer loans by WebBank (“Borrower Loans”), an FDIC-insured, Utah-chartered industrial bank, through the marketplace. Pursuant to a Loan Account Program Agreement between PMI and WebBank, PMI manages the operation of the marketplace, as agent of WebBank, in connection with the submission of loan applications by potential borrowers, the origination of related loans by WebBank and the funding of such Borrower Loans by WebBank. On February 1, 2013, PFL entered into an Administration Agreement with PMI in its capacity as licensee, corporate administrator, loan marketplace administrator and loan and note servicer, pursuant to which PMI provides certain back office support, loan platform administration and loan servicing to PFL. The marketplace is designed to allow investors to invest in Borrower Loans in an open, transparent marketplace, with the aim of allowing both investors and borrowers to benefit financially as well as socially. Prosper believes marketplace lending represents a new model of consumer lending, where individuals and institutions can earn the interest spread of a traditional consumer lender but must also assume the credit risk of a traditional consumer lender. A borrower who wishes to obtain a Borrower Loan through the marketplace must post a loan listing on the marketplace. Listings are allocated to one of two investor funding channels: (i) the “Note Channel,” which allows investors to commit to purchase Notes from PFL, the payments of which are dependent on PFL’s receipt of payments made on the corresponding Borrower Loan; and (ii) the “Whole Loan Channel,” which allows investors to commit to purchase 100% of a Borrower Loan directly from Prosper. As of December 31, 2015, the marketplace is open to investors in 30 states and the District of Columbia. Additionally, as of December 31, 2015, the marketplace is open to borrowers in 46 states and the District of Columbia. Currently our marketplace does not operate internationally. |
Prosper Funding LLC [Member] | |
Organization and Business | 1. Organization and Business Prosper Funding LLC (“PFL”) was formed in the state of Delaware in February 2012 as a limited liability company with the sole equity member being Prosper Marketplace, Inc. (“PMI”). Except as the context otherwise requires, as used in these Notes to Consolidated Financial Statements of Prosper Funding LLC, “ Prosper Funding,” “we,” “us,” and “our” refers to PFL and its wholly owned subsidiary, Prosper Asset Holdings LLC (“PAH”), a Delaware limited liability company, on a consolidated basis. PFL was formed by PMI to hold Borrower Loans and issue Notes through the marketplace. Although Prosper Funding is consolidated with PMI for accounting and tax purposes, Prosper Funding has been organized and is operated in a manner that is intended to minimize the likelihood that it would be substantively consolidated with PMI in a bankruptcy proceeding. Prosper Funding’s intention is to minimize the likelihood that its assets would be subject to claims by PMI’s creditors if PMI were to file for bankruptcy, as well as to minimize the likelihood that Prosper Funding will become subject to bankruptcy proceedings directly. Prosper Funding seeks to achieve this by placing certain restrictions on its activities and implementing certain formal procedures designed to expressly reinforce its status as a distinct entity from PMI. Since February 1, 2013, all Notes issued and sold through the marketplace are issued, sold and serviced by PFL. Pursuant to a Loan Account Program Agreement between PMI and WebBank, PMI manages the operation of the marketplace, as agent of WebBank, in connection with the submission of Borrower Loan applications by potential borrowers, the origination of related Borrower Loans by WebBank and the funding of such Borrower Loans by WebBank. Pursuant to an Administration Agreement between PFL and PMI, PMI manages all other aspects of the marketplace on behalf of PFL. A borrower who wishes to obtain a loan through the marketplace must post a loan listing, or listing, on the marketplace. PFL allocates listings to one of two investor funding channels: (i) the “Note Channel,” which allows investors to commit to purchase Notes from PFL, the payments of which are dependent PFL’s receipt of payments made on the corresponding Borrower Loan; and (ii) the “Whole Loan Channel,” which allows investors to commit to purchase 100% of a Borrower Loan directly from PFL. All loans requested and obtained through the marketplace are unsecured obligations of individual borrowers with a fixed interest rate and loan terms set at three or five years as of December 31, 2015. All loans made through the marketplace are funded by WebBank, an FDIC-insured, Utah chartered industrial bank. After funding a loan, WebBank sells the loan to PFL, without recourse to WebBank, in exchange for the principal amount of the loan. WebBank does not have any obligation to purchasers of the Notes. Prosper Funding’s marketplace is designed to allow investors to invest in Borrower Loans in an open transparent marketplace, with the aim of allowing both investors and borrowers to benefit financially as well as socially. Prosper Funding believes marketplace lending represents a new model of consumer lending, where individuals and institutions can earn the interest spread of a traditional consumer lender but must also assume the credit risk of a traditional consumer lender. As of December 31, 2015, Prosper Funding’s marketplace was open to investors in 30 states and the District of Columbia. Additionally, as of December 31, 2015 Prosper Funding’s marketplace was open to borrowers in 46 states and the District of Columbia. Currently, the marketplace does not operate internationally. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Significant Accounting Policies [Line Items] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements include the accounts of PMI and its wholly owned subsidiaries PFL, PHL and BillGuard. All intercompany balances and transactions between PMI and its subsidiaries have been eliminated in consolidation. PMI and PFL’s financial statements have been prepared in accordance with U.S generally accepted accounting principles (“U.S. GAAP”). On January 23, 2015, PMI acquired all of the outstanding limited liability company units of American HealthCare Lending, LLC (“American HealthCare Lending”), a company that operated a patient financing platform, and merged American HealthCare Lending with and into Prosper Healthcare Lending LLC (“PHL”), a newly established entity surviving the merger. Prosper’s consolidated financial statements include PHL’s results of operations and financial position from the date of acquisition forward (see Note 8 – American HealthCare Lending Acquisition On October 9, 2015, PMI acquired all of the outstanding stock of BillGuard, Inc. (“BillGuard”), a company incorporated in Delaware in 2010 that developed applications that help consumers manage their identity, finances and credit. PMI merged BillGuard with and into Beach Merger Sub, Inc., a newly established entity wholly owned by PMI, with BillGuard surviving the merger. Prosper’s consolidated financial statements include BillGuard’s results of operations and financial position from the date of acquisition forward (see Note 9 – BillGuard Acquisition Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the related disclosures, including contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. These estimates, judgments and assumptions include but are not limited to the following: valuation of Loans Held for Sale, Borrower Loans and associated Notes, valuation of servicing rights, valuation allowance on deferred tax assets, stock-based compensation expense, intangible assets, goodwill, contingent consideration and contingent liabilities. Actual results could differ from those estimates, and those differences could be material. Certain Risks In the normal course of its business, Prosper encounters significant credit risk. Financial instruments that potentially subject Prosper to significant concentrations of credit risk consist primarily of cash, cash equivalents, available for sale investments, Borrower Loans held for investment and restricted cash. Prosper places cash, cash equivalents, and restricted cash with high-quality financial institutions and is exposed to credit risk in the event of default by these institutions to the extent the amount recorded on the balance sheet exceeds federally insured amounts. Prosper performs periodic evaluations of the relative credit standing of these financial institutions and has not recognized any losses in earnings from instruments held at these financial institutions. As a lending marketplace, Prosper believes its customers are highly susceptible to uncertainties and negative trends, real or perceived, in the markets driven by, among other factors, general economic conditions in the United States and abroad. These external economic conditions and resulting trends or uncertainties could adversely impact its customers’ ability or desire to participate on its marketplace as borrowers or investors, and consequently could negatively affect its business and results of operations. To the extent that payments on Borrower Loans (including Borrower Loans that have been sold) are not made, interest income and/or servicing income will be reduced. A series of Notes corresponding to a particular Borrower Loan is wholly dependent on the repayment of such Borrower Loan. As a result, Prosper does not bear the credit risk on such Borrower Loan. Reclassifications During the period ended December 31, 2015, Prosper changed the presentation of its revenue in the consolidated statements of operations. A new line called “Gain on Sales of Borrower Loans” was created with the amounts included in this line previously classified as “Other Revenue”. Prior period amounts have been reclassified to conform to the current presentation. Prosper changed the presentation of the servicing assets on its Consolidated Balance Sheet by reclassifying them from “Prepaid and Other Assets” to “Servicing Assets”. Prosper also changed the presentation of liabilities by creating “Other Liabilities” and reclassified deferred rent and servicing liabilities from “Accounts Payable and Accrued Liabilities”, the “Class Action Settlement Liability” and “Repurchase Liability for Unvested Stock Awards” to “Other Liabilities”. Prior period amounts have been reclassified to conform to the current presentation. Management believes these changes make our financial statements more useful for the readers of the financial statements and comparable with Prosper’s competitors. Certain prior period amounts have been reclassified on the Consolidated Statements of Cash Flows to reflect the above changes to the Balance Sheet. Additionally the lines “Proceeds from the Early Exercise of Stock Options”, “Proceeds from the Exercise of Vested Stock Options” and “Proceeds from Exercise of Common Stock Warrants” were combined into one line item. Consolidation of Variable Interest Entities The determination of whether to consolidate a variable interest entity (“VIE”) in which we have a variable interest requires a significant amount of analysis and judgment whether we are the primary beneficiary of a VIE via a controlling financial interest in the VIE. A controlling financial interest in a VIE exists if we have both the power to direct the VIE’s activities that most significantly affect the VIE’s economic performance and a potentially significant economic interest in the VIE. The determination of whether an entity is a VIE considers factors, such as (i) whether the entity’s equity investment at risk is insufficient to allow the entity to finance its activities without additional subordinated financial support or (ii) when a holder’s equity investment at risk lacks any of the following characteristics of a controlling financial interest: the direct or indirect ability through voting rights or similar rights to make decisions about a legal entity’s activities that have a significant effect on the entity’s success, the obligation to absorb the expected losses of the entity or the right to receive the expected residual returns of the legal entity. As a result of the nature of the retained servicing rights on the sale of Borrower Loans, we are a variable interest holder in certain special purposes entities that purchase these Borrower Loans. For all of these entities we either do not have the power to direct the activities that most significantly affect the VIE’s economic performance or we do not have a potentially significant economic interest in the VIE. In no case are we the primary beneficiary and as a result none of these entities are consolidated on Prosper ’s consolidated financial statements. Management regularly reviews and reconsiders its previous conclusions regarding the status of an entity as a VIE and whether we are required to consolidate such VIE in the consolidated financial statements. Cash and Cash Equivalents Cash includes various unrestricted deposits with highly rated financial institutions. Cash equivalents consist of highly liquid marketable securities with original maturities of three months or less at the time of purchase and consist primarily of money market funds, commercial paper, US treasury securities and US agency securities. Cash equivalents are stated at fair value . Restricted Cash Restricted cash consists primarily of cash deposits and short term certificate of deposit accounts held as collateral as required for long term leases, loan funding and servicing activities, and cash that investors or Prosper has on our marketplace that has not yet been invested in Borrower Loans or disbursed to the investor. Short Term Investments Short Term Investments which are included in Prepaid and Other Assets consists of certificates of deposit with a term greater than three months but less than a year that are held as collateral as required for loan funding and servicing activities. Available for Sale Investments Available for sale securities consist of commercial paper, US treasury securities, US agency securities and corporate debt securities. Available for sale investments are recorded at fair value with unrealized gains and losses reported, net of taxes, in accumulated other comprehensive income (loss) included in stockholders' equity unless management determines that an investment is other-than-temporarily impaired. Management evaluates whether available for sale debt securities are other than temporarily impaired (“OTTI”) on a quarterly basis. Debt securities with unrealized losses are considered OTTI if Prosper intends to sell the investment or if it is more likely than not that it will be required to sell such investment before any anticipated recovery. If management determines that an investment is OTTI under these circumstances, the impairment recognized in earnings is measured as the entire difference between the amortized cost and then-current fair value. An investment is also OTTI if management does not expect to recover all of the amortized cost of the investment. In this circumstance, the impairment recognized in earnings represents estimated credit losses, and is measured by the difference between the present value of expected cash flows Fair Value Measurement Prosper measures the fair value of assets and liabilities in accordance with its fair value hierarchy which prioritizes information used to measure fair value and the effect of fair value measurements on earnings and provides for enhanced disclosures determined by the level within the hierarchy of information used in the valuation. We apply this framework whenever other standards require (or permit) assets or liabilities to be measured at fair value. We define fair value in terms of the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The price used to measure the fair value is not adjusted for transaction costs. The fair value measurement also assumes that the transaction to sell an asset occurs in the principal market for the asset or, in the absence of a principal market, the most advantageous market for the asset. The principal market is the market in which the reporting entity would sell or transfer the asset with the greatest volume and level of activity for the asset. In determining the principal market for an asset or liability, it is assumed that the reporting entity has access to the market as of the measurement date. If no market for the asset exists or if the reporting entity does not have access to the principal market, the reporting entity should use a hypothetical market. Assets and liabilities carried at fair value on the balance sheets are classified among three levels based on the observability of the inputs used to determine fair value: Level 1 — The valuation is based on quoted prices in active markets for identical instruments. Level 2 — The valuation is based on observable inputs such as quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation methodologies for which all significant assumptions are observable in the market. Level 3 — The valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the instrument. Level 3 valuations are typically performed using pricing models, discounted cash flow methodologies, or similar methodologies, which incorporate management’s own estimates of assumptions that market participants would use in pricing the instrument or valuations that require significant management judgment or estimation. Fair values of assets or liabilities are determined based on the fair value hierarchy, which requires an entity to maximize the use of quoted prices and observable inputs and to minimize the use of unobservable inputs when measuring fair value. Various valuation methodologies are utilized, depending on the nature of the financial instrument, including the use of market prices for identical or similar instruments, or discounted cash flow models. When possible, active and observable market data for identical or similar financial instruments are utilized. Alternatively, fair value is determined using assumptions that management believes a market participant would use in pricing the asset or liability. Financial instruments consist principally of Cash and Cash Equivalents, Restricted Cash, Available for Sale Investments, Borrower Loans, Loans Held for Sale, Accounts Receivable, Accounts Payable and Accrued Liabilities, Payable to Investors and Notes. Servicing Assets and Liabilities are also subject to fair value measurement within the financial statements of Prosper. The estimated fair values of Cash and Cash Equivalents, Restricted Cash, Accounts Receivable, Accounts Payable and Accrued Liabilities, and Payable to Investors approximate their carrying values because of their short term nature. As observable market prices are not available for the Borrower Loans, Loans Held for Sale and Notes, or for similar assets and liabilities, Prosper believes the Borrower Loans, Loans Held for Sale and Notes should be considered Level 3 financial instruments. In a hypothetical transaction as of the measurement date, Prosper believes that differences in the principal marketplace in which the Borrower Loans are originated and the principal marketplace in which Prosper might offer those loans may result in differences between the originated amount of the loans and their fair value as of the transaction date. For Borrower Loans and Loans Held for Sale, the fair value is estimated using discounted cash flow methodologies based upon valuation assumptions including prepayment speeds, default rates and discount rates based on the perceived credit risk within each credit grade. The obligation to pay principal and interest on any series of Notes is equal to the loan payments, if any, that are received on the corresponding Borrower Loan, net of our servicing fee which is generally 1% of the outstanding balance. The fair value election for Notes and Borrower Loans allows both the assets and the related liabilities to receive similar accounting treatment for expected losses which is consistent with the subsequent cash flows to investors that are dependent upon borrower payments. As such, the fair value of a series of Notes is approximately equal to the fair value of the corresponding Borrower Loan, adjusted for the 1.0% servicing fee and the timing of loan purchase, note issuance and borrower payments subsequently disbursed to such Note holders. As a result, the valuation of the Notes uses the same methodology and assumptions as the Borrower Loans, except that the Notes incorporate the 1% servicing fee and any differences in timing in payments. Any unrealized gains or losses on the Borrower Loans and Notes for which the fair value option has been elected is recorded as a separate line item in the statement of operations. The effective interest rate associated with a group of Notes is less than the interest rate earned on the corresponding Borrower Loan due to the 1.0% servicing fee. See Note 4 for a roll-forward and further discussion of the significant assumptions used to value Borrower Loans and Notes. Borrower Loans and Notes Through the Note Channel, Prosper purchases Borrower Loans from WebBank then issues Notes, and holds the Borrower Loans until maturity. The obligation to repay a series of Notes funded through the Note Channel is dependent upon the repayment of the associated Borrower Loan. Borrower Loans and Notes funded through the Note Channel are carried on Prosper’s consolidated balance sheets as assets and liabilities, respectively. We choose to measure certain financial instruments and certain other items at fair value on an instrument-by-instrument basis with unrealized gains and losses on items for which the fair value option has been elected reported in earnings. Management believes that the fair value option is more meaningful for the readers of the financial statements and it allows both the Borrower Loans and Notes to be valued using the same methodology. The fair value election, with respect to an item, may not be revoked once an election is made. Prosper estimates the fair value of such Borrower Loans and Notes using discounted cash flow methodologies adjusted for the expected prepayment, loss, recovery and default rates. The Borrower Loans are not derecognized when a corresponding Note is issued as Prosper maintains the ability to sell the Borrower Loans without the approval of the holders of the corresponding Notes. Loan Servicing Assets and Liabilities Prosper records servicing assets and liabilities at their estimated fair values for servicing rights retained when Prosper sells Borrower Loans to unrelated third-party buyers. The change in fair value of servicing assets and liabilities is recognized in “Servicing Fees” revenue. The gain or loss on a loan sale is recorded in “Gain on Sale” while the fair value of the servicing rights, which is based on the degree to which the contractual loan servicing fee is above or below an estimated market servicing rate is recorded in servicing assets or liabilities. Servicing assets and liabilities are recorded in “Servicing Assets” and “Other Liabilities,” respectively, on the consolidated balance sheets. On January 1, 2015, Prosper elected to adopt the fair value method to measure the servicing assets and liabilities for all classes of servicing assets and liabilities subsequent to initial recognition. Management believes that the fair value option is more meaningful for readers of the financial statements as it more accurately reflects the expected benefits and obligations of the servicing rights. The adoption of the fair value method for a particular class is irrevocable. Prior to January 1, 2015, Prosper measured the servicing assets and liabilities using the amortized cost method. This change resulted in a $574 thousand decrease to accumulated deficit, a $545 thousand increase in net servicing assets and a $29 thousand decrease in net servicing liabilities. Prosper uses a discounted cash flow model to estimate the fair value of the loan servicing assets or liabilities which considers the contractual projected servicing fee revenue that Prosper earns on the Borrower Loans, estimated market servicing rates to service such loans, prepayment rates, default rates and the current principal balances of the Borrower Loans. Loans Held for Sale Loans Held for Sale are comprised of Borrower Loans held for short durations and are recorded at fair value. The fair value is estimated using discounted cash flow methodologies based upon a set of valuation assumptions similar to those of other Borrower Loans. We measure certain financial instruments and certain other items at fair value on an instrument-by-instrument basis with unrealized gains and losses on items for which the fair value option has been elected reported in earnings. Management believes that the fair value option is more meaningful for the readers of the financial statements and it allows for the Loans Held for Sale to be measured at fair value similar to Borrower Loans and Notes. The fair value election, with respect to an item, may not be revoked once an election is made. Property and Equipment Property and equipment consists of computer equipment, office furniture and equipment, leasehold improvements, software purchased or developed for internal use and web site development costs. Property and equipment are stated at cost, less accumulated depreciation and amortization, and are computed using the straight-line method based upon estimated useful lives of the assets. Estimated useful lives of the assets are as follows: Furniture and fixtures 7 years Office equipment 5 years Computers and equipment 3 years Leasehold improvements 5-8 years Software and website development costs 1-5 years The costs to develop software for the website and other internal uses are capitalized when management has authorized and committed project funding, preliminary development efforts are successfully completed, and it is probable that the project will be completed and the software will be used as intended. Capitalized software and website development costs primarily include software licenses acquired, fees paid to outside consultants, and salaries and payroll related costs for employees directly involved in the development efforts. Costs incurred prior to meeting these criteria, together with costs incurred for training and maintenance, are expensed. Costs incurred for upgrades and enhancements that are considered to be probable to result in additional functionality are capitalized. Capitalized costs are included in property and equipment and amortized to expense using the straight-line method over their expected lives. Software and website development assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of software and website development assets to be held and used is measured by a comparison of the carrying amount of the asset group to the future net undiscounted cash flows expected to be generated by the asset group. If such software and website development assets are considered to be impaired, the impairment to be recognized is the excess of the carrying amount over the fair value of the software and website development asset group. Goodwill and Intangibles Goodwill associated with business combinations is computed by recognizing the portion of the purchase price that is not tied to individually identifiable and separately recognizable assets. Costs of internally developing any intangibles is expensed as incurred. Intangible assets identified through the acquisitions of American Healthcare Lending and BillGuard include customer relationships, technology and a brand name. The customer relationship intangible assets are amortized on an accelerated basis over three to ten year periods. The technology and brand name intangible assets are amortized on a straight line basis over three to five years and one year, respectively. Prosper values the customer relationships, technology and brand name assets using the income approach. Significant assumptions in valuing certain intangible assets include, but are not limited to, future expected cash flows from acquired users, acquired technology, and brand names from a market participant perspective, useful lives and discount rates. Business Combinations We allocate the fair value of purchase consideration to the tangible assets acquired, liabilities assumed and intangible assets acquired based on their estimated fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. Significant assumptions in valuing certain intangible assets include, but are not limited to, future expected cash flows from acquired users, acquired technology, and brand names from a market participant perspective, useful lives and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. During the measurement period, which is one year from the acquisition date, we may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair value, whichever comes first, any subsequent adjustments are recorded to earnings. Payable to Investors Payable to investors primarily represents our obligation to investors related to cash held in an account for the benefit of investors and payments-in-process received from borrowers. Repurchase Liability for Unvested Restricted Stock Awards Under the terms of PMI’s equity plans, at the Administrator’s discretion, certain equity awards issued to employees may be exercised before they have vested. When this occurs Prosper records a liability for the unvested portion of the exercised option. If the employee’s employment is terminated before all of the shares become vested PMI may repurchase the unvested shares at the original exercise price. The liability is released into equity as the shares become vested. Early exercises of options are not deemed to be substantive exercises for accounting purpose Revenue Recognition Revenue primarily results from fees and net interest income earned. Fees include transaction fees for our services performed on behalf of WebBank to originate a loan and servicing fees paid by investors. We also have other smaller sources of revenue reported as other revenue, this includes referral fees, securitization fees and subscription fees. Transaction Fees Prosper earns a transaction fee upon the successful origination of all Borrower Loans facilitated through Prosper’s marketplace. Prosper receives payments from WebBank as compensation for the activities Prosper performs on behalf of WebBank. Prosper’s fee is determined by the term and credit grade of the Borrower Loans that Prosper facilitates on its marketplace and WebBank originates. The transaction fee Prosper earns is determined by the term and credit grade of the Borrower Loan that is facilitated on Prosper’s marketplace, and ranges from 1.00% to 5.00% of the original principal amount of such Borrower Loan that WebBank originates. Prosper records the transaction fee net of any fees paid to WebBank because Prosper does not receive an identifiable benefit from WebBank other than the Borrower Loan that has been recognized at fair value. Servicing Fees Investors who purchase Borrower Loans from Prosper typically pay Prosper a servicing fee which is currently set at 1% per annum of the outstanding principal balance of the Borrower Loan prior to applying the current payment. The servicing fee compensates Prosper for the costs incurred in servicing the Borrower Loan, including managing payments from borrowers, payments to investors and maintaining investors’ account portfolios. Prosper records servicing fees from Investors as a component of operating revenue when received. The amortization of servicing rights and the change in fair value is also included in servicing fees. Gain on Sale of Borrower Loans Prosper recognizes gains or losses on the sale of Borrower Loans when it retains servicing assets or liabilities upon the sale of Borrower Loans. Interest Income on Borrower Loans, and Interest Expense on Notes Prosper recognizes interest income on Borrower Loans funded through the Note Channel and interest expense on the corresponding Notes using the accrual method based on the stated interest rate to the extent Prosper believes it to be collectable. Advertising Costs Advertising costs are expensed when incurred and are included in sales and marketing expense in the accompanying Consolidated Statements of Operations. Prosper incurred advertising costs of $60.1 million and $24.1 million for the years ended December 31, 2015 and 2014, respectively. Stock-Based Compensation We determine the fair value of our stock options issued to employees on the date of grant using the Black-Scholes option pricing model, which is impacted by the fair value of our common stock, as well as changes in assumptions that include, but are not limited to, the fair value of our common stock, the expected common stock price volatility over the term of the option awards, the expected term of the awards, risk-free interest rates and the expected dividend yield. We recognize compensation expense for our stock based awards on a straight-line basis over the period during which an employee is required to provide services in exchange for the award (the vesting period of the award). Stock-based compensation expense is recognized only for those awards expected to vest. We estimate future forfeitures at the date of grant and revise the estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Stock-based awards issued to non-employees are marked-to-market up until the point that the awards measurement period has been achieved. Compensation expense for stock options issued to nonemployees is calculated using the Black-Scholes option pricing model and is recorded over the vesting period of the award. Foreign Currency Transactions The functional currency of our international subsidiary is the U.S. dollar. For this subsidiary, foreign currency denominated monetary assets and liabilities are remeasured into U.S. dollars at current exchange rates and foreign currency denominated nonmonetary assets and liabilities are remeasured into U.S. dollars at historical exchange rates. Gains or losses from foreign currency remeasurement and settlements are included in general and administrative expense in the Consolidated Statements of Operations. Income Taxes The asset and liability method is used to account for income taxes. Under this method, deferred income tax assets and liabilities are based on the differences between the financial statement carrying values and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Prosper’s policy is to include interest and penalties related to gross unrecognized tax benefits within its provision for income taxes. U.S. Federal, California, Israel and other state income tax returns are filed. Prosper is currently not undergoing any income tax examinations. Due to the net operating loss, generally all tax years remain open. We recognize benefits from uncertain tax positions only if we believe that it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. Comprehensive Income Marketable debt securities are generally considered available-for-sale and are carried at fair value, based on quoted market prices or other readily available market information. Gains and losses are recognized when realized using the specific identification method and included in Other Revenues in the Consolidated Statements of Operations. Prosper monitors its investment portfolio for potential impairment on a quarterly basis. Recent Accounting Pronouncements In May 2014, as part of its ongoing efforts to assist in the convergence of US GAAP and International Financial Reporting Standards (“IFRS”), the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “ Revenue from Contracts with Customers In November 2014, the FASB issued ASU 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity to eliminate the use of different methods in practice and thereby reduce existing diversity in the accounting for hybrid financial instruments issued in the form of a share. For hybrid financial instruments issued in the form of a share, an entity should determine the nature of the contract by considering the economic characteristics and risks of the entire hybrid financial instrument. The existence or omission of any single term |
Prosper Funding LLC [Member] | |
Significant Accounting Policies [Line Items] | |
