Shares of Upstart Holdings (NASDAQ:UPST) fell in after-hours trading after the company reported earnings for its fourth quarter of Fiscal Year 2022. Earnings per share came in at -$0.25, which beat analysts’ consensus estimate of -$0.47 per share. Sales decreased by 51.8% year-over-year, with revenue hitting $146.91 million. This beat analysts’ expectations of $132.73 million.
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Overall, Upstart Holdings partners started up 154,478 loans for the quarter, which represented around $1.5 billion in lending activity. That’s down 62% against the same time last year. Conversion on rate requests, meanwhile, was 11% for 2022’s fourth quarter, which was down nearly half from the 24% seen in 2021’s fourth quarter. In a positive note, however, Upstart bought back 1.4 million shares of its own stock, valued at around $28 million total.
Looking forward, management now expects revenue for Q1 2023 to be approximately $100 million. For reference, analysts were expecting $156.1 million.
Overall, Wall Street has a consensus price target of $15.56 on Upstart Holdings, implying 7.66% downside risk, as indicated by the graphic above.