Upstart Holdings, Inc. ( (UPST) ) has released its Q4 earnings. Here is a breakdown of the information Upstart Holdings, Inc. presented to its investors.
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Upstart Holdings, Inc., a leader in the AI lending marketplace, connects consumers to over 100 banks and credit unions using AI models to offer efficient credit products across various demographics. In its recent earnings report, Upstart Holdings highlighted significant growth in the fourth quarter of 2024, with total revenue reaching $219 million, marking a 56% increase year-over-year. This growth was attributed to a 68% increase in loan originations, totaling $2.1 billion, and an improved conversion rate of 19.3%.
The company reported an adjusted EBITDA of $38.8 million for the quarter, a substantial improvement from $0.6 million in the same period the previous year. Although Upstart experienced a GAAP net loss of $2.8 million, it represented a significant improvement from a $42.4 million loss in Q4 2023. For the full year, Upstart saw its total revenue rise by 24% to $637 million, with a transaction volume of $5.9 billion, up 28% year-over-year.
Despite the losses, Upstart’s adjusted net income turned positive for the quarter at $29.9 million, and the company achieved an adjusted earnings per share of $0.26. The company has seen a steady rise in contribution profit, reaching $122 million in Q4, although the contribution margin slightly decreased to 61% from 63% in the previous year.
Looking ahead, Upstart is optimistic about its growth trajectory for 2025, expecting to achieve approximately $1 billion in revenue and aiming for at least a breakeven in GAAP net income. The company continues to build on its AI lending platform, with plans to expand its market presence and further innovate its product offerings.