Summary of Significant Accounting Policies | 2. Significant Accounting Policies Basis of Presentation Prosper Funding’s consolidated financial statements include the accounts of PFL and its wholly-owned subsidiary PAH. All intercompany balances and transactions between PFL and PAH have been eliminated in consolidation. Prosper Funding Use of Estimates The preparation of Prosper Funding’s consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. These estimates, judgments and assumptions include but are not limited to the following: valuation of Loans Held for Sale, Borrower Loans and associated Notes, valuation of servicing rights, repurchase and indemnification obligation, and contingent liabilities. Prosper Funding bases its estimates on historical experience from all Borrower Loans, and on various other assumptions that it believes to be reasonable under the circumstances. Actual results could differ from those estimates, and those could be material. Certain Risks In the normal course of its business, Prosper encounters significant credit risk. Financial instruments that potentially subject Prosper Funding to significant concentrations of credit risk consist primarily of cash, cash equivalents and restricted cash. Prosper Funding places cash, cash equivalents and restricted cash with high-quality financial institutions and is exposed to credit risk in the event of default by these institutions to the extent the amount recorded on the balance sheet exceeds federally insured amounts. Prosper Funding also performs periodic evaluations of the relative credit standing of these financial institutions and has not recognized any losses in earnings from instruments held at these financial institutions. As a lending marketplace, Prosper Funding believes its customers are highly susceptible to uncertainties and negative trends, real or perceived, in the markets driven by, among other factors, general economic conditions in the United States and abroad. These external economic conditions and resulting trends or uncertainties could adversely impact its customers’ ability or desire to participate on its marketplace as borrowers or investors, and consequently could negatively affect its business and results of operations. To the extent that Borrower Loan (including Borrower Loans that have been sold) payments are not made, servicing income will be reduced. A group of Notes corresponding to a particular Borrower Loan is wholly dependent on the repayment of such Borrower Loan. As a result, Prosper Funding does not bear the credit risk on such Borrower Loan. Reclassifications During the period ended December 31, 2015, Prosper Funding Prior period amounts have been reclassified to conform to the current presentation. Prosper Funding also changed the presentation of the servicing assets on its Consolidated Balance Sheets by reclassifying them from “Prepaids and Other Assets” to “Servicing Assets.” Prior period amounts have been reclassified to conform to the current presentation. Management believes these changes make the financial statements more useful for the readers of the financial statements and comparable with Prosper Funding’s competitors. Consolidation of Variable Interest Entities The determination of whether to consolidate a variable interest entity (“VIE”) in which we have a variable interest requires a significant amount of analysis and judgment whether we are the primary beneficiary of a VIE via a controlling financial interest in the VIE. A controlling financial interest in a VIE exists if we have both the power to direct the VIE’s activities that most significantly affect the VIE’s economic performance and a potentially significant economic interest in the VIE. The determination of whether an entity is a VIE considers factors, such as (i) whether the entity’s equity investment at risk is insufficient to allow the entity to finance its activities without additional subordinated financial support or (ii) when a holder’s equity investment at risk lacks any of the following characteristics of a controlling financial interest: the direct or indirect ability through voting rights or similar rights to make decisions about a legal entity’s activities that have a significant effect on the entity’s success, the obligation to absorb the expected losses of the entity or the right to receive the expected residual returns of the legal entity. As a result of the nature of the retained servicing rights on the sale of Borrower Loans, we are a variable interest holder in certain special purposes entities that purchase these Borrower Loans. For all of these entities we either do not have the power to direct the activities that most significantly affect the VIE’s economic performance or we do not have a potentially significant economic interest in the VIE. In no case are we the primary beneficiary and as a result none of these entities are consolidated on Prosper Funding’s consolidated financial statements. Management regularly reviews and reconsiders its previous conclusions regarding the status of an entity as a VIE and whether we are required to consolidate such VIE in the consolidated financial statements. Cash and Cash Equivalents Cash equivalents are recorded at cost, which approximates fair value. Such deposits periodically exceed amounts insured by the FDIC. Restricted Cash Restricted cash consists primarily of cash deposits and short term certificates of deposit held as collateral as required for loan funding and servicing activities, and cash that investors or Prosper Funding Short Term Investments Short term investments consists of certificates of deposit with a term greater than three months but less than a year that are held as collateral as required for loan funding and servicing activities. Fair Value Measurement Prosper Funding measures the fair value of assets and liabilities in accordance with its fair value hierarchy which prioritizes information used to measure fair value and the effect of fair value measurements on earnings and provides for enhanced disclosures determined by the level within the hierarchy of information used in the valuation. We apply this framework whenever other standards require (or permit) assets or liabilities to be measured at fair value. We define fair value in terms of the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The price used to measure the fair value is not adjusted for transaction costs. Under ASC Topic 820, the fair value measurement also assumes that the transaction to sell an asset occurs in the principal market for the asset or, in the absence of a principal market, the most advantageous market for the asset. The principal market is the market in which the reporting entity would sell or transfer the asset with the greatest volume and level of activity for the asset. In determining the principal market for an asset or liability under ASC Topic 820, it is assumed that the reporting entity has access to the market as of the measurement date. If no market for the asset exists or if the reporting entity does not have access to the principal market, the reporting entity should use a hypothetical market. Under ASC Topic 820, assets and liabilities carried at fair value on the balance sheets are classified among three levels based on the observability of the inputs used to determine fair value: Level 1 — The valuation is based on quoted prices in active markets for identical instruments. Level 2 — The valuation is based on observable inputs such as quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation methodologies for which all significant assumptions are observable in the market. Level 3 — The valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the instrument. Level 3 valuations are typically performed using pricing models, discounted cash flow methodologies, or similar methodologies, which incorporate management’s own estimates of assumptions that market participants would use in pricing the instrument or valuations that require significant management judgment or estimation. Fair values of assets or liabilities are determined based on the fair value hierarchy established in ASC Topic 820, which requires an entity to maximize the use of quoted prices and observable inputs and to minimize the use of unobservable inputs when measuring fair value. Various valuation methodologies are utilized, depending on the nature of the financial instrument, including the use of market prices for identical or similar instruments, or discounted cash flow models. When possible, active and observable market data for identical or similar financial instruments are utilized. Alternatively, fair value is determined using assumptions that management believes a market participant would use in pricing the asset or liability. Financial instruments consist principally of cash and cash equivalents, restricted cash, Borrower Loans, accounts payable and accrued liabilities, and Notes. Servicing assets and liabilities are also subject to fair value measurement within the financial statements of PFL. The estimated fair values of cash and cash equivalents, restricted cash, accounts payable and accrued liabilities approximate their carrying values because of their short term nature. As observable market prices are not available for the Borrower Loans, Loans Held for Sale and Notes, Prosper Funding Prosper Funding Prosper Funding The obligation to pay principal and interest on any Note is equal to the loan payments, if any, that are received on the corresponding Borrower Loan, net of our servicing fee which is generally 1.0%. The fair value election for Notes and Borrower Loans allows both the assets and the related liabilities to receive similar accounting treatment for expected losses which is consistent with the subsequent cash flows to lenders that are dependent upon borrower payments. As such, the fair value of a group of Notes is approximately equal to the fair value of the corresponding Borrower Loan, adjusted for the 1.0% servicing fee and the timing of borrower payments subsequently disbursed to such Note holders. As a result, the valuation of the Notes uses the same methodology and assumptions as the Borrower Loans, except that the Notes incorporate the 1% servicing fee and any differences in timing of payments. Any unrealized gains or losses on the Borrower Loans and Notes for which the fair value option has been elected is recorded as a separate line item in the statement of operations. The effective interest rate associated with a group of Notes is less than the interest rate earned on the corresponding Borrower Loan due to the 1.0% servicing fee. See Note 4 for a roll-forward and further discussion of the significant assumptions used to value Borrower Loans and Notes. Borrower Loans and Notes Through the Note Channel, Prosper Funding Financial Instruments ( ). Loan Servicing Assets and Liabilities Prosper Funding records servicing assets and liabilities at their estimated fair values for servicing rights retained when Prosper Funding sells Borrower Loans to unrelated third-party buyers. The change in fair value of servicing assets and liabilities is recognized in “Servicing Fees” revenue. The gain or loss on a loan sale is recorded in “Gain on Sale of Borrower Loans” while the fair value of the servicing rights, which is based on the degree to which the contractual loan servicing fee is above or below an estimated market loan servicing rate is recorded in servicing assets or liabilities. Servicing assets and liabilities are recorded in “Servicing Assets” and “Other Liabilities,” respectively, on the consolidated balance sheets. On January 1, 2015, Prosper elected to adopt the fair value method to measure the servicing assets and liabilities for all classes of servicing assets and liabilities subsequent to initial recognition. ASC Subtopic 860-50, Servicing Assets and Liabilities, allows the adoption of the fair value method at the beginning of any fiscal year. The adoption of the fair value method for a particular class is irrevocable. Prior to January 1, 2015, Prosper measured the servicing assets and liabilities using the amortized cost method. This change resulted in a $428 thousand decrease to accumulated deficit, a $399 thousand increase in net servicing assets and a $29 thousand decrease in net servicing liabilities. Prosper Funding uses a discounted cash flow model to estimate the fair value of the loan servicing assets or liabilities which considers the contractual projected servicing fee revenue that Prosper Funding earns on the Borrower Loans, estimated market servicing fees to service such loans, prepayment rates, default rates and the current principal balances of the Borrower Loans. Borrower Borrower Loans Held for Sale are primarily comprised of Borrower Loans held for short durations and are recorded at fair value. The fair value is estimated using discounted cash flow methodologies based upon a set of valuation assumptions similar to those of other Borrower Loans, which are set forth below in Note 6 — Fair Value of Assets and Liabilities. Prosper Funding has adopted the provisions of ASC Topic 825 . Software and Website Development Software and Website Development represents the software and website that PMI has transferred to Prosper Funding. Prosper Funding does not develop any of its own software or website. Software and website are included in property and equipment and amortized to expense using the straight-line method over their expected lives which is generally one to five years. Prosper Funding Payable to Investors Payable to Investors primarily represents our obligation to investors related to cash held in an account for the benefit of investors and payments-in-process received from borrowers. Revenue Recognition Revenue primarily results from fees, net interest earned and gains on the sale of borrower loans. Fees consist of related party administrative fees and servicing fees paid by investors. We also have other smaller sources of revenue reported as other revenue, which includes fees charged in relation to securitizations by outside investors. Administration Agreement License Fees Prosper Funding primarily generates revenues through license fees it earns through an Administration Agreement with PMI. The Administration Agreement contains a license granted by Prosper Funding to PMI that entitles PMI to use the platform for and in relation to: (i) PMI’s performance of its duties and obligations under the Administration Agreement relating to corporate administration, loan platform services, loan and note servicing and marketing, and (ii) PMI’s performance of its duties and obligations to WebBank in relation to loan origination and funding. The license fees are based on the number of listings that are posted to the platform. Service Fees Investors who purchase Borrower Loans through the Whole Loan Channel typically pay Prosper Funding a servicing fee which is generally set at 1% per annum of the outstanding principal balance of the Borrower Loan prior to applying the current payment. The servicing fee compensates Prosper Funding for the costs incurred in servicing the related loan, including managing payments from borrowers, payments to investors and maintaining investors’ account portfolios. Prosper Funding Gain on Sale of Borrower Loans Prosper Funding recognizes gains or losses on the sale of Borrower Loans when it retains servicing assets or liabilities upon the sale of Borrower Loans. Interest Income on Borrower Loans and Interest Expense on Notes Prosper Funding recognizes interest income on Borrower Loans funded through the Note Channel and interest expense on the corresponding Notes using the accrual method based on the stated interest rate to the extent Prosper Funding believes it to be collectable. Administration Fee Expense - Related Party Pursuant to an Administration Agreement between Prosper Funding and PMI, PMI manages the marketplace on behalf of Prosper Funding. Accordingly, each month, Prosper Funding is required to pay PMI an administration fee that is based on PMI’s (a) finance and legal personnel costs, (b) number of Borrower Loans originated through the marketplace, (c) servicing fees collected by or on behalf of Prosper Funding, and (d) nonsufficient funds fees collected by or on behalf of Prosper Funding. In addition, under a second Administration Agreement between PMI and PAH, a wholly owned subsidiary of Prosper Funding, PAH is required to pay PMI an annual fee, for PMI being the administrator of PAH’s operations. Comprehensive Income There is no comprehensive income (loss) other than the net income (loss) disclosed in the consolidated statements of operations. Recent Accounting Pronouncements In May 2014, as part of its ongoing efforts to assist in the convergence of US GAAP and International Financial Reporting Standards (“IFRS”), the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “ Revenue from Contracts with Customers In November 2014, the FASB issued ASU 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity to eliminate the use of different methods in practice and thereby reduce existing diversity in the accounting for hybrid financial instruments issued in the form of a share. For hybrid financial instruments issued in the form of a share, an entity should determine the nature of the contract by considering the economic characteristics and risks of the entire hybrid financial instrument. The existence or omission of any single term or feature does not necessarily determine the economic characteristics and risks of the host contract. This standard will be effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. In February 2015, the FASB issued ASU 2015-02, " Consolidation (Topic 810): Amendments to the Consolidation Analysis. In April 2015, the FASB issued ASU 2015-05 “ Customers’ Accounting for Fees Paid in Cloud Computing Arrangement ”, which will be effective for the . The guidance changes what a customer must consider in determining whether a cloud computing arrangement contains a software license. If the arrangement contains a software license, the customer would account for the fees related to the software license element in accordance with guidance related to internal use software; if the arrangement does not contain a software license, the customer would account for the arrangement as a service contract. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2015 | |
Property and Equipment, Net | 3 . Property and Equipment, Net Property and equipment consist of the following (in thousands): December 31, 2015 2014 Property and equipment: Computer equipment $ 10,522 $ 3,824 Internal-use software and website development costs 10,990 4,486 Office equipment and furniture 2,442 1,904 Leasehold improvements 5,719 5,274 Assets not yet placed in service 3,242 4,361 Property and equipment 32,915 19,849 Less accumulated depreciation and amortization (7,950 ) (5,425 ) Total property and equipment, net $ 24,965 $ 14,424 Depreciation and amortization expense for property and equipment for 2015 and 2014 was $6,080 thousand and $2,097 thousand, respectively. Prosper capitalized internal-use software and website development costs in the amount of $7,348 thousand and $846 thousand for the years ended December 31, 2015 and 2014, respectively. Prosper recorded internal-use software and website development impairment charges of $0 and $322 thousand for the years ended December 31, 2015 and 2014 respectively, as a result of our decision to discontinue several software and website development projects. |
Prosper Funding LLC [Member] | |
Property and Equipment, Net | 3. Property and Equipment Property and equipment consist of the following (in thousands): December 31, 2015 2014 Property and equipment: Internal-use software and web site development costs $ 10,990 $ 4,042 Property and equipment 10,990 4,042 Less accumulated depreciation and amortization (2,571 ) (2,917 ) Total property and equipment, net $ 8,419 $ 1,125 Depreciation and amortization expense for 2015 and 2014 was $3,161 thousand and $1,331 thousand, respectively. Internal-use software and web site development additions of $10.5 million and $0.8 million were purchased from PMI in the years ended December 31, 2015 and 2014 respectively. |
Borrower Loans, Loans Held for
Borrower Loans, Loans Held for Sale, and Notes Held at Fair Value | 12 Months Ended |
Dec. 31, 2015 | |
Borrower Loans, Loans Held for Sale, and Notes Held at Fair Value | 4 . Borrower Loans, Loans Held for Sale, and Notes Held at Fair Value The fair value of the Borrower Loans funded and Notes issued through the Note Channel is estimated using discounted cash flow methodologies based upon a set of valuation assumptions. The primary assumptions used to value such Borrower Loans and Notes include default rates derived from historical performance and discount rates applied to each credit grade based on the perceived credit risk of each credit grade. The obligation to pay principal and interest on any series of Notes is equal to the payments, if any, received on the corresponding Borrower Loan, net of the servicing fee. As such, the fair value of the Notes is approximately equal to the fair value of the Borrower Loans funded through the Note Channel, adjusted for the servicing fee and the timing of borrower payments subsequently disbursed to the Note holders. The effective interest rate associated with a series of Notes will be less than the interest rate earned on the corresponding Borrower Loan due to the servicing fee. At December 31, 2015 and 2014, Borrower Loans, Notes and Loans Held for Sale (in thousands) were: Borrower Loans Notes Loans Held for Sale December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Aggregate principal balance outstanding $ 296,945 $ 268,598 $ (294,331 ) $ (272,269 ) $ 42 $ 8,295 Fair value adjustments 328 4,645 (3,074 ) (1,514 ) (10 ) 168 Fair value $ 297,273 $ 273,243 $ (297,405 ) $ (273,783 ) $ 32 $ 8,463 At December 31, 2015, outstanding Borrower Loans had original maturities between 36 and 60 months, had monthly payments with fixed interest rates ranging from 5.32% to 33.04% and had various maturity dates through December 2020. At December 31, 2014, Loans Held for Sale and Borrower Loans had original terms between 36 months and 60 months, had monthly payments with fixed interest rates ranging from 5.77% to 33.04% and had various maturity dates through December 2019. Within the change in fair value of Borrower Loans, Prosper recorded a gain of approximately $2.8 million that is attributable to changes in the credit risks associated with the instrument. As of December 31, 2015 the Borrower Loans that were 90 days or more delinquent, had an aggregate principal amount of $2.3 million and a fair value of $0.9 million. As December 31, 2014 the Borrower Loans that were 90 days or more delinquent, had an aggregate principal amount of $1.7 million and a fair value of $0.6 million. We place loans on non-accrual status when they are over 120 days due. As of December 31, 2015 and 2014, Borrower Loans in non-accrual status had a fair value of $0.1 million and zero, respectively. |
Prosper Funding LLC [Member] | |
Borrower Loans, Loans Held for Sale, and Notes Held at Fair Value | 4 . Borrower Loans, Loans Held For Sale and Notes Held at Fair Value The fair value of the Borrower Loans funded and Notes issued through the Note Channel is estimated using discounted cash flow methodologies based upon a set of valuation assumptions. The primary assumptions used to value such Borrower Loans and Notes include default rates derived from historical performance and discount rates applied to each credit grade based on the perceived credit risk. The obligation to pay principal and interest on any series of Notes is equal to the payments, if any, received on the corresponding Borrower Loan, net of the servicing fee. As such, the fair value of the Notes is approximately equal to the fair value of the Borrower Loans funded through the Note Channel, adjusted for the servicing fee and the timing of borrower payments subsequently disbursed to the Note holders. The effective interest rate associated with a series of Notes will be less than the interest rate earned on the corresponding Borrower Loan due to the servicing fee. At December 31, 2015 and 2014, Borrower Loans, Notes and Loans Held for Sale (in thousands) were: Borrower Loans Notes Loans Held for Sale December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Aggregate principal balance outstanding $ 296,945 $ 268,598 $ (294,331 ) $ (272,269 ) $ 42 $ 8,295 Fair value adjustments 328 4,645 (3,074 ) (1,514 ) (10 ) 168 Fair value $ 297,273 $ 273,243 $ (297,405 ) $ (273,783 ) $ 32 $ 8,463 At December 31, 2015, outstanding Borrower Loans had original maturities between 36 and 60 months, had monthly payments with fixed interest rates ranging from 5.32% to 33.04% and had various maturity dates through December 2020. At December 31, 2014, Borrower Loans and Loans Held for Sale had original terms between 36 months and 60 months, had monthly payments with fixed interest rates ranging from 5.77% to 33.04% and had various maturity dates through December 2019. Within the change in fair value of Borrower Loans, Prosper Funding recorded a gain of approximately $2.8 million that is attributable to changes in the credit risks associated with the instrument. As of December 31, 2015 the Borrower Loans that were 90 days or more delinquent, had an aggregate principal amount of $2.3 million and a fair value of $0.9 million. As December 31, 2014 the Borrower Loans that were 90 days or more delinquent, had an aggregate principal amount of $1.5 million and a fair value of $0.14 million. As of December 31, 2015 and 2014, Borrower Loans in non-accrual status had a fair value of $0.1 million and zero, respectively. |
Loan Servicing Assets and Liabi
Loan Servicing Assets and Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Loan Servicing Assets and Liabilities | 5 . Loan Servicing Assets and Liabilities Prosper initially records servicing assets and liabilities at their estimated fair values when Prosper sells Borrower Loans in their entirety to unrelated third-party buyers. During 2014, the initial fair value of such servicing assets or liabilities was amortized in proportion to the estimated servicing income or loss and was amortized over the period of servicing income or loss. The total gains recognized on the sale of such Borrower Loans were $14.2 million and $4.0 million for the years ended December 31, 2015 and 2014 respectively. For the years ended December 31, 2014 no impairment was recorded. For the year ended December 31, 2015, servicing assets and liabilities were measured at fair value subsequent to the initial recognition. At December 31, 2015, Borrower Loans that were sold to unrelated third parties, but for which we retained servicing rights had a total outstanding principal balance of $3.8 billion, original terms of either 36 or 60 months and had monthly payments with fixed interest rates ranging from 5.32% to 31.90% and maturity dates through December 2020. At December 31, 2014, Borrower Loans that were sold but for which we retained servicing rights had a total outstanding principal balance of $1.4 billion, original terms between 36 and 60 months and had monthly payments with fixed interest rates ranging from 6.05% to 31.34% and maturity dates through December 2019. $22.1 million and $5.3 million of contractually specified servicing fees, late charges and ancillary fees are included on our Statement of Operations in Servicing Fees, Net for the years ended December 31, 2015 and 2014 respectively. Fair value Valuation method – Prosper uses a discounted cash flow valuation methodology generally consisting of developing an estimate of future cash flows that are expected to occur over the life of a financial instrument and then discounting those cash flows at a rate of return that results in the fair value amount. Significant unobservable inputs presented in the table within Note 7 below are those that Prosper considers significant to the estimated fair values of the Level 3 servicing assets and liabilities. The following is a description of the significant unobservable inputs provided in the table. Prepayment of the loans has historically been insignificant and therefore does not currently have a material impact on the fair value of servicing assets and liabilities. Market servicing rate Discount rate Default Rate Prepayment Rate |
Prosper Funding LLC [Member] | |
Loan Servicing Assets and Liabilities | 5 . Loan Servicing Assets and Liabilities Prosper Funding initially records servicing assets and liabilities at their estimated fair values when Prosper Funding sells whole loans to unrelated third-party buyers. The initial fair value of such servicing assets or liabilities is amortized in proportion to the estimated servicing income or loss and is amortized over the period of servicing income or loss. The total gains recognized on the sale of the whole loans were $14.2 million and $4.0 million for the years ended December 31, 2015 and 2014 respectively. For the year ended December 31, 2014 no impairment was recorded. For the year ended December 31, 2015, servicing assets and liabilities were measured at fair value subsequent to the initial recognition At December 31, 2015, loans that were sold but for which we retained servicing rights had a total outstanding principal balance of $3.6 billion, original terms of either 36 or 60 months and had monthly payments with fixed interest rates ranging from 5.32% to 31.90% and Maturity dates through December 2020. At December 31, 2014, loans that were sold but for which we retained servicing rights had a total outstanding principal balance of $1.0 billion, original terms between 36 and 60 months and had monthly payments with fixed interest rates ranging from 6.05% to 31.34% and Maturity dates through December 2019. $20.4 million and $4.8 million of contractually specified servicing fees, late charges and ancillary fees are included on our Statement of Operations in Servicing Fees, Net for the years ended December 31, 2015 and 2014 respectively. Fair value Valuation method – Discounted cash flow valuation methodology generally consist of developing an estimate of future cash flows that are expected to occur over the life of a financial instrument and then discounting those cash flows at a rate of return that results in the fair value amount. Significant unobservable inputs presented in the table presented below within Note 6 are those that Prosper Funding considers significant to the estimated fair values of the Level 3 servicing assets and liabilities. The following is a description of the significant unobservable inputs provided in the table. Prepayment of the loans has historically been insignificant and therefore does not currently have a material impact on the fair value of servicing assets and liabilities. Market servicing rate Discount rate Default Rate Prepayment Rate |
Available for Sale Investments,
Available for Sale Investments, at Fair Value | 12 Months Ended |
Dec. 31, 2015 | |
Investments Debt And Equity Securities [Abstract] | |
Available for Sale Investments, at Fair Value | 6. Available for Sale Investments, at Fair Value Available for sale investments are recorded at fair value and unrealized gains and losses are reported, net of taxes, in Accumulated Other Comprehensive Income (Loss) included in Stockholders' Equity (Deficit) unless management determines that an investment is other-than-temporarily impaired (“OTTI”). The amortized cost, gross unrealized gains and losses, and fair value of available for sale investments as of December 31, 2015, are as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Fixed maturity securities: Corporate debt securities $ 50,327 $ 1 $ (94 ) $ 50,234 Commercial paper 9,493 - - 9,493 US Treasury securities 8,512 - (41 ) 8,471 Agency bonds 2,499 - (8 ) 2,491 Total fixed maturity securities 70,831 1 (143 ) 70,689 Short term bond funds 2,500 - (2 ) 2,498 Total Available for Sale Investments $ 73,331 $ 1 $ (145 ) $ 73,187 A summary of available for sale investments with unrealized losses as of December 31, 2015, aggregated by category and period of continuous unrealized loss, is as follows: Less than 12 months 12 months or longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fixed maturity securities: Corporate debt securities $ 45,375 $ (94 ) $ - $ - $ 45,375 $ (94 ) U.S. treasury securities 8,471 (41 ) - - 8,471 (41 ) Agency bonds 2,491 (8 ) - - 2,491 (8 ) Total fixed maturity securities 56,337 (143 ) - - 56,337 (143 ) Short term bond funds 2,498 (2 ) - - 2,498 (2 ) Total Investments with Unrealized Losses $ 58,835 $ (145 ) $ - $ - $ 58,835 $ (145 ) The maturities of available for sale investments at December 31, 2015, are as follows: Within 1 year After 1 year through 5 years After 5 years to 10 years After 10 years Total Corporate debt securities $ 26,289 $ 23,945 $ - $ - $ 50,234 Commercial paper 9,493 - - - 9,493 US Treasury securities - 8,471 - - 8,471 Agency bonds 2,491 2,491 Total Fair Value $ 35,782 $ 34,907 $ - $ - $ 70,689 Total Amortized Cost $ 35,831 $ 35,000 $ - $ - $ 70,831 Prosper sold investments in available for sale securities in the amount of $4.0 million during the year ended December 31, 2015. |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value of Assets and Liabilities | 7. Fair Value of Assets and Liabilities For a description of the fair value hierarchy and Prosper’s fair value methodologies, see Note 2 - Summary of Significant Accounting Policies. Prosper did not transfer any assets or liabilities in or out of level 3 during the year ended December 31, 2015. Financial Instruments Recorded at Fair Value The fair value of the Borrower Loans, Loans Held for Sale and Notes are estimated using discounted cash flow methodologies based upon a set of valuation assumptions. The primary cash flow assumptions used to value such Borrower Loans, Loans Held for Sale and Notes include default rates derived from historical performance and discount rates applied to each credit grade based on the perceived credit risk of each credit grade. Investments held at fair value consist of available for sale investments. The available for sale investments consist of corporate and government bonds. When available, Prosper uses quoted prices in active markets to measure the fair value of securities available for sale. When utilizing market data and bid-ask spreads, Prosper uses the price within the bid-ask spread that best represents fair value. When quoted prices do not exist, Prosper uses prices obtained from independent third-party pricing services to measure the fair value of investment assets. Prosper generally obtains prices from at least two independent pricing sources for assets recorded at fair value. Prosper's primary independent pricing service provides prices based on observable trades and discounted cash flows that incorporate observable information, such as yields for similar types of securities (a benchmark interest rate plus observable spreads) and weighted-average maturity for the same or similar securities. Prosper compares the prices obtained from its primary independent pricing service to the prices obtained from the additional independent pricing services to determine if the price obtained from the primary independent pricing service is reasonable. Prosper does not adjust the prices received from independent third-party pricing services unless such prices are inconsistent with the definition of fair value and result in a material difference in the recorded amounts. The following tables present the fair value hierarchy for assets and liabilities measured at fair value (in thousands): December 31, 2015 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Assets: Borrower Loans $ - $ - $ 297,273 $ 297,273 Loans Held for Sale - - 32 32 Available for Sale Investments, at Fair Value - 73,187 - 73,187 Servicing Assets - - 14,363 14,363 Total Assets - 73,187 311,668 384,855 Liabilities: Notes $ - $ - $ 297,405 $ 297,405 Servicing Liabilities - - 484 484 Contingent Consideration - - 4,801 4,801 Total Liabilities $ - $ - $ 302,690 $ 302,690 December 31, 2014 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Assets: Borrower Loans $ - $ - $ 273,243 $ 273,243 Loans Held for Sale - - 8,463 8,463 Total Assets - - 281,706 281,706 Liabilities: Notes $ - $ - $ 273,783 $ 273,783 Total Liabilities $ - $ - $ 273,783 $ 273,783 As Prosper’s Borrower Loans, Loans Held for Sale, Notes and loan servicing rights do not trade in an active market with readily observable prices, Prosper uses significant unobservable inputs to measure the fair value of these assets and liabilities. Financial instruments are categorized in the level 3 valuation hierarchy based on the significance of unobservable factors in the overall fair value measurement. These fair value estimates may also include observable, actively quoted components derived from external sources. As a result, the realized and unrealized gains and losses for assets and liabilities within the level 3 category may include changes in fair value that were attributable to both observable and unobservable inputs. Significant Unobservable Inputs The following tables present quantitative information about the significant unobservable inputs used for Prosper’s level 3 fair value measurements at December 31, 2015: Borrower Loans, Loans Held for Sale and Notes: Range Unobservable Input December 31, 2015 December 31, 2014 Discount rate 4.3% - 14.5% 3.2% - 10.6% Default rate 1.4% - 14.4% 2.6% - 19.7% Servicing Rights: Range Unobservable Input December 31, 2015 December 31, 2014 Discount rate 15% - 25% 15% - 25% Default rate 1.2% - 14.7% 2.6% - 26.3% Prepayment rate 14.3% - 25.6% 8.0% - 25.8% Market servicing rate 0.625 % 0.625% - 0.70% At December 31, 2015, the discounted cash flow methodology used to estimate the Note fair values used the same projected cash flows as the related Borrower Loans. As demonstrated in the following table, the fair value adjustments for Borrower Loans were largely offset by the fair value adjustments of the Notes due to the borrower payment dependent design of the Notes and because the principal balances of the Borrower Loans approximated the principal balances of the Notes. The following tables present additional information about level 3 Borrower Loans, Loans Held for Sale and Notes measured at fair value on a recurring basis: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Borrower Loans Notes Loans Held for Sale Total Balance at January 1, 2015 $ 273,243 $ (273,783 ) $ 8,463 $ 7,923 Purchase of Borrower Loans/Issuance of Notes 197,436 (197,228 ) 3,517,467 $ 3,517,675 Principal repayments (151,038 ) 151,025 (552 ) $ (565 ) Borrower Loans sold to third parties (855 ) 813 (3,525,207 ) $ (3,525,249 ) Other changes 81 (6 ) (18 ) $ 57 Change in fair value (21,594 ) 21,774 (121 ) $ 59 Balance at December 31, 2015 $ 297,273 $ (297,405 ) $ 32 $ (100 ) Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Borrower Loans Notes Loans Held for Sale Total Balance at January 1, 2014 $ 233,105 $ (234,218 ) $ 3,206 $ 2,093 Purchase of Borrower Loans/Issuance of Notes 177,088 (176,865 ) 1,416,715 1,416,938 Principal repayments (121,082 ) 120,909 — (173 ) Borrower Loans sold to third parties — — (1,411,531 ) (1,411,531 ) Change in fair value (15,868 ) 16,391 73 596 Balance at December 31, 2014 $ 273,243 $ (273,783 ) $ 8,463 $ 7,923 The following table presents additional information about level 3 servicing assets and liabilities measured at fair value on a recurring basis: Servicing Assets Servicing Liabilities Amortized Cost at January 1, 2014 $ 460 $ 167 Additions 4,700 662 Less: Changes in fair value (997 ) (205 ) Amortized Cost at December 31, 2014 4,163 624 Adjustment to adopt fair value measurement 545 (29 ) Fair Value at January 1, 2015 4,708 595 Additions 14,909 283 Less: Changes in fair value (5,254 ) (394 ) Fair Value at December 31, 2015 $ 14,363 $ 484 Contingent Consideration: On October 9, 2015, PMI, purchased 100% of the outstanding shares of BillGuard. The contingent consideration was primarily performance-based and will be determined over a one-year period from the date of purchase. Total contingent consideration due in October 2016 is based on revenues generated and other criteria. We measured the fair value of the contingent consideration using a probability-weighted discounted cash flow approach. Some of the significant inputs used for the valuation are not observable in the market and are thus Level 3 inputs. Contingent consideration is recorded in the consolidated balance sheet under "Other Liabilities." Significant increases or decreases in certain underlying assumptions used to value the contingent consideration could significantly increase or decrease the fair value estimates recorded in the Consolidated Balance Sheets. On October 9, 2015, the fair value of the contingent consideration was $3.8 million, during the year ended December 31, 2015 there were fair value changes of $1.0 million resulting in a fair value of $4.8 million at December 31, 2015. Significant Recurring Level 3 Fair Value Asset and Liability Input Sensitivity Key economic assumptions and the sensitivity of the current fair value to immediate changes in those assumptions at December 31, 2015 for Borrower Loans, Loans Held for Sale and Notes funded through the Note Channel are presented in the following table (in thousands, except percentages): Borrower Loans / Loans Held for Sale Notes Discount rate assumption: 6.97 % * 6.97 % * Resulting fair value from: 100 basis point increase $ 294,179 $ 294,305 200 basis point increase 291,165 291,284 Resulting fair value from: 100 basis point decrease $ 300,449 $ 300,589 200 basis point decrease 303,710 303,858 Default rate assumption: 10.11 % * 10.11 % * Resulting fair value from: 100 basis point increase $ 294,480 $ 294,601 200 basis point increase 291,741 291,851 Resulting fair value from: 100 basis point decrease $ 300,090 $ 300,235 200 basis point decrease 302,931 303,088 * Represents weighted average assumptions considering all credit grades. The following table presents the estimated impact on Prosper’s estimated fair value of servicing assets and liabilities, calculated using different market servicing rates and different default rates as of December 31, 2015 (in thousands, except percentages). Servicing Assets Servicing Liabilities Weighted average market servicing rate assumptions 0.625 % 0.625 % Resulting fair value from: Market servicing rate increase to 0.65% $ 13,327 $ 533 Market servicing rate decrease to 0.60% $ 15,399 $ 435 Weighted average prepayment assumptions 18.9 % 18.9 % Resulting fair value from: Applying a 1.1 multiplier to default rate $ 14,000 $ 458 Applying a 0.9 multiplier to default rate $ 14,524 $ 476 Weighted average default assumptions 11 % 11 % Resulting fair value from: Applying a 1.1 multiplier to default rate $ 14,163 $ 484 Applying a 0.9 multiplier to default rate $ 14,565 $ 484 These sensitivities are hypothetical and should be evaluated with care. The effect on fair value of a variation in assumptions generally cannot be determined because the relationship of the change in assumptions to the fair value may not be linear. Additionally, the impact of a variation in a particular assumption on the fair value is calculated while holding other assumptions constant. In reality, changes in one factor may lead to changes in other factors, which could impact the above hypothetical effects. |
