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Jun 30, 2022

Upstart Q2 2022 Earnings Report

Upstart's results were disappointing due to a difficult macroeconomic environment, leading to funding constraints.

Key Takeaways

Upstart's Q2 2022 results revealed a total revenue of $228 million, marking an 18% increase from the previous year. However, the company faced a net loss of $29.9 million, a decrease from the $37.3 million net income in Q2 2021. The macroeconomic environment led to funding constraints, impacting the company's performance.

Total revenue was $228 million, up 18% year-over-year.

Bank partners originated 321,138 loans, totaling $3.3 billion, up 12% year-over-year.

GAAP net loss was $(29.9) million, down from $37.3 million in the second quarter of 2021.

Conversion on rate requests was 13%, down from 24% in the same quarter of the prior year.

Total Revenue
$228M
Previous year: $194M
+17.6%
EPS
$0.01
Previous year: $0.62
-98.4%
Conversion rate
13%
Previous year: 24%
-45.8%
Loans originated
321.14K
Gross Profit
$121M
Previous year: $171M
-29.4%
Cash and Equivalents
$790M
Previous year: $618M
+28.0%
Free Cash Flow
-$57.6M
Previous year: $91.1M
-163.2%
Total Assets
$1.92B
Previous year: $905M
+111.9%

Upstart

Upstart

Upstart Revenue by Segment

Forward Guidance

For the third quarter of 2022, Upstart expects revenue of approximately $170 million, a contribution margin of approximately 59%, a net income of approximately ($42) million, an adjusted net income of approximately ($9) million, and an adjusted EBITDA of approximately $0.