Upstart Announces Fourth Quarter and Full Year 2023 Results

About this update from Upstart Holdings, Inc.

[{"type":"text","content":" SAN MATEO, Calif.--(BUSINESS WIRE)--\nUpstart Holdings, Inc. (NASDAQ: UPST), the leading artificial intelligence (AI) lending marketplace, today announced financial results for its fourth quarter and fiscal year 2023 ended December 31, 2023. 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\n“Despite the difficult lending environment, we delivered solid results to end the year,” said Dave Girouard, CEO, Upstart. “The numbers will show that we’ve actually become more efficient in 2023. And even while becoming more efficient, we’ve laid the groundwork to become a more resilient and diversified company that can thrive through a wide range of economic conditions.”\n\n\nFourth Quarter 2023 Financial Highlights\n\n\n\nRevenue. Total revenue was $140 million, a decrease of 4% from the fourth quarter of 2022, but up 4% sequentially. Total fee revenue was $153 million, a decrease of 2% year-over-year.\n\n\n\nTransaction Volume and Conversion Rate. 129,664 loans were originated, totaling $1.3 billion across our platform in the fourth quarter of 2023, down 19% from the same quarter of the prior year. Conversion on rate requests was 11.6% in the fourth quarter of 2023, up from 10.5% in the same quarter of the prior year.\n\n\n\nIncome (Loss) from Operations. Income (loss) from operations was ($47.5) million, up from ($58.5) million in the same quarter of the prior year.\n\n\n\nNet Income (Loss) and EPS. GAAP net income (loss) was ($42.4) million, up from ($55.3) million in the fourth quarter of the prior year. Adjusted net income (loss) was ($9.7) million, up from ($20.9) million in the same quarter of the prior year. Accordingly, GAAP diluted earnings per share was ($0.50), and diluted adjusted earnings per share was ($0.11) based on the weighted-average common shares outstanding during the quarter.\n\n\n\nContribution Profit. Contribution profit was $95.6 million in the fourth quarter of 2023, up 17% year-over-year, with a contribution margin of 63% compared to a 53% contribution margin in the same quarter of the prior year.\n\n\n\nAdjusted EBITDA. Adjusted EBITDA was $0.6 million, up from ($16.6) million in the same quarter of the prior year. The fourth quarter 2023 adjusted EBITDA margin was 0% of total revenue, up from ...

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