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Mar 31, 2023

Upstart Q1 2023 Earnings Report

Upstart's performance declined due to industry headwinds, but secured long-term funding agreements.

Key Takeaways

Upstart announced its Q1 2023 financial results, revealing a decrease in revenue and a net loss. However, the company secured multiple long-term funding agreements expected to deliver over $2 billion to the platform over the next 12 months.

Total revenue was $103 million, a 67% decrease year-over-year.

Lending partners originated 84,084 loans, totaling $997 million, a 78% decrease year-over-year.

GAAP net loss was $(129) million, a decrease from $32.7 million in Q1 2022.

Contribution profit was $67.6 million, a 54% decrease year-over-year.

Total Revenue
$103M
Previous year: $310M
-66.8%
EPS
-$0.47
Previous year: $0.61
-177.0%
Conversion Rate
8%
Previous year: 21%
-61.9%
Loans Originated
84.08K
Previous year: 465.54K
-81.9%
Gross Profit
$96.5M
Previous year: $263M
-63.3%
Cash and Equivalents
$387M
Previous year: $1.01B
-61.8%
Free Cash Flow
-$76.8M
Previous year: -$268M
-71.4%
Total Assets
$1.82B
Previous year: $1.99B
-8.3%

Upstart

Upstart

Upstart Revenue by Segment

Forward Guidance

For the second quarter of 2023, Upstart expects revenue of approximately $135 million, a contribution margin of approximately 60%, a net loss of approximately $(40) million, adjusted net loss of approximately $(7) million, and adjusted EBITDA of approximately $0 million.

Positive Outlook

  • Revenue of approximately $135 million
  • Revenue From Fees of approximately $130 million
  • Net Interest Income (Loss) of approximately $5 million
  • Contribution Margin of approximately 60%
  • Adjusted EBITDA of approximately $0 million

Challenges Ahead

  • Net Income (Loss) of approximately $(40) million
  • Adjusted Net Income (Loss) of approximately $(7) million
  • Basic Weighted-Average Share Count of approximately 83.1 million shares
  • Diluted Weighted-Average Share Count of approximately 83.1 million shares