Shares of the auto lending platform Open Lending (LPRO 0.14%) traded nearly 10% higher as of 10:55 a.m. EDT after the company reported its earnings results for the second quarter of 2021.
Open Lending reported diluted earnings per share of $0.60 on total revenue of more than $61 million in the second quarter, both numbers that are up significantly from the second quarter of 2020. Both EPS and revenue beat analysts' estimates significantly as well.
Open Lending grew certified loans for its partners by 148% from the second quarter of 2020, which translated into significant growth in program and profit sharing fees.
"We continue to make progress on our growth strategies to capture more of the $250 billion addressable market and help underserved consumers get auto loans," John Flynn, chairman and CEO of the company, said in a statement. "During the quarter, we signed an agreement with a third insurance partner, American National, and they have already begun to write policies for us. Looking ahead, our pipeline of new credit union and regional bank customers is strong and there remains a large opportunity in front of us to grow our OEM captive business."
Open Lending reaffirmed its full-year guidance and still expects certified loans to come in between 161,000 and 206,000, and total revenue to come in between $184 million and $234 million. Considering the auto loan business has been one of the few bright spots among all lending sectors this year, Open Lending is well positioned to take advantage.