AI lending platform Upstart has had a rough time since the “infamous TV moment” in September 2021. However, some investors believe today’s Q1 earnings report may be the beginning of a turnaround for the stock. 🤔
The company reported an adjusted loss of $0.47 per share vs. the $0.83 estimate. And revenues of $103 million beat the $99.7 million expected. However, its lending partners originated just over 84,000 loans in the period, down 78% YoY. That mostly explains why its revenue fell by two-thirds. 🔻
Where things got interesting was its forecast. Executives expect breakeven EBITDA in Q2 on $135 million in revenue. That was ahead of the $125 million and $14 million EBITDA loss that analysts were expecting. 🔺
The company also said it secured multiple long-term funding agreements that it expects to deliver more than $2 billion to the platform over the next 12 months.
It appears the market’s expectations got a bit too negative, and the company was able to beat them. Whether or not this was “the” bottom for the stock remains to be seen. But investors were optimistic after hours, sending $UPST shares up over 40%. 👍