On August 6, 2024, Upstart Holdings Inc (UPST, Financial) released its 8-K filing for the second quarter of fiscal year 2024, ending June 30, 2024. Upstart Holdings Inc provides credit services through a proprietary, cloud-based, artificial intelligence lending platform that connects consumer demand for loans to a network of AI-enabled bank partners.
Performance Overview
Upstart Holdings Inc (UPST, Financial) reported total revenue of $128 million for Q2 2024, a 6% decrease from the same quarter in 2023 and flat sequentially. This figure fell short of the analyst estimate of $124.54 million. The company also reported a GAAP net loss of $54.5 million, translating to a diluted earnings per share (EPS) of -$0.62, which beat the analyst estimate of -$0.84.
Key Financial Metrics
Here are some of the key financial metrics from the earnings report:
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Revenue | $128 million | $135.8 million |
| Net Income (Loss) | $(54.5) million | $(28.2) million |
| Adjusted EBITDA | $(9.3) million | $11.0 million |
| Contribution Profit | $76.1 million | $95.9 million |
Challenges and Achievements
Upstart Holdings Inc (UPST, Financial) faced several challenges during the quarter. The company saw a 6% year-over-year decrease in transaction volume, originating 143,900 loans totaling $1.1 billion. The conversion rate on rate requests improved to 15% from 9% in the same quarter of the prior year, indicating better efficiency in their AI model.
Despite these challenges, the company made significant strides in improving its AI model, revitalizing its funding supply, and increasing operating efficiency. CEO Dave Girouard commented,
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."
Income Statement Highlights
Upstart Holdings Inc (UPST, Financial) reported a total revenue of $128 million, down from $135.8 million in Q2 2023. The company also reported a net loss of $54.5 million, compared to a net loss of $28.2 million in the same quarter of the prior year. Adjusted EBITDA was $(9.3) million, down from $11.0 million in Q2 2023.
Balance Sheet and Cash Flow
As of June 30, 2024, Upstart Holdings Inc (UPST, Financial) had total assets of $1.82 billion, down from $2.02 billion at the end of 2023. The company reported cash and restricted cash of $560.6 million, up from $509.9 million at the end of 2023. Net cash provided by operating activities was $117.9 million for the first six months of 2024, compared to $141.6 million in the same period of 2023.
Financial Outlook
For the third quarter of 2024, Upstart Holdings Inc (UPST, Financial) expects revenue of approximately $150 million and a net loss of approximately $49 million. The company also anticipates a contribution margin of approximately 57% and adjusted EBITDA of approximately $(5) million.
For more detailed information, please refer to the 8-K filing.
Explore the complete 8-K earnings release (here) from Upstart Holdings Inc for further details.
