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Jun 30, 2023
Upstart Q2 2023 Earnings Report
Upstart's Q2 2023 performance reflected resilience amidst a challenging economic environment, marked by improved efficiency and positive cash flow.
Key Takeaways
Upstart announced its Q2 2023 financial results, reporting a total revenue of $136 million, a decrease of 40% year-over-year. Despite the challenging economic environment, the company achieved record-high contribution margin and positive cash flow. Lending partners originated 109,447 loans totaling $1.2 billion across the platform, a decrease of 64% from the same quarter of the prior year.
Total revenue was $136 million, a 40% decrease year-over-year.
Lending partners originated 109,447 loans, totaling $1.2 billion, a 64% decrease year-over-year.
GAAP net loss was $(28.2) million, an improvement from $(29.9) million in the same quarter of the prior year.
Adjusted EBITDA was $11.0 million, an increase from $5.5 million in the same quarter of the prior year.
Upstart
Upstart
Upstart Revenue by Segment
Revenue by Segment
Servicing and Other Fees, Net Revenue
CapyFin.com Forward Guidance
For the third quarter of 2023, Upstart expects revenue of approximately $140 million, a contribution margin of approximately 65%, and a net loss of approximately $(38) million.
Positive Outlook
- Revenue of approximately $140 million
- Revenue From Fees of approximately $150 million
- Contribution Margin of approximately 65%
- Adjusted EBITDA of approximately $5 million
- Basic Weighted-Average Share Count of approximately 84.5 million shares
Challenges Ahead
- Net Interest Income (Loss) of approximately $(10) million
- Net Income (Loss) of approximately $(38) million
- Adjusted Net Income (Loss) of approximately $(2) 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.