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Mar 31, 2021

Upstart Q1 2021 Earnings Report

Upstart reported a combination of growth and profits, driven by the advantages of AI in lending.

Key Takeaways

Upstart announced strong first quarter 2021 financial results, with total revenue of $121 million, a 90% increase from the first quarter of 2020. The company's AI lending platform facilitated 169,750 loans totaling $1.73 billion. GAAP net income was $10.1 million, and adjusted EBITDA was $21.0 million.

Total revenue was $121 million, up 90% year-over-year.

Bank partners originated 169,750 loans, totaling $1.73 billion, an increase of 102% year-over-year.

GAAP net income was $10.1 million, compared to $1.5 million in the same quarter of the prior year.

Adjusted EBITDA was $21.0 million, up 472% year-over-year.

Total Revenue
$121M
Previous year: $67.2M
+80.4%
EPS
$0.22
Previous year: $0.101
+118.7%
Conversion Rate
22%
Previous year: 14%
+57.1%
Loans Originated
169.75K
0
Gross Profit
$105M
Previous year: $58.4M
+79.7%
Cash and Equivalents
$257M
Free Cash Flow
$42.8M
Total Assets
$489M

Upstart

Upstart

Upstart Revenue by Segment

Forward Guidance

For the second quarter of 2021, Upstart expects revenue of $150 to $160 million, contribution margin of approximately 44%, net income of $8 to $12 million, adjusted net income of $21 to $25 million, and adjusted EBITDA of $23 to $27 million. For the 2021 fiscal year, Upstart now expects revenue of approximately $600 million and contribution margin of approximately 42%, and continues to expect adjusted EBITDA margin of approximately 10%.

Positive Outlook

  • Revenue of $150 to $160 million for Q2 2021
  • Contribution Margin of approximately 44% for Q2 2021
  • Net Income of $8 to $12 million for Q2 2021
  • Adjusted Net Income of $21 to $25 million for Q2 2021
  • Adjusted EBITDA of $23 to $27 million for Q2 2021