Upstart Announces Second Quarter 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 second quarter of fiscal year 2023 ended June 30, 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\"As a result of our efforts over the past year to improve efficiency and operating leverage in our business, we achieved record-high contribution margin and positive cash flow in Q2,\" said Dave Girouard, co-founder and CEO of Upstart. \"While the economic environment continues to be challenging, Upstart has the opportunity to grow quickly and profitably when we return to a normalized economy. We’re in the pole position to lead the industry to an AI-enabled future that dramatically improves access to credit for hundreds of millions of Americans.\"\n\n\nSecond Quarter 2023 Financial Highlights\n\n\n\nRevenue. Total revenue was $136 million, a decrease of 40% from the second quarter of 2022. Total fee revenue was $144 million, a decrease of 44% year-over-year.\n\n\n\nTransaction Volume and Conversion Rate. Lending partners originated 109,447 loans, totaling $1.2 billion across our platform in the second quarter of 2023, down 64% from the same quarter of the prior year. Conversion on rate requests was 9% in the second quarter of 2023, down from 13% in the same quarter of the prior year.\n\n\n\nIncome (Loss) from Operations. Income (loss) from operations was ($33.3) million, down from ($32.1) million in the same quarter of the prior year.\n\n\n\nNet Income (Loss) and EPS. GAAP net income (loss) was ($28.2) million, up from ($29.9) million in the second quarter of the prior year. Adjusted net income (loss) was $5.4 million, up from $1.0 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 $0.06 based on the weighted-average common shares outstanding during the quarter.\n\n\n\nContribution Profit. Contribution profit was $95.9 million in the second quarter of 2023, down 21% year-over-year, with a contribution margin of 67% compared to a 47% contribution margin in the same quarter of the prior year.\n\n\n\nAdjusted EBITDA. Adjusted EBITDA was...

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