Upstart Holdings (NASDAQ: UPST) reported its Q1 results for the fiscal year 2022, after the market closed on Monday. They reported a revenue of $310 million and an EPS of $0.61 topping WallStreet estimates.
However the company’s Q2 guidance of $295 million – $305 million was lower than the estimated $334.8 million; expects Q2 adjusted EBITDA of $32million- $34 million vs. $59.2million consensus, and Q2 adjusted net income of $28M-$30M indicates a decline from $32.7M reported in Q1 2021.
The stock tanked 42% during after hours trading, following the announcement.
Estimates:
Revenue: $310 million vs $300 expected
EPS: $0.61 vs $0.53 expected.
First Quarter 2022 Financial Highlights
- Revenue. Total revenue was $310 million, an increase of 156% from the first quarter of 2021. Total fee revenue was $314 million, an increase of 170% year-over-year.
- Transaction Volume and Conversion Rate. Bank partners originated 465,537 loans, totaling $4.5 billion, across our platform in the first quarter, up 174% from the same quarter of the prior year. Conversion on rate requests was 21% in the first quarter of 2022, down from 22% in the same quarter of the prior year.
- Income from Operations. Income from operations was $34.8 million, up from $15.6 million the prior year.
- Net Income and EPS. GAAP net income was $32.7 million, up from $10.1 million in the first quarter of 2021. Adjusted net income was $58.6 million, up from $19.9 million in the same quarter of the prior year. Accordingly, GAAP diluted earnings per share was $0.34, and diluted adjusted earnings per share was $0.61 based on the weighted-average common shares outstanding during the period.
- Contribution Profit. Contribution profit was $147.8 million, up 165% year-over-year in the first quarter of 2022, with a contribution margin of 47% compared to a 48% contribution margin in the same quarter of the prior year.
- Adjusted EBITDA. Adjusted EBITDA was $62.6 million, up from $21.0 million in the same quarter of the prior year. The first quarter 2022 adjusted EBITDA margin was 20% of total revenue, up from 17% in the first quarter of 2021.
CEO’s statement
“Upstart just delivered our seventh consecutive profitable quarter and our fourth straight quarter with triple-digit year-on-year revenue growth,”
“While this year is shaping up to be a challenging one for the economy, we know the drill and are confident that we can navigate whatever 2022 and beyond might hold.”
Dave Girouard co-founder and CEO of Upstart
About Upstart
Upstart is a leading AI lending platform partnering with banks and credit unions to expand access to affordable credit. By leveraging Upstart’s AI platform, Upstart-powered banks and credit unions can have higher approval rates and lower loss rates for every race, ethnicity, age, and gender, while simultaneously delivering the exceptional digital-first lending experience their customers demand. More than two-thirds of Upstart loans are approved instantly and are fully automated. Upstart was founded by ex-Googlers in 2012 and is based in San Mateo, California and Columbus, Ohio.
