Upstart Shares Surge 18% on Strong Guidance, Q2 Results
SAN MATEO, Calif. – Upstart Holdings, Inc. saw its shares soar 18% in after-hours trading Tuesday after the AI lending platform reported better-than-expected second quarter results and provided strong guidance.
The company posted an adjusted loss of $0.17 per share for Q2, beating analyst estimates of a $0.34 loss. Revenue came in at $128 million, slightly below the consensus of $131.32 million but up from $127.6 million in Q1.
Upstart's outlook was the key driver of the stock's jump. The company forecast Q3 revenue of $150 million, well above Wall Street's expectation of $135.3 million. For the second half of 2024, Upstart expects revenue from fees of approximately $320 million and positive EBITDA in Q4.
"The guidance we released today demonstrates that we're on track toward resuming our role as the fintech known for high growth and healthy margins," said CEO Dave Girouard.
The company originated 143,900 loans totaling $1.1 billion across its platform in Q2, down 6% YoY. However, conversion on rate requests improved to 15% from 9% a year ago.
Upstart's strong guidance and improving metrics suggest its AI-powered lending model is gaining traction despite a challenging economic environment. The company appears poised for accelerating growth in the second half of 2024.
