Q2 2024 Upstart Holdings Inc Earnings Call Transcript
Key Points
- Upstart Holdings Inc (UPST) has made significant progress towards returning to sequential growth and EBITDA profitability.
- The company has rebuilt its funding supply by securing long-term funding partnerships, reducing reliance on its balance sheet for loan funding.
- Upstart Holdings Inc (UPST) launched the most impactful improvements to its core credit pricing model, M.18, which has significantly enhanced model accuracy and funnel conversion rates.
- Automation of the core unsecured loan product reached an all-time high with 91% of loans fully automated, improving cost efficiency and consumer experience.
- The company has expanded its product offerings, including auto loans, small dollar relief loans, and home equity lines of credit, with notable growth and performance improvements in these areas.
- Despite progress, Upstart Holdings Inc (UPST) continues to face challenges from macroeconomic factors, with no dramatic improvements in these areas yet.
- The company reported a GAAP net loss of $54 million and adjusted EBITDA of negative $9 million for Q2 2024, indicating ongoing financial challenges.
- Higher pricing for prime loans has created downward pressure on origination volumes, impacting revenue from fees.
- The macroeconomic climate, including inflation and consumer spending trends, continues to pose risks to the company's performance.
- There is still a reliance on the company's balance sheet to bridge funding gaps, which may lead to volatility in financial performance.
Day, everyone, and welcome to the upstart Second Quarter 2024 earnings conference call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Cindy Moon, read corporate and securities counsel. Please go ahead.
Good afternoon, and thank you for joining us on today's conference call to discuss upstart Second 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 second 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 third quarter of 2024 and 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
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