Upstart Holdings Inc (NASDAQ:UPST) shares are falling Wednesday after the company reported worse-than-expected financial results. Here’s a rundown of the report.
- Q3 Revenue: $134.56 million missed estimates of $140.26 million
- Q3 EPS: 5 cent loss missed estimates for a 2 cent loss
Total revenues were down 14% year-over-year. Fee revenue was down 18%.
Upstart said lending partners originated 114,464 loans across its platform in the quarter, down 34% year-over-year. Conversion on rate requests was 9.5% in the quarter, down from 9.7% in the prior year’s quarter.
“We’re making rapid progress in building the world’s first and best AI lending platform. Of course we’d prefer to be growing quickly, but this is a time when it’s wise to be operating in a conservative mode,” said Dave Girouard, co-founder and CEO of Upstart.
Upstart expects fourth-quarter revenue of approximately $135 million. The company anticipates an adjusted net loss of approximately $14 million.
Following the print, Piper Sandler analyst Arvind Ramnani maintained Upstart with a Neutral rating and lowered the price target from $35 to $27. Wedbush analyst David Chiaverini reiterated an Underperform rating and maintained a price target of $10.
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UPST Price Action: Upstart shares were down 26.7% at $21.50 at the time of publication, according to Benzinga Pro.
Photo: courtesy of Upstart.