Prosper Funding LLC [Member] | |
Fair Value of Assets and Liabilities | 6. Fair Value of Assets and Liabilities For a description of the fair value hierarchy and Prosper Funding Prosper Funding Financial Instruments Recorded at Fair Value The fair value of the Borrower Loans, Loans Held for Sale and Notes are estimated using discounted cash flow methodologies based upon a set of valuation assumptions. The primary cash flow assumptions used to value such Borrower Loans, Loans Held for Sale and Notes include default rates derived from historical performance and discount rates applied to each credit grade based on the perceived credit risk. Investments held at fair value consists of available for sale investments. The available for sale investments consist of corporate and government bonds. When available, Prosper Funding uses quoted prices in active markets to measure the fair value of securities available for sale. When utilizing market data and bid-ask spreads, Prosper Funding uses the price within the bid-ask spread that best represents fair value. When quoted prices do not exist, Prosper Funding uses prices obtained from independent third-party pricing services to measure the fair value of investment assets. Prosper Funding generally obtains prices from at least two independent pricing sources for assets recorded at fair value. Prosper Funding's primary independent pricing service provides prices based on observable trades and discounted cash flows that incorporate observable information, such as yields for similar types of securities (a benchmark interest rate plus observable spreads) and weighted-average maturity for the same or similar securities. Prosper Funding compares the prices obtained from its primary independent pricing service to the prices obtained from the additional independent pricing services to determine if the price obtained from the primary independent pricing service is reasonable. Prosper Funding does not adjust the prices received from independent third-party pricing services unless such prices are inconsistent with the definition of fair value and result in a material difference in the recorded amounts. The following tables present the fair value hierarchy for assets and liabilities measured at fair value except for servicing assets and liabilities at December 31, 2014, which were measured at amortized cost and presented below at fair value for comparison purposes (in thousands): Level 1 Level 2 Level 3 December 31, 2015 Inputs Inputs Inputs Fair Value Assets Borrower Loans $ — $ — $ 297,273 $ 297,273 Servicing Assets — — 13,605 $ 13,605 Loans Held for Sale — — 32 32 Total Assets — — 310,910 310,910 Liabilities Notes $ — $ — $ 297,405 $ 297,405 Servicing Liabilities — — 484 484 Total Liabilities $ — $ — $ 297,889 $ 297,889 Level 1 Level 2 Level 3 December 31, 2014 Inputs Inputs Inputs Fair Value Assets Borrower Loans — — 273,243 273,243 Loans Held for Sale — — 8,463 8,463 Total Assets — — 281,706 281,706 Liabilities Notes $ — $ — $ 273,783 $ 273,783 Total Liabilities $ — $ — $ 273,783 $ 273,783 As Prosper Funding Significant Unobservable Inputs The following tables present quantitative information about the significant unobservable inputs used for Prosper Funding Borrower Loans, Loans Held for Sale and Notes: Range Unobservable Input December 31, 2015 December 31, 2014 Discount rate 4.3% - 14.5% 3.2% - 10.6% Default rate 1.4% - 14.4% 2.6% - 19.7% Servicing Rights: Range Unobservable Input December 31, 2015 December 31, 2014 Discount rate 15% - 25% 15% - 25% Default rate 1.2% - 14.7% 2.6% - 26.3% Prepayment rate 14.3% - 25.6% 8.0% - 25.8% Market servicing rate 0.625 % 0.625% - 0.70% At December 31, 2015, the discounted cash flow methodology used to estimate the Note fair values used the same projected cash flows as the related Borrower Loans. As demonstrated in the following table, the fair value adjustments for Borrower Loans were largely offset by the fair value adjustments of the Notes due to the borrower payment dependent design of the Notes and because the principal balances of the Borrower Loans approximated the principal balances of the Notes. The following tables present additional information about level 3 Borrower Loans, Loans Held for Sale and Notes measured at fair value on a recurring basis: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Loans Held for Borrower Loans Notes Sale Total Balance at January 1, 2015 $ 273,243 $ (273,783 ) $ 8,463 $ 7,923 Originations 197,436 (197,228 ) 3,517,467 3,517,675 Principal repayments (151,038 ) 151,025 (552 ) (565 ) Borrower loans sold to third parties (855 ) 813 (3,525,207 ) (3,525,249 ) Other changes 81 (6 ) (18 ) 57 Change in fair value (21,594 ) 21,774 (121 ) 59 Balance at December 31, 2015 $ 297,273 $ (297,405 ) $ 32 $ (100 ) Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Loans Held for Borrower Loans Notes Sale Total Balance at January 1, 2014 $ 233,105 $ (234,218 ) $ 3,206 $ 2,093 Originations 177,088 (176,865 ) 1,416,715 1,416,938 Principal repayments (121,081 ) 120,909 - (172 ) Borrower loans sold to third parties - - (1,411,531 ) (1,411,531 ) Change in fair value (15,868 ) 16,391 73 596 Balance at December 31, 2014 $ 273,244 $ (273,783 ) $ 8,463 $ 7,924 The following table presents additional information about level 3 servicing assets and liabilities measured at fair value on a recurring basis: Servicing Servicing Assets Liabilities Amortized Cost at January 1, 2014 $ 436 $ 167 Additions 4,700 662 Less: Transfers to PMI (1,221 ) Less: Amortization (799 ) (205 ) Amortized Cost at December 31, 2014 3,116 624 Adjustment to adopt fair value measurement 399 (29 ) Fair Value at Janaury 1, 2015 $ 3,515 $ 595 Additions 14,909 283 Less: Transfers to PMI (249 ) - Less: Changes in fair value (4,570 ) (394 ) Fair Value at December 31, 2015 $ 13,605 $ 484 Significant Recurring Level 3 Fair Value Asset and Liability Input Sensitivity Key economic assumptions and the sensitivity of the current fair value to immediate changes in those assumptions at December 31, 2015 for Borrower Loans, Loans Held for Sale and Notes funded through the Note Channel are presented in the following table (in thousands, except percentages): Borrower Loans Notes Discount rate assumption: 6.97 % * 6.97 % * Resulting fair value from: 100 basis point increase $ 294,179 $ 294,305 200 basis point increase 291,165 291,284 Resulting fair value from: 100 basis point decrease $ 300,449 $ 300,589 200 basis point decrease 303,710 303,858 Default rate assumption: 10.11 % * 10.11 % * Resulting fair value from: 100 basis point increase $ 294,480 $ 294,601 200 basis point increase 291,741 291,851 Resulting fair value from: 100 basis point decrease $ 300,090 $ 300,235 200 basis point decrease 302,931 303,088 * Represents weighted average assumptions considering all credit grades. The following table presents the estimated impact on Prosper Funding Servicing Assets Servicing Liabilities Weighted average market servicing rate assumptions 0.625 % 0.625 % Resulting fair value from: Servicing rate increase to 0.65% 12,878 533 Servicing rate decrease to 0.60% 14,880 435 Weighted average prepayment assumptions 18.9 % 18.9 % Resulting fair value from: Applying a 1.1 multiplier to default rate 14,061 458 Applying a 0.9 multiplier to default rate 14,460 476 Weighted average default assumptions 11.00 % 11.00 % Resulting fair value from: Applying a 1.1 multiplier to default rate 13,415 484 Applying a 0.9 multiplier to default rate 13,796 484 These sensitivities are hypothetical and should be evaluated with care. The effect on fair value of a variation in assumptions generally cannot be determined because the relationship of the change in assumptions to the fair value may not be linear. Additionally, the impact of a variation in a particular assumption on the fair value is calculated while holding other assumptions constant. In reality, changes in one factor may lead to changes in other factors, which could impact the above hypothetical effects. |
American HealthCare Lending Acq
American HealthCare Lending Acquisition | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
American HealthCare Lending Acquisition | 8. American HealthCare Lending Acquisition On January 23, 2015, PMI acquired all of the outstanding limited liability company interests of American HealthCare Lending, and merged American HealthCare Lending with and into PHL, with PHL surviving the merger (the “Merger”). Under the terms of the purchase agreement, the sellers of American HealthCare Lending received an aggregate of $20.2 million in cash on the closing date and will receive $0.8 million in cash one year after the closing date subject to general representations and warranties. PHL operates a cloud-based patient financing company for healthcare providers in the cosmetic, dentistry, bariatric surgery, fertility, plastic surgery and other markets. PHL has relationships with a nationwide network of healthcare providers. These healthcare providers refer individuals who would like to finance medical procedures through Prosper’s marketplace. The purchase price allocation is as follows (in thousands): Fair Value Assets: Cash $ 1,219 Accounts receivable, net 147 Property, equipment and software, net 6 Other assets 63 Identified intangible assets: Customer relationships 2,650 Developed technology 810 Brand name 60 Goodwill 16,825 Liabilities: Accrued expenses and other liabilities 708 Total purchase consideration $ 21,072 The goodwill balance is primarily attributed to expected operational synergies and the assembled workforce. Goodwill is expected to be deductible for U.S. income tax purposes. The impact was not material on Prosper’s revenue and net earnings on a pro forma basis for all periods presented. |
BillGuard Acquisition
BillGuard Acquisition | 12 Months Ended |
Dec. 31, 2015 | |
American HealthCare Lending Acquisition | 8. American HealthCare Lending Acquisition On January 23, 2015, PMI acquired all of the outstanding limited liability company interests of American HealthCare Lending, and merged American HealthCare Lending with and into PHL, with PHL surviving the merger (the “Merger”). Under the terms of the purchase agreement, the sellers of American HealthCare Lending received an aggregate of $20.2 million in cash on the closing date and will receive $0.8 million in cash one year after the closing date subject to general representations and warranties. PHL operates a cloud-based patient financing company for healthcare providers in the cosmetic, dentistry, bariatric surgery, fertility, plastic surgery and other markets. PHL has relationships with a nationwide network of healthcare providers. These healthcare providers refer individuals who would like to finance medical procedures through Prosper’s marketplace. The purchase price allocation is as follows (in thousands): Fair Value Assets: Cash $ 1,219 Accounts receivable, net 147 Property, equipment and software, net 6 Other assets 63 Identified intangible assets: Customer relationships 2,650 Developed technology 810 Brand name 60 Goodwill 16,825 Liabilities: Accrued expenses and other liabilities 708 Total purchase consideration $ 21,072 The goodwill balance is primarily attributed to expected operational synergies and the assembled workforce. Goodwill is expected to be deductible for U.S. income tax purposes. The impact was not material on Prosper’s revenue and net earnings on a pro forma basis for all periods presented. |
BillGuard Inc [Member] | |
American HealthCare Lending Acquisition | 9. BillGuard Acquisition On October 9, 2015, PMI acquired all of the outstanding shares of BillGuard. PMI merged BillGuard with and into Beach Merger Sub, Inc., a newly established entity wholly owned by PMI, with BillGuard surviving the merger. Under the terms of the purchase agreement, the sellers of BillGuard received an aggregate of approximately $20 million in cash on the closing date and will receive up to $5 million in cash one year after the closing date subject to general representations and warranties. The contingent consideration has a maximum value of $5 million, and the events that would trigger the payout include the revenues of BillGuard during a specific three month period in 2016 and other criteria as described in the purchase agreement. The consideration is to be paid in October 2016. The liability for the fair value of the contingent consideration is included in Other Liabilities on the Consolidated Balance Sheets. Changes in the fair value of the contingent consideration is recognized in earnings through General and Administrative expense. The liability had a fair value of $3.8 million and $4.8 million at October 9, 2015 and December 31, 2015, respectively. BillGuard has developed applications that help consumers manage their identity, finances and credit. The acquisition will enable Prosper to offer borrowers and investors a full suite of powerful tools to help them make smarter financial decisions including obtaining loans through Prosper, and will give Prosper access to BillGuard’s engineering and product talent pool. Prosper has included the financial results of BillGuard in the consolidated financial statements from the date of acquisition. The amounts of gross revenue and net loss of BillGuard included in Prosper’s consolidated financial statements from October 9, 2015 to December 31, 2015 were $0.2 million and $2.6 million, respectively. Prosper recorded acquisition-related expenses of $0.9 million for the year ended December 31, 2015, which is included in General and Administrative Expense. The preliminary purchase price allocation as of the merger date is as follows (in thousands): Fair Value Assets: Cash $ 811 Property and equipment 82 Prepaid and other assets 152 Identified intangible assets: Developed technology 7,500 Customer relationships 3,600 Goodwill 19,543 Liabilities: Accounts payable and accrued expenses (1,635 ) Long term debt (1,395 ) Convertible loan (3,652 ) Deferred revenue (1,400 ) Total purchase consideration $ 23,606 The allocation of the purchase price is preliminary and subject to further adjustment as information relative to closing date balances and related tax balances are finalized. Prosper believes the amount of goodwill resulting from the allocation of purchase consideration is attributable to expected operating synergies, assembled workforce, and the future development initiatives of the assembled workforce, which will position to be able to further expand its long-term growth strategy. Goodwill is not expected to be deductible for U.S. or Israel income tax purposes. The following unaudited pro forma financial information summarizes the combined results of operations for Prosper and BillGuard, as though the companies were combined as of January 1, 2014. These pro forma results have been prepared for comparative purposes only and do not purport to be indicative of the results of operations which would have resulted had the acquisition occurred as of January 1, 2014, nor is it indicative of future operating results. The pro forma results presented below include, amortization of acquired intangible assets and compensation expense related to the post-acquisition compensation arrangements entered into with the continuing employees (in thousands, except per share data): Years Ended December 31, 2015 2014 Total net revenue $ 204,350 $ 81,195 Net loss (1) (33,677 ) (16,728 ) Basic and diluted net loss per share attributable to common stockholders $ (0.61 ) $ (0.71 ) (1) Net loss for the year ended December 31, 2015 excludes $1.6 million of one-time acquisition-related costs expenses incurred in 2015. Net loss for the year ended December 31, 2014 was adjusted to include these numbers. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure | 10 . Goodwill and Other Intangible Assets Goodwill The following table presents the goodwill activity for the periods presented (in thousands): Goodwill - December 31, 2014 $ - 2015 acquisitions 36,368 Goodwill - December 31, 2015 $ 36,368 We did not record any goodwill in the year ended December 31, 2014. We did not record any goodwill impairment expense for the year ended December 31, 2015. Other Intangible Assets The following table presents the detail of other intangible assets for the periods presented (dollars in thousands): December 31, 2015 Gross Carrying Value Accumulated Amortization Net Carrying Value Remaining Useful Life (In Years) Developed technology $ 8,310 $ (622 ) $ 7,688 4.8 User base and customer relationships 6,250 (892 ) 5,358 9.1 Brand name 60 (55 ) 5 0.1 Total intangible assets subject to amortization $ 14,620 $ (1,569 ) $ 13,051 We did not record any intangibles for the year ended December 31, 2014. The user base and customer relationship intangible assets are being amortized on an accelerated basis over a three to ten year period. The technology and brand name intangible assets are being amortized on a straight line basis over three to five years and one year, respectively. Amortization expense for the year ended December 31, 2015 was $1.6 million. Estimated amortization of purchased intangible assets for future periods is as follows (in thousands): Year Ending December 31, 2016 $ 3,859 2017 3,205 2018 2,310 2019 1,789 2020 1,366 Thereafter 522 Total $ 13,051 |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Other Liabilities [Abstract] | |
Other Liabilities | 11. Other Liabilities Other Liabilities includes the following: Year Ending December 31, 2015 2014 Class action settlement liability $ 5,949 $ 7,861 Repurchase liability for unvested restricted stock awards 473 1,010 Contingent consideration 4,801 - Deferred revenue 1,591 - Servicing liabilities 484 624 Deferred rent 5,240 3,657 Other 2,197 171 Total Other Liabilities $ 20,735 $ 13,323 |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 1 2 . Net Loss Per Share Prosper computes net loss per share in accordance with ASC Topic 260, Earnings Per Share We compute Earnings per Share (“EPS”) using the two-class method. The two-class method allocates earnings that otherwise would have been available to common shareholders to holders of participating securities. We consider all series of our convertible preferred stock to be participating securities due to their rights to participate in dividends with common stock. As such, earnings allocated to these participating securities, which include participation rights in undistributed earnings, are subtracted from net income to determine total undistributed earnings to be allocated to common stockholders. All participating securities are excluded from basic weighted-average common shares outstanding. Prior to any conversion to common shares, each series of PMI’s convertible preferred stock was entitled to participate on an if converted basis in distributions, when and if declared by the board of directors, that were made to common stockholders and as a result these shares were considered participating securities. During the year ended December 31, 2015 and 2014, certain shares issued as a result of the early exercise of stock options, which are subject to a repurchase right by PMI, were entitled to receive non-forfeitable dividends during the vesting period and as a result were considered participating securities. The adjustment from net loss to net loss available to common shareholders represents the excess over the carrying value of such shares paid to certain preferred shareholders upon repurchase of their preferred shares as described below in Note 13 Convertible Preferred Stock and Stockholders’ Deficit. The weighted average shares used in calculating basic and diluted net loss per share excludes certain shares that are disclosed as outstanding shares in the Consolidated Balance Sheets and Consolidated Statements of Convertible Preferred Stock and Stockholders’ Deficit because such shares are restricted as they were associated with options that were early exercised and continue to remain unvested. Basic and diluted net loss per share was calculated as follows (net loss in thousands): Year Ended December 31, 2015 2014 Numerator: Net loss $ (25,968 ) $ (2,669 ) Excess return to preferred shareholders on repurchase - (14,892 ) Net loss available to common stockholders for basic and diluted EPS (25,968 ) (17,561 ) Denominator: Weighted average shares used in computing basic and diluted net loss per share 55,547,408 44,484,005 Basic and diluted net loss per share $ (0.47 ) $ (0.39 ) Due to losses attributable to PMI’s common shareholders for each of the periods below, the following potentially dilutive shares are excluded from the diluted net loss per share calculation because they were anti-dilutive under the treasury stock or if converted method, in accordance with ASC Topic 260: Year Ended December 31, 2015 2014 (shares) (shares) Excluded securities: Convertible preferred stock issued and outstanding 177,388,425 153,499,785 Stock options issued and outstanding 34,358,106 24,974,990 Unvested stock options exercised 9,806,170 20,571,345 Restrictive Stock Units 190,517 - Warrants issued and outstanding 588,660 884,435 Total common stock equivalents excluded from diluted net loss per common share computation 222,331,878 199,930,555 The number of shares issued and outstanding reflect a 5-for-1 forward stock split effected by PMI on February 16, 2016. |
Convertible Preferred Stock and
Convertible Preferred Stock and Stockholders' Deficit | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders Equity Note [Abstract] | |
Convertible Preferred Stock and Stockholders' Deficit | 13. Convertible Preferred Stock and Stockholders’ Deficit Convertible Preferred Stock Under PMI’s amended and restated certificate of incorporation, preferred stock is issuable in series, and the board of directors is authorized to determine the rights, preferences, and terms of each series. In January 2013, PMI issued and sold 69,340,760 shares of New Series A (“New Series A”) convertible preferred stock in a private placement at a purchase price of $0.29 per share for $19.8 million, net of issuance costs. In connection with that sale, PMI issued 25,585,910 shares at par value $0.01 per share of Series A-1 (“Series A-1”) convertible preferred stock to the holders of shares of PMI’s convertible preferred stock that was outstanding immediately prior to the sale (“Old Preferred Shares”) in consideration for such stockholders participating in the sale. In connection with the New Series A sale, Old Preferred Shares were converted into shares of common stock at a ratio of 1:1 if the holder of the Old Preferred Shares participated in the New Series A sale or at a 10:1 ratio if the holder of the Old Preferred Shares did not so participate. In addition, each such participating holder received a share of New Series A-1 convertible preferred stock for every dollar of liquidation preference associated with an Old Preferred Share held by such holder. Each share of Series A-1 preferred stock has a liquidation preference of $2.00 and converts into common stock at a ratio of 1,000,000:1. The New Series A and Series A-1 convertible preferred stock were sold in reliance on the exemption from the registration requirements of the Securities Act set forth in Section 4(2) of the Securities Act and Regulation D promulgated thereunder regarding sales by an issuer not involving a public offering. In September 2013, PMI issued and sold 41,443,670 shares of New Series B (“New Series B”) convertible preferred stock in a private placement at a purchase price of $0.60 per share for approximately $24.9 million, net of issuance costs. The New Series B convertible preferred stock was sold in reliance on the exemption from the registration requirements of the Securities Act set forth in Section 4(2) of the Securities Act and Regulation D promulgated thereunder regarding sales by an issuer not involving a public offering. In May 2014, PMI issued and sold 24,404,770 shares of New Series C (“New Series C”) convertible preferred stock in a private placement at a purchase price of $2.87 per share for approximately $69.9 million, net of issuance costs. The Series C convertible preferred stock was sold in reliance on the exemption from the registration requirements of the Securities Act set forth in Section 4(2) of the Securities Act and Regulation D promulgated thereunder regarding sales by an issuer not involving a public offering. The purpose of the New Series C private placement was to raise funds for general corporate needs and for the tender offer discussed below. On June 18, 2014, PMI issued a Tender Offer Statement to purchase up to 6,963,785 shares, in the aggregate, of its New Series A convertible preferred Stock and New Series B convertible preferred Stock, at a price equal to $2.87 per share. Upon closure of the tender offer on July 16, 2014, 782,540 shares of New Series A convertible preferred Stock and 5,667,790 share of New Series B convertible preferred Stock were purchased for an aggregate price of $18.5 million In April 2015, PMI The number of authorized, issued and outstanding shares, their par value and liquidation preference for each series of convertible preferred stock as of December 31, 2015 are disclosed in the table below (dollars in thousands): Convertible Preferred Stock Par Value Authorized shares Outstanding and Issued shares Liquidation Preference New Series A $ 0.01 68,558,220 68,558,220 $ 19,774 Series A-1 0.01 24,760,915 24,760,915 49,522 New Series B 0.01 35,775,880 35,775,880 21,581 New Series C 0.01 24,404,770 24,404,770 70,075 New Series D 0.01 23,888,640 23,888,640 165,000 177,388,425 177,388,425 325,952 The number of shares issued and outstanding reflect a 5-for-1 forward stock split effected by PMI on February 16, 2016. Dividends Dividends on shares of the New Series A, New Series B, New Series C and New Series D convertible preferred stock are payable only when, as, and if declared by the Board of Directors. No dividends will be paid with respect to the common stock until any declared dividends on the New Series A, New Series B, New Series C and New Series D convertible preferred stock have been paid or set aside for payment to the New Series A, New Series B, New Series C and New Series D convertible preferred stockholders. After payment of any such dividends, any additional dividends or distributions will be distributed among all holders of common stock and preferred stock in proportion to the number of shares of common stock that would be held by each such holder if all shares of preferred stock were converted to common stock at the then effective conversion rate. The Series A-1 convertible preferred shares have no dividend rights. To date, no dividends have been declared on any of the PMI’s preferred stock or common stock. Conversion Under the terms of PMI’s amended and restated certificate of incorporation, the holders of preferred stock have the right to convert such preferred stock into common stock at any time. In addition, all preferred stock automatically converts into common stock (i) immediately prior to the closing of an Initial Public Offering (“IPO”) that values Prosper at least at $2 billion and that results in aggregate proceeds to Prosper of at least $100 million or (ii) upon a written request from the holders of at least 60% of the voting power of the outstanding preferred stock (on an as-converted basis) including at least 14% of the voting power of the outstanding Series A-1 convertible preferred stock. In addition, if a holder of the New Series A convertible preferred stock has converted any of the New Series A convertible preferred stock, then all of such holder’s shares of Series A-1 convertible preferred stock also will be converted upon a liquidation event. In lieu of any fractional shares of common stock to which a holder would otherwise be entitled, PMI shall pay such holder cash in an amount equal to the fair market value of such fractional shares, as determined by its Board of Directors. At present, the New Series A, New Series B, New Series C and the New Series D convertible preferred stock converts into PMI common stock at a 1:1 ratio while the Series A-1 convertible preferred stock converts into common stock at a 1,000,000:1 ratio. Liquidation Rights PMI’s convertible preferred stock has been classified as temporary equity on the Consolidated Balance Sheets. The preferred stock is not redeemable; however, upon in the event of a voluntary or involuntary liquidation, dissolution, change in control or winding up of PMI, holders of the convertible preferred stock may have the right to receive its liquidation preference under the terms of PMI’s certificate of incorporation. Each holder of New Series A, New Series B, New Series C and New Series D convertible preferred stock is entitled to receive, on a pari passu Voting Each holder of shares of convertible preferred stock is entitled to the number of votes equal to the number of shares of common stock into which such shares of convertible preferred stock could be converted and has voting rights and powers equal to the voting rights and powers of the common stock. The holders of convertible preferred stock and the holders of common stock vote together as a single class (except with respect to certain matters that require separate votes or as required by law), and are entitled to notice of any stockholders’ meeting in accordance with the bylaws of PMI. Common Stock PMI, through its amended and restated certificate of incorporation, is the sole issuer of common stock and related options, RSUs and warrants. On May 15, 2014, PMI amended and restated its certificate of incorporation to effect an increase in the number of authorized shares of stock. The total number of shares of stock which PMI has the authority to issue is 454,989,825, consisting of 270,326,075 shares of common stock, $0.01 par value per share, and 184,663,750 shares of preferred stock, $0.01 par value per share, 69,340,760 of which are designated as New Series A preferred stock, 25,585,910 of which are designated as Series A-1 preferred stock, 41,443,670 of which are designated New Series B preferred stock, 24,404,770 of which are designated as Series C preferred stock, and 23,888,640 of which are designated New Series D preferred stock. As of December 31, 2015, 70,367,425 shares of common stock were issued and 69,431,490 shares of common stock were outstanding. As of December 31, 2014, 72,243,500 shares of common stock were issued and outstanding. Each holder of common stock is entitled to one vote for each share of common stock held . During 2015, PMI repurchased 4,225,490 shares of common stock from certain employees at a price equal to 6.91 per share for an aggregate purchase price of $29.2 million. As the purchase price exceeded the fair value of common stock at the time of the repurchase, Prosper recognized compensation costs of $6.2 million of which $0.33 million is recorded in Origination and Servicing, $0.07 million in Sales and Marketing and $5.7 million in General and Administrative on the Consolidated Statements of Operations. As part of the transactions, PMI repurchased 3,607,095 shares for a total of $24.9 million from Prosper’s executive officers. Common Stock Issued upon Exercise of Stock Options During the year ended December 31, 2015 and 2014, PMI issued 3,211,935 and 4,624,335 shares of common stock, respectively, upon the exercise of options for cash proceeds of $0.88 million and $0.89 million, respectively, of which 76,045 and 4,328,585 were unvested, respectively. Certain options are eligible for exercise prior to vesting. These unvested options may be exercised for restricted shares of common stock that have the same vesting schedule as the options. Prosper records a liability for the exercise price paid upon the exercise of unvested options, which is reclassified to common stock and additional paid-in capital as the shares vest. Should the holder’s employment be terminated, the unvested restricted shares are subject to repurchase by PMI at an amount equal to the exercise price paid for such shares. At December 31, 2015 and 2014, there were 9,806,170 and 20,571,345 shares respectively of restricted stock outstanding that remain unvested and subject to PMI’s right of repurchase. Common Stock Issued upon Exercise of Warrants For the year ended December 31, 2015 and 2014, PMI issued 207,065 and 584,615 shares of common stock upon the exercise of warrants, for $0.61 per share and $0.39 per share respectively. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | 1 4. Stock-based Compensation In 2005, PMI’s stockholders approved the adoption of the 2005 Stock Plan. On December 1, 2010, PMI’s stockholders approved the adoption of the Amended and Restated 2005 Stock Plan (the “2005 Plan”). During the year ended December 31, 2015, the 2005 Plan expired and PMI’s stockholders approved the adoption of the 2015 Equity Incentive Plan (the “2015 Plan”). As of December 31, 2015, under the 2015 Plan, options to purchase up to 13,194,765 shares of common stock are reserved and may be granted to employees, directors, and consultants by PMI’s Board of Directors and stockholders to promote the success of Prosper’s business. Options generally vest 25% one year from the vesting commencement date and 1/48 th per month thereafter or vest 50% two years from the vesting commencement date and 1/48 per month thereafter. The number of options, restricted stock units and amounts per share reflects a 5-for-1 forward stock split effected by PMI on February 16, 2016. Early Exercised Stock Options With the approval of its Board of Directors, PMI allows certain employees and directors to exercise stock options granted under the 2005 Plan prior to vesting. The unvested shares are subject to a repurchase right held by PMI at the original exercise price. Early exercises of options are not deemed to be substantive exercises for accounting purposes and therefore, amounts received for early exercises are initially recorded in repurchase liability for unvested restricted stock awards which is included in Other Liabilities on the Consolidated Balance Sheets. Such amounts are reclassified to common stock and additional paid-in capital as the underlying shares vest. The activity of options that were early exercised under the 2005 Plan follow for the years below: Early options, Weighted exercise Weighted Contractual (in years) Aggregate Intrinsic (in Balance as of January 1, 2014 27,970,670 $ 0.02 Exercise of non-vested stock options 4,328,585 0.19 Repurchase of restricted stock (909,465 ) 0.02 Restricted stock vested (10,828,445 ) 0.03 Balance as of December 31, 2014 20,561,345 0.05 Exercise of non-vested stock options 76,045 1.11 Repurchase of restricted stock (1,493,775 ) 0.10 Restricted stock vested (9,337,445 ) 0.05 Balance as of December 31, 2015 9,806,170 0.05 1.58 $ 54,620 Options expected to vest 9,614,920 $ 0.05 1.58 $ 53,555 Additional information regarding the unvested early exercised stock options outstanding as of December 31, 2015 is as follows: Options Outstanding Range of Exercise Prices Number Outstanding Weighted –Avg. Remaining Life Weighted –Avg. Exercise Price $0.02 9,116,670 1.56 $ 0.02 0.11 511,180 1.69 0.11 1.13 165,820 2.58 1.13 3.62 12,500 3.17 3.62 $0.02 - $3.62 9,806,170 1.58 $ 0.05 Stock Option Activity Stock option activity under the 2005 Plan and 2015 Plan is summarized as follows for the years below: Options Issued and Outstanding Weighted- Average Exercise Price Weighted Contractual (in years) Aggregate Intrinsic Value (in Balance as of January 1, 2014 4,474,880 $ 0.29 Options granted 26,438,815 $ 0.35 Options exercised – vested (295,750 ) $ 0.26 Options exercised – nonvested (4,328,585 ) $ 0.19 Options forefeited (1,314,370 ) $ 0.36 Balance as of December 31, 2014 24,974,990 $ 0.37 Options granted 23,422,230 $ 4.51 Options exercised – vested (3,135,890 ) $ 0.25 Options exercised – nonvested (76,045 ) $ 1.11 Options forfeited (4,759,680 ) $ 1.52 Balance as of December 31, 2015 40,425,605 $ 2.64 8.80 $ 118,331 Options vested and expected to vest as of December 31, 2015 34,959,394 $ 2.64 8.80 $ 102,331 Options vested and exercisable at December 31, 2015 28,022,165 $ 1.67 8.45 $ 109,395 For the year ended December 31, 2015, we granted stock options to purchase 23,422,230 shares of common stock at a weighted average grant date fair value of $5.14 per share. Other Information Regarding Stock Options Additional information regarding common stock options outstanding as of December 31, 2015 is as follows: Options Outstanding Options Vested and Exercisable Weighted – Weighted – Weighted - Range of Avg. Avg. Avg. Exercise Number Remaining Exercise Number Exercise Prices Outstanding Life Price Vested Price $ 0.02 - $0.20 12,742,705 8.08 $ 0.11 12,742,705 $ 0.11 0.21 - 0.99 901,860 5.31 0.33 892,410 0.33 1.00 - 2.00 4,694,560 8.54 1.13 2,856,730 1.13 2.01 - 4.00 11,530,320 9.13 3.62 11,530,320 3.62 4.01 - 5.52 10,556,160 9.73 5.50 - - $ 0.02 - $5.52 40,425,605 8.80 $ 2.64 28,022,165 $ 1.67 The fair value of options granted to employees is estimated on the grant date using the Black-Scholes option valuation model. This valuation model for stock-based compensation expense requires Prosper to make assumptions and judgments about the variables used in the calculation, including the fair value of PMI’s common stock, the expected term (the period of time that the options granted are expected to be outstanding), the volatility of PMI’s common stock, a risk-free interest rate, and expected dividends. Given the absence of a publicly traded market, Prosper considered numerous objective and subjective factors to determine the fair value of PMI’s common stock at each grant date. These factors included, but were not limited to: (i) contemporaneous valuations of common stock performed by unrelated third-party specialists; (ii) the prices for PMI’s preferred stock sold to outside investors; (iii) the rights, preferences and privileges of PMI’s preferred stock relative to PMI’s common stock; (iv) the lack of marketability of PMI’s common stock; (v) developments in the business; (vi) secondary transactions of PMI’s common and preferred shares and (vii) the likelihood of achieving a liquidity event, such as an initial public offering or a merger or acquisition of Prosper, given prevailing market conditions. Prosper also estimates forfeitures of unvested stock options. Expected forfeitures are based on Prosper’s historical experience. To the extent actual forfeitures differ from the estimates, the difference will be recorded as a cumulative adjustment in the period estimates are revised. No compensation cost is recorded for options that do not vest. The fair value of PMI’s stock option awards for the year ended December 31, 2015 and 2014 was estimated at the date of grant using the Black-Scholes model with the following average assumptions: Year ended December 31, 2015 2014 Volatility of common stock 55.69 % 68.28 % Risk-free interest rate 1.74 % 1.79 % Expected life 6.0 years 5.7 years Dividend yield 0 % 0 % Under the 2005 Stock Plan certain executive officers of PMI were granted performance-based stock options during 2014. The vesting of these performance-based stock options was contingent upon the achievement of certain revenue targets or target ratios of marketing expenditures to revenues for the year ended December 31, 2014. The fair value of the performance-based stock options was estimated on the date of grant using the Black-Scholes option valuation model. Prosper used the following assumptions in measuring the fair value of these performance-based stock options: a 66% rate for expected volatility, 0% rate for expected dividends, 5.23 years for the expected term and a 1.66% risk-free rate. PMI granted 10,164,480 performance-based stock options with an exercise price of $0.11 per share during 2014. The contractual term of these options is 10 years. Since the performance targets were achieved, 9,624,480 performance-based stock options became fully vested and 540,000 performance-based stock options were forfeited on the termination of employment. The aggregate expense recognized during 2014 related to these performance-based stock options was $587 thousand. PMI did not grant any performance-based options in 2015. Restricted Stock Unit Activity During the year ended December 31, 2015, PMI began granting restricted stock units (“RSUs”) to certain employees that are subject to three-year vesting terms or a four year vesting terms and the occurrence of a liquidity event. The aggregate fair value of the RSUs granted was $13.3 million. The following table summarizes the activities for PMI’s RSUs during 2015: Number of Shares Weighted-Average Grant Date Fair Value Unvested at January 1, 2015 - Granted 2,407,060 $ 5.52 Vested (190,517 ) $ 5.52 Forfeited (381,033 ) Unvested - December 31, 2015 1,835,510 $ 5.52 The following table presents the amount of stock-based compensation related to stock-based awards granted to employees recognized in Prosper’s consolidated statements of operations during the periods presented (in thousands): December 31, 2015 2014 Origination and Servicing $ 1,231 $ 104 Sales and Marketing 2,561 767 General and Administrative 9,219 1,150 Total stock based compensation $ 13,011 $ 2,021 During the year ended December 31, 2015 and 2014, Prosper capitalized $623 thousand, and $21 thousand, respectively, of stock-based compensation as internal use software and website development costs. Management modified or accelerated the vesting terms for certain employee options, which resulted in an additional $0.1 million and $0.6 million of stock-based compensation expense for the year ended December 31, 2015 and 2014, respectively. As of December 31, 2015, the unamortized stock-based compensation expense related to Prosper employees’ unvested stock-based awards was approximately $46.3 million, which will be recognized over the remaining weighted-average vesting period of approximately 3.2 years. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Line Items] | |
