Upstart Holdings, Inc. · NASDAQ:UPST
Upstart — Q1 2022 Earnings Presentation
23 slides from Upstart's earnings presentation, May 9, 2022
Slide 1: Q1 FY 2022 Earnings
IBDROOT\PROJECTS\IBD-NY\GRIFFINS2019\645303_1\Presentations\2020.12.02 Roadshow Deck\2020.12.02 Roadshow v7.pptx CONFIDENTIAL October 2020 Q1 FY 2022 Earnings May 09, 2022
Slide 2: Disclaimer
IBDROOT\PROJECTS\IBD-NY\GRIFFINS2019\645303_1\Presentations\2020.12.02 Roadshow Deck\2020.12.02 Roadshow v7.pptx Disclaimer This presentation contains “forward-looking” statements that are based on our management’s beliefs and assumptions and on information currently available to management. Forward
Slide 3: This is Upstart
IBDROOT\PROJECTS\IBD-NY\GRIFFINS2019\645303_1\Presentations\2020.12.02 Roadshow Deck\2020.12.02 Roadshow v7.pptx This is Upstart Our mission is to enable effortless credit based on true risk. Why? Because credit really matters. Money is a fundamental ingredient of life, and unless you’re in the few
Slide 4: Upstart at a glance
IBDROOT\PROJECTS\IBD-NY\GRIFFINS2019\645303_1\Presentations\2020.12.02 Roadshow Deck\2020.12.02 Roadshow v7.pptx Upstart at a glance Upstart is an AI lending platform partnering with banks and and credit unions to improve access to affordable credit Two-sided business consumers connected to AI-enabl
Slide 5: Q1'22 Key financial highlights
IBDROOT\PROJECTS\IBD-NY\GRIFFINS2019\645303_1\Presentations\2020.12.02 Roadshow Deck\2020.12.02 Roadshow v7.pptx Q1’22 Key financial highlights Revenue, millions Revenue Contribution profit Revenue: $310M, up 156% Y|Y Income from Operations: $34.8M, up 124% Y|Y Contribution Profit: $147.8M, up 165% Y|Y
Slide 6: A win for consumers
IBDROOT\PROJECTS\IBD-NY\GRIFFINS2019\645303_1\Presentations\2020.12.02 Roadshow Deck\2020.12.02 Roadshow v7.pptx A win for consumers Total borrowers served (000’s) Higher approval rates, lower APRs Personal Loans from $1K-$50K Auto Refinance Loans from $9K-$60K 74% instantly approved - no document up
Slide 7: Rapid bank and credit union adoption
IBDROOT\PROJECTS\IBD-NY\GRIFFINS2019\645303_1\Presentations\2020.12.02 Roadshow Deck\2020.12.02 Roadshow v7.pptx Rapid bank and credit union adoption Bank and Credit Union Partners1 Highly automated, all-digital experience Customizable to bank’s credit policies and risk appetite Improved credit acce
Slide 8: Large emerging auto opportunity
IBDROOT\PROJECTS\IBD-NY\GRIFFINS2019\645303_1\Presentations\2020.12.02 Roadshow Deck\2020.12.02 Roadshow v7.pptx Large emerging auto opportunity Dealer Rooftops2 Dealership footprint spans 35 different OEMs including VW, Toyota, Ford, Honda, Subaru, Mitsubishi, Kia, & BMW. Tripled dealership footprin
Slide 9: $6T annual loan origination TAM
IBDROOT\PROJECTS\IBD-NY\GRIFFINS2019\645303_1\Presentations\2020.12.02 Roadshow Deck\2020.12.02 Roadshow v7.pptx $6T annual loan origination TAM 1 Total mortgage originations using data provided by TransUnion for Q4 2020 – Q3 2021 2 Total auto loans using data provided by TransUnion for Q4 2020 – Q3
Slide 10: Q1'22 summary P&L and non-GAAP metrics
IBDROOT\PROJECTS\IBD-NY\GRIFFINS2019\645303_1\Presentations\2020.12.02 Roadshow Deck\2020.12.02 Roadshow v7.pptx Q1’22 summary P&L and non-GAAP metrics (in millions, except ratios and per share data) Q1’22 Q4’21 Q|Q Q1’21 Y|Y Revenue $310.1 $304.8 2% $121.3 156% Revenue from Fees $314.0 $287.4 9% $1
Slide 11: Balance Sheet items and key operating metrics
IBDROOT\PROJECTS\IBD-NY\GRIFFINS2019\645303_1\Presentations\2020.12.02 Roadshow Deck\2020.12.02 Roadshow v7.pptx Balance Sheet items and key operating metrics (in millions, except Transaction Volume (number of loans), % fully automated, ratios and conversion rate) Q1’22 Q4’21 Q1’21 Cash and Restrict
Slide 12: Credit Performance
