- Upstart’s first-quarter revenue reached $213.4 million, marking a 67% increase year-over-year, surpassing the estimated $203.4 million.
- Contribution profit amounted to $102.4 million, up by 26% compared to the previous year, though slightly below the expected $110.6 million.
- Adjusted EBITDA notably improved to $42.6 million, a significant recovery from a loss of $20.3 million in the same quarter last year, and exceeded the estimate of $26.1 million.
- The adjusted EBITDA margin increased to 20%, a substantial improvement from the previous year’s -16%, and beat the forecasted 12.7%.
- Despite positive financial results, Upstart’s shares dropped by 6.6% in post-market trading, closing at $48.00, with 9,116 shares traded.
- Current analyst ratings include 6 buy, 8 hold, and 3 sell recommendations.
Upstart Holdings on Smartkarma
Analysts on Smartkarma are bullish on Upstart Holdings Inc., with Baptista Research providing positive coverage of the company’s recent performance. In their report titled “Upstart Holdings Inc.: Expansion into New Loan Products & Markets As A Crucial Factor In Stock Trajectory!”, Upstart displayed strong financial results for the fourth quarter and full-year 2024, showing significant progress in operations. The company experienced a notable increase in origination volume and revenue, with a 33% sequential growth in originations and a 35% revenue increase.
Another report by Baptista Research, titled “Upstart Holdings Inc. Breaks Barriers with High-Tech Automation for Explosive Efficiency Gains! – Major Drivers”, highlighted Upstart’s use of artificial intelligence in fintech innovation. In the third quarter of 2024, Upstart achieved significant growth momentum, with a 43% sequential growth in lending volume and a return to positive adjusted EBITDA ahead of schedule. Analysts see these developments as major drivers for Upstart’s success in the market.
A look at Upstart Holdings Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 2 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Upstart Holdings is a company with a mix of Smart Scores across various factors. The company scores highest in Momentum, suggesting that it may be attracting positive attention in the market. While its Value, Growth, and Resilience scores are moderate, its Dividend score is the lowest. Upstart Holdings operates as a holding company, offering a cloud-based AI lending platform to enhance credit accessibility and lower risks for its bank partners. Despite some mixed scores, the company’s strong momentum indicates potential growth opportunities in the future.
Based on the Smartkarma Smart Scores, Upstart Holdings appears to have a promising outlook with strong potential for growth indicated by its Momentum score. While Value, Growth, and Resilience scores are moderate, the company’s Dividend score is the lowest. This suggests that investors interested in long-term growth prospects may find Upstart Holdings an intriguing option to consider due to its innovative cloud-based AI lending platform aimed at improving credit access and reducing lending risks for its bank partners.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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