UPST - Upstart: An Uphill Battle

2024-03-05 10:10:58 ET

Summary

• Upstart Holdings, Inc. reported strong Q4 2023 results, beating on revenues and adjusted EBITDA.
• That said, guidance came in weaker, likely highlighting the headwinds that management highlighted in the earnings call.
• While the less prime borrower group is stabilizing, the more prime borrower segment is now the one that looks to be deteriorating.
• The funding market remains challenging as funding remains a constraint and the secondary market is over-saturated with banks conducting asset sales.
• The company continues to work towards expanding into new products to diversify its product portfolio and revenue streams.

Upstart Holdings, Inc. ( UPST ) continues to see headwinds in its business.

While Q4 2023 results were strong, guidance was lighter than expected as the company highlighted near-term headwinds.

I do expect these headwinds that Upstart is facing to continue into 2024 and look for fundamentals to stabilize before becoming constructive again....

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