Artificial intelligence based lending company Upstart Holdings Inc (NASDAQ:UPST) reported second-quarter financial results after the market close Monday. Here are the key takeaways.
What Happened: Revenue in the second quarter was $228 million, up 18% year-over-year. Revenue came is below a Street estimate of $241.6 million, according to data from Benzinga Pro.
The company reported earnings per share of 1 cent in the second quarter, below a Street estimate of 10 cents.
Upstart had 321,138 loans originated by bank partners in the second quarter that totaled $3.3 billion. Loans were up 12% year-over-year.
Conversion on rare requests were 13% in the second quarter, down from 24% from last year’s second quarter.
“This quarter’s results are disappointing and reflect a difficult macroeconomic environmental that led to funding constraints in our marketplace,” Upstart CEO Dave Girouard said. “In response we’re taking the necessary actions to build a more resilient and committed funding model over time.”
The company repurchased 3.5 million shares of UPST totaling $125 million in the second quarter.
What’s Next: Upstart is guiding for third-quarter revenue to hit $170 million. Benzinga Pro data shows analysts expecting the company to post $248.9 million in third-quarter revenue.
“We’re confident that our AI-based risk model is more accurate than ever, and provides the opportunity for long-term, sustainable growth,” Girouard said.
UPST Price Action: Upstart shares tumbled 12% after-hours Monday.
