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Mar 31, 2024

Upstart Q1 2024 Earnings Report

Upstart's financial performance showed improvement in efficiency and strategic investments for long-term growth.

Key Takeaways

Upstart reported a 24% increase in total revenue year-over-year, reaching $128 million. The company saw improvements in net loss, adjusted EBITDA, and contribution profit. They are focused on efficiency and anticipate sequential growth in the second half of the year and positive EBITDA by the end of the year.

Total revenue increased by 24% year-over-year to $128 million.

Transaction volume increased by 13% year-over-year with 119,380 loans originated, totaling $1.1 billion.

GAAP net loss improved to $(64.6) million, up from $(129.3) million in the same quarter of the prior year.

Conversion rate on rate requests increased to 14%, up from 8% in the same quarter of the prior year.

Total Revenue
$128M
Previous year: $103M
+24.2%
EPS
-$0.31
Previous year: -$0.47
-34.0%
Conversion Rate
14%
Previous year: 8%
+75.0%
Loans Originated
119.38K
Previous year: 84.08K
+42.0%
Gross Profit
$122M
Previous year: $96.5M
+26.6%
Cash and Equivalents
$301M
Previous year: $387M
-22.3%
Free Cash Flow
$51.9M
Previous year: -$76.8M
-167.6%
Total Assets
$1.93B
Previous year: $1.82B
+5.8%

Upstart

Upstart

Upstart Revenue by Segment

Forward Guidance

For the second quarter of 2024, Upstart expects revenue of approximately $125 million, revenue from fees of approximately $135 million, net interest income (loss) of approximately $(10) million, contribution margin of approximately 56%, net income (loss) of approximately $(75) million, adjusted net income (loss) of approximately $(36) million, adjusted EBITDA of approximately $(25) million.

Positive Outlook

  • Revenue of approximately $125 million
  • Revenue From Fees of approximately $135 million
  • Contribution Margin of approximately 56%
  • Net Income (Loss) of approximately $(75) million
  • Adjusted Net Income (Loss) of approximately $(36) million

Challenges Ahead

  • Net Interest Income (Loss) of approximately $(10) million
  • Adjusted EBITDA of approximately $(25) million
  • Upstart has not reconciled the forward-looking non-GAAP measures above to comparable forward-looking GAAP measures because of the potential variability and uncertainty of incurring these costs and expenses in the future.
  • Accordingly, a reconciliation is not available without unreasonable effort.
  • All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that we expected.