Upstart Announces Third 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 third quarter of fiscal year 2023 ended September 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“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.\"\n\n\nThird Quarter 2023 Financial Highlights\n\n\n\nRevenue. Total revenue was $135 million, a decrease of 14% from the third quarter of 2022. Total fee revenue was $147 million, a decrease of 18% year-over-year.\n\n\n\nTransaction Volume and Conversion Rate. Lending partners originated 114,464 loans, totaling $1.2 billion across our platform in the third quarter of 2023, down 34% from the same quarter of the prior year. Conversion on rate requests was 9.5% in the third quarter of 2023, down from 9.7% in the same quarter of the prior year.\n\n\n\nIncome (Loss) from Operations. Income (loss) from operations was ($43.8) million, up from ($58.1) million in the same quarter of the prior year.\n\n\n\nNet Income (Loss) and EPS. GAAP net income (loss) was ($40.3) million, up from ($56.2) million in the third quarter of the prior year. Adjusted net income (loss) was ($3.9) million, up from ($19.3) million in the same quarter of the prior year. Accordingly, GAAP diluted earnings per share was ($0.48), and diluted adjusted earnings per share was ($0.05) based on the weighted-average common shares outstanding during the quarter.\n\n\n\nContribution Profit. Contribution profit was $94.2 million in the third quarter of 2023, down 2% year-over-year, with a contribution margin of 64% compared to a 54% contribution margin in the same quarter of the prior year.\n\n\n\nAdjusted EBITDA. Adjusted EBITDA was $2.3 million, up from ($14.4) million in the same quarter of the prior year. The third quarter 2023 adjusted EBITDA margin ...

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