UpStart Holdings Inc (UPST)

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Upstart Announces First Quarter 2023 Results

https://www.businesswire.com/news/home/20230509006181/en/Upstart-Announces-First-Quarter-2023-Results


May 09, 2023 04:05 PM Eastern Daylight Time
SAN MATEO, Calif.--(BUSINESS WIRE)--Upstart Holdings, Inc. (NASDAQ: UPST), a leading artificial intelligence (AI) lending marketplace, today announced financial results for its first quarter of fiscal year 2023 ended March 31, 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.

“I’m pleased with the progress we made in Q1 against the objectives I set out last quarter,” said Dave Girouard, co-founder and CEO of Upstart. “Despite the headwinds facing our industry, we secured multiple long-term funding agreements, together expected to deliver more than $2 billion to the Upstart platform over the next 12 months.”

First Quarter 2023 Financial Highlights

Revenue. Total revenue was $103 million, a decrease of 67% from the first quarter of 2022. Total fee revenue was $117 million, a decrease of 63% year-over-year.
Transaction Volume and Conversion Rate. Lending partners originated 84,084 loans, totaling $997 million across our platform in the first quarter of 2023, down 78% from the same quarter of the prior year. Conversion on rate requests was 8% in the first quarter of 2023, down from 21% in the same quarter of the prior year.
Income (Loss) from Operations. Income (loss) from operations was ($132) million, down from $34.8 million in the same quarter of the prior year.
Net Income (Loss) and EPS. GAAP net income (loss) was ($129) million, down from $32.7 million in the first quarter of 2022. Adjusted net income (loss) was ($38.7) million, down from $58.6 million in the same quarter of the prior year. Accordingly, GAAP diluted earnings per share was ($1.58), and diluted adjusted earnings per share was ($0.47) based on the weighted-average common shares outstanding during the quarter.
Contribution Profit. Contribution profit was $67.6 million in the first quarter of 2023, down 54% year-over-year, with a contribution margin of 58% compared to a 47% contribution margin in the same quarter of the prior year.
Adjusted EBITDA. Adjusted EBITDA was ($31.1) million, down from $62.6 million in the same quarter of the prior year. The first quarter 2023 adjusted EBITDA margin was (30%) of total revenue, down from 20% in the same quarter of 2022.
Financial Outlook

For the second quarter of 2023, Upstart expects:

Revenue of approximately $135 million
Revenue From Fees of approximately $130 million
Net Interest Income (Loss) of approximately $5 million
Contribution Margin of approximately 60%
Net Income (Loss) of approximately ($40) million
Adjusted Net Income (Loss) of approximately ($7) million
Adjusted EBITDA of approximately $0 million
Basic Weighted-Average Share Count of approximately 83.1 million shares
Diluted Weighted-Average Share Count of approximately 83.1 million shares