Income Taxes | 1 5 . Income Taxes The components of income tax are as follows (in thousands): Year Ended December 31, 2015 2014 Current: Federal $ — $ — State — — Foreign (5 ) — Total Current Income Tax (Benefit) (5 ) — Deferred: Federal 320 — State 25 — Foreign — — Total Deferred Income Tax 345 — Total Income Tax $ 340 $ — Subsequent to the issuance of the consolidated financial statements for the year ended December 31, 2014, Prosper identified errors that affected the effective tax rate reconciliation and our deferred income tax tables as of December 31, 2014. The errors were the result of treating servicing assets and liabilities as permanent differences rather than as temporary differences. The effective tax rate reconciliation and deferred income tax tables below for the year ended December 31, 2014 have been revised to reflect the correction of the errors. There was no effect on Prosper's effective tax rate due to the full valuation allowance and management does not believe these errors were material to the financial statements taken as a whole. Prosper did not have any current or deferred federal or state income tax expense for the year ended December 31, 2014. The income tax expense (benefit) differed from the amount computed by applying the U.S. federal income tax rate of 34% to pretax loss as a result of the following: Year Ended December 31, 2015 2014 Federal tax at statutory rate 34 % 34 % State tax at statutory rate (net of federal benefit) 12 % 1 % Change to Uncertain Tax Position 10 % 0 % Permanent Items (— )% (11 )% Incentive Stock Options (9 )% (9 )% Acquisition Related Costs (3 )% 0 % Change in valuation allowance (46 )% (25 )% Credits and Reserves (— )% 9 % Other 1 % 1 % (1 )% 0 % Temporary items that give rise to significant portions of deferred tax assets and liabilities at December 31, 2015 and 2014 are as follows (in thousands): December 31, 2015 2014 Net operating loss carry forwards $ 44,632 $ 24,756 Research & other credits 502 421 Settlement liability 2,466 2,964 Stock compensation 3,193 344 Accrued liabilities 5,794 2,320 Other 126 45 Deferred tax assets 56,713 30,850 Fair value of loans (1,406 ) (1,160 ) Net servicing rights (5,752 ) (1,203 ) Fixed assets (721 ) - Intangible assets (4,246 ) - Deferred tax liabilities (12,125 ) (2,363 ) Net deferred tax assets 44,588 28,487 Valuation allowance (44,933 ) (28,487 ) Net deferred tax liabilities $ (345 ) $ — Prosper has determined that its net deferred tax asset did not satisfy the recognition criteria set forth in ASC Topic 740 and, accordingly, established a full valuation allowance against the net deferred tax asset. The valuation allowance as of December 31, 2015, increased by $16.4 million to ($44.9) million from ($28.5) million in the prior fiscal year, an increase of 58%. Under ASC 740, Accounting for Income Taxes The Internal Revenue Code imposes substantial restrictions on the utilization of net operating losses and tax credits in the event of an “ownership change” of a corporation. Accordingly, Prosper’s ability to utilize net operating losses and credit carryforwards may be limited in the future as the result of such an “ownership change.” Prosper files Federal and various state income tax returns. Prosper has net operating loss carryforwards for both federal and state income tax purposes of approximately $144.4 million and $161.6 million respectively as of December 31, 2015, available to reduce future income subject to income taxes. Prosper has $10.8 million of net operating losses that will be credited to additional paid in capital when realized related to equity compensation . Subsequent to the issuance of the consolidated financial statements for the year ended December 31, 2014, Prosper identified an error that affected the disclosure of Unrecognized Tax Benefits as of December 31, 2014. The error was the result of presenting a portion of the unrecognized tax benefit gross of the application of the applicable tax rate. The amount of unrecognized tax benefits as of January 1, 2014 has been revised to reflect the correction of the error. All unrecognized tax benefits are netted against deferred tax assets with a full valuation allowance. Management does not believe this error was material to the financial statements taken as a whole. The following table summarizes Prosper’s activity related to its unrecognized tax benefits (in thousands): December 31, December 31, 2015 2014 Balance at January 1, $ 4,927 $ 4,927 Decrease related to current year tax position (4,014 ) - Balance at December 31, $ 913 $ 4,927 None of the unrecognized tax benefits would affect Prosper’s effective tax rate if these amounts are recognized due to the full valuation allowance. Prosper’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. As of December 31, 2015, Prosper has not incurred any interest or penalties. All tax returns will remain open for examination by the federal and most state taxing authorities for three and four years, respectively, from the date of utilization of any net operating loss carryforwards or research and development credits. |
Prosper Funding LLC [Member] | |
Income Taxes [Line Items] | |
Income Taxes | 7 . Income Taxes Prosper Funding incurred no income tax provision for the year ended December 31, 2015 and 2014. Prosper Funding is a US disregarded entity and the loss is included in the return of its parent, PMI. Since PMI is in a loss position, not currently subject to income taxes, and has fully reserved its deferred tax asset, the net effective tax rate for Prosper Funding is 0%. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies | 1 6 . Commitments and Contingencies Future Minimum Lease Payments Prosper has entered into various non-cancelable operating leases for certain offices with contractual lease periods expiring between 2022 and 2027. Prosper recognized total rental expenses under operating leases of $4.1 million and $2.0 million during the years ended December 31, 2015 and 2014, respectively. Future minimum rental payments under these leases as of December 31, 2015 are as follows (in thousands): 2016 $ 6,352 2017 9,408 2018 10,199 2019 10,556 2020 11,065 Thereafter 43,122 Total future operating lease obligations $ 90,702 Operating Commitments Prosper amended and restated an agreement with WebBank, under which all Borrower Loans originated through the platform are made by WebBank under its bank charter. The arrangement allows for Borrower Loans to be offered to borrowers at uniform nationwide terms. Prosper is required to pay the greater of a monthly minimum fee or a fee calculated based on a certain percentage of monthly Borrower Loan origination volume. The minimum annual fee for year ended December 31, 2016 is $1.4 million. Loan Purchase Commitments Prosper has entered into an agreement with WebBank to purchase $32.7 million of Borrower Loans that WebBank originated during the last business day of fiscal 2015 and first business day of fiscal 2016. Prosper will purchase these Borrower Loans within the first two business days of fiscal 2016. Repurchase and Indemnification Contingency Under the terms of the loan purchase agreements between Prosper Prosper Prosper Prosper Securities Law Compliance From inception of Prosper Prosper Prosper Prosper Prosper In 2008, plaintiffs filed a class action lawsuit against Prosper and certain of its executive officers and directors in the Superior Court of California, County of San Francisco, California. The suit was brought on behalf of all promissory note purchasers on the platform from January 1, 2006 through October 14, 2008. The lawsuit alleged that Prosper offered and sold unqualified and unregistered securities in violation of the California and federal securities laws. On July 19, 2013 solely to avoid the costs, risks and uncertainties inherent in litigation, and without admitting any liability or wrongdoing, the parties to the class action litigation agreed to enter into a settlement to resolve all claims related thereto (the “Settlement”). In connection with the Settlement, Prosper agreed to pay an aggregate amount of $10 million into a settlement fund, split into four annual installments of $2 million in 2014, $2 million in 2015, $3 million in 2016 and $3 million in 2017. The Settlement received final approval in a final order and judgment entered by the Superior Court on April 16, 2014. Pursuant to the final order and judgment, the claims in the class action were dismissed, and at the effective time of the Settlement (June 16, 2014), the defendants will have been released by the plaintiffs from all claims that were or could have been asserted concerning the issues alleged in the class action lawsuit. The reserve for the class action settlement liability is $5.9 million in the Consolidated Balance Sheets as of December 31, 2015. |
Prosper Funding LLC [Member] | |
Commitments and Contingencies | 8 . Commitments and Contingencies Operating Commitments Prosper Funding amended and restated an agreement with WebBank, under which all Borrower Loans originated through the platform are made by WebBank under its bank charter. The arrangement allows for Borrower Loans to be offered to borrowers at uniform nationwide terms. Prosper Funding is required to pay the greater of a monthly minimum fee or a fee calculated based on a certain percentage of monthly Borrower Loan origination volume. The minimum annual fee for year ended December 31, 2016 is $1.4 million. Loan Purchase Commitments Prosper Funding has entered into an agreement with WebBank to purchase $32.7 million of Borrower Loans that WebBank originated during the last business day of fiscal 2015 and first business day of fiscal 2016. Prosper Funding will purchase these Borrower Loans within the first two business days of fiscal 2016. Repurchase and Indemnification Contingency Under the terms of the loan purchase agreements between Prosper Funding and investors that participate in the Whole Loan Channel, Prosper Funding may, in certain circumstances, become obligated to repurchase a Borrower Loan from an investor. Generally, these circumstances include the occurrence of verifiable identity theft, the failure to properly follow loan listing or bidding protocols, or a violation of the applicable federal, state, or local lending laws. The fair value of the indemnification and repurchase obligation is estimated based on historical experience and the initial fair value is insignificant. Prosper Funding recognizes a liability for the repurchase and indemnification obligation when the Borrower Loans are issued. Indemnified or repurchased Borrower Loans associated with violations of federal, state, or local lending laws or verifiable identity theft are written off at the time of repurchase or at the time an indemnification payment is made. The maximum potential amount of future payments associated under this obligation is the outstanding balances of the Borrower Loans sold through the Whole Loan Channel, which at December 31, 2015 is $3.6 billion. Prosper Funding had accrued $460 thousand and $171 thousand as of December 31, 2015 and 2014 respectively in regard to this obligation. |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2015 | |
Related Parties | 1 7 . Related Parties Since Prosper’s inception, it has engaged in various transactions with its directors, executive officers and holders of more than 10% of its voting securities, and immediate family members and other affiliates of its directors, executive officers and 10% stockholders. Prosper believes that all of the transactions described below were made on terms no less favorable to Prosper than could have been obtained from unaffiliated third parties. Prosper’s executive officers, directors who are not executive officers and certain affiliates participate on Prosper’s marketplace by purchasing Notes. The aggregate amount of the Notes purchased and the income earned by parties deemed to be affiliates and related parties of Prosper as of December 31, 2015 and 2014 are summarized below (in thousands): Aggregate Amount of Interest Earned on Related Party Notes Purchased Notes 2015 2014 2015 2014 Executive officers and management $ 1,361 $ 1,127 $ 206 $ 163 Directors 244 42 9 10 Total $ 1,605 $ 1,169 $ 215 $ 173 Related Party Notes balance as of December 2015 2014 Executive officers and management $ 1,912 $ 1,614 Directors 325 76 $ 2,237 $ 1,690 |
Prosper Funding LLC [Member] | |
Related Parties | 9 . Related Parties Since inception, Prosper Funding has engaged in various transactions with its directors and executive officers, sole member, and immediate family members and other affiliates of its directors, executive officers and sole member. Prosper Funding believes that all of the transactions described below were made on terms no less favorable to Prosper Funding than could have been obtained from unaffiliated third parties. Prosper Funding’s executive officers, directors who are not executive officers and certain affiliates participate on Prosper Funding’s lending platform by placing bids and purchasing Notes. The aggregate amount of the Notes purchased and the income earned by parties deemed to be affiliates and related parties of Prosper Funding as of December 31, 2015 and 2014 are summarized below (in thousands): Aggregate Amount of Interest Earned on Related Party Notes Purchased Notes 2015 2014 2015 2014 Executive officers and management $ 1,361 $ 1,127 $ 206 $ 159 Directors — — — — Total $ 1,361 $ 1,127 $ 206 $ 159 Related Party Notes balance as of December 2015 2014 Executive officers and management $ 1,912 $ 1,614 Directors — — Total $ 1,912 $ 1,614 |
Postretirement Benefit Plans
Postretirement Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Compensation And Retirement Disclosure [Abstract] | |
Postretirement Benefit Plans | 1 8 . Postretirement Benefit Plans Prosper has a 401(k) plan that covers all employees meeting certain eligibility requirements. The 401(k) plan is designed to provide tax-deferred retirement benefits in accordance with the provisions of Section 401(k) of the Internal Revenue Code. Eligible employees may defer up to 90% of eligible compensation up to the annual maximum as determined by the Internal Revenue Service. Prosper’s contributions to the plan are discretionary. During the years ended December 31, 2015 and 2014, Prosper has contributed $1.9 million and $0.66 million to the 401(k) plan, respectively. |
Significant Concentrations
Significant Concentrations | 12 Months Ended |
Dec. 31, 2015 | |
Significant Concentrations | 1 9 . Significant Concentrations Prosper is dependent on third party funding sources such as banks and investment funds to provide the funds to allow WebBank to originate Borrower Loans that the third party funding sources will later purchase. Of all Borrower Loans originated in the year ended December 31, 2015, 37%, 19% and 11% were purchased by three different parties. This compares to 37%, 22% and 13% for the year ended December 31, 2014. Further, a significant portion of our business is dependent on funding through the Whole Loan Channel, for which 95% and 89% of Borrower Loans were funded through the Whole Loan Channel in the years ending December 31, 2015 and 2014, respectively. Prosper receives all of its transaction fee revenue from WebBank. Prosper earns a transaction fee from WebBank for our services in facilitating originations of Borrower Loans issued by WebBank. The rate of the transaction fee for each individual Borrower Loan based on the term and credit grade of the Borrower Loan. |
Prosper Funding LLC [Member] | |
Significant Concentrations | 10 . Significant Concentrations Prosper Funding is dependent on third party funding sources such as banks and investment funds to provide the funds to allow WebBank to originate loans that the third party funding sources will later purchase. Of all Borrower Loans originated in the year ended December 31, 2015, 37%, 19% and 11% were purchased by three different parties. This compares to 37%, 22% and 13% for the year ended December 31, 2014. Further, a significant portion of our business is dependent on funding through the Whole Loan Channel. 95% and 89% of Borrower Loans were funded through the Whole Loan Channel in the years ending December 31, 2015 and 2014, respectively. |
Segments
Segments | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segments | 20 . Segments Our chief operating decision maker reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. As such, we have a single reporting segment and operating unit structure. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 21 . Subsequent Events On February 16, 2016, PMI amended and restated its Certificate of Incorporation to effect a 5-for-1 forward stock split. The total number of shares of stock which the PMI shall have the authority to issue is 464,214,500, consisting of 286,826,075 shares of Common Stock, $0.01 par value per share, and 177,388,425 Preferred Stock, $0.01 par value per share, 68,558,220 of which are designated as "Series A Preferred Stock," 24,760,915 of which are designated as "Series A-1 Preferred Stock," 35,775,880 of which are designated as "Series B Preferred Stock," 24,404,770 of which are designated as “Series C Preferred Stock” and 23,888,640 of which are designated as “Series D Preferred Stock.” Each share of Common Stock issued and outstanding immediately prior to the effective date shall be split and converted into five shares of Common Stock; each share of Series A Preferred Stock, Series A-1 Preferred Stock, Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock issued and outstanding immediately prior to the effective date, shall be converted into five shares of Series A Preferred Stock, Series A- Preferred Stock, Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock, respectively. No fractional shares shall be issued in connection with the forward stock split. |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Significant Accounting Policies [Line Items] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements include the accounts of PMI and its wholly owned subsidiaries PFL, PHL and BillGuard. All intercompany balances and transactions between PMI and its subsidiaries have been eliminated in consolidation. PMI and PFL’s financial statements have been prepared in accordance with U.S generally accepted accounting principles (“U.S. GAAP”). On January 23, 2015, PMI acquired all of the outstanding limited liability company units of American HealthCare Lending, LLC (“American HealthCare Lending”), a company that operated a patient financing platform, and merged American HealthCare Lending with and into Prosper Healthcare Lending LLC (“PHL”), a newly established entity surviving the merger. Prosper’s consolidated financial statements include PHL’s results of operations and financial position from the date of acquisition forward (see Note 8 – American HealthCare Lending Acquisition On October 9, 2015, PMI acquired all of the outstanding stock of BillGuard, Inc. (“BillGuard”), a company incorporated in Delaware in 2010 that developed applications that help consumers manage their identity, finances and credit. PMI merged BillGuard with and into Beach Merger Sub, Inc., a newly established entity wholly owned by PMI, with BillGuard surviving the merger. Prosper’s consolidated financial statements include BillGuard’s results of operations and financial position from the date of acquisition forward (see Note 9 – BillGuard Acquisition |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the related disclosures, including contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. These estimates, judgments and assumptions include but are not limited to the following: valuation of Loans Held for Sale, Borrower Loans and associated Notes, valuation of servicing rights, valuation allowance on deferred tax assets, stock-based compensation expense, intangible assets, goodwill, contingent consideration and contingent liabilities. Actual results could differ from those estimates, and those differences could be material. |
Certain Risks and Concentrations | Certain Risks In the normal course of its business, Prosper encounters significant credit risk. Financial instruments that potentially subject Prosper to significant concentrations of credit risk consist primarily of cash, cash equivalents, available for sale investments, Borrower Loans held for investment and restricted cash. Prosper places cash, cash equivalents, and restricted cash with high-quality financial institutions and is exposed to credit risk in the event of default by these institutions to the extent the amount recorded on the balance sheet exceeds federally insured amounts. Prosper performs periodic evaluations of the relative credit standing of these financial institutions and has not recognized any losses in earnings from instruments held at these financial institutions. As a lending marketplace, Prosper believes its customers are highly susceptible to uncertainties and negative trends, real or perceived, in the markets driven by, among other factors, general economic conditions in the United States and abroad. These external economic conditions and resulting trends or uncertainties could adversely impact its customers’ ability or desire to participate on its marketplace as borrowers or investors, and consequently could negatively affect its business and results of operations. To the extent that payments on Borrower Loans (including Borrower Loans that have been sold) are not made, interest income and/or servicing income will be reduced. A series of Notes corresponding to a particular Borrower Loan is wholly dependent on the repayment of such Borrower Loan. As a result, Prosper does not bear the credit risk on such Borrower Loan. |
Reclassifications | Reclassifications During the period ended December 31, 2015, Prosper changed the presentation of its revenue in the consolidated statements of operations. A new line called “Gain on Sales of Borrower Loans” was created with the amounts included in this line previously classified as “Other Revenue”. Prior period amounts have been reclassified to conform to the current presentation. Prosper changed the presentation of the servicing assets on its Consolidated Balance Sheet by reclassifying them from “Prepaid and Other Assets” to “Servicing Assets”. Prosper also changed the presentation of liabilities by creating “Other Liabilities” and reclassified deferred rent and servicing liabilities from “Accounts Payable and Accrued Liabilities”, the “Class Action Settlement Liability” and “Repurchase Liability for Unvested Stock Awards” to “Other Liabilities”. Prior period amounts have been reclassified to conform to the current presentation. Management believes these changes make our financial statements more useful for the readers of the financial statements and comparable with Prosper’s competitors. Certain prior period amounts have been reclassified on the Consolidated Statements of Cash Flows to reflect the above changes to the Balance Sheet. Additionally the lines “Proceeds from the Early Exercise of Stock Options”, “Proceeds from the Exercise of Vested Stock Options” and “Proceeds from Exercise of Common Stock Warrants” were combined into one line item. |
Consolidation of Variable Interest Entities | Consolidation of Variable Interest Entities The determination of whether to consolidate a variable interest entity (“VIE”) in which we have a variable interest requires a significant amount of analysis and judgment whether we are the primary beneficiary of a VIE via a controlling financial interest in the VIE. A controlling financial interest in a VIE exists if we have both the power to direct the VIE’s activities that most significantly affect the VIE’s economic performance and a potentially significant economic interest in the VIE. The determination of whether an entity is a VIE considers factors, such as (i) whether the entity’s equity investment at risk is insufficient to allow the entity to finance its activities without additional subordinated financial support or (ii) when a holder’s equity investment at risk lacks any of the following characteristics of a controlling financial interest: the direct or indirect ability through voting rights or similar rights to make decisions about a legal entity’s activities that have a significant effect on the entity’s success, the obligation to absorb the expected losses of the entity or the right to receive the expected residual returns of the legal entity. As a result of the nature of the retained servicing rights on the sale of Borrower Loans, we are a variable interest holder in certain special purposes entities that purchase these Borrower Loans. For all of these entities we either do not have the power to direct the activities that most significantly affect the VIE’s economic performance or we do not have a potentially significant economic interest in the VIE. In no case are we the primary beneficiary and as a result none of these entities are consolidated on Prosper ’s consolidated financial statements. Management regularly reviews and reconsiders its previous conclusions regarding the status of an entity as a VIE and whether we are required to consolidate such VIE in the consolidated financial statements. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash includes various unrestricted deposits with highly rated financial institutions. Cash equivalents consist of highly liquid marketable securities with original maturities of three months or less at the time of purchase and consist primarily of money market funds, commercial paper, US treasury securities and US agency securities. Cash equivalents are stated at fair value . |
Restricted Cash | Restricted Cash Restricted cash consists primarily of cash deposits and short term certificate of deposit accounts held as collateral as required for long term leases, loan funding and servicing activities, and cash that investors or Prosper has on our marketplace that has not yet been invested in Borrower Loans or disbursed to the investor. |
Short Term Investments | Short Term Investments Short Term Investments which are included in Prepaid and Other Assets consists of certificates of deposit with a term greater than three months but less than a year that are held as collateral as required for loan funding and servicing activities. |
Available for Sale Investments | Available for Sale Investments Available for sale securities consist of commercial paper, US treasury securities, US agency securities and corporate debt securities. Available for sale investments are recorded at fair value with unrealized gains and losses reported, net of taxes, in accumulated other comprehensive income (loss) included in stockholders' equity unless management determines that an investment is other-than-temporarily impaired. Management evaluates whether available for sale debt securities are other than temporarily impaired (“OTTI”) on a quarterly basis. Debt securities with unrealized losses are considered OTTI if Prosper intends to sell the investment or if it is more likely than not that it will be required to sell such investment before any anticipated recovery. If management determines that an investment is OTTI under these circumstances, the impairment recognized in earnings is measured as the entire difference between the amortized cost and then-current fair value. An investment is also OTTI if management does not expect to recover all of the amortized cost of the investment. In this circumstance, the impairment recognized in earnings represents estimated credit losses, and is measured by the difference between the present value of expected cash flows |
Fair Value Measurement | Fair Value Measurement Prosper measures the fair value of assets and liabilities in accordance with its fair value hierarchy which prioritizes information used to measure fair value and the effect of fair value measurements on earnings and provides for enhanced disclosures determined by the level within the hierarchy of information used in the valuation. We apply this framework whenever other standards require (or permit) assets or liabilities to be measured at fair value. We define fair value in terms of the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The price used to measure the fair value is not adjusted for transaction costs. The fair value measurement also assumes that the transaction to sell an asset occurs in the principal market for the asset or, in the absence of a principal market, the most advantageous market for the asset. The principal market is the market in which the reporting entity would sell or transfer the asset with the greatest volume and level of activity for the asset. In determining the principal market for an asset or liability, it is assumed that the reporting entity has access to the market as of the measurement date. If no market for the asset exists or if the reporting entity does not have access to the principal market, the reporting entity should use a hypothetical market. Assets and liabilities carried at fair value on the balance sheets are classified among three levels based on the observability of the inputs used to determine fair value: Level 1 — The valuation is based on quoted prices in active markets for identical instruments. Level 2 — The valuation is based on observable inputs such as quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation methodologies for which all significant assumptions are observable in the market. Level 3 — The valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the instrument. Level 3 valuations are typically performed using pricing models, discounted cash flow methodologies, or similar methodologies, which incorporate management’s own estimates of assumptions that market participants would use in pricing the instrument or valuations that require significant management judgment or estimation. Fair values of assets or liabilities are determined based on the fair value hierarchy, which requires an entity to maximize the use of quoted prices and observable inputs and to minimize the use of unobservable inputs when measuring fair value. Various valuation methodologies are utilized, depending on the nature of the financial instrument, including the use of market prices for identical or similar instruments, or discounted cash flow models. When possible, active and observable market data for identical or similar financial instruments are utilized. Alternatively, fair value is determined using assumptions that management believes a market participant would use in pricing the asset or liability. Financial instruments consist principally of Cash and Cash Equivalents, Restricted Cash, Available for Sale Investments, Borrower Loans, Loans Held for Sale, Accounts Receivable, Accounts Payable and Accrued Liabilities, Payable to Investors and Notes. Servicing Assets and Liabilities are also subject to fair value measurement within the financial statements of Prosper. The estimated fair values of Cash and Cash Equivalents, Restricted Cash, Accounts Receivable, Accounts Payable and Accrued Liabilities, and Payable to Investors approximate their carrying values because of their short term nature. As observable market prices are not available for the Borrower Loans, Loans Held for Sale and Notes, or for similar assets and liabilities, Prosper believes the Borrower Loans, Loans Held for Sale and Notes should be considered Level 3 financial instruments. In a hypothetical transaction as of the measurement date, Prosper believes that differences in the principal marketplace in which the Borrower Loans are originated and the principal marketplace in which Prosper might offer those loans may result in differences between the originated amount of the loans and their fair value as of the transaction date. For Borrower Loans and Loans Held for Sale, the fair value is estimated using discounted cash flow methodologies based upon valuation assumptions including prepayment speeds, default rates and discount rates based on the perceived credit risk within each credit grade. The obligation to pay principal and interest on any series of Notes is equal to the loan payments, if any, that are received on the corresponding Borrower Loan, net of our servicing fee which is generally 1% of the outstanding balance. The fair value election for Notes and Borrower Loans allows both the assets and the related liabilities to receive similar accounting treatment for expected losses which is consistent with the subsequent cash flows to investors that are dependent upon borrower payments. As such, the fair value of a series of Notes is approximately equal to the fair value of the corresponding Borrower Loan, adjusted for the 1.0% servicing fee and the timing of loan purchase, note issuance and borrower payments subsequently disbursed to such Note holders. As a result, the valuation of the Notes uses the same methodology and assumptions as the Borrower Loans, except that the Notes incorporate the 1% servicing fee and any differences in timing in payments. Any unrealized gains or losses on the Borrower Loans and Notes for which the fair value option has been elected is recorded as a separate line item in the statement of operations. The effective interest rate associated with a group of Notes is less than the interest rate earned on the corresponding Borrower Loan due to the 1.0% servicing fee. See Note 4 for a roll-forward and further discussion of the significant assumptions used to value Borrower Loans and Notes. |
