2023-05-09 16:22:08 ET
Upstart Holdings ( UPST ) stock surged 31% in Tuesday after-hours trading after the AI-powered lending platform said it expects Q2 adjusted EBITDA to break even. That's better than the -$31.1M in posted for Q1 2023 and the Visible Alpha consensus of -$16.5M
The company expects Q2 revenue of ~$135M , higher than the $126.2M consensus. In addition, Upstart ( UPST ) many key Q1 results surpassed Wall Street expectations.
Co-Founder and CEO Dave Girouard said the company made progress in Q1 against the objectives it set last quarter. "Despite the headwinds facing our industry, we secured multiple long-term funding agreements, together expected to deliver more than $2B to the Upstart platform over the next 12 months," he said.
Q1 revenue of $103.0M, topping the $99.8M consensus, dropped from $146.9M in the prior quarter and from $310.1M in the year-ago quarter.
Q1 adjusted EBITDA was -$31.1M, better than the Visible Alpha estimate of -$45.5M, but down from -$16.6M in Q4 2022 and from $62.6M in Q1 2022.
Q1 adjusted EPS of -$0.47, better than the -$0.81 consensus, worsened from -$0.25 in the prior quarter and from $0.61 in the year-ago period.
During the quarter, Upstart's ( UPST ) bank partners originated 84,084 loans, totaling $997M across its platform, compared with 154,478 loans, totaling $1.5B.
Upstart's ( UPST ) contribution profit of $67.6M fell from $82.0M in the prior quarter and $147.8M in the year-ago period; contribution margin of 47% slipped from 53% in Q4 and 58% in 1Q1 2022.
Q1 total operating expenses of $234.8M rose from $205.4M in the prior quarter and declined from $275.3M in the year-ago quarter.
Conference call at 4:30 PM ET.
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Upstart stock soars after Q1 beat; sees Q2 adjusted EBITDA at break-even