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"Upstart Announces Second Quarter 2023 Results
August 8, 2023 at 4:05 PM EDT
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SAN MATEO, Calif.--(BUSINESS WIRE)--Aug. 8, 2023-- Upstart Holdings, Inc. (NASDAQ: UPST), the leading artificial intelligence (AI) lending marketplace, today announced financial results for its second quarter of fiscal year 2023 ended June 30, 2023. Upstart will host a conference call and webcast at 1:30 p.m. Pacific Time today. An earnings presentation and link to the webcast are available at ir.upstart.com.
"As a result of our efforts over the past year to improve efficiency and operating leverage in our business, we achieved record-high contribution margin and positive cash flow in Q2," said Dave Girouard, co-founder and CEO of Upstart. "While the economic environment continues to be challenging, Upstart has the opportunity to grow quickly and profitably when we return to a normalized economy. We’re in the pole position to lead the industry to an AI-enabled future that dramatically improves access to credit for hundreds of millions of Americans."
Second Quarter 2023 Financial Highlights
Revenue. Total revenue was $136 million, a decrease of 40% from the second quarter of 2022. Total fee revenue was $144 million, a decrease of 44% year-over-year.
Transaction Volume and Conversion Rate. Lending partners originated 109,447 loans, totaling $1.2 billion across our platform in the second quarter of 2023, down 64% from the same quarter of the prior year. Conversion on rate requests was 9% in the second quarter of 2023, down from 13% in the same quarter of the prior year.
Income (Loss) from Operations. Income (loss) from operations was ($33.3) million, down from ($32.1) million in the same quarter of the prior year.
Net Income (Loss) and EPS. GAAP net income (loss) was ($28.2) million, up from ($29.9) million in the second quarter of the prior year. Adjusted net income (loss) was $5.4 million, up from $1.0 million in the same quarter of the prior year. Accordingly, GAAP diluted earnings per share was ($0.34), and diluted adjusted earnings per share was $0.06 based on the weighted-average common shares outstanding during the quarter.
Contribution Profit. Contribution profit was $95.9 million in the second quarter of 2023, down 21% year-over-year, with a contribution margin of 67% compared to a 47% contribution margin in the same quarter of the prior year.
Adjusted EBITDA. Adjusted EBITDA was $11.0 million, up from $5.5 million in the same quarter of the prior year. The second quarter 2023 adjusted EBITDA margin was 8% of total revenue, up from 2% in the same quarter of the prior year.
Financial Outlook
For the third quarter of 2023, Upstart expects:
Revenue of approximately $140 million
Revenue From Fees of approximately $150 million
Net Interest Income (Loss) of approximately ($10) million
Contribution Margin of approximately 65%
Net Income (Loss) of approximately ($38) million
Adjusted Net Income (Loss) of approximately ($2) million
Adjusted EBITDA of approximately $5 million
Basic Weighted-Average Share Count of approximately 84.5 million shares
Diluted Weighted-Average Share Count of approximately 84.5 million shares
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. Accordingly, a reconciliation is not available without unreasonable effort.
Key Operating Metrics and Non-GAAP Financial Measures
For a description of our key operating measures, please see the section titled “Key Operating Metrics” below.
Reconciliations of non-GAAP financial measures to the most directly comparable financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see the section titled "About Non-GAAP Financial Measures” below..."
ir.upstart.com/news-releases/...s-second-quarter-2023-results
August 8, 2023 at 4:05 PM EDT
PDF Version
SAN MATEO, Calif.--(BUSINESS WIRE)--Aug. 8, 2023-- Upstart Holdings, Inc. (NASDAQ: UPST), the leading artificial intelligence (AI) lending marketplace, today announced financial results for its second quarter of fiscal year 2023 ended June 30, 2023. Upstart will host a conference call and webcast at 1:30 p.m. Pacific Time today. An earnings presentation and link to the webcast are available at ir.upstart.com.
"As a result of our efforts over the past year to improve efficiency and operating leverage in our business, we achieved record-high contribution margin and positive cash flow in Q2," said Dave Girouard, co-founder and CEO of Upstart. "While the economic environment continues to be challenging, Upstart has the opportunity to grow quickly and profitably when we return to a normalized economy. We’re in the pole position to lead the industry to an AI-enabled future that dramatically improves access to credit for hundreds of millions of Americans."
Second Quarter 2023 Financial Highlights
Revenue. Total revenue was $136 million, a decrease of 40% from the second quarter of 2022. Total fee revenue was $144 million, a decrease of 44% year-over-year.
Transaction Volume and Conversion Rate. Lending partners originated 109,447 loans, totaling $1.2 billion across our platform in the second quarter of 2023, down 64% from the same quarter of the prior year. Conversion on rate requests was 9% in the second quarter of 2023, down from 13% in the same quarter of the prior year.
Income (Loss) from Operations. Income (loss) from operations was ($33.3) million, down from ($32.1) million in the same quarter of the prior year.
Net Income (Loss) and EPS. GAAP net income (loss) was ($28.2) million, up from ($29.9) million in the second quarter of the prior year. Adjusted net income (loss) was $5.4 million, up from $1.0 million in the same quarter of the prior year. Accordingly, GAAP diluted earnings per share was ($0.34), and diluted adjusted earnings per share was $0.06 based on the weighted-average common shares outstanding during the quarter.
Contribution Profit. Contribution profit was $95.9 million in the second quarter of 2023, down 21% year-over-year, with a contribution margin of 67% compared to a 47% contribution margin in the same quarter of the prior year.
Adjusted EBITDA. Adjusted EBITDA was $11.0 million, up from $5.5 million in the same quarter of the prior year. The second quarter 2023 adjusted EBITDA margin was 8% of total revenue, up from 2% in the same quarter of the prior year.
Financial Outlook
For the third quarter of 2023, Upstart expects:
Revenue of approximately $140 million
Revenue From Fees of approximately $150 million
Net Interest Income (Loss) of approximately ($10) million
Contribution Margin of approximately 65%
Net Income (Loss) of approximately ($38) million
Adjusted Net Income (Loss) of approximately ($2) million
Adjusted EBITDA of approximately $5 million
Basic Weighted-Average Share Count of approximately 84.5 million shares
Diluted Weighted-Average Share Count of approximately 84.5 million shares
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. Accordingly, a reconciliation is not available without unreasonable effort.
Key Operating Metrics and Non-GAAP Financial Measures
For a description of our key operating measures, please see the section titled “Key Operating Metrics” below.
Reconciliations of non-GAAP financial measures to the most directly comparable financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see the section titled "About Non-GAAP Financial Measures” below..."
ir.upstart.com/news-releases/...s-second-quarter-2023-results
