Upstart Holdings Inc (NASDAQ:UPST) shares are trading lower Wednesday on the heels of the company’s fourth-quarter financial results. Here’s what you need to know.
What Happened: Upstart’s fourth-quarter revenue decreased 4% year-over-year to $140.91 million, which beat the consensus estimate of $134.89 million, according to Benzinga Pro. The company reported a quarterly loss of 11 cents per share, which beat analyst estimates for a loss of 14 cents per share.
Upstart said 129,664 loans were originated in the fourth quarter, totaling $1.3 billion, down 19% from the prior year’s quarter.
“Despite the difficult lending environment, we delivered solid results to end the year. The numbers will show that we’ve actually become more efficient in 2023,” said Dave Girouard, CEO of Upstart.Â
“And even while becoming more efficient, we’ve laid the groundwork to become a more resilient and diversified company that can thrive through a wide range of economic conditions.”
Upstart said it expects first-quarter revenue of approximately $125 million versus estimates of $151.2 million. The company anticipates a first-quarter adjusted EBITDA loss of approximately $25 million.
Following the company’s quarterly results, Piper Sandler analyst Arvind Ramnani maintained Upstart with a Neutral rating and raised the price target from $27 to $28.
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UPST Price Action: Upstart shares were down 13.4% at $28.49 at the time of writing, according to Benzinga Pro.
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