Borrower Loans and Notes | Borrower Loans and Notes Through the Note Channel, Prosper purchases Borrower Loans from WebBank then issues Notes, and holds the Borrower Loans until maturity. The obligation to repay a series of Notes funded through the Note Channel is dependent upon the repayment of the associated Borrower Loan. Borrower Loans and Notes funded through the Note Channel are carried on Prosper’s consolidated balance sheets as assets and liabilities, respectively. We choose to measure certain financial instruments and certain other items at fair value on an instrument-by-instrument basis with unrealized gains and losses on items for which the fair value option has been elected reported in earnings. Management believes that the fair value option is more meaningful for the readers of the financial statements and it allows both the Borrower Loans and Notes to be valued using the same methodology. The fair value election, with respect to an item, may not be revoked once an election is made. Prosper estimates the fair value of such Borrower Loans and Notes using discounted cash flow methodologies adjusted for the expected prepayment, loss, recovery and default rates. The Borrower Loans are not derecognized when a corresponding Note is issued as Prosper maintains the ability to sell the Borrower Loans without the approval of the holders of the corresponding Notes. |
Loan Servicing Assets and Liabilities | Loan Servicing Assets and Liabilities Prosper records servicing assets and liabilities at their estimated fair values for servicing rights retained when Prosper sells Borrower Loans to unrelated third-party buyers. The change in fair value of servicing assets and liabilities is recognized in “Servicing Fees” revenue. The gain or loss on a loan sale is recorded in “Gain on Sale” while the fair value of the servicing rights, which is based on the degree to which the contractual loan servicing fee is above or below an estimated market servicing rate is recorded in servicing assets or liabilities. Servicing assets and liabilities are recorded in “Servicing Assets” and “Other Liabilities,” respectively, on the consolidated balance sheets. On January 1, 2015, Prosper elected to adopt the fair value method to measure the servicing assets and liabilities for all classes of servicing assets and liabilities subsequent to initial recognition. Management believes that the fair value option is more meaningful for readers of the financial statements as it more accurately reflects the expected benefits and obligations of the servicing rights. The adoption of the fair value method for a particular class is irrevocable. Prior to January 1, 2015, Prosper measured the servicing assets and liabilities using the amortized cost method. This change resulted in a $574 thousand decrease to accumulated deficit, a $545 thousand increase in net servicing assets and a $29 thousand decrease in net servicing liabilities. Prosper uses a discounted cash flow model to estimate the fair value of the loan servicing assets or liabilities which considers the contractual projected servicing fee revenue that Prosper earns on the Borrower Loans, estimated market servicing rates to service such loans, prepayment rates, default rates and the current principal balances of the Borrower Loans. |
Loans Held for Sale | Loans Held for Sale Loans Held for Sale are comprised of Borrower Loans held for short durations and are recorded at fair value. The fair value is estimated using discounted cash flow methodologies based upon a set of valuation assumptions similar to those of other Borrower Loans. We measure certain financial instruments and certain other items at fair value on an instrument-by-instrument basis with unrealized gains and losses on items for which the fair value option has been elected reported in earnings. Management believes that the fair value option is more meaningful for the readers of the financial statements and it allows for the Loans Held for Sale to be measured at fair value similar to Borrower Loans and Notes. The fair value election, with respect to an item, may not be revoked once an election is made. |
Property and Equipment | Property and Equipment Property and equipment consists of computer equipment, office furniture and equipment, leasehold improvements, software purchased or developed for internal use and web site development costs. Property and equipment are stated at cost, less accumulated depreciation and amortization, and are computed using the straight-line method based upon estimated useful lives of the assets. Estimated useful lives of the assets are as follows: Furniture and fixtures 7 years Office equipment 5 years Computers and equipment 3 years Leasehold improvements 5-8 years Software and website development costs 1-5 years The costs to develop software for the website and other internal uses are capitalized when management has authorized and committed project funding, preliminary development efforts are successfully completed, and it is probable that the project will be completed and the software will be used as intended. Capitalized software and website development costs primarily include software licenses acquired, fees paid to outside consultants, and salaries and payroll related costs for employees directly involved in the development efforts. Costs incurred prior to meeting these criteria, together with costs incurred for training and maintenance, are expensed. Costs incurred for upgrades and enhancements that are considered to be probable to result in additional functionality are capitalized. Capitalized costs are included in property and equipment and amortized to expense using the straight-line method over their expected lives. Software and website development assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of software and website development assets to be held and used is measured by a comparison of the carrying amount of the asset group to the future net undiscounted cash flows expected to be generated by the asset group. If such software and website development assets are considered to be impaired, the impairment to be recognized is the excess of the carrying amount over the fair value of the software and website development asset group. |
Goodwill and Intangibles | Goodwill and Intangibles Goodwill associated with business combinations is computed by recognizing the portion of the purchase price that is not tied to individually identifiable and separately recognizable assets. Costs of internally developing any intangibles is expensed as incurred. Intangible assets identified through the acquisitions of American Healthcare Lending and BillGuard include customer relationships, technology and a brand name. The customer relationship intangible assets are amortized on an accelerated basis over three to ten year periods. The technology and brand name intangible assets are amortized on a straight line basis over three to five years and one year, respectively. Prosper values the customer relationships, technology and brand name assets using the income approach. Significant assumptions in valuing certain intangible assets include, but are not limited to, future expected cash flows from acquired users, acquired technology, and brand names from a market participant perspective, useful lives and discount rates. |
Business Combinations | Business Combinations We allocate the fair value of purchase consideration to the tangible assets acquired, liabilities assumed and intangible assets acquired based on their estimated fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. Significant assumptions in valuing certain intangible assets include, but are not limited to, future expected cash flows from acquired users, acquired technology, and brand names from a market participant perspective, useful lives and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. During the measurement period, which is one year from the acquisition date, we may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair value, whichever comes first, any subsequent adjustments are recorded to earnings. |
Repurchase Liability for Unvested Restricted Stock Awards | Repurchase Liability for Unvested Restricted Stock Awards Under the terms of PMI’s equity plans, at the Administrator’s discretion, certain equity awards issued to employees may be exercised before they have vested. When this occurs Prosper records a liability for the unvested portion of the exercised option. If the employee’s employment is terminated before all of the shares become vested PMI may repurchase the unvested shares at the original exercise price. The liability is released into equity as the shares become vested. Early exercises of options are not deemed to be substantive exercises for accounting purpose |
Investors Payable | Payable to Investors Payable to investors primarily represents our obligation to investors related to cash held in an account for the benefit of investors and payments-in-process received from borrowers. |
Revenue Recognition | Revenue Recognition Revenue primarily results from fees and net interest income earned. Fees include transaction fees for our services performed on behalf of WebBank to originate a loan and servicing fees paid by investors. We also have other smaller sources of revenue reported as other revenue, this includes referral fees, securitization fees and subscription fees. Transaction Fees Prosper earns a transaction fee upon the successful origination of all Borrower Loans facilitated through Prosper’s marketplace. Prosper receives payments from WebBank as compensation for the activities Prosper performs on behalf of WebBank. Prosper’s fee is determined by the term and credit grade of the Borrower Loans that Prosper facilitates on its marketplace and WebBank originates. The transaction fee Prosper earns is determined by the term and credit grade of the Borrower Loan that is facilitated on Prosper’s marketplace, and ranges from 1.00% to 5.00% of the original principal amount of such Borrower Loan that WebBank originates. Prosper records the transaction fee net of any fees paid to WebBank because Prosper does not receive an identifiable benefit from WebBank other than the Borrower Loan that has been recognized at fair value. Servicing Fees Investors who purchase Borrower Loans from Prosper typically pay Prosper a servicing fee which is currently set at 1% per annum of the outstanding principal balance of the Borrower Loan prior to applying the current payment. The servicing fee compensates Prosper for the costs incurred in servicing the Borrower Loan, including managing payments from borrowers, payments to investors and maintaining investors’ account portfolios. Prosper records servicing fees from Investors as a component of operating revenue when received. The amortization of servicing rights and the change in fair value is also included in servicing fees. Gain on Sale of Borrower Loans Prosper recognizes gains or losses on the sale of Borrower Loans when it retains servicing assets or liabilities upon the sale of Borrower Loans. Interest Income on Borrower Loans, and Interest Expense on Notes Prosper recognizes interest income on Borrower Loans funded through the Note Channel and interest expense on the corresponding Notes using the accrual method based on the stated interest rate to the extent Prosper believes it to be collectable. |
Advertising Costs | Advertising Costs Advertising costs are expensed when incurred and are included in sales and marketing expense in the accompanying Consolidated Statements of Operations. Prosper incurred advertising costs of $60.1 million and $24.1 million for the years ended December 31, 2015 and 2014, respectively. |
Stock-Based Compensation | Stock-Based Compensation We determine the fair value of our stock options issued to employees on the date of grant using the Black-Scholes option pricing model, which is impacted by the fair value of our common stock, as well as changes in assumptions that include, but are not limited to, the fair value of our common stock, the expected common stock price volatility over the term of the option awards, the expected term of the awards, risk-free interest rates and the expected dividend yield. We recognize compensation expense for our stock based awards on a straight-line basis over the period during which an employee is required to provide services in exchange for the award (the vesting period of the award). Stock-based compensation expense is recognized only for those awards expected to vest. We estimate future forfeitures at the date of grant and revise the estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Stock-based awards issued to non-employees are marked-to-market up until the point that the awards measurement period has been achieved. Compensation expense for stock options issued to nonemployees is calculated using the Black-Scholes option pricing model and is recorded over the vesting period of the award. |
Foreign Currency Transactions | Foreign Currency Transactions The functional currency of our international subsidiary is the U.S. dollar. For this subsidiary, foreign currency denominated monetary assets and liabilities are remeasured into U.S. dollars at current exchange rates and foreign currency denominated nonmonetary assets and liabilities are remeasured into U.S. dollars at historical exchange rates. Gains or losses from foreign currency remeasurement and settlements are included in general and administrative expense in the Consolidated Statements of Operations. |
Income Taxes | Income Taxes The asset and liability method is used to account for income taxes. Under this method, deferred income tax assets and liabilities are based on the differences between the financial statement carrying values and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Prosper’s policy is to include interest and penalties related to gross unrecognized tax benefits within its provision for income taxes. U.S. Federal, California, Israel and other state income tax returns are filed. Prosper is currently not undergoing any income tax examinations. Due to the net operating loss, generally all tax years remain open. We recognize benefits from uncertain tax positions only if we believe that it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. |
Comprehensive Income | Comprehensive Income Marketable debt securities are generally considered available-for-sale and are carried at fair value, based on quoted market prices or other readily available market information. Gains and losses are recognized when realized using the specific identification method and included in Other Revenues in the Consolidated Statements of Operations. Prosper monitors its investment portfolio for potential impairment on a quarterly basis. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, as part of its ongoing efforts to assist in the convergence of US GAAP and International Financial Reporting Standards (“IFRS”), the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “ Revenue from Contracts with Customers In November 2014, the FASB issued ASU 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity to eliminate the use of different methods in practice and thereby reduce existing diversity in the accounting for hybrid financial instruments issued in the form of a share. For hybrid financial instruments issued in the form of a share, an entity should determine the nature of the contract by considering the economic characteristics and risks of the entire hybrid financial instrument. The existence or omission of any single term or feature does not necessarily determine the economic characteristics and risks of the host contract. This standard will be effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. In February 2015, the FASB issued ASU 2015-02, " Consolidation (Topic 810): Amendments to the Consolidation Analysis. In April 2015, the FASB issued ASU 2015-05 “ Customers’ Accounting for Fees Paid in Cloud Computing Arrangement ”, which will be effective for the . The guidance changes what a customer must consider in determining whether a cloud computing arrangement contains a software license. If the arrangement contains a software license, the customer would account for the fees related to the software license element in accordance with guidance related to internal use software; if the arrangement does not contain a software license, the customer would account for the arrangement as a service contract. In September 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments. The new guidance simplifies the accounting for measurement period adjustments in connection with business combinations by requiring that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. This guidance is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years, with early adoption permitted. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) |
Prosper Funding LLC [Member] | |
Significant Accounting Policies [Line Items] | |
Basis of Presentation | Basis of Presentation Prosper Funding’s consolidated financial statements include the accounts of PFL and its wholly-owned subsidiary PAH. All intercompany balances and transactions between PFL and PAH have been eliminated in consolidation. Prosper Funding |
Use of Estimates | Use of Estimates The preparation of Prosper Funding’s consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. These estimates, judgments and assumptions include but are not limited to the following: valuation of Loans Held for Sale, Borrower Loans and associated Notes, valuation of servicing rights, repurchase and indemnification obligation, and contingent liabilities. Prosper Funding bases its estimates on historical experience from all Borrower Loans, and on various other assumptions that it believes to be reasonable under the circumstances. Actual results could differ from those estimates, and those could be material. |
Certain Risks and Concentrations | Certain Risks In the normal course of its business, Prosper encounters significant credit risk. Financial instruments that potentially subject Prosper Funding to significant concentrations of credit risk consist primarily of cash, cash equivalents and restricted cash. Prosper Funding places cash, cash equivalents and restricted cash with high-quality financial institutions and is exposed to credit risk in the event of default by these institutions to the extent the amount recorded on the balance sheet exceeds federally insured amounts. Prosper Funding also performs periodic evaluations of the relative credit standing of these financial institutions and has not recognized any losses in earnings from instruments held at these financial institutions. As a lending marketplace, Prosper Funding believes its customers are highly susceptible to uncertainties and negative trends, real or perceived, in the markets driven by, among other factors, general economic conditions in the United States and abroad. These external economic conditions and resulting trends or uncertainties could adversely impact its customers’ ability or desire to participate on its marketplace as borrowers or investors, and consequently could negatively affect its business and results of operations. To the extent that Borrower Loan (including Borrower Loans that have been sold) payments are not made, servicing income will be reduced. A group of Notes corresponding to a particular Borrower Loan is wholly dependent on the repayment of such Borrower Loan. As a result, Prosper Funding does not bear the credit risk on such Borrower Loan. |
Reclassifications | Reclassifications During the period ended December 31, 2015, Prosper Funding Prior period amounts have been reclassified to conform to the current presentation. Prosper Funding also changed the presentation of the servicing assets on its Consolidated Balance Sheets by reclassifying them from “Prepaids and Other Assets” to “Servicing Assets.” Prior period amounts have been reclassified to conform to the current presentation. Management believes these changes make the financial statements more useful for the readers of the financial statements and comparable with Prosper Funding’s competitors. |
Consolidation of Variable Interest Entities | Consolidation of Variable Interest Entities The determination of whether to consolidate a variable interest entity (“VIE”) in which we have a variable interest requires a significant amount of analysis and judgment whether we are the primary beneficiary of a VIE via a controlling financial interest in the VIE. A controlling financial interest in a VIE exists if we have both the power to direct the VIE’s activities that most significantly affect the VIE’s economic performance and a potentially significant economic interest in the VIE. The determination of whether an entity is a VIE considers factors, such as (i) whether the entity’s equity investment at risk is insufficient to allow the entity to finance its activities without additional subordinated financial support or (ii) when a holder’s equity investment at risk lacks any of the following characteristics of a controlling financial interest: the direct or indirect ability through voting rights or similar rights to make decisions about a legal entity’s activities that have a significant effect on the entity’s success, the obligation to absorb the expected losses of the entity or the right to receive the expected residual returns of the legal entity. As a result of the nature of the retained servicing rights on the sale of Borrower Loans, we are a variable interest holder in certain special purposes entities that purchase these Borrower Loans. For all of these entities we either do not have the power to direct the activities that most significantly affect the VIE’s economic performance or we do not have a potentially significant economic interest in the VIE. In no case are we the primary beneficiary and as a result none of these entities are consolidated on Prosper Funding’s consolidated financial statements. Management regularly reviews and reconsiders its previous conclusions regarding the status of an entity as a VIE and whether we are required to consolidate such VIE in the consolidated financial statements. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents are recorded at cost, which approximates fair value. Such deposits periodically exceed amounts insured by the FDIC. |
Restricted Cash | Restricted Cash Restricted cash consists primarily of cash deposits and short term certificates of deposit held as collateral as required for loan funding and servicing activities, and cash that investors or Prosper Funding |
Short Term Investments | Short Term Investments Short term investments consists of certificates of deposit with a term greater than three months but less than a year that are held as collateral as required for loan funding and servicing activities. |
Fair Value Measurement | Fair Value Measurement Prosper Funding measures the fair value of assets and liabilities in accordance with its fair value hierarchy which prioritizes information used to measure fair value and the effect of fair value measurements on earnings and provides for enhanced disclosures determined by the level within the hierarchy of information used in the valuation. We apply this framework whenever other standards require (or permit) assets or liabilities to be measured at fair value. We define fair value in terms of the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The price used to measure the fair value is not adjusted for transaction costs. Under ASC Topic 820, the fair value measurement also assumes that the transaction to sell an asset occurs in the principal market for the asset or, in the absence of a principal market, the most advantageous market for the asset. The principal market is the market in which the reporting entity would sell or transfer the asset with the greatest volume and level of activity for the asset. In determining the principal market for an asset or liability under ASC Topic 820, it is assumed that the reporting entity has access to the market as of the measurement date. If no market for the asset exists or if the reporting entity does not have access to the principal market, the reporting entity should use a hypothetical market. Under ASC Topic 820, assets and liabilities carried at fair value on the balance sheets are classified among three levels based on the observability of the inputs used to determine fair value: Level 1 — The valuation is based on quoted prices in active markets for identical instruments. Level 2 — The valuation is based on observable inputs such as quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation methodologies for which all significant assumptions are observable in the market. Level 3 — The valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the instrument. Level 3 valuations are typically performed using pricing models, discounted cash flow methodologies, or similar methodologies, which incorporate management’s own estimates of assumptions that market participants would use in pricing the instrument or valuations that require significant management judgment or estimation. Fair values of assets or liabilities are determined based on the fair value hierarchy established in ASC Topic 820, which requires an entity to maximize the use of quoted prices and observable inputs and to minimize the use of unobservable inputs when measuring fair value. Various valuation methodologies are utilized, depending on the nature of the financial instrument, including the use of market prices for identical or similar instruments, or discounted cash flow models. When possible, active and observable market data for identical or similar financial instruments are utilized. Alternatively, fair value is determined using assumptions that management believes a market participant would use in pricing the asset or liability. Financial instruments consist principally of cash and cash equivalents, restricted cash, Borrower Loans, accounts payable and accrued liabilities, and Notes. Servicing assets and liabilities are also subject to fair value measurement within the financial statements of PFL. The estimated fair values of cash and cash equivalents, restricted cash, accounts payable and accrued liabilities approximate their carrying values because of their short term nature. As observable market prices are not available for the Borrower Loans, Loans Held for Sale and Notes, Prosper Funding Prosper Funding Prosper Funding The obligation to pay principal and interest on any Note is equal to the loan payments, if any, that are received on the corresponding Borrower Loan, net of our servicing fee which is generally 1.0%. The fair value election for Notes and Borrower Loans allows both the assets and the related liabilities to receive similar accounting treatment for expected losses which is consistent with the subsequent cash flows to lenders that are dependent upon borrower payments. As such, the fair value of a group of Notes is approximately equal to the fair value of the corresponding Borrower Loan, adjusted for the 1.0% servicing fee and the timing of borrower payments subsequently disbursed to such Note holders. As a result, the valuation of the Notes uses the same methodology and assumptions as the Borrower Loans, except that the Notes incorporate the 1% servicing fee and any differences in timing of payments. Any unrealized gains or losses on the Borrower Loans and Notes for which the fair value option has been elected is recorded as a separate line item in the statement of operations. The effective interest rate associated with a group of Notes is less than the interest rate earned on the corresponding Borrower Loan due to the 1.0% servicing fee. See Note 4 for a roll-forward and further discussion of the significant assumptions used to value Borrower Loans and Notes. |
Borrower Loans and Notes | Borrower Loans and Notes Through the Note Channel, Prosper Funding Financial Instruments ( ). |
Loan Servicing Assets and Liabilities | Loan Servicing Assets and Liabilities Prosper Funding records servicing assets and liabilities at their estimated fair values for servicing rights retained when Prosper Funding sells Borrower Loans to unrelated third-party buyers. The change in fair value of servicing assets and liabilities is recognized in “Servicing Fees” revenue. The gain or loss on a loan sale is recorded in “Gain on Sale of Borrower Loans” while the fair value of the servicing rights, which is based on the degree to which the contractual loan servicing fee is above or below an estimated market loan servicing rate is recorded in servicing assets or liabilities. Servicing assets and liabilities are recorded in “Servicing Assets” and “Other Liabilities,” respectively, on the consolidated balance sheets. On January 1, 2015, Prosper elected to adopt the fair value method to measure the servicing assets and liabilities for all classes of servicing assets and liabilities subsequent to initial recognition. ASC Subtopic 860-50, Servicing Assets and Liabilities, allows the adoption of the fair value method at the beginning of any fiscal year. The adoption of the fair value method for a particular class is irrevocable. Prior to January 1, 2015, Prosper measured the servicing assets and liabilities using the amortized cost method. This change resulted in a $428 thousand decrease to accumulated deficit, a $399 thousand increase in net servicing assets and a $29 thousand decrease in net servicing liabilities. Prosper Funding uses a discounted cash flow model to estimate the fair value of the loan servicing assets or liabilities which considers the contractual projected servicing fee revenue that Prosper Funding earns on the Borrower Loans, estimated market servicing fees to service such loans, prepayment rates, default rates and the current principal balances of the Borrower Loans. |
Loans Held for Sale | Borrower Borrower Loans Held for Sale are primarily comprised of Borrower Loans held for short durations and are recorded at fair value. The fair value is estimated using discounted cash flow methodologies based upon a set of valuation assumptions similar to those of other Borrower Loans, which are set forth below in Note 6 — Fair Value of Assets and Liabilities. Prosper Funding has adopted the provisions of ASC Topic 825 . |
Investors Payable | Payable to Investors Payable to Investors primarily represents our obligation to investors related to cash held in an account for the benefit of investors and payments-in-process received from borrowers. |
Revenue Recognition | Revenue Recognition Revenue primarily results from fees, net interest earned and gains on the sale of borrower loans. Fees consist of related party administrative fees and servicing fees paid by investors. We also have other smaller sources of revenue reported as other revenue, which includes fees charged in relation to securitizations by outside investors. Administration Agreement License Fees Prosper Funding primarily generates revenues through license fees it earns through an Administration Agreement with PMI. The Administration Agreement contains a license granted by Prosper Funding to PMI that entitles PMI to use the platform for and in relation to: (i) PMI’s performance of its duties and obligations under the Administration Agreement relating to corporate administration, loan platform services, loan and note servicing and marketing, and (ii) PMI’s performance of its duties and obligations to WebBank in relation to loan origination and funding. The license fees are based on the number of listings that are posted to the platform. Service Fees Investors who purchase Borrower Loans through the Whole Loan Channel typically pay Prosper Funding a servicing fee which is generally set at 1% per annum of the outstanding principal balance of the Borrower Loan prior to applying the current payment. The servicing fee compensates Prosper Funding for the costs incurred in servicing the related loan, including managing payments from borrowers, payments to investors and maintaining investors’ account portfolios. Prosper Funding Gain on Sale of Borrower Loans Prosper Funding recognizes gains or losses on the sale of Borrower Loans when it retains servicing assets or liabilities upon the sale of Borrower Loans. Interest Income on Borrower Loans and Interest Expense on Notes Prosper Funding recognizes interest income on Borrower Loans funded through the Note Channel and interest expense on the corresponding Notes using the accrual method based on the stated interest rate to the extent Prosper Funding believes it to be collectable. |
Comprehensive Income | Comprehensive Income There is no comprehensive income (loss) other than the net income (loss) disclosed in the consolidated statements of operations. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, as part of its ongoing efforts to assist in the convergence of US GAAP and International Financial Reporting Standards (“IFRS”), the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “ Revenue from Contracts with Customers In November 2014, the FASB issued ASU 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity to eliminate the use of different methods in practice and thereby reduce existing diversity in the accounting for hybrid financial instruments issued in the form of a share. For hybrid financial instruments issued in the form of a share, an entity should determine the nature of the contract by considering the economic characteristics and risks of the entire hybrid financial instrument. The existence or omission of any single term or feature does not necessarily determine the economic characteristics and risks of the host contract. This standard will be effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. In February 2015, the FASB issued ASU 2015-02, " Consolidation (Topic 810): Amendments to the Consolidation Analysis. In April 2015, the FASB issued ASU 2015-05 “ Customers’ Accounting for Fees Paid in Cloud Computing Arrangement ”, which will be effective for the . The guidance changes what a customer must consider in determining whether a cloud computing arrangement contains a software license. If the arrangement contains a software license, the customer would account for the fees related to the software license element in accordance with guidance related to internal use software; if the arrangement does not contain a software license, the customer would account for the arrangement as a service contract. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities |
Software and Website Development | Software and Website Development Software and Website Development represents the software and website that PMI has transferred to Prosper Funding. Prosper Funding does not develop any of its own software or website. Software and website are included in property and equipment and amortized to expense using the straight-line method over their expected lives which is generally one to five years. Prosper Funding |
Administration Fee Expense - Related Party | Administration Fee Expense - Related Party Pursuant to an Administration Agreement between Prosper Funding and PMI, PMI manages the marketplace on behalf of Prosper Funding. Accordingly, each month, Prosper Funding is required to pay PMI an administration fee that is based on PMI’s (a) finance and legal personnel costs, (b) number of Borrower Loans originated through the marketplace, (c) servicing fees collected by or on behalf of Prosper Funding, and (d) nonsufficient funds fees collected by or on behalf of Prosper Funding. In addition, under a second Administration Agreement between PMI and PAH, a wholly owned subsidiary of Prosper Funding, PAH is required to pay PMI an annual fee, for PMI being the administrator of PAH’s operations. |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives of Assets | Estimated useful lives of the assets are as follows: Furniture and fixtures 7 years Office equipment 5 years Computers and equipment 3 years Leasehold improvements 5-8 years Software and website development costs 1-5 years |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property and Equipment, Net | Property and equipment consist of the following (in thousands): December 31, 2015 2014 Property and equipment: Computer equipment $ 10,522 $ 3,824 Internal-use software and website development costs 10,990 4,486 Office equipment and furniture 2,442 1,904 Leasehold improvements 5,719 5,274 Assets not yet placed in service 3,242 4,361 Property and equipment 32,915 19,849 Less accumulated depreciation and amortization (7,950 ) (5,425 ) Total property and equipment, net $ 24,965 $ 14,424 |
Prosper Funding LLC [Member] | |
Property and Equipment, Net | Property and equipment consist of the following (in thousands): December 31, 2015 2014 Property and equipment: Internal-use software and web site development costs $ 10,990 $ 4,042 Property and equipment 10,990 4,042 Less accumulated depreciation and amortization (2,571 ) (2,917 ) Total property and equipment, net $ 8,419 $ 1,125 |
Borrower Loans, Loans Held fo32
Borrower Loans, Loans Held for Sale, and Notes Held at Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Borrower Loans, Notes and Loans Held for Sale | At December 31, 2015 and 2014, Borrower Loans, Notes and Loans Held for Sale (in thousands) were: Borrower Loans Notes Loans Held for Sale December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Aggregate principal balance outstanding $ 296,945 $ 268,598 $ (294,331 ) $ (272,269 ) $ 42 $ 8,295 Fair value adjustments 328 4,645 (3,074 ) (1,514 ) (10 ) 168 Fair value $ 297,273 $ 273,243 $ (297,405 ) $ (273,783 ) $ 32 $ 8,463 |
Prosper Funding LLC [Member] | |
Borrower Loans, Notes and Loans Held for Sale | At December 31, 2015 and 2014, Borrower Loans, Notes and Loans Held for Sale (in thousands) were: Borrower Loans Notes Loans Held for Sale December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Aggregate principal balance outstanding $ 296,945 $ 268,598 $ (294,331 ) $ (272,269 ) $ 42 $ 8,295 Fair value adjustments 328 4,645 (3,074 ) (1,514 ) (10 ) 168 Fair value $ 297,273 $ 273,243 $ (297,405 ) $ (273,783 ) $ 32 $ 8,463 |
Available for Sale Investment33
Available for Sale Investments, at Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Amortized Cost, Gross Unrealized Gains and Losses and Fair Value of Securities Available for Sale | The amortized cost, gross unrealized gains and losses, and fair value of available for sale investments as of December 31, 2015, are as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Fixed maturity securities: Corporate debt securities $ 50,327 $ 1 $ (94 ) $ 50,234 Commercial paper 9,493 - - 9,493 US Treasury securities 8,512 - (41 ) 8,471 Agency bonds 2,499 - (8 ) 2,491 Total fixed maturity securities 70,831 1 (143 ) 70,689 Short term bond funds 2,500 - (2 ) 2,498 Total Available for Sale Investments $ 73,331 $ 1 $ (145 ) $ 73,187 |