IBDROOT\PROJECTS\IBD-NY\GRIFFINS2019\645303_1\Presentations\2020.12.02 Roadshow Deck\2020.12.02 Roadshow v7.pptx Credit Performance In-Period Defaults vs. Modeled by Q – (Prior 4 Yr Vintages)1 Annualized Default Rates as of Mar’22 (Prior 4 Yr Vintages)2 Government stimulus lead to a temporary overpe
Slide 13: Outlook
IBDROOT\PROJECTS\IBD-NY\GRIFFINS2019\645303_1\Presentations\2020.12.02 Roadshow Deck\2020.12.02 Roadshow v7.pptx Outlook Q2’22 FY22 Revenue $295 to $305 million approximately $1.25 billion Contribution Margin approximately 45% approximately 48% Net Income ($4) to $0 million Non-GAAP Adjusted Net Inc
Slide 14: Financial Statements
IBDROOT\PROJECTS\IBD-NY\GRIFFINS2019\645303_1\Presentations\2020.12.02 Roadshow Deck\2020.12.02 Roadshow v7.pptx Financial Statements (in thousands, except share and per share data) December 31, March 31, 2021 2022 Assets Cash $ 986,608 $ 757,828 Restricted cash 204,633 254,866 Loans (at fair value)
Slide 15: Financial Statements
IBDROOT\PROJECTS\IBD-NY\GRIFFINS2019\645303_1\Presentations\2020.12.02 Roadshow Deck\2020.12.02 Roadshow v7.pptx Financial Statements (in thousands, except share and per share data) Three Months Ended March 31, 2021 2022 Revenue: Revenue from fees, net $ 116,170 $ 313,982 Interest income and fair va
Slide 16: Financial Statements
IBDROOT\PROJECTS\IBD-NY\GRIFFINS2019\645303_1\Presentations\2020.12.02 Roadshow Deck\2020.12.02 Roadshow v7.pptx Financial Statements (in thousands, except share and per share data) Three Months Ended March 31, 2021 2022 Cash flows from operating activities Net income $ 10,102 $ 32,692 Adjustments t
Slide 17: Financial Statements
IBDROOT\PROJECTS\IBD-NY\GRIFFINS2019\645303_1\Presentations\2020.12.02 Roadshow Deck\2020.12.02 Roadshow v7.pptx Financial Statements (in thousands, except share and per share data) Three Months Ended March 31, 2021 2022 Cash flows from investing activities Proceeds from sale of loans held-for-inves
Slide 18: Reconciliation of non-GAAP financial measures
IBDROOT\PROJECTS\IBD-NY\GRIFFINS2019\645303_1\Presentations\2020.12.02 Roadshow Deck\2020.12.02 Roadshow v7.pptx Reconciliation of non-GAAP financial measures (in thousands, except ratios) Three Months Ended March 31, 2021 2022 Revenue from fees, net $ 116,170 $ 313,982 Income from operations 15,574
Slide 19: Reconciliation of non-GAAP financial measures
IBDROOT\PROJECTS\IBD-NY\GRIFFINS2019\645303_1\Presentations\2020.12.02 Roadshow Deck\2020.12.02 Roadshow v7.pptx Reconciliation of non-GAAP financial measures (in thousands, except ratios) Three Months Ended March 31, 2021 2022 Total revenue $ 121,345 $ 310,136 Net income 10,102 32,692 Net Income Mar
Slide 20: Reconciliation of non-GAAP financial measures
IBDROOT\PROJECTS\IBD-NY\GRIFFINS2019\645303_1\Presentations\2020.12.02 Roadshow Deck\2020.12.02 Roadshow v7.pptx Reconciliation of non-GAAP financial measures (in thousands, except ratios, and per share data) Three Months Ended March 31, 2021 2022 Net income $ 10,102 $ 32,692 Adjusted to exclude the
Slide 21: Key Operating Metrics
IBDROOT\PROJECTS\IBD-NY\GRIFFINS2019\645303_1\Presentations\2020.12.02 Roadshow Deck\2020.12.02 Roadshow v7.pptx Key Operating Metrics Key Operating Metrics We review a number of operating metrics, including number of loans transacted and conversion rate, to evaluate our business, measure our perfor
Slide 22: Non-GAAP Financial Metrics
IBDROOT\PROJECTS\IBD-NY\GRIFFINS2019\645303_1\Presentations\2020.12.02 Roadshow Deck\2020.12.02 Roadshow v7.pptx Non-GAAP Financial Metrics About Non-GAAP Financial Measures In addition to our results determined in accordance with generally accepted accounting principles in the United States (“GAAP”
Slide 23: Thank you
IBDROOT\PROJECTS\IBD-NY\GRIFFINS2019\645303_1\Presentations\2020.12.02 Roadshow Deck\2020.12.02 Roadshow v7.pptx CONFIDENTIAL Thank you Thank you!