Upstart Holdings, Inc. (NASDAQ:UPST) shares are trading lower after-hours as the company reports second-quarter earnings. Here's a look at the details.
What To Know: Upstart reported quarterly earnings of six cents per share which beat the analyst consensus estimate of a loss of seven cents, a 500% increase over earnings of one cent per share from the same period last year. The company reported quarterly sales of $135.77 million, which beat the analyst consensus estimate of $134.94 million, a 40.50% decrease over sales of $228.16 million in the same period last year.
Lending partners originated 109,447 loans, totaling $1.2 billion across the platform in the second quarter of 2023, down 64% from the same quarter of the prior year.
Conversion on rate requests was 9% in the second quarter of 2023, down from 13% in the same quarter of the prior year.
The company estimates revenue of approximately $140 million for the third-quarter of 2023.
"As a result of our efforts over the past year to improve efficiency and operating leverage in our business, we achieved record-high contribution margin and positive cash flow in Q2," said Dave Girouard, co-founder and CEO of Upstart.
"While the economic environment continues to be challenging, Upstart has the opportunity to grow quickly and profitably when we return to a normalized economy. We're in the pole position to lead the industry to an AI-enabled future that dramatically improves access to credit for hundreds of millions of Americans."
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UPST Price Action: Shares of UPST were down 17.40% at $42.77 in the after-hours session at the time of publication, according to Benzinga Pro.
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