What happened

Shares of LexinFintech Holdings (NASDAQ:LX) are soaring today, up by more than 22% as of 10:30 a.m. EDT, after the China-based consumer finance company reported its quarterly earnings.

So what

LexinFintech beat analysts' expectations and continues to grow at an impressive rate. Second-quarter revenue of $269.5 million handily beat the $252.4 million figure analysts had been looking for.

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Image source: Getty Images.

The company is growing at a breathtaking rate. During the quarter, LexinFintech originated 16.6 billion yuan in loans (about $2.5 billion in U.S. dollars), 68% more than it did in the same quarter last year. In terms of outstanding principal owed by its borrowers, the company's loan portfolio almost doubled to 24.7 billion yuan ($3.73 billion).

During the second quarter, LexinFintech had 2.7 million active customers, a 28.8% year-over-year increase.

Now what

LexinFintech is becoming a highly profitable business. The average effective APR of loans on its platform is a remarkably high 25.7% and only 1.39% of its loans were more than 90 days delinquent at the end of the quarter. In fact, the company's adjusted net income grew nearly eightfold over the same quarter a year ago.

Despite the tremendous growth, LexinFintech could still have much more room to expand, as it's still relatively small in the context of China's massive addressable market. And with innovative loan products and a traditionally underserved market, it seems investors just became a bit more confident that LexinFintech could still be in the early stages of its growth story.

Matthew Frankel, CFP® has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.