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Upstart
🇺🇸 NASDAQ:UPST
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Sep 30, 2023

Upstart Q3 2023 Earnings Report

Upstart's performance reflected a mix of challenges and strategic adjustments. The company focused on maintaining profitability and investing in AI capabilities amidst a decrease in revenue and loan origination volume.

Key Takeaways

Upstart reported a revenue of $135 million, a 14% decrease compared to the third quarter of 2022. The company experienced a net loss of $40.3 million, but improved from a loss of $56.2 million in the same quarter of the previous year. Despite the revenue decline, Upstart achieved adjusted EBITDA positivity for the second consecutive quarter and maintained high contribution margins.

Total revenue was $135 million, a 14% decrease year-over-year.

Lending partners originated 114,464 loans, totaling $1.2 billion, a 34% decrease year-over-year.

GAAP net loss was $(40.3) million, improved from $(56.2) million year-over-year.

Adjusted EBITDA was $2.3 million, up from $(14.4) million year-over-year.

Total Revenue
$135M
Previous year: $157M
-14.4%
EPS
-$0.05
Previous year: -$0.24
-79.2%
Conversion Rate
9.5%
Previous year: 10%
-5.0%
Loans Originated
114.46K
Previous year: 188.52K
-39.3%
Gross Profit
$94.2M
Previous year: $96M
-1.9%
Cash and Equivalents
$615M
Previous year: $684M
-10.1%
Free Cash Flow
-$104M
Previous year: -$103M
+0.7%
Total Assets
$2B
Previous year: $1.92B
+4.5%

Upstart

Upstart

Upstart Revenue by Segment

Forward Guidance

For the fourth quarter of 2023, Upstart expects revenue of approximately $135 million, Revenue From Fees of approximately $150 million, Net Interest Income (Loss) of approximately $(15.0) million, Contribution Margin of approximately 62%, Net Income (Loss) of approximately $(48) million, Adjusted Net Income (Loss) of approximately $(14) million, Adjusted EBITDA of approximately $0 million, Basic Weighted-Average Share Count of approximately 85.6 million shares and Diluted Weighted-Average Share Count of approximately 85.6 million shares

Positive Outlook

  • Revenue From Fees of approximately $150 million
  • Contribution Margin of approximately 62%
  • Adjusted EBITDA of approximately $0 million
  • Basic Weighted-Average Share Count of approximately 85.6 million shares
  • Diluted Weighted-Average Share Count of approximately 85.6 million shares

Challenges Ahead

  • Revenue of approximately $135 million
  • Net Interest Income (Loss) of approximately $(15.0) million
  • Net Income (Loss) of approximately $(48) million
  • Adjusted Net Income (Loss) of approximately $(14) 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

Company Overview

Full financial data and analysis

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