NASDAQ$UPST

Upstart Holdings Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Upstart's Q2 2023 performance reflected resilience amidst a challenging economic environment, marked by improved efficiency and positive cash flow.

Upstart announced its Q2 2023 financial results, reporting a total revenue of $136 million, a decrease of 40% year-over-year. Despite the challenging economic environment, the company achieved record-high contribution margin and positive cash flow. Lending partners originated 109,447 loans totaling $1.2 billion across the platform, a decrease of 64% from the same quarter of the prior year.

  • Total revenue was $136 million, a 40% decrease year-over-year.
  • Lending partners originated 109,447 loans, totaling $1.2 billion, a 64% decrease year-over-year.
  • GAAP net loss was $(28.2) million, an improvement from $(29.9) million in the same quarter of the prior year.
  • Adjusted EBITDA was $11.0 million, an increase from $5.5 million in the same quarter of the prior year.

Headline financials

Total Revenue

$136M

Previous: $228M-40.5%
EPS (adj)

$0.06

Previous: $0.01+500.0%
Loans Originated

109.4K

Previous: 321.1K-65.9%
Conversion Rate

9.0%

Previous: 13.0%-30.8%
Capital Expenditures

-$1.15M

Previous: -$5.58M+79.4%
Free Cash Flow

-$29.3M

Previous: -$35.4M+17.3%
Net Income

-$28.2M

Previous: -$29.9M+5.7%
Operating Income

-$33.3M

Previous: -$32.1M-3.9%
Gross Profit

$136M

Previous: $228M-40.5%
Cash & Equivalents

$444M

Previous: $790M-43.9%
Total Assets

$1.76B

Previous: $1.92B-8.0%
Stock-Based Comp

$32.6M

Previous: $30.3M+7.5%

Revenue & EPS history

Upstart · Revenue · Quarterly

$136M

Q2 2023-40.5%vs Q2 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Upstart · $144M total across 1 segment · Q2 2023

  • Servicing & Other Fees
    $144M-44.4%

Forward guidance

For the third quarter of 2023, Upstart expects revenue of approximately $140 million, a contribution margin of approximately 65%, and a net loss of approximately $(38) million.

Tailwinds

  • Revenue of approximately $140 million
  • Revenue From Fees of approximately $150 million
  • Contribution Margin of approximately 65%
  • Adjusted EBITDA of approximately $5 million
  • Basic Weighted-Average Share Count of approximately 84.5 million shares

Headwinds

  • Net Interest Income (Loss) of approximately $(10) million
  • Net Income (Loss) of approximately $(38) million
  • Adjusted Net Income (Loss) of approximately $(2) million
  • Upstart has not reconciled the forward-looking non-GAAP measures above to comparable forward-looking GAAP measures because of the potential variability and uncertainty of incurring these costs and expenses in the future.
  • Accordingly, a reconciliation is not available without unreasonable effort.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+4.9%

Avg return

Earnings day

+9.4%

Avg return

5 days after

+11.7%

Avg return

30 days after

42%

10 / 24 earnings

Positive

+91.7%

Q4 2020

Best reaction

-59.9%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-8.1%-7.9%-4.6%
Q4 2025-15.0%-21.3%-32.3%
Q3 2025-9.7%-16.2%+1.1%
Q1 2025-9.6%+3.0%+5.7%
Q4 2024+31.8%+22.4%-27.9%
Q3 2024+50.1%+28.6%+42.9%
Q2 2024+39.8%+52.2%+50.0%
Q1 2024-10.3%-1.4%+4.3%
Q4 2023-25.4%-26.2%-34.5%
Q3 2023-27.0%-28.8%+15.6%
Q2 2023-34.5%-35.5%-38.8%
Q1 2023+41.8%+22.5%+144.8%
Q4 2022+34.2%+13.9%-1.8%
Q3 2022-8.4%+21.1%-7.9%
Q2 2022-3.9%+17.4%-10.0%
Q1 2022-59.9%-54.5%-48.3%
Q4 2019-13.7%-19.5%-10.1%
Q4 2021+41.5%+24.3%+11.4%
Q3 2020-5.0%-5.7%-34.7%
Q3 2021-23.3%-21.0%-46.3%
Q2 2020+12.8%+19.2%+51.8%
Q2 2021+24.8%+48.2%+111.1%
Q1 2021+4.1%+17.2%+66.0%
Q4 2020+91.7%+174.6%+74.3%
Q1 2020
Q3 2019

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