Lender Upstart Holdings Inc. posted positive surprises across the board Thursday, and its stock was moving 19.7% higher in the extended session following those upbeat earnings.
The company, which uses artificial intelligence to inform loan decisions, expects fourth-quarter revenue of $180 million, while analysts tracked by FactSet were expecting $162.3 million.
Upstart also models $5 million on the basis of earnings before interest, taxes, depreciation and amortization, whereas the consensus view calls for $3.5 million in positive adjusted Ebitda.
The company gave that forecast after seeing upbeat results in the third quarter as loan volumes picked up 43% on a sequential basis.
Upstart shares are well off their 2021 highs as higher interest rates have dampened demand for the company’s personal loans. But the stock has climbed over the course of 2024 as the company has made progress on aspects like funding supply.
“Even without a significant boost from the macroeconomy, we’re back in growth mode,” Chief Executive Dave Girouard said in a release.
In the third quarter, Upstart posted revenue of $162 million, up 20% from a year before, while analysts had been calling for $149 million.
Upstart logged a net loss of $6.8 million, or 7 cents a share, compared with a loss of $40.3, or 48 cents a share, in the year-prior period. On an adjusted basis, the company lost 6 cents a share, which compares with the 15-cent consensus view.
The company also recorded $1.4 million in adjusted Ebitda. Analysts were looking for a $5.9 million loss on the metric.
Upstart’s results follow those from LendingClub Corp. and SoFi Technologies Inc. in recent weeks thatshowed improving delinquency trends.
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