Upstart's earnings call revealed strong growth in lending volume and a return to positive adjusted EBITDA, highlighting their improved financial performance. However, challenges persist with negative net interest income and increased operating expenses.

Company Guidance

During the Upstart Q3 2024 earnings call, the company provided guidance for the upcoming fourth quarter, projecting total revenues of approximately $180 million, with revenue from fees expected at $185 million and net interest income anticipated to be around negative $5 million. The contribution margin is forecasted to be around 59%, while the net income is expected to be approximately negative $35 million. Upstart is also guiding for adjusted net income of around negative $5 million and adjusted EBITDA of about positive $5 million. The diluted weighted average share count is projected to be approximately 91.7 million shares. CEO David Girouard highlighted the company's positive momentum, driven by Model 18's enhancements, which significantly improved lending volume and conversion rates. CFO Sanjay Datta emphasized the stable macroeconomic environment and the significant boost from strategic capital partnerships, noting that well over half of Q3's loan funding was through longer-term committed relationships.

Sequential Growth in Lending Volume

Upstart reported a 43% sequential growth in lending volume, marking a significant increase in their lending activities.

Return to Positive Adjusted EBITDA

Upstart achieved positive adjusted EBITDA sooner than expected, indicating improved financial health.

Expansion in Auto and Home Lending

Upstart's auto loans origination increased 46% sequentially to $26.5 million, and their home equity business saw originations more than doubling sequentially.

Strong Loan Performance

Roll rates from 1-day delinquent to charge-off decreased by 13% year-over-year, demonstrating improved loan servicing.

Successful Partnership with Blue Owl

A partnership was announced with Blue Owl, with their Atalaya affiliate purchasing up to $2 billion in loans over 18 months.

Increased Contribution Margin

The contribution margin increased to 61%, up 3 percentage points sequentially.

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Upstart Holdings (UPST) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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UPST Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Mar 17, 2021	2020 (Q4)	- / 0.07	0.082	-14.63% (-0.01)	―	―
May 11, 2021	2021 (Q1)	0.15 / 0.22	0.02	1000.00% (+0.20)	―	―
Aug 10, 2021	2021 (Q2)	0.25 / 0.62	-0.084	838.10% (+0.70)	―	―
Nov 09, 2021	2021 (Q3)	0.33 / 0.60	0.209	187.08% (+0.39)	―	―
Feb 15, 2022	2021 (Q4)	0.51 / 0.89	0.07	1171.43% (+0.82)	―	―
May 09, 2022	2022 (Q1)	0.53 / 0.61	0.22	177.27% (+0.39)	―	―
Aug 08, 2022	2022 (Q2)	0.07 / 0.01	0.62	-98.39% (-0.61)	―	―
Nov 08, 2022	2022 (Q3)	-0.08 / -0.24	0.6	-140.00% (-0.84)
Feb 14, 2023	2022 (Q4)	-0.47 / -0.25	0.89	-128.09% (-1.14)
May 09, 2023	2023 (Q1)	-0.75 / -0.47	0.61	-177.05% (-1.08)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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UPST Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Nov 07, 2024	$55.47	$81.00	+46.02%
Aug 06, 2024	$23.87	$33.30	+39.51%
May 07, 2024	$24.47	$23.11	-5.56%
Feb 13, 2024	$32.92	$26.46	-19.62%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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