Artificial intelligence lending company falls short of expectations

  • Upstart Holdings Inc. shares fell 13% after disappointing quarterly results and outlook
  • Net loss of $40.3 million, compared to $56.2 million loss last year
  • Adjusted loss of 5 cents per share, missing analysts’ expectation of 2 cents per share loss
  • Revenue fell to $135 million, below the expected $140 million
  • CEO emphasizes the need for conservative operations in the current environment
  • Adjusted Ebitda of $2.3 million for the third quarter, compared to a loss of $14.4 million last year
  • Fourth-quarter revenue expected to be around $135 million, below analysts’ expectation of $158 million
  • Company aims to break even on adjusted Ebitda basis for the fourth quarter

Upstart Holdings Inc. saw its stock price drop by 13% after reporting disappointing quarterly results and outlook. The company’s net loss for the quarter was $40.3 million, compared to a loss of $56.2 million in the same period last year. Adjusted earnings per share came in at a loss of 5 cents, missing analysts’ expectation of a 2 cent-per-share loss. Revenue also fell short, reaching $135 million instead of the expected $140 million. CEO Dave Girouard emphasized the need for conservative operations in the current environment. Despite the challenges, the company achieved adjusted Ebitda of $2.3 million for the third quarter, compared to a loss of $14.4 million last year. Looking ahead, Upstart expects fourth-quarter revenue to be around $135 million, below analysts’ expectation of $158 million. However, the company aims to break even on an adjusted Ebitda basis for the fourth quarter.

Public Companies: Upstart Holdings Inc. (UPST)
Private Companies:
Key People: Dave Girouard (Chief Executive)

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Factuality Level: 7
Justification: The article provides financial information about Upstart Holdings Inc.’s quarterly results and outlook. The information is based on the company’s reported net loss, adjusted earnings per share, revenue, and analyst projections. The CEO’s statement is also included. However, the article lacks additional context or analysis, and it does not provide any opposing viewpoints or independent verification of the information presented.

Noise Level: 3
Justification: The article provides relevant information about Upstart Holdings Inc.’s quarterly results and outlook. It includes details about the company’s net loss, adjusted earnings per share, revenue, and adjusted Ebitda. The article also includes quotes from the Chief Executive and compares the company’s performance to analyst expectations. However, the article lacks in-depth analysis, antifragility considerations, and actionable insights.

Financial Relevance: Yes
Financial Markets Impacted: Upstart Holdings Inc.

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to financial topics as it discusses Upstart Holdings Inc.’s quarterly results and outlook. However, there is no mention of an extreme event or its impact.

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