Summary of Securities Available for Sale of Continuous Unrealized Loss | A summary of available for sale investments with unrealized losses as of December 31, 2015, aggregated by category and period of continuous unrealized loss, is as follows: Less than 12 months 12 months or longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fixed maturity securities: Corporate debt securities $ 45,375 $ (94 ) $ - $ - $ 45,375 $ (94 ) U.S. treasury securities 8,471 (41 ) - - 8,471 (41 ) Agency bonds 2,491 (8 ) - - 2,491 (8 ) Total fixed maturity securities 56,337 (143 ) - - 56,337 (143 ) Short term bond funds 2,498 (2 ) - - 2,498 (2 ) Total Investments with Unrealized Losses $ 58,835 $ (145 ) $ - $ - $ 58,835 $ (145 ) |
Schedule of Maturities of Securities Available for Sale | The maturities of available for sale investments at December 31, 2015, are as follows: Within 1 year After 1 year through 5 years After 5 years to 10 years After 10 years Total Corporate debt securities $ 26,289 $ 23,945 $ - $ - $ 50,234 Commercial paper 9,493 - - - 9,493 US Treasury securities - 8,471 - - 8,471 Agency bonds 2,491 2,491 Total Fair Value $ 35,782 $ 34,907 $ - $ - $ 70,689 Total Amortized Cost $ 35,831 $ 35,000 $ - $ - $ 70,831 |
Fair Value of Assets and Liab34
Fair Value of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Hierarchy for Assets and Liabilities Measured at Fair Value | The following tables present the fair value hierarchy for assets and liabilities measured at fair value (in thousands): December 31, 2015 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Assets: Borrower Loans $ - $ - $ 297,273 $ 297,273 Loans Held for Sale - - 32 32 Available for Sale Investments, at Fair Value - 73,187 - 73,187 Servicing Assets - - 14,363 14,363 Total Assets - 73,187 311,668 384,855 Liabilities: Notes $ - $ - $ 297,405 $ 297,405 Servicing Liabilities - - 484 484 Contingent Consideration - - 4,801 4,801 Total Liabilities $ - $ - $ 302,690 $ 302,690 December 31, 2014 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Assets: Borrower Loans $ - $ - $ 273,243 $ 273,243 Loans Held for Sale - - 8,463 8,463 Total Assets - - 281,706 281,706 Liabilities: Notes $ - $ - $ 273,783 $ 273,783 Total Liabilities $ - $ - $ 273,783 $ 273,783 |
Quantitative Information About Significant Unobservable Inputs | Borrower Loans, Loans Held for Sale and Notes: Range Unobservable Input December 31, 2015 December 31, 2014 Discount rate 4.3% - 14.5% 3.2% - 10.6% Default rate 1.4% - 14.4% 2.6% - 19.7% |
Significant Unobservable Inputs Fair Value | Servicing Rights: Range Unobservable Input December 31, 2015 December 31, 2014 Discount rate 15% - 25% 15% - 25% Default rate 1.2% - 14.7% 2.6% - 26.3% Prepayment rate 14.3% - 25.6% 8.0% - 25.8% Market servicing rate 0.625 % 0.625% - 0.70% |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present additional information about level 3 Borrower Loans, Loans Held for Sale and Notes measured at fair value on a recurring basis: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Borrower Loans Notes Loans Held for Sale Total Balance at January 1, 2015 $ 273,243 $ (273,783 ) $ 8,463 $ 7,923 Purchase of Borrower Loans/Issuance of Notes 197,436 (197,228 ) 3,517,467 $ 3,517,675 Principal repayments (151,038 ) 151,025 (552 ) $ (565 ) Borrower Loans sold to third parties (855 ) 813 (3,525,207 ) $ (3,525,249 ) Other changes 81 (6 ) (18 ) $ 57 Change in fair value (21,594 ) 21,774 (121 ) $ 59 Balance at December 31, 2015 $ 297,273 $ (297,405 ) $ 32 $ (100 ) Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Borrower Loans Notes Loans Held for Sale Total Balance at January 1, 2014 $ 233,105 $ (234,218 ) $ 3,206 $ 2,093 Purchase of Borrower Loans/Issuance of Notes 177,088 (176,865 ) 1,416,715 1,416,938 Principal repayments (121,082 ) 120,909 — (173 ) Borrower Loans sold to third parties — — (1,411,531 ) (1,411,531 ) Change in fair value (15,868 ) 16,391 73 596 Balance at December 31, 2014 $ 273,243 $ (273,783 ) $ 8,463 $ 7,923 |
Schedule of Servicing Assets and Liabilities Measured at Fair Value | The following table presents additional information about level 3 servicing assets and liabilities measured at fair value on a recurring basis: Servicing Assets Servicing Liabilities Amortized Cost at January 1, 2014 $ 460 $ 167 Additions 4,700 662 Less: Changes in fair value (997 ) (205 ) Amortized Cost at December 31, 2014 4,163 624 Adjustment to adopt fair value measurement 545 (29 ) Fair Value at January 1, 2015 4,708 595 Additions 14,909 283 Less: Changes in fair value (5,254 ) (394 ) Fair Value at December 31, 2015 $ 14,363 $ 484 |
Fair Value Assumptions for Loans Held for Sale, Borrower Loans and Notes | Key economic assumptions and the sensitivity of the current fair value to immediate changes in those assumptions at December 31, 2015 for Borrower Loans, Loans Held for Sale and Notes funded through the Note Channel are presented in the following table (in thousands, except percentages): Borrower Loans / Loans Held for Sale Notes Discount rate assumption: 6.97 % * 6.97 % * Resulting fair value from: 100 basis point increase $ 294,179 $ 294,305 200 basis point increase 291,165 291,284 Resulting fair value from: 100 basis point decrease $ 300,449 $ 300,589 200 basis point decrease 303,710 303,858 Default rate assumption: 10.11 % * 10.11 % * Resulting fair value from: 100 basis point increase $ 294,480 $ 294,601 200 basis point increase 291,741 291,851 Resulting fair value from: 100 basis point decrease $ 300,090 $ 300,235 200 basis point decrease 302,931 303,088 * Represents weighted average assumptions considering all credit grades. |
Schedule of Prosper's and Prosper Funding's Estimated Fair Value of Servicing Assets and Liabilities | The following table presents the estimated impact on Prosper’s estimated fair value of servicing assets and liabilities, calculated using different market servicing rates and different default rates as of December 31, 2015 (in thousands, except percentages). Servicing Assets Servicing Liabilities Weighted average market servicing rate assumptions 0.625 % 0.625 % Resulting fair value from: Market servicing rate increase to 0.65% $ 13,327 $ 533 Market servicing rate decrease to 0.60% $ 15,399 $ 435 Weighted average prepayment assumptions 18.9 % 18.9 % Resulting fair value from: Applying a 1.1 multiplier to default rate $ 14,000 $ 458 Applying a 0.9 multiplier to default rate $ 14,524 $ 476 Weighted average default assumptions 11 % 11 % Resulting fair value from: Applying a 1.1 multiplier to default rate $ 14,163 $ 484 Applying a 0.9 multiplier to default rate $ 14,565 $ 484 |
Prosper Funding LLC [Member] | |
Fair Value Hierarchy for Assets and Liabilities Measured at Fair Value | The following tables present the fair value hierarchy for assets and liabilities measured at fair value except for servicing assets and liabilities at December 31, 2014, which were measured at amortized cost and presented below at fair value for comparison purposes (in thousands): Level 1 Level 2 Level 3 December 31, 2015 Inputs Inputs Inputs Fair Value Assets Borrower Loans $ — $ — $ 297,273 $ 297,273 Servicing Assets — — 13,605 $ 13,605 Loans Held for Sale — — 32 32 Total Assets — — 310,910 310,910 Liabilities Notes $ — $ — $ 297,405 $ 297,405 Servicing Liabilities — — 484 484 Total Liabilities $ — $ — $ 297,889 $ 297,889 Level 1 Level 2 Level 3 December 31, 2014 Inputs Inputs Inputs Fair Value Assets Borrower Loans — — 273,243 273,243 Loans Held for Sale — — 8,463 8,463 Total Assets — — 281,706 281,706 Liabilities Notes $ — $ — $ 273,783 $ 273,783 Total Liabilities $ — $ — $ 273,783 $ 273,783 |
Quantitative Information About Significant Unobservable Inputs | The following tables present quantitative information about the significant unobservable inputs used for Prosper Funding Borrower Loans, Loans Held for Sale and Notes: Range Unobservable Input December 31, 2015 December 31, 2014 Discount rate 4.3% - 14.5% 3.2% - 10.6% Default rate 1.4% - 14.4% 2.6% - 19.7% |
Significant Unobservable Inputs Fair Value | Servicing Rights: Range Unobservable Input December 31, 2015 December 31, 2014 Discount rate 15% - 25% 15% - 25% Default rate 1.2% - 14.7% 2.6% - 26.3% Prepayment rate 14.3% - 25.6% 8.0% - 25.8% Market servicing rate 0.625 % 0.625% - 0.70% |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present additional information about level 3 Borrower Loans, Loans Held for Sale and Notes measured at fair value on a recurring basis: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Loans Held for Borrower Loans Notes Sale Total Balance at January 1, 2015 $ 273,243 $ (273,783 ) $ 8,463 $ 7,923 Originations 197,436 (197,228 ) 3,517,467 3,517,675 Principal repayments (151,038 ) 151,025 (552 ) (565 ) Borrower loans sold to third parties (855 ) 813 (3,525,207 ) (3,525,249 ) Other changes 81 (6 ) (18 ) 57 Change in fair value (21,594 ) 21,774 (121 ) 59 Balance at December 31, 2015 $ 297,273 $ (297,405 ) $ 32 $ (100 ) Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Loans Held for Borrower Loans Notes Sale Total Balance at January 1, 2014 $ 233,105 $ (234,218 ) $ 3,206 $ 2,093 Originations 177,088 (176,865 ) 1,416,715 1,416,938 Principal repayments (121,081 ) 120,909 - (172 ) Borrower loans sold to third parties - - (1,411,531 ) (1,411,531 ) Change in fair value (15,868 ) 16,391 73 596 Balance at December 31, 2014 $ 273,244 $ (273,783 ) $ 8,463 $ 7,924 |
Schedule of Servicing Assets and Liabilities Measured at Fair Value | The following table presents additional information about level 3 servicing assets and liabilities measured at fair value on a recurring basis: Servicing Servicing Assets Liabilities Amortized Cost at January 1, 2014 $ 436 $ 167 Additions 4,700 662 Less: Transfers to PMI (1,221 ) Less: Amortization (799 ) (205 ) Amortized Cost at December 31, 2014 3,116 624 Adjustment to adopt fair value measurement 399 (29 ) Fair Value at Janaury 1, 2015 $ 3,515 $ 595 Additions 14,909 283 Less: Transfers to PMI (249 ) - Less: Changes in fair value (4,570 ) (394 ) Fair Value at December 31, 2015 $ 13,605 $ 484 |
Fair Value Assumptions for Loans Held for Sale, Borrower Loans and Notes | Key economic assumptions and the sensitivity of the current fair value to immediate changes in those assumptions at December 31, 2015 for Borrower Loans, Loans Held for Sale and Notes funded through the Note Channel are presented in the following table (in thousands, except percentages): Borrower Loans Notes Discount rate assumption: 6.97 % * 6.97 % * Resulting fair value from: 100 basis point increase $ 294,179 $ 294,305 200 basis point increase 291,165 291,284 Resulting fair value from: 100 basis point decrease $ 300,449 $ 300,589 200 basis point decrease 303,710 303,858 Default rate assumption: 10.11 % * 10.11 % * Resulting fair value from: 100 basis point increase $ 294,480 $ 294,601 200 basis point increase 291,741 291,851 Resulting fair value from: 100 basis point decrease $ 300,090 $ 300,235 200 basis point decrease 302,931 303,088 * Represents weighted average assumptions considering all credit grades. |
Schedule of Prosper's and Prosper Funding's Estimated Fair Value of Servicing Assets and Liabilities | The following table presents the estimated impact on Prosper Funding Servicing Assets Servicing Liabilities Weighted average market servicing rate assumptions 0.625 % 0.625 % Resulting fair value from: Servicing rate increase to 0.65% 12,878 533 Servicing rate decrease to 0.60% 14,880 435 Weighted average prepayment assumptions 18.9 % 18.9 % Resulting fair value from: Applying a 1.1 multiplier to default rate 14,061 458 Applying a 0.9 multiplier to default rate 14,460 476 Weighted average default assumptions 11.00 % 11.00 % Resulting fair value from: Applying a 1.1 multiplier to default rate 13,415 484 Applying a 0.9 multiplier to default rate 13,796 484 |
American HealthCare Lending A35
American HealthCare Lending Acquisition - (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Preliminary Purchase Price Allocation | The purchase price allocation is as follows (in thousands): Fair Value Assets: Cash $ 1,219 Accounts receivable, net 147 Property, equipment and software, net 6 Other assets 63 Identified intangible assets: Customer relationships 2,650 Developed technology 810 Brand name 60 Goodwill 16,825 Liabilities: Accrued expenses and other liabilities 708 Total purchase consideration $ 21,072 |
BillGuard Acquisition - (Tables
BillGuard Acquisition - (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Preliminary Purchase Price Allocation | The purchase price allocation is as follows (in thousands): Fair Value Assets: Cash $ 1,219 Accounts receivable, net 147 Property, equipment and software, net 6 Other assets 63 Identified intangible assets: Customer relationships 2,650 Developed technology 810 Brand name 60 Goodwill 16,825 Liabilities: Accrued expenses and other liabilities 708 Total purchase consideration $ 21,072 |
BillGuard Inc [Member] | |
Preliminary Purchase Price Allocation | The preliminary purchase price allocation as of the merger date is as follows (in thousands): Fair Value Assets: Cash $ 811 Property and equipment 82 Prepaid and other assets 152 Identified intangible assets: Developed technology 7,500 Customer relationships 3,600 Goodwill 19,543 Liabilities: Accounts payable and accrued expenses (1,635 ) Long term debt (1,395 ) Convertible loan (3,652 ) Deferred revenue (1,400 ) Total purchase consideration $ 23,606 |
Unaudited Pro Forma Financial Information | The following unaudited pro forma financial information summarizes the combined results of operations for Prosper and BillGuard, as though the companies were combined as of January 1, 2014. These pro forma results have been prepared for comparative purposes only and do not purport to be indicative of the results of operations which would have resulted had the acquisition occurred as of January 1, 2014, nor is it indicative of future operating results. The pro forma results presented below include, amortization of acquired intangible assets and compensation expense related to the post-acquisition compensation arrangements entered into with the continuing employees (in thousands, except per share data): Years Ended December 31, 2015 2014 Total net revenue $ 204,350 $ 81,195 Net loss (1) (33,677 ) (16,728 ) Basic and diluted net loss per share attributable to common stockholders $ (0.61 ) $ (0.71 ) (1) Net loss for the year ended December 31, 2015 excludes $1.6 million of one-time acquisition-related costs expenses incurred in 2015. Net loss for the year ended December 31, 2014 was adjusted to include these numbers. |
Goodwill and Other Intangible37
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table presents the goodwill activity for the periods presented (in thousands): Goodwill - December 31, 2014 $ - 2015 acquisitions 36,368 Goodwill - December 31, 2015 $ 36,368 |
Summary of Other Intangible Assets for the Periods Presented | The following table presents the detail of other intangible assets for the periods presented (dollars in thousands): December 31, 2015 Gross Carrying Value Accumulated Amortization Net Carrying Value Remaining Useful Life (In Years) Developed technology $ 8,310 $ (622 ) $ 7,688 4.8 User base and customer relationships 6,250 (892 ) 5,358 9.1 Brand name 60 (55 ) 5 0.1 Total intangible assets subject to amortization $ 14,620 $ (1,569 ) $ 13,051 |
Summary of Estimated Amortization of Purchased Intangible Assets | Estimated amortization of purchased intangible assets for future periods is as follows (in thousands): Year Ending December 31, 2016 $ 3,859 2017 3,205 2018 2,310 2019 1,789 2020 1,366 Thereafter 522 Total $ 13,051 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Liabilities [Abstract] | |
Schedule of Other Liabilities | Other Liabilities includes the following: Year Ending December 31, 2015 2014 Class action settlement liability $ 5,949 $ 7,861 Repurchase liability for unvested restricted stock awards 473 1,010 Contingent consideration 4,801 - Deferred revenue 1,591 - Servicing liabilities 484 624 Deferred rent 5,240 3,657 Other 2,197 171 Total Other Liabilities $ 20,735 $ 13,323 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Loss Per Share | Basic and diluted net loss per share was calculated as follows (net loss in thousands): Year Ended December 31, 2015 2014 Numerator: Net loss $ (25,968 ) $ (2,669 ) Excess return to preferred shareholders on repurchase - (14,892 ) Net loss available to common stockholders for basic and diluted EPS (25,968 ) (17,561 ) Denominator: Weighted average shares used in computing basic and diluted net loss per share 55,547,408 44,484,005 Basic and diluted net loss per share $ (0.47 ) $ (0.39 ) |
Dilutive Shares Excluded from the Diluted Net Loss Per Share Calculation | Due to losses attributable to PMI’s common shareholders for each of the periods below, the following potentially dilutive shares are excluded from the diluted net loss per share calculation because they were anti-dilutive under the treasury stock or if converted method, in accordance with ASC Topic 260: Year Ended December 31, 2015 2014 (shares) (shares) Excluded securities: Convertible preferred stock issued and outstanding 177,388,425 153,499,785 Stock options issued and outstanding 34,358,106 24,974,990 Unvested stock options exercised 9,806,170 20,571,345 Restrictive Stock Units 190,517 - Warrants issued and outstanding 588,660 884,435 Total common stock equivalents excluded from diluted net loss per common share computation 222,331,878 199,930,555 |
Convertible Preferred Stock a40
Convertible Preferred Stock and Stockholders' Deficit (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders Equity Note [Abstract] | |
Summary of Shares Authorized, Issued, Outstanding, Par Value and Liquidation Preference of Convertible Preferred Stock | The number of authorized, issued and outstanding shares, their par value and liquidation preference for each series of convertible preferred stock as of December 31, 2015 are disclosed in the table below (dollars in thousands): Convertible Preferred Stock Par Value Authorized shares Outstanding and Issued shares Liquidation Preference New Series A $ 0.01 68,558,220 68,558,220 $ 19,774 Series A-1 0.01 24,760,915 24,760,915 49,522 New Series B 0.01 35,775,880 35,775,880 21,581 New Series C 0.01 24,404,770 24,404,770 70,075 New Series D 0.01 23,888,640 23,888,640 165,000 177,388,425 177,388,425 325,952 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Activity of Options that were Early Exercised under the Plan | The activity of options that were early exercised under the 2005 Plan follow for the years below: Early options, Weighted exercise Weighted Contractual (in years) Aggregate Intrinsic (in Balance as of January 1, 2014 27,970,670 $ 0.02 Exercise of non-vested stock options 4,328,585 0.19 Repurchase of restricted stock (909,465 ) 0.02 Restricted stock vested (10,828,445 ) 0.03 Balance as of December 31, 2014 20,561,345 0.05 Exercise of non-vested stock options 76,045 1.11 Repurchase of restricted stock (1,493,775 ) 0.10 Restricted stock vested (9,337,445 ) 0.05 Balance as of December 31, 2015 9,806,170 0.05 1.58 $ 54,620 Options expected to vest 9,614,920 $ 0.05 1.58 $ 53,555 |
Additional Information Regarding the Unvested Early Exercised Stock Options Outstanding | Additional information regarding the unvested early exercised stock options outstanding as of December 31, 2015 is as follows: Options Outstanding Range of Exercise Prices Number Outstanding Weighted –Avg. Remaining Life Weighted –Avg. Exercise Price $0.02 9,116,670 1.56 $ 0.02 0.11 511,180 1.69 0.11 1.13 165,820 2.58 1.13 3.62 12,500 3.17 3.62 $0.02 - $3.62 9,806,170 1.58 $ 0.05 |
Summarized Option Activity under Option Plan | Stock option activity under the 2005 Plan and 2015 Plan is summarized as follows for the years below: Options Issued and Outstanding Weighted- Average Exercise Price Weighted Contractual (in years) Aggregate Intrinsic Value (in Balance as of January 1, 2014 4,474,880 $ 0.29 Options granted 26,438,815 $ 0.35 Options exercised – vested (295,750 ) $ 0.26 Options exercised – nonvested (4,328,585 ) $ 0.19 Options forefeited (1,314,370 ) $ 0.36 Balance as of December 31, 2014 24,974,990 $ 0.37 Options granted 23,422,230 $ 4.51 Options exercised – vested (3,135,890 ) $ 0.25 Options exercised – nonvested (76,045 ) $ 1.11 Options forfeited (4,759,680 ) $ 1.52 Balance as of December 31, 2015 40,425,605 $ 2.64 8.80 $ 118,331 Options vested and expected to vest as of December 31, 2015 34,959,394 $ 2.64 8.80 $ 102,331 Options vested and exercisable at December 31, 2015 28,022,165 $ 1.67 8.45 $ 109,395 |
Additional Information Regarding Common Stock Options Outstanding | Additional information regarding common stock options outstanding as of December 31, 2015 is as follows: Options Outstanding Options Vested and Exercisable Weighted – Weighted – Weighted - Range of Avg. Avg. Avg. Exercise Number Remaining Exercise Number Exercise Prices Outstanding Life Price Vested Price $ 0.02 - $0.20 12,742,705 8.08 $ 0.11 12,742,705 $ 0.11 0.21 - 0.99 901,860 5.31 0.33 892,410 0.33 1.00 - 2.00 4,694,560 8.54 1.13 2,856,730 1.13 2.01 - 4.00 11,530,320 9.13 3.62 11,530,320 3.62 4.01 - 5.52 10,556,160 9.73 5.50 - - $ 0.02 - $5.52 40,425,605 8.80 $ 2.64 28,022,165 $ 1.67 |
Fair Value of Stock Option Awards | The fair value of PMI’s stock option awards for the year ended December 31, 2015 and 2014 was estimated at the date of grant using the Black-Scholes model with the following average assumptions: Year ended December 31, 2015 2014 Volatility of common stock 55.69 % 68.28 % Risk-free interest rate 1.74 % 1.79 % Expected life 6.0 years 5.7 years Dividend yield 0 % 0 % |
Summarized Activities for RSU's | The following table summarizes the activities for PMI’s RSUs during 2015: Number of Shares Weighted-Average Grant Date Fair Value Unvested at January 1, 2015 - Granted 2,407,060 $ 5.52 Vested (190,517 ) $ 5.52 Forfeited (381,033 ) Unvested - December 31, 2015 1,835,510 $ 5.52 |
Stock Based Compensation Included in Consolidated Statements of Operations | The following table presents the amount of stock-based compensation related to stock-based awards granted to employees recognized in Prosper’s consolidated statements of operations during the periods presented (in thousands): December 31, 2015 2014 Origination and Servicing $ 1,231 $ 104 Sales and Marketing 2,561 767 General and Administrative 9,219 1,150 Total stock based compensation $ 13,011 $ 2,021 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax | The components of income tax are as follows (in thousands): Year Ended December 31, 2015 2014 Current: Federal $ — $ — State — — Foreign (5 ) — Total Current Income Tax (Benefit) (5 ) — Deferred: Federal 320 — State 25 — Foreign — — Total Deferred Income Tax 345 — Total Income Tax $ 340 $ — |
Effective Income Tax Reconciliation | Prosper did not have any current or deferred federal or state income tax expense for the year ended December 31, 2014. The income tax expense (benefit) differed from the amount computed by applying the U.S. federal income tax rate of 34% to pretax loss as a result of the following: Year Ended December 31, 2015 2014 Federal tax at statutory rate 34 % 34 % State tax at statutory rate (net of federal benefit) 12 % 1 % Change to Uncertain Tax Position 10 % 0 % Permanent Items (— )% (11 )% Incentive Stock Options (9 )% (9 )% Acquisition Related Costs (3 )% 0 % Change in valuation allowance (46 )% (25 )% Credits and Reserves (— )% 9 % Other 1 % 1 % (1 )% 0 % |
Deferred Tax Assets and Liabilities | Temporary items that give rise to significant portions of deferred tax assets and liabilities at December 31, 2015 and 2014 are as follows (in thousands): December 31, 2015 2014 Net operating loss carry forwards $ 44,632 $ 24,756 Research & other credits 502 421 Settlement liability 2,466 2,964 Stock compensation 3,193 344 Accrued liabilities 5,794 2,320 Other 126 45 Deferred tax assets 56,713 30,850 Fair value of loans (1,406 ) (1,160 ) Net servicing rights (5,752 ) (1,203 ) Fixed assets (721 ) - Intangible assets (4,246 ) - Deferred tax liabilities (12,125 ) (2,363 ) Net deferred tax assets 44,588 28,487 Valuation allowance (44,933 ) (28,487 ) Net deferred tax liabilities $ (345 ) $ — |
Unrecognized Tax Benefits | The following table summarizes Prosper’s activity related to its unrecognized tax benefits (in thousands): December 31, December 31, 2015 2014 Balance at January 1, $ 4,927 $ 4,927 Decrease related to current year tax position (4,014 ) - Balance at December 31, $ 913 $ 4,927 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Minimum Lease Payments | Prosper has entered into various non-cancelable operating leases for certain offices with contractual lease period s expiring between 2022 and 2027. Prosper recognized total rental expenses under operating leases of $4.1 million and $2.0 million during the years ended December 31, 2015 and 2014, respectively. Future minimum rental payments under these leases as of December 31, 2015 are as follows (in thousands): 2016 $ 6,352 2017 9,408 2018 10,199 2019 10,556 2020 11,065 Thereafter 43,122 Total future operating lease obligations $ 90,702 |
Related Parties (Tables)
Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Aggregate Amount of Notes Purchased and the Income Earned | The aggregate amount of the Notes purchased and the income earned by parties deemed to be affiliates and related parties of Prosper as of December 31, 2015 and 2014 are summarized below (in thousands): Aggregate Amount of Interest Earned on Related Party Notes Purchased Notes 2015 2014 2015 2014 Executive officers and management $ 1,361 $ 1,127 $ 206 $ 163 Directors 244 42 9 10 Total $ 1,605 $ 1,169 $ 215 $ 173 Related Party Notes balance as of December 2015 2014 Executive officers and management $ 1,912 $ 1,614 Directors 325 76 $ 2,237 $ 1,690 |
Prosper Funding LLC [Member] | |
Aggregate Amount of Notes Purchased and the Income Earned | The aggregate amount of the Notes purchased and the income earned by parties deemed to be affiliates and related parties of Prosper Funding as of December 31, 2015 and 2014 are summarized below (in thousands): Aggregate Amount of Interest Earned on Related Party Notes Purchased Notes 2015 2014 2015 2014 Executive officers and management $ 1,361 $ 1,127 $ 206 $ 159 Directors — — — — Total $ 1,361 $ 1,127 $ 206 $ 159 Related Party Notes balance as of December 2015 2014 Executive officers and management $ 1,912 $ 1,614 Directors — — Total $ 1,912 $ 1,614 |
Organization and Business - Add
Organization and Business - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2015State | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |
Entity incorporation date | Mar. 22, 2005 |
Entity incorporation state | Delaware |
Percentage of notes allowed for investors to purchase | 100.00% |
Number of states and district marketplace is open to investors | 30 |
Additional number of states and district marketplace is open to borrowers | 46 |
Prosper Funding LLC [Member] | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |
Percentage of notes allowed for investors to purchase | 100.00% |
Number of states and district marketplace is open to investors | 30 |
Additional number of states and district marketplace is open to borrowers | 46 |
Loan term, description | three or five years |
Summary of Significant Accoun46
Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2015USD ($)Risk | Dec. 31, 2014USD ($) | |
Significant Accounting Policies [Line Items] | ||
Number of significant types of risks | Risk | 2 | |
Impairment charges recognized during period | $ 0 | |
Increase in net servicing asset | 545,000 | |
Decrease in net servicing liabilities | $ (29,000) | |
Servicing fee (in hundredths) | 1.00% | |
Advertising costs | $ 60,100,000 | $ 24,100,000 |
Prosper Funding LLC [Member] | ||
Significant Accounting Policies [Line Items] | ||
Increase in net servicing asset | 399,000 | |
Decrease in net servicing liabilities | $ (29,000) | |
Servicing fee (in hundredths) | 1.00% | |
Comprehensive income (loss) | $ 0 | |
Minimum [Member] | ||
Significant Accounting Policies [Line Items] | ||
Transaction fee percentage (in hundredths) | 1.00% | |
Minimum [Member] | Internal Use Software and Website Development [Member] | ||
Significant Accounting Policies [Line Items] | ||
Property and equipment, estimated useful life | 1 year | |
Minimum [Member] | Prosper Funding LLC [Member] | Internal Use Software and Website Development [Member] | ||
Significant Accounting Policies [Line Items] | ||
Property and equipment, estimated useful life | 1 year | |
Maximum [Member] | ||
Significant Accounting Policies [Line Items] | ||
Transaction fee percentage (in hundredths) | 5.00% | |
Maximum [Member] | Internal Use Software and Website Development [Member] | ||
Significant Accounting Policies [Line Items] | ||
Property and equipment, estimated useful life | 5 years | |
Maximum [Member] | Prosper Funding LLC [Member] | Internal Use Software and Website Development [Member] | ||
Significant Accounting Policies [Line Items] | ||
Property and equipment, estimated useful life | 5 years | |
Customer Relationships [Member] | Minimum [Member] | ||
Significant Accounting Policies [Line Items] | ||
Intangible assets amortized period | 3 years | |
Customer Relationships [Member] | Maximum [Member] | ||
Significant Accounting Policies [Line Items] | ||
Intangible assets amortized period | 10 years | |
Technology [Member] | ||
Significant Accounting Policies [Line Items] | ||
Intangible assets amortized period | 4 years 9 months 18 days | |
Technology [Member] | Minimum [Member] | ||
Significant Accounting Policies [Line Items] | ||
Intangible assets amortized period | 3 years | |
Technology [Member] | Maximum [Member] | ||
Significant Accounting Policies [Line Items] | ||
Intangible assets amortized period | 5 years | |
Brand Name [Member] | ||
Significant Accounting Policies [Line Items] | ||
Intangible assets amortized period | 1 year | |
Change in Accounting Principle [Member] | ||
Significant Accounting Policies [Line Items] | ||
Decrease to retained earnings | $ (574,000) | |
Change in Accounting Principle [Member] | Prosper Funding LLC [Member] | ||
Significant Accounting Policies [Line Items] | ||
Decrease to retained earnings | $ (428,000) | |
American HealthCare Lending, LLC [Member] | ||
Significant Accounting Policies [Line Items] | ||
Business Acquisition, Effective Date of Acquisition | Jan. 23, 2015 | |
Business Acquisition, Name of Acquired Entity | American HealthCare Lending, LLC | |
BillGuard Inc [Member] | ||
Significant Accounting Policies [Line Items] | ||
Business Acquisition, Effective Date of Acquisition | Oct. 9, 2015 | |
Business Acquisition, Name of Acquired Entity | BillGuard, Inc |
Summary of Significant Accoun47
Summary of Significant Accounting Policies - Estimated Useful Lives of Assets (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 7 years |
Office Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 5 years |
Computers and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 3 years |
Leasehold Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 5 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 8 years |
Internal Use Software and Website Development [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 1 year |
Internal Use Software and Website Development [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 5 years |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $ 32,915 | $ 19,849 |
Less accumulated depreciation and amortization | (7,950) | (5,425) |
Total property and equipment, net | 24,965 | 14,424 |
Prosper Funding LLC [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 10,990 | 4,042 |
Less accumulated depreciation and amortization | (2,571) | (2,917) |
Total property and equipment, net | 8,419 | 1,125 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 10,522 | 3,824 |
Internal-use Software and Website Development Costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 10,990 | 4,486 |
Internal-use Software and Website Development Costs [Member] | Prosper Funding LLC [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 10,990 | 4,042 |
Office Equipment and Furniture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 2,442 | 1,904 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 5,719 | 5,274 |
Assets Not Yet Placed in Service [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $ 3,242 | $ 4,361 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation and Amortization | $ 7,649 | $ 2,097 |
Prosper Funding LLC [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation and Amortization | 3,161 | 1,331 |
Property and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation and Amortization | 6,080 | 2,097 |
Internal-use Software and Website Development Costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Capitalized internal-use software and website development costs | 7,348 | 846 |
Recorded internal-use software and website development impairment charges | 0 | 322 |
Internal-use Software and Website Development Costs [Member] | Prosper Funding LLC [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Capitalized internal-use software and website development costs | $ 10,500 | $ 800 |
Borrower Loans, Loans Held fo50
Borrower Loans, Loans Held for Sale, and Notes Held at Fair Value - Borrower Loans, Notes and Loans Held for Sale (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Borrower Loans, at Fair Value | $ 297,273 | $ 273,243 |
Notes at Fair Value | (297,405) | (273,783) |
Loans Held for Sale, at Fair Value | 32 | 8,463 |
Prosper Funding LLC [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Borrower Loans, at Fair Value | 297,273 | 273,243 |
Notes at Fair Value | (297,405) | (273,783) |
Loans Held for Sale, at Fair Value | 32 | 8,463 |
Notes [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Aggregate principal balance outstanding, Notes | (294,331) | (272,269) |
Fair value adjustments | (3,074) | (1,514) |
Notes at Fair Value | (297,405) | (273,783) |
Notes [Member] | Prosper Funding LLC [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Aggregate principal balance outstanding, Notes | (294,331) | (272,269) |
Fair value adjustments | (3,074) | (1,514) |
Notes at Fair Value | (297,405) | (273,783) |
Borrower Loans [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Aggregate principal balance outstanding, Borrower Loans | 296,945 | 268,598 |
Fair value adjustments | 328 | 4,645 |
Borrower Loans, at Fair Value | 297,273 | 273,243 |
Borrower Loans [Member] | Prosper Funding LLC [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Aggregate principal balance outstanding, Borrower Loans | 296,945 | 268,598 |
Fair value adjustments | 328 | 4,645 |
Borrower Loans, at Fair Value | 297,273 | 273,243 |
Loans Held for Sale [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair value adjustments | (10) | 168 |
Aggregate principal balance outstanding, Loans Held for Sale | 42 | 8,295 |
Loans Held for Sale, at Fair Value | 32 | 8,463 |
Loans Held for Sale [Member] | Prosper Funding LLC [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair value adjustments | (10) | 168 |
Aggregate principal balance outstanding, Loans Held for Sale | 42 | 8,295 |
Loans Held for Sale, at Fair Value | $ 32 | $ 8,463 |
Borrower Loans, Loans Held fo51
Borrower Loans, Loans Held for Sale, and Notes Held at Fair Value - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Gain related to credit risks on borrower loans | $ 2,800,000 | |
Minimum number of days for which loans originated were delinquent | 90 days | 90 days |
Aggregate principal amount of loans originated | $ 2,300,000 | $ 1,700,000 |
Non accrual status past due date | 120 days | |
Fair value of loans originated | $ 900,000 | 600,000 |
Borrower Loans receivable | 100,000 | $ 0 |
Prosper Funding LLC [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Gain related to credit risks on borrower loans | $ 2,800,000 | |
Minimum number of days for which loans originated were delinquent | 90 days | 90 days |
Fair value of loans originated | $ 900,000 | $ 140,000 |
Borrower Loans receivable | 100,000 | 0 |
Prosper Funding LLC [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Aggregate principal amount of loans originated | $ 2,300,000 | $ 1,500,000 |
Loans Held For Sale Borrower Loans And Underlying Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Borrower loans original maturity term, description | original terms between 36 months and 60 months | |
Fixed interest rate, Minimum | 5.77% | |
Fixed interest rate, Maximum | 33.04% | |
Loans maturity date | Dec. 31, 2019 | |
Loans Held For Sale Borrower Loans And Underlying Notes | Prosper Funding LLC [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Borrower loans original maturity term, description | original terms between 36 months and 60 months | |
Fixed interest rate, Minimum | 5.77% | |
Fixed interest rate, Maximum | 33.04% | |
Loans maturity date | Dec. 31, 2019 | |
Outstanding Borrower Loans And Underlying Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Borrower loans original maturity term, description | original maturities between 36 and 60 months | |
Fixed interest rate, Minimum | 5.32% | |
Fixed interest rate, Maximum | 33.04% | |
Loans maturity date | Dec. 31, 2020 | |
Outstanding Borrower Loans And Underlying Notes | Prosper Funding LLC [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Borrower loans original maturity term, description | original maturities between 36 and 60 months | |
Fixed interest rate, Minimum | 5.32% | |
Fixed interest rate, Maximum | 33.04% | |
Loans maturity date | Dec. 31, 2020 |
Loan Servicing Assets and Lia52
Loan Servicing Assets and Liabilities - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Gain on sale of borrower loans | $ 14,151,000 | $ 3,227,000 |
Impairment of loan | 0 | 0 |
Prosper Funding LLC [Member] | ||
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Gain on sale of borrower loans | 14,151,000 | 3,733,000 |
Impairment of loan | 0 | |
Borrower Loans [Member] | ||
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Outstanding principle | $ 3,800,000,000 | $ 1,400,000,000 |
Borrower loans original maturity term, description | original terms of either 36 or 60 months | |
Fixed interest rate, Minimum | 5.32% | 6.05% |
Fixed interest rate, Maximum | 31.90% | 31.34% |
Loans maturity date | Dec. 31, 2020 | Dec. 31, 2019 |
