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Dec 31, 2023

Upstart Q4 2023 Earnings Report

Upstart's Q4 2023 financial performance reflected resilience amidst a challenging lending environment, with increased efficiency and groundwork laid for diversification.

Key Takeaways

Upstart's Q4 2023 total revenue reached $140 million, a 4% decrease year-over-year but a 4% increase sequentially. The company originated 129,664 loans totaling $1.3 billion. GAAP net loss was $(42.4) million, while adjusted EBITDA was $0.6 million.

Total revenue was $140 million, down 4% year-over-year.

129,664 loans were originated, totaling $1.3 billion, a 19% decrease year-over-year.

GAAP net loss was $(42.4) million, an improvement from $(55.3) million in the prior year.

Adjusted EBITDA was $0.6 million, up from $(16.6) million year-over-year.

Total Revenue
$140M
Previous year: $147M
-4.5%
EPS
-$0.11
Previous year: -$0.25
-56.0%
Conversion Rate
11.6%
Previous year: 11%
+5.5%
Loans Originated
129.66K
Previous year: 154.48K
-16.1%
Gross Profit
$131M
Previous year: $82M
+60.1%
Cash and Equivalents
$468M
Previous year: $422M
+10.7%
Free Cash Flow
-$144M
Previous year: -$255M
-43.5%
Total Assets
$2.02B
Previous year: $1.94B
+4.2%

Upstart

Upstart

Upstart Revenue by Segment

Forward Guidance

For the first quarter of 2024, Upstart expects revenue of approximately $125 million, a contribution margin of approximately 61%, a net loss of approximately $(75) million, an adjusted net loss of approximately $(33) million, and adjusted EBITDA of approximately $(25) million.

Positive Outlook

  • Revenue of approximately $125 million
  • Revenue From Fees of approximately $133 million
  • Contribution Margin of approximately 61%
  • Basic Weighted-Average Share Count of approximately 87.0 million shares
  • Diluted Weighted-Average Share Count of approximately 87.0 million shares

Challenges Ahead

  • Net Interest Income (Loss) of approximately $(8) million
  • Net Income (Loss) of approximately $(75) million
  • Adjusted Net Income (Loss) of approximately $(33) million
  • Adjusted EBITDA of approximately $(25) million