Upstart Reports Weak Q3 Results, Stock Tanks After-Hours

Upstart Holdings, Inc. UPST shares are trading lower in Tuesday's after-hours session following the company's reporting worse-than-expected third-quarter financial results. Here's what's causing the action.

What To Know: Upstart reported quarterly losses of five cents per share, missing the analyst consensus estimate of losses of two cents, a 79.17% increase over losses of 24 cents per share from the same period last year.

The company reported quarterly sales of $134.56 million, missing the analyst consensus estimate of $140.26 million, a 14.42% decrease over sales of $157.23 million in the same period last year.

During the quarter, lending partners originated 114,464 loans, generating $1.2 billion across the company's platform, a 34% decline year-over-year. Also, conversion on rate requests decreased from 9.7% in the same quarter in 2022 to 9.5%.

Upstart issued fourth-quarter guidance, with revenue estimated to be $135 million and anticipated Adjusted Net Income of $14 million loss.

"We're making rapid progress in building the world's first and best AI lending platform," said Dave Girouard, co-founder and CEO of Upstart. "Of course we'd prefer to be growing quickly, but this is a time when it's wise to be operating in a conservative mode. We were EBITDA positive for the second straight quarter, our contribution margins are still near record highs, and we continue to invest in our teams and core AI."

Also Read: Gilead Sciences Stock Slides After Hours On Q3 Report - Here's Why

UPST Price Action: Shares of UPST were down 21.80% at $23.00 in the after-hours session at the time of publication, according to Benzinga Pro.

Image by Oleg Gamulinskii from Pixabay