Debt instrument servicing rights, Description | At December 31, 2015, Borrower Loans that were sold to unrelated third parties, but for which we retained servicing rights had a total outstanding principal balance of $3.8 billion, original terms of either 36 or 60 months and had monthly payments with fixed interest rates ranging from 5.32% to 31.90% and maturity dates through December 2020. At December 31, 2014, Borrower Loans that were sold but for which we retained servicing rights had a total outstanding principal balance of $1.4 billion, original terms between 36 and 60 months and had monthly payments with fixed interest rates ranging from 6.05% to 31.34% and maturity dates through December 2019. | |
Contractually specified servicing fees, late charges and ancillary fees | $ 22,100,000 | $ 5,300,000 |
Borrower Loans [Member] | Prosper Funding LLC [Member] | ||
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Outstanding principle | $ 3,600,000,000 | $ 1,000,000 |
Borrower loans original maturity term, description | Original terms of either 36 or 60 months | |
Fixed interest rate, Minimum | 5.32% | 6.05% |
Fixed interest rate, Maximum | 31.90% | 31.34% |
Loans maturity date | Dec. 31, 2020 | Dec. 31, 2019 |
Debt instrument servicing rights, Description | At December 31, 2015, loans that were sold but for which we retained servicing rights had a total outstanding principal balance of $3.6 billion, original terms of either 36 or 60 months and had monthly payments with fixed interest rates ranging from 5.32% to 31.90% and Maturity dates through December 2020. At December 31, 2014, loans that were sold but for which we retained servicing rights had a total outstanding principal balance of $1.0 billion, original terms between 36 and 60 months and had monthly payments with fixed interest rates ranging from 6.05% to 31.34% and Maturity dates through December 2019. | |
Contractually specified servicing fees, late charges and ancillary fees | $ 20,400,000 | $ 4,800,000 |
Borrower Loans [Member] | Prosper Funding LLC [Member] | Minimum [Member] | ||
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Borrower loans original maturity term | 36 months | 36 months |
Borrower Loans [Member] | Prosper Funding LLC [Member] | Maximum [Member] | ||
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Borrower loans original maturity term | 60 months | 60 months |
Available for Sale Investments
Available for Sale Investments at Fair Value - Schedule of Amortized Cost, Gross Unrealized Gains and Losses and Fair Value of Available for Sale Investments (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Schedule Of Available For Sale Securities [Line Items] | |
Amortized Cost | $ 73,331 |
Gross Unrealized Gains | 1 |
Gross Unrealized Losses | (145) |
Available for Sale Investments, at Fair Value | 73,187 |
Short Term Bond Funds | |
Schedule Of Available For Sale Securities [Line Items] | |
Amortized Cost | 2,500 |
Gross Unrealized Losses | (2) |
Available for Sale Investments, at Fair Value | 2,498 |
Fixed Maturity Securities | |
Schedule Of Available For Sale Securities [Line Items] | |
Amortized Cost | 70,831 |
Gross Unrealized Gains | 1 |
Gross Unrealized Losses | (143) |
Available for Sale Investments, at Fair Value | 70,689 |
Fixed Maturity Securities | Corporate Debt Securities | |
Schedule Of Available For Sale Securities [Line Items] | |
Amortized Cost | 50,327 |
Gross Unrealized Gains | 1 |
Gross Unrealized Losses | (94) |
Available for Sale Investments, at Fair Value | 50,234 |
Fixed Maturity Securities | Commercial Paper | |
Schedule Of Available For Sale Securities [Line Items] | |
Amortized Cost | 9,493 |
Available for Sale Investments, at Fair Value | 9,493 |
Fixed Maturity Securities | U S Treasury Securities | |
Schedule Of Available For Sale Securities [Line Items] | |
Amortized Cost | 8,512 |
Gross Unrealized Losses | (41) |
Available for Sale Investments, at Fair Value | 8,471 |
Fixed Maturity Securities | Agency Bonds | |
Schedule Of Available For Sale Securities [Line Items] | |
Amortized Cost | 2,499 |
Gross Unrealized Losses | (8) |
Available for Sale Investments, at Fair Value | $ 2,491 |
Available for Sale Investment54
Available for Sale Investments at Fair Value - Summary of Available for Sale Investments of Continuous Unrealized Loss (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Schedule Of Available For Sale Securities [Line Items] | |
Fair value, less than 12 months | $ 58,835 |
Unrealized losses, less than 12 months | (145) |
Fair Value | 58,835 |
Unrealized losses | (145) |
Short Term Bond Funds | |
Schedule Of Available For Sale Securities [Line Items] | |
Fair value, less than 12 months | 2,498 |
Unrealized losses, less than 12 months | (2) |
Fair Value | 2,498 |
Unrealized losses | (2) |
Fixed Maturity Securities | |
Schedule Of Available For Sale Securities [Line Items] | |
Fair value, less than 12 months | 56,337 |
Unrealized losses, less than 12 months | (143) |
Fair Value | 56,337 |
Unrealized losses | (143) |
Fixed Maturity Securities | Corporate Debt Securities | |
Schedule Of Available For Sale Securities [Line Items] | |
Fair value, less than 12 months | 45,375 |
Unrealized losses, less than 12 months | (94) |
Fair Value | 45,375 |
Unrealized losses | (94) |
Fixed Maturity Securities | U S Treasury Securities | |
Schedule Of Available For Sale Securities [Line Items] | |
Fair value, less than 12 months | 8,471 |
Unrealized losses, less than 12 months | (41) |
Fair Value | 8,471 |
Unrealized losses | (41) |
Fixed Maturity Securities | Agency Bonds | |
Schedule Of Available For Sale Securities [Line Items] | |
Fair value, less than 12 months | 2,491 |
Unrealized losses, less than 12 months | (8) |
Fair Value | 2,491 |
Unrealized losses | $ (8) |
Available for Sale Investment55
Available for Sale Investments at Fair Value - Schedule of Maturities of Available for Sale Investments (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Schedule Of Available For Sale Securities [Line Items] | |
Fair value within 1 year | $ 35,782 |
Fair value after 1 year through 5 years | 34,907 |
Fair value | 70,689 |
Amortized cost within 1 year | 35,831 |
Amortized cost after 1 year through 5 years | 35,000 |
Amortized cost | 70,831 |
Corporate Debt Securities | |
Schedule Of Available For Sale Securities [Line Items] | |
Fair value within 1 year | 26,289 |
Fair value after 1 year through 5 years | 23,945 |
Fair value | 50,234 |
Commercial Paper | |
Schedule Of Available For Sale Securities [Line Items] | |
Fair value within 1 year | 9,493 |
Fair value | 9,493 |
U S Treasury Securities | |
Schedule Of Available For Sale Securities [Line Items] | |
Fair value after 1 year through 5 years | 8,471 |
Fair value | 8,471 |
Agency Bonds | |
Schedule Of Available For Sale Securities [Line Items] | |
Fair value after 1 year through 5 years | 2,491 |
Fair value | $ 2,491 |
Available for Sale Investment56
Available for Sale Investments at Fair Value - Additional Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Segment Reporting [Abstract] | |
Proceeds from Sale of Available for Sale Securities | $ 4,022 |
Fair Value of Assets and Liab57
Fair Value of Assets and Liabilities - Fair Value Hierarchy for Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Oct. 09, 2015 | Dec. 31, 2014 |
Assets: | |||
Borrower Loans | $ 297,273 | $ 273,243 | |
Loans Held for Sale | 32 | 8,463 | |
Available for Sale Investments, at Fair Value | 73,187 | ||
Servicing Assets | 14,363 | ||
Total Assets | 384,855 | 281,706 | |
Liabilities: | |||
Notes | 297,405 | 273,783 | |
Servicing Liabilities | 484 | ||
Contingent Consideration | 4,801 | $ 3,800 | |
Total Liabilities | 302,690 | 273,783 | |
Prosper Funding LLC [Member] | |||
Assets: | |||
Borrower Loans | 297,273 | 273,243 | |
Loans Held for Sale | 32 | 8,463 | |
Servicing Assets | 13,605 | ||
Total Assets | 310,910 | 281,706 | |
Liabilities: | |||
Notes | 297,405 | 273,783 | |
Servicing Liabilities | 484 | ||
Total Liabilities | 297,889 | 273,783 | |
Level 2 Inputs [Member] | |||
Assets: | |||
Available for Sale Investments, at Fair Value | 73,187 | ||
Total Assets | 73,187 | ||
Level 3 Inputs [Member] | |||
Assets: | |||
Borrower Loans | 297,273 | 273,243 | |
Loans Held for Sale | 32 | 8,463 | |
Servicing Assets | 14,363 | ||
Total Assets | 311,668 | 281,706 | |
Liabilities: | |||
Notes | 297,405 | 273,783 | |
Servicing Liabilities | 484 | ||
Contingent Consideration | 4,801 | ||
Total Liabilities | 302,690 | 273,783 | |
Level 3 Inputs [Member] | Prosper Funding LLC [Member] | |||
Assets: | |||
Borrower Loans | 297,273 | 273,243 | |
Loans Held for Sale | 32 | 8,463 | |
Servicing Assets | 13,605 | ||
Total Assets | 310,910 | 281,706 | |
Liabilities: | |||
Notes | 297,405 | 273,783 | |
Servicing Liabilities | 484 | ||
Total Liabilities | $ 297,889 | $ 273,783 |
Fair Value of Assets and Liab58
Fair Value of Assets and Liabilities - Borrower Loans, Loans Held For Sale and Notes - Quantitative Information about the Significant Unobservable Inputs (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Minimum [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 4.30% | 3.20% |
Default rate | 1.40% | 2.60% |
Minimum [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 4.30% | 3.20% |
Default rate | 1.40% | 2.60% |
Maximum [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 14.50% | 10.60% |
Default rate | 14.40% | 19.70% |
Maximum [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 14.50% | 10.60% |
Default rate | 14.40% | 19.70% |
Fair Value of Assets and Liab59
Fair Value of Assets and Liabilities - Servicing Rights - Quantitative Information about the Significant Unobservable Inputs (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Market servicing rate | 0.625% | |
Prosper Funding LLC [Member] | ||
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Market servicing rate | 0.625% | |
Minimum [Member] | ||
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Discount rate | 15.00% | 15.00% |
Default rate | 1.20% | 2.60% |
Prepayment rate | 14.30% | 8.00% |
Market servicing rate | 0.625% | |
Minimum [Member] | Prosper Funding LLC [Member] | ||
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Discount rate | 15.00% | 15.00% |
Default rate | 1.20% | 2.60% |
Prepayment rate | 14.30% | 8.00% |
Market servicing rate | 0.625% | |
Maximum [Member] | ||
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Discount rate | 25.00% | 25.00% |
Default rate | 14.70% | 26.30% |
Prepayment rate | 25.60% | 25.80% |
Market servicing rate | 0.70% | |
Maximum [Member] | Prosper Funding LLC [Member] | ||
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Discount rate | 25.00% | 25.00% |
Default rate | 14.70% | 26.30% |
Prepayment rate | 25.60% | 25.80% |
Market servicing rate | 0.70% |
Fair Value of Assets and Liab60
Fair Value of Assets and Liabilities - Summary of Level 3 Borrower Loans, Loans Held for Sale and Notes, Measured at Fair Value on a Recurring Basis (Details) - Recurring [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||
Beginning balance, Total | $ 7,923 | $ 2,093 |
Purchase of Borrower Loans/Issuance of Notes, Total | 3,517,675 | 1,416,938 |
Principal repayments, Total | (565) | (173) |
Borrower Loans sold to third parties, Total | (3,525,249) | (1,411,531) |
Other changes, Total | 57 | |
Change in fair value, Total | 59 | 596 |
Ending balance, Total | (100) | 7,923 |
Prosper Funding LLC [Member] | ||
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||
Beginning balance, Total | 7,923 | 2,093 |
Originations, Total | 3,517,675 | 1,416,938 |
Principal repayments, Total | (565) | (172) |
Borrower Loans sold to third parties, Total | (3,525,249) | (1,411,531) |
Other changes, Total | 57 | |
Change in fair value, Total | 59 | 596 |
Ending balance, Total | (100) | 7,923 |
Prosper Funding LLC [Member] | Scenario Previously Reported | ||
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||
Beginning balance, Total | 7,924 | |
Ending balance, Total | 7,924 | |
Notes [Member] | ||
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||
Beginning balance, Liabilities | (273,783) | (234,218) |
Purchase of Loans/Issuance of Notes, Liabilities | (197,228) | (176,865) |
Principal repayments, Liabilities | 151,025 | 120,909 |
Borrower Loans sold to third parties, Liabilities | 813 | |
Other changes, Liabilities | (6) | |
Change in fair value, Liabilities | 21,774 | 16,391 |
Ending balance, Liabilities | (297,405) | (273,783) |
Notes [Member] | Prosper Funding LLC [Member] | ||
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||
Beginning balance, Liabilities | (273,783) | (234,218) |
Originations, Liabilities | (197,228) | (176,865) |
Principal repayments, Liabilities | 151,025 | 120,909 |
Borrower Loans sold to third parties, Liabilities | 813 | |
Other changes, Liabilities | (6) | |
Change in fair value, Liabilities | 21,774 | 16,391 |
Ending balance, Liabilities | (297,405) | (273,783) |
Notes [Member] | Prosper Funding LLC [Member] | Scenario Previously Reported | ||
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||
Beginning balance, Liabilities | (273,783) | |
Ending balance, Liabilities | (273,783) | |
Borrower Loans [Member] | ||
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||
Beginning balance, Assets | 273,243 | 233,105 |
Purchase of Borrower Loans/Issuance of Notes, Assets | 197,436 | 177,088 |
Principal repayments, Assets | (151,038) | (121,082) |
Borrower Loans sold to third parties, Assets | (855) | |
Other changes, Assets | 81 | |
Change in fair value, Assets | (21,594) | (15,868) |
Ending balance, Assets | 297,273 | 273,243 |
Borrower Loans [Member] | Prosper Funding LLC [Member] | ||
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||
Beginning balance, Assets | 273,243 | 233,105 |
Originations, Assets | 197,436 | 177,088 |
Principal repayments, Assets | (151,038) | (121,081) |
Borrower Loans sold to third parties, Assets | (855) | |
Other changes, Assets | 81 | |
Change in fair value, Assets | (21,594) | (15,868) |
Ending balance, Assets | 297,273 | 273,243 |
Borrower Loans [Member] | Prosper Funding LLC [Member] | Scenario Previously Reported | ||
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||
Beginning balance, Assets | 273,244 | |
Ending balance, Assets | 273,244 | |
Loans Held for Sale [Member] | ||
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||
Beginning balance, Assets | 8,463 | 3,206 |
Purchase of Borrower Loans/Issuance of Notes, Assets | 3,517,467 | 1,416,715 |
Principal repayments, Assets | (552) | |
Borrower Loans sold to third parties, Assets | (3,525,207) | (1,411,531) |
Other changes, Assets | (18) | |
Change in fair value, Assets | (121) | 73 |
Ending balance, Assets | 32 | 8,463 |
Loans Held for Sale [Member] | Prosper Funding LLC [Member] | ||
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||
Beginning balance, Assets | 8,463 | 3,206 |
Originations, Assets | 3,517,467 | 1,416,715 |
Principal repayments, Assets | (552) | |
Borrower Loans sold to third parties, Assets | (3,525,207) | (1,411,531) |
Other changes, Assets | (18) | |
Change in fair value, Assets | (121) | 73 |
Ending balance, Assets | 32 | 8,463 |
Loans Held for Sale [Member] | Prosper Funding LLC [Member] | Scenario Previously Reported | ||
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||
Beginning balance, Assets | $ 8,463 | |
Ending balance, Assets | $ 8,463 |
Fair Value of Assets and Liab61
Fair Value of Assets and Liabilities - Schedule of Servicing Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||
Amortized cost at beginning of period | $ 4,163 | |
Amortized cost at end of period | 14,363 | $ 4,163 |
Adjustment to adopt fair value measurement, servicing assets | 545 | |
Servicing Liability at Amortized Cost [Roll Forward] | ||
Adjustment to adopt fair value measurement | (29) | |
Prosper Funding LLC [Member] | ||
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||
Amortized cost at beginning of period | 3,116 | |
Amortized cost at end of period | 13,605 | 3,116 |
Adjustment to adopt fair value measurement, servicing assets | 399 | |
Servicing Liability at Amortized Cost [Roll Forward] | ||
Adjustment to adopt fair value measurement | (29) | |
Servicing assets [Member] | ||
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||
Amortized cost at beginning of period | 4,163 | 460 |
Additions | 14,909 | 4,700 |
Less: Changes in fair value | (5,254) | (997) |
Amortized cost at end of period | 4,163 | |
Adjustment to adopt fair value measurement, servicing assets | 545 | |
Fair value at beginning of period | 4,708 | |
Fair Value at end of period | 14,363 | 4,708 |
Servicing assets [Member] | Prosper Funding LLC [Member] | ||
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||
Amortized cost at beginning of period | 3,116 | 436 |
Additions | 14,909 | 4,700 |
Less: Transfers to PMI | (249) | (1,221) |
Less: Amortization | (799) | |
Less: Changes in fair value | (4,570) | |
Amortized cost at end of period | 3,116 | |
Adjustment to adopt fair value measurement, servicing assets | 399 | |
Fair value at beginning of period | 3,515 | |
Fair Value at end of period | 13,605 | 3,515 |
Servicing liabilities [Member] | ||
Servicing Liability at Amortized Cost [Roll Forward] | ||
Amortized cost at beginning of period | 624 | 167 |
Additions | 283 | 662 |
Less: Changes in fair value | (394) | (205) |
Amortized cost at end of period | 624 | |
Adjustment to adopt fair value measurement | (29) | |
Fair value at beginning of the period | 595 | |
Fair value at end of the period | 484 | 595 |
Servicing liabilities [Member] | Prosper Funding LLC [Member] | ||
Servicing Liability at Amortized Cost [Roll Forward] | ||
Amortized cost at beginning of period | 624 | 167 |
Additions | 283 | 662 |
Less: Amortization | (205) | |
Less: Changes in fair value | (394) | |
Amortized cost at end of period | 624 | |
Adjustment to adopt fair value measurement | (29) | |
Fair value at beginning of the period | 595 | |
Fair value at end of the period | $ 484 | $ 595 |
Fair Value of Assets and Liab62
Fair Value of Assets and Liabilities - Additional Information (Details) - USD ($) $ in Thousands | Oct. 09, 2015 | Dec. 31, 2015 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Contingent Consideration | $ 3,800 | $ 4,801 |
Changes in fair value | $ 1,000 | |
BillGuard Inc [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Business Acquisition, Effective Date of Acquisition | Oct. 9, 2015 | |
Outstanding shares purchased by parent company | 100.00% | |
Business Acquisition, Name of Acquired Entity | BillGuard, Inc | |
Duration of payment for purchase of outstanding shares | 1 year |
Fair Value of Assets and Liab63
Fair Value of Assets and Liabilities - Fair Value Assumptions for Borrower Loans, Loans Held for Sale and Notes (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($) | ||
Discount rate assumption [Member] | Borrower Loans and Loans Held for Sale [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 6.97% | [1] |
Discount rate assumption [Member] | Borrower Loans and Loans Held for Sale [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 6.97% | [1] |
Discount rate assumption [Member] | Notes [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 6.97% | [1] |
Discount rate assumption [Member] | Notes [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 6.97% | [1] |
Discount rate assumption [Member] | 100 Basis Point Increase [Member] | Borrower Loans and Loans Held for Sale [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | $ 294,179 | |
Discount rate assumption [Member] | 100 Basis Point Increase [Member] | Borrower Loans and Loans Held for Sale [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | 294,179 | |
Discount rate assumption [Member] | 100 Basis Point Increase [Member] | Notes [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | 294,305 | |
Discount rate assumption [Member] | 100 Basis Point Increase [Member] | Notes [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | 294,305 | |
Discount rate assumption [Member] | 200 Basis Point Increase [Member] | Borrower Loans and Loans Held for Sale [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | 291,165 | |
Discount rate assumption [Member] | 200 Basis Point Increase [Member] | Borrower Loans and Loans Held for Sale [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | 291,165 | |
Discount rate assumption [Member] | 200 Basis Point Increase [Member] | Notes [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | 291,284 | |
Discount rate assumption [Member] | 200 Basis Point Increase [Member] | Notes [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | 291,284 | |
Discount rate assumption [Member] | 100 Basis Point Decrease [Member] | Borrower Loans and Loans Held for Sale [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | 300,449 | |
Discount rate assumption [Member] | 100 Basis Point Decrease [Member] | Borrower Loans and Loans Held for Sale [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | 300,449 | |
Discount rate assumption [Member] | 100 Basis Point Decrease [Member] | Notes [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | 300,589 | |
Discount rate assumption [Member] | 100 Basis Point Decrease [Member] | Notes [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | 300,589 | |
Discount rate assumption [Member] | 200 Basis Point Decrease [Member] | Borrower Loans and Loans Held for Sale [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | 303,710 | |
Discount rate assumption [Member] | 200 Basis Point Decrease [Member] | Borrower Loans and Loans Held for Sale [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | 303,710 | |
Discount rate assumption [Member] | 200 Basis Point Decrease [Member] | Notes [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | 303,858 | |
Discount rate assumption [Member] | 200 Basis Point Decrease [Member] | Notes [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | $ 303,858 | |
Default rate assumption [Member] | Borrower Loans and Loans Held for Sale [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Default rate | 10.11% | [1] |
Default rate assumption [Member] | Borrower Loans and Loans Held for Sale [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Default rate | 10.11% | [1] |
Default rate assumption [Member] | Notes [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Default rate | 10.11% | [1] |
Default rate assumption [Member] | Notes [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Default rate | 10.11% | [1] |
Default rate assumption [Member] | 100 Basis Point Increase [Member] | Borrower Loans and Loans Held for Sale [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | $ 294,480 | |
Default rate assumption [Member] | 100 Basis Point Increase [Member] | Borrower Loans and Loans Held for Sale [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | 294,480 | |
Default rate assumption [Member] | 100 Basis Point Increase [Member] | Notes [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | 294,601 | |
Default rate assumption [Member] | 100 Basis Point Increase [Member] | Notes [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | 294,601 | |
Default rate assumption [Member] | 200 Basis Point Increase [Member] | Borrower Loans and Loans Held for Sale [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | 291,741 | |
Default rate assumption [Member] | 200 Basis Point Increase [Member] | Borrower Loans and Loans Held for Sale [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | 291,741 | |
Default rate assumption [Member] | 200 Basis Point Increase [Member] | Notes [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | 291,851 | |
Default rate assumption [Member] | 200 Basis Point Increase [Member] | Notes [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | 291,851 | |
Default rate assumption [Member] | 100 Basis Point Decrease [Member] | Borrower Loans and Loans Held for Sale [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | 300,090 | |
Default rate assumption [Member] | 100 Basis Point Decrease [Member] | Borrower Loans and Loans Held for Sale [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | 300,090 | |
Default rate assumption [Member] | 100 Basis Point Decrease [Member] | Notes [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | 300,235 | |
Default rate assumption [Member] | 100 Basis Point Decrease [Member] | Notes [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | 300,235 | |
Default rate assumption [Member] | 200 Basis Point Decrease [Member] | Borrower Loans and Loans Held for Sale [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | 302,931 | |
Default rate assumption [Member] | 200 Basis Point Decrease [Member] | Borrower Loans and Loans Held for Sale [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | 302,931 | |
Default rate assumption [Member] | 200 Basis Point Decrease [Member] | Notes [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | 303,088 | |
Default rate assumption [Member] | 200 Basis Point Decrease [Member] | Notes [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | $ 303,088 | |
[1] | Represents weighted average assumptions considering all credit grades. |
Fair Value of Assets and Liab64
Fair Value of Assets and Liabilities - Schedule of Prosper's and Prosper Funding's Estimated Fair Value of Servicing Assets and Liabilities (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Servicing assets [Member] | |
Servicing Assets And Liabilities Fair Value [Line Items] | |
Weighted average market servicing rate assumptions | 0.625% |
Resulting fair value from: | |
Market servicing rate increase to 0.65% | $ 13,327 |
Market servicing rate decrease to 0.60% | $ 15,399 |
Weighted average prepayment assumptions | 18.90% |
Weighted average default assumptions | 11.00% |
Servicing assets [Member] | Prosper Funding LLC [Member] | |
Servicing Assets And Liabilities Fair Value [Line Items] | |
Weighted average market servicing rate assumptions | 0.625% |
Resulting fair value from: | |
Market servicing rate increase to 0.65% | $ 12,878 |
Market servicing rate decrease to 0.60% | $ 14,880 |
Weighted average prepayment assumptions | 18.90% |
Weighted average default assumptions | 11.00% |
Servicing liabilities [Member] | |
Servicing Assets And Liabilities Fair Value [Line Items] | |
Weighted average market servicing rate assumptions | 0.625% |
Resulting fair value from: | |
Market servicing rate increase to 0.65% | $ 533 |
Market servicing rate decrease to 0.60% | $ 435 |
Weighted average prepayment assumptions | 18.90% |
Weighted average default assumptions | 11.00% |
Servicing liabilities [Member] | Prosper Funding LLC [Member] | |
Servicing Assets And Liabilities Fair Value [Line Items] | |
Weighted average market servicing rate assumptions | 0.625% |
Resulting fair value from: | |
Market servicing rate increase to 0.65% | $ 533 |
Market servicing rate decrease to 0.60% | $ 435 |
Weighted average prepayment assumptions | 18.90% |
Weighted average default assumptions | 11.00% |
Prepayment rate assumption [Member] | Servicing assets [Member] | 1.1 Multiplier to Default Rate [Member] | |
Resulting fair value from: | |
Applying a 1.1 multiplier to default rate | $ 14,000 |
Prepayment rate assumption [Member] | Servicing assets [Member] | 1.1 Multiplier to Default Rate [Member] | Prosper Funding LLC [Member] | |
Resulting fair value from: | |
Applying a 1.1 multiplier to default rate | 14,061 |
Prepayment rate assumption [Member] | Servicing assets [Member] | 0.9 Multiplier Default Rate [Member] | |
Resulting fair value from: | |
Applying a 0.9 multiplier to default rate | 14,524 |
Prepayment rate assumption [Member] | Servicing assets [Member] | 0.9 Multiplier Default Rate [Member] | Prosper Funding LLC [Member] | |
Resulting fair value from: | |
Applying a 0.9 multiplier to default rate | 14,460 |
Prepayment rate assumption [Member] | Servicing liabilities [Member] | 1.1 Multiplier to Default Rate [Member] | |
Resulting fair value from: | |
Applying a 1.1 multiplier to default rate | 458 |
Prepayment rate assumption [Member] | Servicing liabilities [Member] | 1.1 Multiplier to Default Rate [Member] | Prosper Funding LLC [Member] | |
Resulting fair value from: | |
Applying a 1.1 multiplier to default rate | 458 |
Prepayment rate assumption [Member] | Servicing liabilities [Member] | 0.9 Multiplier Default Rate [Member] | |
Resulting fair value from: | |
Applying a 0.9 multiplier to default rate | 476 |
Prepayment rate assumption [Member] | Servicing liabilities [Member] | 0.9 Multiplier Default Rate [Member] | Prosper Funding LLC [Member] | |
Resulting fair value from: | |
Applying a 0.9 multiplier to default rate | 476 |
Default rate assumption [Member] | Servicing assets [Member] | 1.1 Multiplier to Default Rate [Member] | |
Resulting fair value from: | |
Applying a 1.1 multiplier to default rate | 14,163 |
Default rate assumption [Member] | Servicing assets [Member] | 1.1 Multiplier to Default Rate [Member] | Prosper Funding LLC [Member] | |
Resulting fair value from: | |
Applying a 1.1 multiplier to default rate | 13,415 |
Default rate assumption [Member] | Servicing assets [Member] | 0.9 Multiplier Default Rate [Member] | |
Resulting fair value from: | |
Applying a 0.9 multiplier to default rate | 14,565 |
Default rate assumption [Member] | Servicing assets [Member] | 0.9 Multiplier Default Rate [Member] | Prosper Funding LLC [Member] | |
Resulting fair value from: | |
Applying a 0.9 multiplier to default rate | 13,796 |
Default rate assumption [Member] | Servicing liabilities [Member] | 1.1 Multiplier to Default Rate [Member] | |
Resulting fair value from: | |
Applying a 1.1 multiplier to default rate | 484 |
Default rate assumption [Member] | Servicing liabilities [Member] | 1.1 Multiplier to Default Rate [Member] | Prosper Funding LLC [Member] | |
Resulting fair value from: | |
Applying a 1.1 multiplier to default rate | 484 |
Default rate assumption [Member] | Servicing liabilities [Member] | 0.9 Multiplier Default Rate [Member] | |
Resulting fair value from: | |
Applying a 0.9 multiplier to default rate | 484 |
Default rate assumption [Member] | Servicing liabilities [Member] | 0.9 Multiplier Default Rate [Member] | Prosper Funding LLC [Member] | |
Resulting fair value from: | |
Applying a 0.9 multiplier to default rate | $ 484 |
Fair Value of Assets and Liab65
Fair Value of Assets and Liabilities - Schedule of Prosper's and Prosper Funding's Estimated Fair Value of Servicing Assets and Liabilities (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Servicing Assets And Liabilities Fair Value [Line Items] | |
Servicing rate increase | 0.65% |
Servicing rate decrease | 0.60% |
Prosper Funding LLC [Member] | |
Servicing Assets And Liabilities Fair Value [Line Items] | |
Servicing rate increase | 0.65% |
Servicing rate decrease | 0.60% |
Prepayment rate assumption [Member] | |
Servicing Assets And Liabilities Fair Value [Line Items] | |
Prepayment rate increase | 1.10% |
Prepayment rate decrease | 0.90% |
Prepayment rate assumption [Member] | Prosper Funding LLC [Member] | |
Servicing Assets And Liabilities Fair Value [Line Items] | |
Default rate increase | 0.011% |
Default rate decrease | 0.009% |
Default rate assumption [Member] | |
Servicing Assets And Liabilities Fair Value [Line Items] | |
Default rate increase | 1.10% |
Default rate decrease | 0.90% |
Default rate assumption [Member] | Prosper Funding LLC [Member] | |
Servicing Assets And Liabilities Fair Value [Line Items] | |
Default rate increase | 1.10% |
Default rate decrease | 0.90% |
American HealthCare Lending A66
American HealthCare Lending Acquisition - Additional Information (Details) - American HealthCare Lending, LLC [Member] - USD ($) $ in Millions | Jan. 23, 2015 | Dec. 31, 2015 | Dec. 31, 2015 |
Business Acquisition [Line Items] | |||
Payments to Acquire Businesses, Gross | $ 20.2 | ||
Future payments to acquire businesses | $ 0.8 | ||
Business Acquisition, Effective Date of Acquisition | Jan. 23, 2015 | ||
Business Acquisition, Name of Acquired Entity | American HealthCare Lending, LLC | ||
Revenue of acquired included in consolidated statement since merger date | $ 2.8 | ||
Loss of acquired included in consolidated statement since merger date | $ (5.8) | ||
Acquisition expenses | $ 0.2 |
American HealthCare Lending A67
American HealthCare Lending Acquisition - Preliminary Purchase Price Allocation (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Identified intangible assets: | ||
Goodwill | $ 36,368,000 | $ 0 |
American HealthCare Lending, LLC [Member] | ||
Assets: | ||
Cash | 1,219,000 | |
Accounts receivable, net | 147,000 | |
Property, equipment and software, net | 6,000 | |
Other assets | 63,000 | |
Identified intangible assets: | ||
Goodwill | 16,825,000 | |
Liabilities: | ||
Accrued expenses and other liabilities | 708,000 | |
Total purchase consideration | 21,072,000 | |
American HealthCare Lending, LLC [Member] | Brand Name [Member] | ||
Identified intangible assets: | ||
Identified intangible assets | 60,000 | |
American HealthCare Lending, LLC [Member] | Customer Relationships [Member] | ||
Identified intangible assets: | ||
Identified intangible assets | 2,650,000 | |
American HealthCare Lending, LLC [Member] | Developed Technology [Member] | ||
Identified intangible assets: | ||
Identified intangible assets | $ 810,000 |
BillGuard Acquisition - Additio
BillGuard Acquisition - Additional Information (Details) - BillGuard Inc [Member] - USD ($) | Oct. 09, 2015 | Dec. 31, 2015 | Dec. 31, 2015 |
Business Acquisition [Line Items] | |||
Business Acquisition, Effective Date of Acquisition | Oct. 9, 2015 | ||
Payments to Acquire Businesses, Gross | $ 20,000,000 | ||
Business Acquisition, Name of Acquired Entity | BillGuard, Inc | ||
Future payments to acquire businesses | 5,000,000 | ||
Business acquisition, maximum value of contingent consideration | 5,000,000 | ||
Business acquisition, fair value of liabilities | $ 3,800,000 | $ 4,800,000 | $ 4,800,000 |
Revenue of acquired included in consolidated statement since merger date | 200,000 | ||
Loss of acquired included in consolidated statement since merger date | $ 2,600,000 | ||
General and Administrative [Member] | |||
Business Acquisition [Line Items] | |||
Acquisition expenses | $ 900,000 |
BillGuard Acquisition - Prelimi
BillGuard Acquisition - Preliminary Purchase Price Allocation (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Assets: | ||
Goodwill | $ 36,368,000 | $ 0 |
BillGuard Inc [Member] | ||
Assets: | ||
Cash | 811,000 | |
Property and equipment | 82,000 | |
Prepaid and other assets | 152,000 | |
Goodwill | 19,543,000 | |
Liabilities: | ||
Accounts payable and accrued expenses | (1,635,000) | |
Long term debt | (1,395,000) | |
Convertible loan | (3,652,000) | |
Deferred revenue | (1,400,000) | |
Total purchase consideration | 23,606,000 | |
BillGuard Inc [Member] | Developed Technology [Member] | ||
Assets: | ||
Identified intangible assets | 7,500,000 | |
BillGuard Inc [Member] | Customer Relationships [Member] | ||
Assets: | ||
Identified intangible assets | $ 3,600,000 |
BillGuard Acquisition - Unaudit
BillGuard Acquisition - Unaudited Pro Forma Financial Information (Details) - BillGuard Inc [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Business Acquisition [Line Items] | |||
Total net revenue | $ 204,350 | $ 81,195 | |
Net loss | [1] | $ (33,677) | $ (16,728) |
Basic and diluted net loss per share attributable to common stockholders | $ (0.61) | $ (0.71) | |
[1] | Net loss for the year ended December 31, 2015 excludes $1.6 million of one-time acquisition-related costs expenses incurred in 2015. Net loss for the year ended December 31, 2014 was adjusted to include these numbers. |
BillGuard Acquisition - Unaud71
BillGuard Acquisition - Unaudited Pro Forma Financial Information (Parenthetical) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
BillGuard Inc [Member] | One-Time Acquisition Related Costs Expenses Excluded from Net Loss [Member] | |
Business Acquisition [Line Items] | |
Acquisition related cost and expense | $ 1.6 |
Goodwill And Other Intangible72
Goodwill And Other Intangible Assets - Summary of Goodwill for the Periods Presented (Details) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | $ 0 |
2015 acquisitions | 36,368,000 |
Goodwill | $ 36,368,000 |
Goodwill And Other Intangible73
Goodwill And Other Intangible Assets - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill And Other Intangible Assets [Line Items] | ||
Goodwill | $ 36,368,000 | $ 0 |
Goodwill impairment expense | 0 | |
Intangible assets | 13,051,000 | $ 0 |
Amortization of intangible assets | $ 1,600,000 | |
User Base and Customer Relationships [Member] | Minimum [Member] | ||
Goodwill And Other Intangible Assets [Line Items] | ||
Intangible assets amortized period | 3 years | |
User Base and Customer Relationships [Member] | Maximum [Member] | ||
Goodwill And Other Intangible Assets [Line Items] | ||
Intangible assets amortized period | 10 years | |
Developed Technology [Member] | ||
Goodwill And Other Intangible Assets [Line Items] | ||
Intangible assets | $ 7,688,000 | |
Intangible assets amortized period | 4 years 9 months 18 days | |
Developed Technology [Member] | Minimum [Member] | ||
Goodwill And Other Intangible Assets [Line Items] | ||
Intangible assets amortized period | 3 years | |
Developed Technology [Member] | Maximum [Member] | ||
Goodwill And Other Intangible Assets [Line Items] | ||
Intangible assets amortized period | 5 years | |
Brand Name [Member] | ||
Goodwill And Other Intangible Assets [Line Items] | ||
Intangible assets | $ 5,000 | |
Intangible assets amortized period | 1 year |
Goodwill And Other Intangible74
Goodwill And Other Intangible Assets - Summary of Other Intangible for the Periods Presented (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 14,620,000 | |
Accumulated Amortization | (1,569,000) | |
Net Carrying Value | 13,051,000 | $ 0 |
Developed Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 8,310,000 | |
Accumulated Amortization | (622,000) | |
Net Carrying Value | $ 7,688,000 | |
Remaining Useful Life (In Years) | 4 years 9 months 18 days | |
User Base and Customer Relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 6,250,000 | |
Accumulated Amortization | (892,000) | |
Net Carrying Value | $ 5,358,000 | |
Remaining Useful Life (In Years) | 9 years 1 month 6 days | |
Brand Name [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 60,000 | |
Accumulated Amortization | (55,000) | |
Net Carrying Value | $ 5,000 | |
Remaining Useful Life (In Years) | 1 year | |
Remaining Useful Life (In Years) | 1 month 6 days |
Goodwill And Other Intangible75
Goodwill And Other Intangible Assets - Summary of Estimated Amortization of Purchased Intangible Assets (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Finite Lived Intangible Assets Future Amortization Expense Current And Five Succeeding Fiscal Years [Abstract] | ||
2,016 | $ 3,859,000 | |
2,017 | 3,205,000 | |
2,018 | 2,310,000 | |
2,019 | 1,789,000 | |
2,020 | 1,366,000 | |
Thereafter | 522,000 | |
Net Carrying Value | $ 13,051,000 | $ 0 |
Other Liabilities - Schedule of
