Upstart Q2 2024 Earnings Report
Key Takeaways
Upstart reported a decrease in revenue to $128 million, a GAAP net loss of $54.5 million, and a diluted EPS of $(0.62) for Q2 2024. However, the company saw improvements in its AI model, funding supply, and operating efficiency.
Total revenue was $128 million, a 6% decrease year-over-year.
143,900 loans were originated, totaling $1.1 billion, a 6% decrease year-over-year.
Conversion rate on rate requests was 15%, up from 9% year-over-year.
GAAP net loss was $54.5 million, down from $28.2 million year-over-year.
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Upstart Revenue by Segment
Forward Guidance
For the third quarter of 2024, Upstart expects revenue of approximately $150 million, a contribution margin of approximately 57%, a net loss of approximately $(49) million, and an adjusted EBITDA of approximately $(5) million. For the second half of 2024, Upstart expects revenue from fees of approximately $320 million, and positive EBITDA in the fourth quarter.
Positive Outlook
- Revenue of approximately $150 million
- Revenue From Fees of approximately $155 million
- Contribution Margin of approximately 57%
- Basic Weighted-Average Share Count of approximately 90.0 million shares
- Diluted Weighted-Average Share Count of approximately 90.0 million shares
Challenges Ahead
- Net Interest Income (Loss) of approximately $(5) million
- Net Income (Loss) of approximately $(49) million
- Adjusted Net Income (Loss) of approximately $(14) million
- Adjusted EBITDA of approximately $(5) 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.