Q1 2024 Upstart Holdings Inc Earnings Call Transcript
Key Points
- Upstart Holdings Inc (UPST) reported a revenue of $138 million in Q1, marking an 18% increase year-over-year.
- The company has achieved a high level of loan processing automation, reaching 90% of loans fully automated.
- Upstart Holdings Inc (UPST) has expanded its product portfolio, including the successful launch of auto secured personal loans in seven states.
- The company has made significant cost reductions, cutting fixed expenses from headcount by approximately $20 million annually.
- Upstart Holdings Inc (UPST) has signed its first funding deal for the Upstart Cielo and expects to begin selling loans on a forward flow basis soon.
- Net interest income was negative $10 million, reflecting challenges in prime loan performance.
- The company reported a GAAP net loss of $65 million and an adjusted EBITDA of negative $20 million in Q1.
- Consumer risks and interest rates remain high, constraining the volume of transactions on the platform.
- There is a noted deterioration in credit performance at the prime end of the borrower base, continuing into Q2.
- Despite growth in revenues, there was a sequential decrease in loan origination volumes due to increased pricing of prime loans.
Welcome to the Upstart First Quarter 2024 earnings. Today's conference is being recorded. At this time, I'd like to turn the conference over to Jason Smith.
Good afternoon, and thank you for joining us on today's conference call to discuss upstart First Quarter 2024 financial results. With us on today's call are Dave Gerard, upstart, Chief Executive Officer, and Sanjay data, our Chief Financial Officer.
Before we begin, I want to remind you that shortly after the market closed today, upstart issued a press release announcing its first quarter 2024 financial results and published an investor relations presentation. Both are available on our Investor Relations website, ir dot upstart.com.
During the call, we will make forward looking statements such as guidance for the second quarter of 2020 for the second half of 2024 related to our business and our plans to expand our platform in the future these statements are based on our current expectations and information available as of today and are
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