Upstart Holdings, Inc. ( (UPST) ) has released its Q3 earnings. Here is a breakdown of the information Upstart Holdings, Inc. presented to its investors.
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Upstart Holdings, Inc. is a leading AI lending marketplace that connects consumers to banks and credit unions to offer superior credit products across various demographics. Founded in 2012 and based in San Mateo, California, the company provides personal loans, automotive retail and refinance loans, home equity lines of credit, and other financial services.
In the third quarter of 2024, Upstart Holdings reported a significant recovery in its financial performance, with a 20% year-over-year increase in revenue to $162 million and a notable 43% sequential growth in lending volume. The company also achieved positive adjusted EBITDA, highlighting a return to growth despite challenging economic conditions. The CEO, Dave Girouard, emphasized the strengthened position of Upstart as a fintech leader in AI.
Key financial metrics for the quarter included a total fee revenue increase of 14% year-over-year and a 30% rise in the number of loans originated compared to the same period last year. However, the company still reported a net loss of $6.8 million, an improvement from the $40.3 million loss in the previous year. Although adjusted net income showed a slight decline, the contribution profit rose by 9%, indicating a robust performance in core operations.
Looking forward, Upstart expects continued growth with projected revenue of approximately $180 million for the fourth quarter of 2024. The company anticipates maintaining its trajectory towards profitability while navigating the macroeconomic challenges and strengthening its AI-driven lending solutions.
