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Business Segment Information (Tables) | 3 Months Ended
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Mar. 31, 2023
Segment Reporting [Abstract] |
Schedule of Reportable Segments | The following tables present financial information, including the measure of contribution profit (loss), for each reportable segment:
|  | Lending |  | Technology Platform(1) |  | Financial Services(1) |  | Reportable Segments Total |  | Corporate/Other(1) |  | Total
Three Months Ended March 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |
Net revenue |  |  |  |  |  |  |  |  |  |  |  |
Net interest income (expense) |  | $ | 201,047 |  |  | $ | — |  |  | $ | 58,037 |  |  | $ | 259,084 |  |  | $ | (23,074) |  |  | $ | 236,010 |
Noninterest income (expense)(2) |  | 136,034 |  |  | 77,887 |  |  | 23,064 |  |  | 236,985 |  |  | (837) |  |  | 236,148 |
Total net revenue (loss) |  | 337,081 |  |  | 77,887 |  |  | 81,101 |  |  | 496,069 |  |  | (23,911) |  |  | 472,158 |
Servicing rights – change in valuation inputs or assumptions(3) |  | (12,084) |  |  | — |  |  | — |  |  | (12,084) |  |  |  |  |
Residual interests classified as debt – change in valuation inputs or assumptions(4) |  | 89 |  |  | — |  |  | — |  |  | 89 |  |  |  |  |
Directly attributable expenses |  | (115,188) |  |  | (63,030) |  |  | (105,336) |  |  | (283,554) |  |  |  |  |
Contribution profit (loss) |  | $ | 209,898 |  |  | $ | 14,857 |  |  | $ | (24,235) |  |  | $ | 200,520 |  |  |  |  |
Three Months Ended March 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |
Net revenue |  |  |  |  |  |  |  |  |  |  |  |
Net interest income (expense) |  | $ | 94,354 |  |  | $ | — |  |  | $ | 5,882 |  |  | $ | 100,236 |  |  | $ | (5,303) |  |  | $ | 94,933 |
Noninterest income (expense)(2) |  | 158,635 |  |  | 60,805 |  |  | 17,661 |  |  | 237,101 |  |  | (1,690) |  |  | 235,411 |
Total net revenue (loss) |  | $ | 252,989 |  |  | $ | 60,805 |  |  | $ | 23,543 |  |  | $ | 337,337 |  |  | $ | (6,993) |  |  | $ | 330,344 |
Servicing rights – change in valuation inputs or assumptions(3) |  | (11,580) |  |  | — |  |  | — |  |  | (11,580) |  |  |  |  |
Residual interests classified as debt – change in valuation inputs or assumptions(4) |  | 2,963 |  |  | — |  |  | — |  |  | 2,963 |  |  |  |  |
Directly attributable expenses |  | (111,721) |  |  | (42,550) |  |  | (73,058) |  |  | (227,329) |  |  |  |  |
Contribution profit (loss) |  | $ | 132,651 |  |  | $ | 18,255 |  |  | $ | (49,515) |  |  | $ | 101,391 |  |  |  |  |
____________________ (1)Within the Technology Platform segment, intercompany fees were $3,741 and $770 for the three months ended March 31, 2023 and 2022, respectively. The equal and offsetting intercompany expenses are reflected within the Financial Services and Technology Platform segment directly attributable expenses. The intercompany revenues and expenses are eliminated in consolidation. The revenues are eliminated within Corporate/Other and the expenses are adjusted in our reconciliation of directly attributable expenses below. (2)Refer to Note 3. Revenue for a reconciliation of revenue from contracts with customers to total noninterest income (expense). (3)Reflects changes in fair value inputs and assumptions, including market servicing costs, conditional prepayment, default rates and discount rates. This non-cash change, which is recorded within noninterest income in the condensed consolidated statements of operations and comprehensive income (loss), is unrealized during the period and, therefore, has no impact on our cash flows from operations. As such, the changes in fair value attributable to assumption changes are adjusted to provide management and financial users with better visibility into the cash flows available to finance our operations. (4)Reflects changes in fair value inputs and assumptions, including conditional prepayment, default rates and discount rates. When third parties finance our consolidated VIEs through purchasing residual interests, we receive proceeds at the time of the securitization close and, thereafter, pass along contractual cash flows to the residual interest owner. These obligations are measured at fair value on a recurring basis, with fair value changes recorded within noninterest income in the condensed consolidated statements of operations and comprehensive income (loss). The fair value change attributable to assumption changes has no impact on our initial financing proceeds, our future obligations to the residual interest owner (because future residual interest claims are limited to securitization collateral cash flows), or the general operations of our business. As such, this non-cash change in fair value during the period is adjusted to provide management and financial users with better visibility into the cash flows available to finance our operations. No single customer accounted for more than 10% of our consolidated revenues for the periods presented. The following table reconciles reportable segments total contribution profit to loss before income taxes. Expenses not allocated to reportable segments represent items that are not considered by our CODM in evaluating segment performance or allocating resources.
|  |  | Three Months Ended March 31,
|  |  |  |  | 2023 |  | 2022
Reportable segments total contribution profit |  |  |  |  | $ | 200,520 |  |  | $ | 101,391 |
Corporate/Other total net loss |  |  |  |  | (23,911) |  |  | (6,993) |
Intercompany expenses |  |  |  |  | 3,741 |  |  | 770 |
Servicing rights – change in valuation inputs or assumptions |  |  |  |  | 12,084 |  |  | 11,580 |
Residual interests classified as debt – change in valuation inputs or assumptions |  |  |  |  | (89) |  |  | (2,963) |
Expenses not allocated to segments: |  |  |  |  |  |  |
Share-based compensation expense |  |  |  |  | (64,226) |  |  | (77,021) |
Employee-related costs(1) |  |  |  |  | (61,814) |  |  | (42,690) |
Depreciation and amortization expense |  |  |  |  | (45,321) |  |  | (30,698) |
Other corporate and unallocated expenses(2) |  |  |  |  | (57,043) |  |  | (62,981) |
Loss before income taxes |  |  |  |  | $ | (36,059) |  |  | $ | (109,605) |
__________________ (1)Includes compensation, benefits, restructuring charges, recruiting, certain occupancy-related costs and various travel costs of executive management, certain technology groups and general and administrative functions that are not directly attributable to the reportable segments. (2)Represents corporate overhead costs that are not allocated to reportable segments, which primarily includes corporate marketing and advertising costs, tools and subscription costs, professional services costs, corporate and FDIC insurance costs and transaction-related expenses.

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- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8813-108599 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599 + Details
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