Other Liabilities - Schedule of Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Other Liabilities [Abstract] | ||
Class action settlement liability | $ 5,949 | $ 7,861 |
Repurchase liability for unvested restricted stock awards | 473 | 1,010 |
Contingent consideration | 4,801 | |
Deferred revenue | 1,591 | |
Servicing liabilities | 484 | 624 |
Deferred rent | 5,240 | 3,657 |
Other | 2,197 | 171 |
Total Other Liabilities | $ 20,735 | $ 13,323 |
Net Loss Per Share - Basic and
Net Loss Per Share - Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Numerator [Abstract] | ||
Net loss | $ (25,968) | $ (2,669) |
Excess Return to Preferred Shareholders on Repurchase | (14,892) | |
Net Loss Applicable to Common Shareholders | $ (25,968) | $ (17,561) |
Denominator [Abstract] | ||
Weighted average shares used in computing basic and diluted net loss per share | 55,547,408 | 44,484,005 |
Basic and diluted net loss per share | $ (0.47) | $ (0.39) |
Net Loss Per Share - Dilutive S
Net Loss Per Share - Dilutive Shares Excluded from the Diluted Net Loss Per Share Calculation (Details) - shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total common stock equivalents excluded from diluted net loss per common share computation (in shares) | 222,331,878 | 199,930,555 |
Stock Options Issued and Outstanding [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total common stock equivalents excluded from diluted net loss per common share computation (in shares) | 34,358,106 | 24,974,990 |
Unvested Stock Options Exercised [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total common stock equivalents excluded from diluted net loss per common share computation (in shares) | 9,806,170 | 20,571,345 |
Restrictive Stock Units [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total common stock equivalents excluded from diluted net loss per common share computation (in shares) | 190,517 | |
Warrants Issued and Outstanding [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total common stock equivalents excluded from diluted net loss per common share computation (in shares) | 588,660 | 884,435 |
Convertible Preferred Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total common stock equivalents excluded from diluted net loss per common share computation (in shares) | 177,388,425 | 153,499,785 |
Net Loss Per Share - Additional
Net Loss Per Share - Additional Information (Details) - shares | Feb. 16, 2016 | Oct. 29, 2013 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Forward stock split, shares issued (in shares) | 10 | |
Forward stock split, shares converted (in shares) | 1 | |
Subsequent Event [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Forward stock split, shares issued (in shares) | 5 | |
Forward stock split, shares converted (in shares) | 1 |
Convertible Preferred Stock a80
Convertible Preferred Stock and Stockholders' Deficit - Additional Information (Details) | Feb. 16, 2016$ / sharesshares | Feb. 16, 2016$ / sharesshares | Jul. 16, 2014USD ($)shares | Jun. 18, 2014$ / sharesshares | Oct. 29, 2013shares | Apr. 30, 2015USD ($)$ / sharesshares | May. 31, 2014USD ($)$ / sharesshares | Sep. 30, 2013USD ($)$ / sharesshares | Jan. 31, 2013USD ($)$ / sharesshares | Dec. 31, 2015USD ($)Times$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | May. 15, 2014$ / sharesshares |
Class of Stock [Line Items] | ||||||||||||
Proceeds from Issuance of Convertible Preferred Stock, Net | $ | $ 164,793,000 | $ 69,958,000 | ||||||||||
Stock split conversion ratio | 1 | |||||||||||
Common stock convertible ratio if preferred stock did not participate | 10 | |||||||||||
Repurchase of Preferred Stock | $ | $ 18,500,000 | $ 18,527,000 | ||||||||||
Dividends | $ | $ 0 | |||||||||||
Reverse stock split, shares issued (in shares) | 10 | |||||||||||
Reverse stock split, shares converted (in shares) | 1 | |||||||||||
Common and preferred stock, shares authorized (in shares) | 454,989,825 | |||||||||||
Common stock, shares authorized (in shares) | 270,326,075 | 239,644,415 | 270,326,075 | |||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||
Preferred stock, shares authorized (in shares) | 177,388,425 | 160,775,110 | 184,663,750 | |||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | |||||||||||
Common stock, shares issued (in shares) | 70,367,425 | 72,243,500 | ||||||||||
Common stock, shares outstanding (in shares) | 69,431,490 | 72,243,500 | ||||||||||
Common stock voting rights | Each holder of common stock is entitled to one vote for each share of common stock held. | |||||||||||
Stock-Based Compensation Expense | $ | $ 13,011,000 | $ 2,021,000 | ||||||||||
Common Stock [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Exercise of stock options (in shares) | 3,211,935 | 4,624,335 | ||||||||||
Proceeds from Exercise of Vested Stock Options | $ | $ 880,000 | $ 890,000 | ||||||||||
Exercise of nonvested stock options (in shares) | 76,045 | 4,328,585 | ||||||||||
Unvested restricted stock outstanding (in shares) | 9,806,170 | 20,571,345 | ||||||||||
Exercise of common stock warrants (in dollars per share) | $ / shares | $ 0.61 | $ 0.39 | ||||||||||
Warrants Issued and Outstanding [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Shares issued (in shares) | 207,065 | 584,615 | ||||||||||
Executives [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Stock issued during the period (in shares) | 3,607,095 | |||||||||||
Aggregate price for repurchase of common stock | $ | $ 24,900,000 | |||||||||||
Employees [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Stock issued during the period (in shares) | 4,225,490 | |||||||||||
Stock repurchased during period, price per share | $ / shares | $ 6.91 | |||||||||||
Aggregate price for repurchase of common stock | $ | $ 29,200,000 | |||||||||||
Stock-Based Compensation Expense | $ | 6,200,000 | |||||||||||
Employees [Member] | Origination and Servicing [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Stock-Based Compensation Expense | $ | 330,000 | |||||||||||
Employees [Member] | Sales and Marketing [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Stock-Based Compensation Expense | $ | 70,000 | |||||||||||
Employees [Member] | General and Administrative [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Stock-Based Compensation Expense | $ | $ 5,700,000 | |||||||||||
Subsequent Event [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Stock split conversion ratio | 5 | 0.2 | ||||||||||
Reverse stock split, shares issued (in shares) | 5 | |||||||||||
Reverse stock split, shares converted (in shares) | 1 | |||||||||||
Common and preferred stock, shares authorized (in shares) | 464,214,500 | 464,214,500 | ||||||||||
Common stock, shares authorized (in shares) | 286,826,075 | 286,826,075 | ||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||||||||||
Preferred stock, shares authorized (in shares) | 177,388,425 | 177,388,425 | ||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||||||||||
Series A Convertible Preferred Stock [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Shares issued (in shares) | 6,963,785 | 69,340,760 | ||||||||||
Convertible preferred stock, price per share (in dollars per share) | $ / shares | $ 2.87 | $ 0.29 | ||||||||||
Proceeds from Issuance of Convertible Preferred Stock, Net | $ | $ 19,800,000 | |||||||||||
Stock issued during the period (in shares) | 782,540 | |||||||||||
Conversion ratio of preferred stock into prosper common stock | 1 | |||||||||||
Liquidation preference per share (in dollars per share) | $ / shares | $ 0.29 | |||||||||||
Number of times the shareholders are entitled to receive the original issue price | Times | 3 | |||||||||||
Common stock, shares authorized (in shares) | 69,340,760 | |||||||||||
Preferred stock, shares authorized (in shares) | 68,558,220 | |||||||||||
Series A 1 Convertible Preferred Stock [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Shares issued (in shares) | 25,585,910 | |||||||||||
Convertible preferred stock, price per share (in dollars per share) | $ / shares | $ 0.01 | |||||||||||
Percentage of holders of preferred stock required to request for conversion, minimum (in hundredths) | 14.00% | |||||||||||
Conversion ratio of preferred stock into prosper common stock | 1,000,000 | |||||||||||
Liquidation preference per share (in dollars per share) | $ / shares | $ 2 | |||||||||||
Series A 1 [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Stock split conversion ratio | 1,000,000 | |||||||||||
Liquidation preference per share (in dollars per share) | $ / shares | $ 2 | |||||||||||
Common stock, shares authorized (in shares) | 25,585,910 | |||||||||||
Preferred stock, shares authorized (in shares) | 24,760,915 | |||||||||||
Series A 1 [Member] | Subsequent Event [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Common and preferred stock, shares authorized (in shares) | 24,760,915 | 24,760,915 | ||||||||||
Series B Convertible Preferred Stock [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Shares issued (in shares) | 6,963,785 | 41,443,670 | ||||||||||
Convertible preferred stock, price per share (in dollars per share) | $ / shares | $ 2.87 | $ 0.60 | ||||||||||
Proceeds from Issuance of Convertible Preferred Stock, Net | $ | $ 24,900,000 | |||||||||||
Stock issued during the period (in shares) | 5,667,790 | |||||||||||
Value prior to closing of underwritten initial public offering | $ | $ 2,000,000,000 | |||||||||||
Aggregate proceeds to the entity before deducting underwriters commissions and expenses | $ | $ 100,000,000 | |||||||||||
Percentage of holders of preferred stock required to request for conversion, minimum (in hundredths) | 60.00% | |||||||||||
Conversion ratio of preferred stock into prosper common stock | 1 | |||||||||||
Liquidation preference per share (in dollars per share) | $ / shares | $ 0.60 | |||||||||||
Common stock, shares authorized (in shares) | 41,443,670 | |||||||||||
Preferred stock, shares authorized (in shares) | 35,775,880 | |||||||||||
Series C Convertible Preferred Stock [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Shares issued (in shares) | 24,404,770 | |||||||||||
Convertible preferred stock, price per share (in dollars per share) | $ / shares | $ 2.87 | |||||||||||
Proceeds from Issuance of Convertible Preferred Stock, Net | $ | $ 69,900,000 | |||||||||||
Conversion ratio of preferred stock into prosper common stock | 1 | |||||||||||
Liquidation preference per share (in dollars per share) | $ / shares | $ 2.87 | |||||||||||
Common stock, shares authorized (in shares) | 24,404,770 | |||||||||||
Preferred stock, shares authorized (in shares) | 24,404,770 | |||||||||||
Series D Convertible Preferred Stock [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Shares issued (in shares) | 23,888,640 | |||||||||||
Convertible preferred stock, price per share (in dollars per share) | $ / shares | $ 6.91 | |||||||||||
Proceeds from Issuance of Convertible Preferred Stock, Net | $ | $ 164,800,000 | |||||||||||
Conversion ratio of preferred stock into prosper common stock | 1 | |||||||||||
Liquidation preference per share (in dollars per share) | $ / shares | $ 6.91 | |||||||||||
Series D Preferred Stock [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Common stock, shares authorized (in shares) | 23,888,640 | |||||||||||
Preferred stock, shares authorized (in shares) | 23,888,640 | |||||||||||
Series D Preferred Stock [Member] | Subsequent Event [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Common and preferred stock, shares authorized (in shares) | 23,888,640 | 23,888,640 |
Convertible Preferred Stock a81
Convertible Preferred Stock and Stockholders' Deficit - Summary of Shares Authorized, Issued, Outstanding, Par Value and Liquidation Preference of Convertible Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | May. 15, 2014 |
Class of Stock [Line Items] | |||
Convertible preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Convertible preferred stock, shares authorized (in shares) | 177,388,425 | 160,775,110 | 184,663,750 |
Convertible preferred stock, shares outstanding (in shares) | 177,388,425 | 153,499,785 | |
Convertible preferred stock, shares issued (in shares) | 177,388,425 | 153,499,785 | |
Convertible preferred stock, aggregate liquidation preference | $ 325,952 | $ 160,952 | |
Series A Convertible Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Convertible preferred stock, par value (in dollars per share) | $ 0.01 | ||
Convertible preferred stock, shares authorized (in shares) | 68,558,220 | ||
Convertible preferred stock, shares outstanding (in shares) | 68,558,220 | ||
Convertible preferred stock, shares issued (in shares) | 68,558,220 | ||
Convertible preferred stock, aggregate liquidation preference | $ 19,774 | ||
Series A 1 [Member] | |||
Class of Stock [Line Items] | |||
Convertible preferred stock, par value (in dollars per share) | $ 0.01 | ||
Convertible preferred stock, shares authorized (in shares) | 24,760,915 | ||
Convertible preferred stock, shares outstanding (in shares) | 24,760,915 | ||
Convertible preferred stock, shares issued (in shares) | 24,760,915 | ||
Convertible preferred stock, aggregate liquidation preference | $ 49,522 | ||
Series B Convertible Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Convertible preferred stock, par value (in dollars per share) | $ 0.01 | ||
Convertible preferred stock, shares authorized (in shares) | 35,775,880 | ||
Convertible preferred stock, shares outstanding (in shares) | 35,775,880 | ||
Convertible preferred stock, shares issued (in shares) | 35,775,880 | ||
Convertible preferred stock, aggregate liquidation preference | $ 21,581 | ||
Series C Convertible Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Convertible preferred stock, par value (in dollars per share) | $ 0.01 | ||
Convertible preferred stock, shares authorized (in shares) | 24,404,770 | ||
Convertible preferred stock, shares outstanding (in shares) | 24,404,770 | ||
Convertible preferred stock, shares issued (in shares) | 24,404,770 | ||
Convertible preferred stock, aggregate liquidation preference | $ 70,075 | ||
Series D Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Convertible preferred stock, par value (in dollars per share) | $ 0.01 | ||
Convertible preferred stock, shares authorized (in shares) | 23,888,640 | ||
Convertible preferred stock, shares outstanding (in shares) | 23,888,640 | ||
Convertible preferred stock, shares issued (in shares) | 23,888,640 | ||
Convertible preferred stock, aggregate liquidation preference | $ 165,000 |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Details) | Feb. 16, 2016 | Feb. 16, 2016 | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | Options generally vest 25% one year from the vesting commencement date and 1/48th per month thereafter or vest 50% two years from the vesting commencement date and 1/48 per month thereafter. | |||
Options exercisable, maximum period | 10 years | |||
Stock split conversion ratio | 1 | |||
Dividend yield | 0.00% | 0.00% | ||
Unrecognized cost of unvested share-based compensation awards. | $ 0 | |||
Volatility of common stock | 55.69% | 68.28% | ||
Risk-free interest rate | 1.74% | 1.79% | ||
Expected life | 6 years | 5 years 8 months 12 days | ||
Stock based compensation | $ 13,011,000 | $ 2,021,000 | ||
Stock-Based Compensation Expense | 13,011,000 | 2,021,000 | ||
Unamortized expense related to unvested stock-based awards | $ 46,300,000 | |||
Remaining weighted average vesting period | 3 years 2 months 12 days | |||
Options Issued and Outstanding, Options granted | shares | 23,422,230 | |||
Weighted average grant fair value | $ / shares | $ 5.14 | |||
Stock Options Issued and Outstanding [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-Based Compensation Expense | $ 100,000 | 600,000 | ||
Internal-use Software and Website Development Costs [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-Based Compensation, capitalized amount | $ 623,000 | $ 21,000 | ||
Performance-based stock options [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Dividend yield | 1.66% | |||
Volatility of common stock | 66.00% | |||
Risk-free interest rate | 0.00% | |||
Expected life | 5 years 2 months 23 days | |||
Performance-based stock options granted | shares | 0 | 10,164,480 | ||
Performance-based stock options granted, exercise price | $ / shares | $ 0.11 | |||
Performance-based stock options granted, contractual term | 10 years | |||
Performance-based stock options granted, vested | shares | 9,624,480 | |||
Performance-based stock options granted, forfeited | shares | 540,000 | |||
Stock based compensation | $ 587,000,000 | |||
Restricted Stock Unit (RSUs) | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Aggregate fair value | $ 13,300,000 | |||
Restricted Stock Unit (RSUs) | Minimum [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting period of the options | 3 years | |||
Restricted Stock Unit (RSUs) | Maximum [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting period of the options | 4 years | |||
Subsequent Event [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock split conversion ratio | 0.2 | 5 | ||
Stock split conversion ratio description | Each share of Common Stock issued and outstanding immediately prior to the effective date shall be split and converted into five shares of Common Stock; each share of Series A Preferred Stock, Series A-1 Preferred Stock, Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock issued and outstanding immediately prior to the effective date, shall be converted into five shares of Series A Preferred Stock, Series A- Preferred Stock, Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock, respectively. No fractional shares shall be issued in connection with the forward stock split | The number of options, restricted stock units and amounts per share reflects a 5-for-1 forward stock split effected by PMI on February 16, 2016. | ||
2015 Stock Option Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of options made available in pool (in shares) | shares | 13,194,765 | |||
Vesting Period One [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting period of the options | 1 year | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||
Vesting Period Two [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting period of the options | 2 years | |||
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage for year two | 50.00% |
Stock Based Compensation - Sche
Stock Based Compensation - Schedule of Activity of Options that were Early Exercised under the Plan (Details) - Early Exercised Stock Options Under 2005 Stock Option Plan [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Early exercised options, unvested [Roll Forward] | ||
Beginning balance | 20,561,345 | 27,970,670 |
Exercise of non-vested stock options | 76,045 | 4,328,585 |
Repurchase of stock (in shares) | (1,493,775) | (909,465) |
Restricted stock vested | (9,337,445) | (10,828,445) |
Ending balance | 9,806,170 | 20,561,345 |
Options expected to vest | 9,614,920 | |
Weighted average exercise price [Abstract] | ||
Weighted-Average Exercise Price, Beginning balance | $ 0.05 | $ 0.02 |
Exercise of non-vested stock options | 1.11 | 0.19 |
Repurchase of restricted stock | 0.10 | 0.02 |
Restricted stock vested | 0.05 | 0.03 |
Weighted-Average Exercise Price, Ending balance | 0.05 | $ 0.05 |
Options expected to vest | $ 0.05 | |
Weighted-Average Contractual Term [Roll Forward] | ||
Ending balance | 1 year 6 months 29 days | |
Options expected to vest | 1 year 6 months 29 days | |
Ending balance | $ 54,620 | |
Options expected to vest | $ 53,555 |
Stock Based Compensation - Ad84
Stock Based Compensation - Additional Information Regarding Unvested Early exercised stock options outstanding (Details) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
$0.02 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices | $ 0.02 |
Number Outstanding | shares | 9,116,670 |
Weighted Avg. Remaining Life | 1 year 6 months 22 days |
Weighted Avg. Exercise Price | $ 0.02 |
$0.11 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices | $ 0.11 |
Number Outstanding | shares | 511,180 |
Weighted Avg. Remaining Life | 1 year 8 months 9 days |
Weighted Avg. Exercise Price | $ 0.11 |
$1.13 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices | $ 1.13 |
Number Outstanding | shares | 165,820 |
Weighted Avg. Remaining Life | 2 years 6 months 29 days |
Weighted Avg. Exercise Price | $ 1.13 |
$3.62 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices | $ 3.62 |
Number Outstanding | shares | 12,500 |
Weighted Avg. Remaining Life | 3 years 2 months 1 day |
Weighted Avg. Exercise Price | $ 3.62 |
$0.02 - $3.62 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices, Minimum | 0.02 |
Range of Exercise Prices, Maximum | $ 3.62 |
Number Outstanding | shares | 9,806,170 |
Weighted Avg. Remaining Life | 1 year 6 months 29 days |
Weighted Avg. Exercise Price | $ 0.05 |
Stock Based Compensation - Summ
Stock Based Compensation - Summarized Option Activity under Option Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Options Issued and Outstanding [Roll Forward] | ||
Options Issued and Outstanding, Options granted | 23,422,230 | |
2005 Stock Plan and 2015 Stock Option Plan [Member] | ||
Options Issued and Outstanding [Roll Forward] | ||
Options Issued and Outstanding, Beginning Balance | 24,974,990 | 4,474,880 |
Options Issued and Outstanding, Options granted | 23,422,230 | 26,438,815 |
Options Issued and Outstanding, Options exercised - vested | (3,135,890) | (295,750) |
Options Issued and Outstanding, Options exercised - nonvested | (76,045) | (4,328,585) |
Options Issued and Outstanding, Options forfeited | (4,759,680) | (1,314,370) |
Options Issued and Outstanding, Ending balance | 40,425,605 | 24,974,990 |
Options Issued and Outstanding, Options vested and expected to vest as of December 31, 2015 | 34,959,394 | |
Options Issued and Outstanding, Options vested and exercisable at December 31, 2015 | 28,022,165 | |
Weighted-Average Exercise Price [Roll Forward] | ||
Weighted-Average Exercise Price, Beginning balance | $ 0.37 | $ 0.29 |
Weighted-Average Exercise Price, Options granted | 4.51 | 0.35 |
Weighted-Average Exercise Price, Options exercised - vested | 0.25 | 0.26 |
Weighted-Average Exercise Price, Options exercised - nonvested | 1.11 | 0.19 |
Weighted-Average Exercise Price, Options forfeited | 1.52 | 0.36 |
Weighted-Average Exercise Price, Ending balance | 2.64 | $ 0.37 |
Options expected to vest | 2.64 | |
Weighted-Average Exercise Price, Options vested and exercisable at December 31, 2015 | $ 1.67 | |
Weighted-Average Contractual Term [Roll Forward] | ||
Ending balance | 8 years 9 months 7 days | |
Options expected to vest | 8 years 9 months 7 days | |
Weighted Average Contractual Term, Options vested and exercisable at December 31, 2015 | 8 years 4 months 24 days | |
Aggregate Intrinsic Value [Roll Forward] | ||
Aggregate Intrinsic Value, Ending balance | $ 118,331 | |
Aggregate Intrinsic Value, Options vested and expected to vest as of December 31, 2015 | 102,331 | |
Aggregate Intrinsic Value, Options vested and exercisable at December 31, 2015 | $ 109,395 |
Stock Based Compensation - Ad86
Stock Based Compensation - Additional Information Regarding Common Stock Options Outstanding (Details) - Stock Options Issued and Outstanding [Member] | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
$0.02 - $0.20 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices, Minimum | $ 0.02 |
Range of Exercise Prices, Maximum | $ 0.20 |
Number Outstanding | shares | 12,742,705 |
Weighted Avg. Remaining Life | 8 years 29 days |
Weighted Avg. Exercise Price | $ 0.11 |
Number Exercisable | shares | 12,742,705 |
Weighted Avg. Exercise Price | $ 0.11 |
$0.21 - $1.00 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices, Minimum | 0.21 |
Range of Exercise Prices, Maximum | $ 0.99 |
Number Outstanding | shares | 901,860 |
Weighted Avg. Remaining Life | 5 years 3 months 22 days |
Weighted Avg. Exercise Price | $ 0.33 |
Number Exercisable | shares | 892,410 |
Weighted Avg. Exercise Price | $ 0.33 |
$1.01 - $2.00 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices, Minimum | 1 |
Range of Exercise Prices, Maximum | $ 2 |
Number Outstanding | shares | 4,694,560 |
Weighted Avg. Remaining Life | 8 years 6 months 15 days |
Weighted Avg. Exercise Price | $ 1.13 |
Number Exercisable | shares | 2,856,730 |
Weighted Avg. Exercise Price | $ 1.13 |
$2.01 - $4.00 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices, Minimum | 2.01 |
Range of Exercise Prices, Maximum | $ 4 |
Number Outstanding | shares | 11,530,320 |
Weighted Avg. Remaining Life | 9 years 1 month 17 days |
Weighted Avg. Exercise Price | $ 3.62 |
Number Exercisable | shares | 11,530,320 |
Weighted Avg. Exercise Price | $ 3.62 |
$4.01 - $5.52 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices, Minimum | 4.01 |
Range of Exercise Prices, Maximum | $ 5.52 |
Number Outstanding | shares | 10,556,160 |
Weighted Avg. Remaining Life | 9 years 8 months 23 days |
Weighted Avg. Exercise Price | $ 5.50 |
$0.02 - $5.52 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices, Minimum | 0.02 |
Range of Exercise Prices, Maximum | $ 5.52 |
Number Outstanding | shares | 40,425,605 |
Weighted Avg. Remaining Life | 8 years 9 months 18 days |
Weighted Avg. Exercise Price | $ 2.64 |
Number Exercisable | shares | 28,022,165 |
Weighted Avg. Exercise Price | $ 1.67 |
Stock Based Compensation - Fair
Stock Based Compensation - Fair Value of Stock Option Awards (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair value of stock option awards [Abstract] | ||
Volatility of common stock | 55.69% | 68.28% |
Risk-free interest rate | 1.74% | 1.79% |
Expected life | 6 years | 5 years 8 months 12 days |
Dividend yield | 0.00% | 0.00% |
Stock Based Compensation - Su88
Stock Based Compensation - Summarized Activities for the Company's RSU's (Details) - Restricted Stock Unit (RSUs) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Granted | 2,407,060 |
Vested | (190,517) |
Forfeited | (381,033) |
Restricted stock unit ,Unvested ,Ending Balance | 1,835,510 |
Granted | $ / shares | $ 5.52 |
Vested | $ / shares | 5.52 |
Unvested - December 31, 2015 | $ / shares | $ 5.52 |
Stock Based Compensation - Stoc
Stock Based Compensation - Stock Based Compensation Included in Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock based compensation | $ 13,011 | $ 2,021 |
Origination and Servicing [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock based compensation | 1,231 | 104 |
Sales and Marketing [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock based compensation | 2,561 | 767 |
General and Administrative [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock based compensation | $ 9,219 | $ 1,150 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Components Of Income Tax Expense Benefit Continuing Operations [Abstract] | ||
Federal | $ 0 | |
State | 0 | |
Foreign | $ (5,000) | |
Total Current Income Tax (Benefit) | (5,000) | |
Federal | 320,000 | 0 |
State | 25,000 | $ 0 |
Total Deferred Income Tax | 345,000 | |
Total Income Tax | $ 340,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Line Items] | ||
Current Federal Tax Expense (Benefit) | $ 0 | |
Current State and Local Tax Expense (Benefit) | 0 | |
Deferred Federal Income Tax Expense (Benefit) | $ 320,000 | 0 |
Deferred State and Local Income Tax Expense (Benefit) | $ 25,000 | $ 0 |
Federal tax at statutory rate | 34.00% | 34.00% |
Deferred tax assets valuation, increased amount | $ 16,400,000 | |
Valuation allowance | $ (44,933,000) | $ (28,487,000) |
Valuation allowance percentage change | 58.00% | |
Unrecognized tax benefits that would affect effective tax rate | $ 0 | |
Interest and penalties related to uncertain tax positions | 0 | |
Income tax provision | $ 340,000 | |
Net effective tax rate | (1.00%) | 0.00% |
Prosper Funding LLC [Member] | ||
Income Taxes [Line Items] | ||
Income tax provision | $ 0 | $ 0 |
Net effective tax rate | 0.00% | 0.00% |
Additional Paid-In Capital [Member] | ||
Income Taxes [Line Items] | ||
Net operating loss carryforwards | $ 10,800,000 | |
State [Member] | ||
Income Taxes [Line Items] | ||
Net operating loss carryforwards | $ 161,600,000 | |
Operating loss carryforwards, expiration period | 2,016 | |
Tax period subject to examination | 4 years | |
California [Member] | Enterprise Zone Credit [Member] | ||
Income Taxes [Line Items] | ||
Tax credit carryforwards | $ 1,100,000 | |
Tax credit carryforwards, expiration period | 2,024 | |
California [Member] | Research and development [Member] | ||
Income Taxes [Line Items] | ||
Tax credit carryforwards | $ 450,000 | |
Federal [Member] | ||
Income Taxes [Line Items] | ||
Net operating loss carryforwards | $ 144,400,000 | |
Operating loss carryforwards, expiration period | 2,025 | |
Tax period subject to examination | 3 years | |
Federal [Member] | Research and development [Member] | ||
Income Taxes [Line Items] | ||
Tax credit carryforwards | $ 429,000 | |
Tax credit carryforwards, expiration period | 2,025 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Reconciliation (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Effective income tax rate reconciliation [Abstract] | ||
Federal tax at statutory rate | 34.00% | 34.00% |
State tax at statutory rate (net of federal benefit) | 12.00% | 1.00% |
Change to Uncertain Tax Position | 10.00% | 0.00% |
Permanent Items | (11.00%) | |
Incentive Stock Options | (9.00%) | (9.00%) |
Acquisition Related Costs | (3.00%) | 0.00% |
Change in valuation allowance | (46.00%) | (25.00%) |
Credits and Reserves | 9.00% | |
Other | 1.00% | 1.00% |
Total | (1.00%) | 0.00% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets and liabilities [Abstract] | ||
Net operating loss carry forwards | $ 44,632 | $ 24,756 |
Research & other credits | 502 | 421 |
Settlement liability | 2,466 | 2,964 |
Stock compensation | 3,193 | 344 |
Accrued liabilities | 5,794 | 2,320 |
Other | 126 | 45 |
Deferred tax assets | 56,713 | 30,850 |
Fair value of loans | (1,406) | (1,160) |
Net servicing rights | (5,752) | (1,203) |
Fixed assets | (721) | |
Intangible assets | (4,246) | |
Deferred tax liabilities | (12,125) | (2,363) |
Net deferred tax assets | 44,588 | 28,487 |
Valuation allowance | (44,933) | $ (28,487) |
Net deferred tax liabilities | $ (345) |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Unrecognized tax benefits [Roll Forward] | ||
Beginning balance | $ 4,927 | $ 4,927 |
Decrease related to current year tax position | (4,014) | 0 |
Ending balance | $ 913 | $ 4,927 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($)Installment | Dec. 31, 2014USD ($) | Oct. 16, 2008USD ($) | |
Commitments And Contingencies [Line Items] | ||||
Rental expense under operating lease arrangements | $ 4,100,000 | $ 2,000,000 | ||
Maximum potential future payments | 3,804,000,000 | |||
Accrued repurchase and indemnification obligation | 510,000 | 171,000 | ||
Amount of loans sold to lender members | $ 178,000,000 | |||
Agreed amount of settlement liability payable to plaintiffs | $ 10,000,000 | |||
Number of annual installments paid to plaintiffs | Installment | 4 | |||
Other commitment paid | $ 2,000,000 | 2,000,000 | ||
Settlement installment due in 2016 | 3,000,000 | |||
Settlement installment due in 2017 | 3,000,000 | |||
Class action settlement liability | 5,949,000 | 7,861,000 | ||
Prosper Funding LLC [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Maximum potential future payments | 3,600,000,000 | |||
Accrued repurchase and indemnification obligation | $ 460,000 | $ 171,000 | ||
Scenario, Forecast [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Minimum annual fee | $ 1,400,000 | |||
Purchase of borrower loans | 32,700,000 | |||
Scenario, Forecast [Member] | Prosper Funding LLC [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Minimum annual fee | 1,400,000 | |||
Purchase of borrower loans | $ 32,700,000 | |||
Minimum [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Non cancelable operating lease expiration | 2,022 | |||
Maximum [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Non cancelable operating lease expiration | 2,027 |
Commitments and Contingencies96
Commitments and Contingencies - Future Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Operating Leases Future Minimum Payments Due [Abstract] | |
2,016 | $ 6,352 |
2,017 | 9,408 |
2,018 | 10,199 |
2,019 | 10,556 |
2,020 | 11,065 |
Thereafter | 43,122 |
Total future operating lease obligations | $ 90,702 |
Related Parties - Additional In
Related Parties - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Minimum percentage of voting securities considered for related parties | 10.00% |
Minimum percentage of stock holders considered for related parties | 10.00% |
Related Parties - Aggregate Amo
Related Parties - Aggregate Amount of Notes Purchased and the Income Earned (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | ||
Aggregate amount of notes purchased | $ 1,605 | $ 1,169 |
Interest earned on Notes | 215 | 173 |
Notes balance | 2,237 | 1,690 |
Prosper Funding LLC [Member] | ||
Related Party Transaction [Line Items] | ||
Aggregate amount of notes purchased | 1,361 | 1,127 |
Interest earned on Notes | 206 | 159 |
Notes balance | 1,912 | 1,614 |
Executive Officers & Management [Member] | ||
Related Party Transaction [Line Items] | ||
Aggregate amount of notes purchased | 1,361 | 1,127 |
Interest earned on Notes | 206 | 163 |
Notes balance | 1,912 | 1,614 |
Executive Officers & Management [Member] | Prosper Funding LLC [Member] | ||
Related Party Transaction [Line Items] | ||
Aggregate amount of notes purchased | 1,361 | 1,127 |
Interest earned on Notes | 206 | 159 |
Notes balance | 1,912 | 1,614 |
Directors [Member] | ||
Related Party Transaction [Line Items] | ||
Aggregate amount of notes purchased | 244 | 42 |
Interest earned on Notes | 9 | 10 |
Notes balance | $ 325 | $ 76 |
Postretirement Benefit Plans -
Postretirement Benefit Plans - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation And Retirement Disclosure [Abstract] | ||
Deferred compensation arrangement with eligible employees, percentage | 90.00% | |
Employer contribution during the period | $ 1,900 | $ 660 |
Significant Concentrations (Det
Significant Concentrations (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Significant Concentrations [Line Items] | ||
Percentage of fund from whole loan channel | 95.00% | 89.00% |
Prosper Funding LLC [Member] | ||
Significant Concentrations [Line Items] | ||
Percentage of fund from whole loan channel | 95.00% | 89.00% |
Party 1 [Member] | ||
Significant Concentrations [Line Items] | ||
Percentage of loans purchased | 37.00% | 37.00% |
Party 1 [Member] | Prosper Funding LLC [Member] | ||
Significant Concentrations [Line Items] | ||
Percentage of loans purchased | 37.00% | 37.00% |
Party 2 [Member] | ||
Significant Concentrations [Line Items] | ||
Percentage of loans purchased | 19.00% | 22.00% |
Party 2 [Member] | Prosper Funding LLC [Member] | ||
Significant Concentrations [Line Items] | ||
Percentage of loans purchased | 19.00% | 22.00% |
Party 3 [Member] | ||
Significant Concentrations [Line Items] | ||
Percentage of loans purchased | 11.00% | 13.00% |
Party 3 [Member] | Prosper Funding LLC [Member] | ||
Significant Concentrations [Line Items] | ||
Percentage of loans purchased | 11.00% | 13.00% |
Segments - Additional Informati
Segments - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2015Segment | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 1 |
Subsequent Events (Details)
Subsequent Events (Details) | Feb. 16, 2016$ / sharesshares | Feb. 16, 2016$ / sharesshares | Dec. 31, 2015$ / sharesshares | Dec. 31, 2014$ / sharesshares | May. 15, 2014$ / sharesshares |
Subsequent Event [Line Items] | |||||
Stock split conversion ratio | 1 | ||||
Common and preferred stock, shares authorized (in shares) | 454,989,825 | ||||
Common stock, shares authorized (in shares) | 270,326,075 | 239,644,415 | 270,326,075 | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||
Convertible preferred stock, shares authorized (in shares) | 177,388,425 | 160,775,110 | 184,663,750 | ||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | ||||
Series A 1 [Member] | |||||
Subsequent Event [Line Items] | |||||
Stock split conversion ratio | 1,000,000 | ||||
Common stock, shares authorized (in shares) | 25,585,910 | ||||
Convertible preferred stock, shares authorized (in shares) | 24,760,915 | ||||
Series D Preferred Stock [Member] | |||||
Subsequent Event [Line Items] | |||||
Common stock, shares authorized (in shares) | 23,888,640 | ||||
Convertible preferred stock, shares authorized (in shares) | 23,888,640 | ||||
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Stock split conversion ratio | 5 | 0.2 | |||
Common and preferred stock, shares authorized (in shares) | 464,214,500 | 464,214,500 | |||
Common stock, shares authorized (in shares) | 286,826,075 | 286,826,075 | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |||
Convertible preferred stock, shares authorized (in shares) | 177,388,425 | 177,388,425 | |||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |||
Stock split conversion ratio description | The number of options, restricted stock units and amounts per share reflects a 5-for-1 forward stock split effected by PMI on February 16, 2016. | Each share of Common Stock issued and outstanding immediately prior to the effective date shall be split and converted into five shares of Common Stock; each share of Series A Preferred Stock, Series A-1 Preferred Stock, Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock issued and outstanding immediately prior to the effective date, shall be converted into five shares of Series A Preferred Stock, Series A- Preferred Stock, Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock, respectively. No fractional shares shall be issued in connection with the forward stock split | |||
Subsequent Event [Member] | Series A Preferred Stock [Member] | |||||
Subsequent Event [Line Items] | |||||
Common and preferred stock, shares authorized (in shares) | 68,558,220 | 68,558,220 | |||
Subsequent Event [Member] | Series A 1 [Member] | |||||
Subsequent Event [Line Items] | |||||
Common and preferred stock, shares authorized (in shares) | 24,760,915 | 24,760,915 | |||
Subsequent Event [Member] | Series B Preferred Stock [Member] | |||||
Subsequent Event [Line Items] | |||||
Common and preferred stock, shares authorized (in shares) | 35,775,880 | 35,775,880 | |||
Subsequent Event [Member] | Series C Preferred Stock [Member] | |||||
Subsequent Event [Line Items] | |||||
Common and preferred stock, shares authorized (in shares) | 24,404,770 | 24,404,770 | |||
Subsequent Event [Member] | Series D Preferred Stock [Member] | |||||
Subsequent Event [Line Items] | |||||
Common and preferred stock, shares authorized (in shares) | 23,888,640 | 23,888,640 |