- Upstart forecasts its 1Q revenue at approximately $200 million, surpassing the estimate of $178.5 million.
- The company expects adjusted EBITDA of around $27 million, significantly higher than the estimated $7.17 million.
- Adjusted net income for 1Q is projected to be about $16 million.
- For the year, Upstart forecasts revenue around $1 billion, beating the estimate of $816.8 million.
- In the fourth quarter, Upstart’s revenue reached $219.0 million, marking a 56% increase year-over-year, and surpassing the estimate of $181.8 million.
- Adjusted earnings per share (EPS) was 29 cents, in contrast to a loss of 11 cents per share in the previous year, outperforming the estimated loss of 3.4 cents per share.
- The contribution profit for the fourth quarter was $121.9 million, a 28% year-over-year rise, against an estimate of $111.5 million.
- Adjusted EBITDA was $38.8 million, a considerable improvement from $0.62 million the previous year, and well above the estimated $6.16 million.
- The adjusted EBITDA margin reached 18%, compared to 0% the previous year, exceeding the estimated 3.34%.
- Upstart shares rose by 17% following the positive 1Q projections.
- CEO Dave Girouard noted significant growth in all product categories, nearly returning to GAAP profitability, and achieving adjusted EBITDA levels not seen since early 2022.
- Analyst recommendations are divided with 6 buys, 7 holds, and 5 sells.
Upstart Holdings on Smartkarma
Analysts from Baptista Research are providing positive coverage on Upstart Holdings Inc. on Smartkarma, an independent investment research network. In the report titled “Upstart Holdings Inc. Breaks Barriers with High-Tech Automation for Explosive Efficiency Gains! – Major Drivers,” the analysts highlight Upstart’s third-quarter financial results for 2024. The company showcased significant developments in fintech innovation using artificial intelligence, with 43% sequential growth in lending volume and a return to positive adjusted EBITDA ahead of schedule.
In another report by Baptista Research, titled “Upstart Holdings Inc.: Leveraging Co-investment Partnerships To Drive AI Investments! – Major Drivers,” the analysts discuss Upstart’s second-quarter 2024 financial results. Despite challenging macroeconomic conditions, CEO Dave Girouard and the company have demonstrated confidence in returning to sequential growth and EBITDA profitability. This optimism is attributed to internal developments, such as AI model enhancements, funding strategies, and operational efficiency improvements.
A look at Upstart Holdings Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 2 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 2.6 |
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
Based on Smartkarma Smart Scores, Upstart Holdings shows promising long-term potential. With a high Momentum score of 5, the company demonstrates strong market performance and future growth opportunities. Additionally, its above-average Resilience score indicates the company’s ability to weather economic uncertainties and challenges. While Upstart Holdings scores moderately in the areas of Value and Growth, its overall score suggests a positive outlook for the company’s future trajectory.
Upstart Holdings, Inc. operates as a holding company focused on providing cloud-based artificial intelligence (AI) lending services. Through its AI lending platform, the company aims to enhance credit accessibility while simultaneously reducing risks and costs associated with lending for its bank partners. With a strategic focus on technology-driven solutions, Upstart Holdings is well-positioned to capitalize on the evolving landscape of financial services and drive sustainable growth in the long term.
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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