Upstart Announces Fourth Quarter and Full Year 2022 Results

About this update from Upstart Holdings, Inc.

[{"type":"text","content":" SAN MATEO, Calif.--(BUSINESS WIRE)--\nUpstart Holdings, Inc. (NASDAQ: UPST), a leading artificial intelligence (AI) lending marketplace, today announced financial results for its fourth quarter and fiscal year 2022 ended December 31, 2022. Upstart will host a conference call and webcast at 1:30 p.m. Pacific Time today. An earnings presentation and link to the webcast are available at ir.upstart.com.\n\n“Despite the economic headwinds of 2022 and continued funding challenges that have impacted our financial results, we’re a much better company than we were a year ago,” said Dave Girouard, co-founder and CEO of Upstart. “We begin the new year with more advanced technology, faster AI model development, dramatically more training data, and a strengthened leadership team. We’re on an important journey to reinvent credit so that it works for everyone and excited to remind the world what Upstart is capable of.”\n\nFourth Quarter 2022 Financial Highlights\n\n\nRevenue. Total revenue was $147 million, a decrease of 52% from the fourth quarter of 2021. Total fee revenue was $156 million, a decrease of 46% year-over-year.\n\n\nTransaction Volume and Conversion Rate. Lending partners originated 154,478 loans, totaling $1.5 billion across our platform in the fourth quarter, down 62% from the same quarter of the prior year. Conversion on rate requests was 11% in the fourth quarter of 2022, down from 24% in the same quarter of the prior year.\n\n\nIncome (Loss) from Operations. Income (loss) from operations was ($58.5) million, down from $60.4 million the prior year.\n\n\nNet Income (Loss) and EPS. GAAP net income (loss) was ($55.3) million, down from $58.9 million in the fourth quarter of 2021. Adjusted net income (loss) was ($20.9) million, down from $87.0 million in the same quarter of the prior year. Accordingly, GAAP diluted earnings per share was ($0.67), and diluted adjusted earnings per share was ($0.25) based on the weighted-average common shares outstanding during the quarter.\n\n\nContribution Profit. Contribution profit was $82.0 million, down 45% year-over-year in the fourth quarter of 2022, with a contribution margin of 53% compared to a 52% contribution margin in the same quarter of the prior year.\n\n\nAdjusted EBITDA. Adjusted EBITDA was ($16.6) million, down from $91.0 million in the same quarter of the prior year. The fourt...

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