Upstart Q2 Earnings: Taking a Look at Key Metrics Versus Estimates

Upstart Holdings, Inc. UPST reported $127.63 million in revenue for the quarter ended June 2024, representing a year-over-year decline of 6%. EPS of -$0.17 for the same period compares to $0.06 a year ago.

The reported revenue represents a surprise of +1.97% over the Zacks Consensus Estimate of $125.16 million. With the consensus EPS estimate being -$0.39, the EPS surprise was +56.41%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Upstart performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• Transaction Volume

  : $1.11 million compared to the $1.14 million average estimate based on two analysts.

• Revenue- Revenue from fees, net

  : $130.53 million versus the five-analyst average estimate of $135.01 million. The reported number represents a year-over-year change of -9.2%.

• Revenue- Total interest income, interest expense, and fair value adjustments, net

  : -$2.90 million versus -$9.85 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -63.4% change.

• Revenue- Revenue from fees, net- Platform and referral fees, net

  : $98.60 million versus the three-analyst average estimate of $104.50 million. The reported number represents a year-over-year change of -6.8%.

• Revenue- Revenue from fees, net- Servicing and other fees, net

  : $31.94 million compared to the $30.31 million average estimate based on three analysts. The reported number represents a change of -15.8% year over year.

Shares of Upstart have returned -1.5% over the past month versus the Zacks S&P 500 composite's -5.9% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

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