Upstart Shares Surge 18% on Strong Guidance, Q2 Results

Mark Eisenberg
Photo: Finoracle.net

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.

Share This Article
Mark Eisenberg is a financial analyst and writer with over 15 years of experience in the finance industry. A graduate of the Wharton School of the University of Pennsylvania, Mark specializes in investment strategies, market analysis, and personal finance. His work has been featured in prominent publications like The Wall Street Journal, Bloomberg, and Forbes. Mark’s articles are known for their in-depth research, clear presentation, and actionable insights, making them highly valuable to readers seeking reliable financial advice. He stays updated on the latest trends and developments in the financial sector, regularly attending industry conferences and seminars. With a reputation for expertise, authoritativeness, and trustworthiness, Mark Eisenberg continues to contribute high-quality content that helps individuals and businesses make informed financial decisions.​⬤