Upstart Holdings, Inc. · NASDAQ:UPST

Upstart — Q4 2022 Earnings Presentation

29 slides from Upstart's earnings presentation, Feb 14, 2023

  1. Slide 1: Q4 and Fiscal Year 2022 Earnings

    IBDROOT\PROJECTS\IBD-NY\GRIFFINS2019\645303_1\Presentations\2020.12.02 Roadshow Deck\2020.12.02 Roadshow v7.pptx CONFIDENTIAL October 2020 Q4 and Fiscal Year 2022 Earnings February 14, 2023

  2. 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

  3. Slide 3: This is Upstart: mission to enable effortless credit

    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

  4. 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 marketplace partnering with banks and and credit unions to improve access to affordable credit Two-sided business consumers connected to AI-en

  5. Slide 5: Q4'22 Key financial highlights

    IBDROOT\PROJECTS\IBD-NY\GRIFFINS2019\645303_1\Presentations\2020.12.02 Roadshow Deck\2020.12.02 Roadshow v7.pptx Q4’22 Key financial highlights Revenue, millions Revenue Contribution profit Revenue: $147M, down 52% Y|Y Income (Loss) from Operations: ($58.5M), down from $60.4M in Q4’21 Contribution Pro

  6. Slide 6: FY 2022 Key financial highlights

    IBDROOT\PROJECTS\IBD-NY\GRIFFINS2019\645303_1\Presentations\2020.12.02 Roadshow Deck\2020.12.02 Roadshow v7.pptx FY 2022 Key financial highlights Revenue, millions Revenue Contribution profit Revenue: $842.4M, down 1% Y|Y Income (Loss) from Operations: ($113.9M), down from $140.9M in FY21 Contribution

  7. Slide 7: Personal Unsecured Lending

    Personal Unsecured Lending Model accuracy improved as much in last seven months as Bank and Credit Union Partners1 prior 2.5 years. Model automation reached its highest level to date at 82% Originated more than 24,000 small dollar loans in FY22. ● More than 12,000 small dollar loans in Q4. ● 88% of

  8. Slide 8: Auto Lending

    Auto Lending Successful pilot of auto lending at partner rooftops. Auto Dealer Rooftops4 ● Upstart funded greater than 20% of the total funded loans at participating dealerships.1 ● When presented with an Upstart loan offer, borrowers choose Upstart 42% of the time2. Announced the additions to auto r

  9. Slide 9: $5T annual loan origination TAM

    IBDROOT\PROJECTS\IBD-NY\GRIFFINS2019\645303_1\Presentations\2020.12.02 Roadshow Deck\2020.12.02 Roadshow v7.pptx $5T annual loan origination TAM $ 1 $ 4 Mortgage 3.3T Small Business 644B $ 2 Auto 780B Personal $ 3 162B 1 Total mortgage originations using data provided by TransUnion for Q3 2021 – Q2

  10. Slide 10: Upstart's model provides about 4X more risk separation than FICO

    IBDROOT\PROJECTS\IBD-NY\GRIFFINS2019\645303_1\Presentations\2020.12.02 Roadshow Deck\2020.12.02 Roadshow v7.pptx Upstart’s model provides about 4X more risk separation than FICO Upstart separates risk significantly better than FICO (annualized default rates)1 Upstart Risk Grades A+ B C D E- Average 7

  11. Slide 11: Upstart Macro Index (UMI)

    IBDROOT\PROJECTS\IBD-NY\GRIFFINS2019\645303_1\Presentations\2020.12.02 Roadshow Deck\2020.12.02 Roadshow v7.pptx Upstart Macro Index (UMI) Upstart Macro Index1 is designed to measure the impact of the external macro environment on loan defaults in our particular borrower portfolio, by controlling fo

  12. Slide 12: Upstart platform performance vs target is recovering

    IBDROOT\PROJECTS\IBD-NY\GRIFFINS2019\645303_1\Presentations\2020.12.02 Roadshow Deck\2020.12.02 Roadshow v7.pptx Upstart platform performance vs target is recovering1 Target cash flows Expected cash flows Over/under performance Upside/downside range Against a target of approximately 8% gross return si

  13. Slide 13: Q4'22 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 Q4’22 summary P&L and non-GAAP metrics (in millions, except ratios and per share data) Q4’22 Q3’22 Q|Q Q4’21 Y|Y Revenue $146.9 $157.2 (7%) $304.8 (52%) Revenue from Fees $155.6 $179.3 (1

  14. Slide 14: FY22 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 FY22 summary P&L and non-GAAP metrics (in millions, except ratios and per share data) FY22 FY21 Y|Y Revenue $842.4 $848.6 (1%) Revenue from Fees $907.3 $801.3 13% Income (Loss) from ($113

  15. Slide 15: 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) Q4’22 Q3’22 Q4’21 Cash and Restrict

  16. Slide 16: Loans Held on Balance sheet

    IBDROOT\PROJECTS\IBD-NY\GRIFFINS2019\645303_1\Presentations\2020.12.02 Roadshow Deck\2020.12.02 Roadshow v7.pptx Loans Held on Balance sheet (in millions, except ratios) Q4’22 Q3’22 Q2’22 Q1’22 Testing and $492 $451 $484 $445 Evaluation (R&D)1 Auto $398 $398 $385 $230 Other $94 $53 $99 $215 Core Per

  17. Slide 17: Lending by Product

    IBDROOT\PROJECTS\IBD-NY\GRIFFINS2019\645303_1\Presentations\2020.12.02 Roadshow Deck\2020.12.02 Roadshow v7.pptx Lending by Product (in millions, except number of loans and ratios) Personal Unsecured Q4’22 Q3’22 Q|Q Q4’21 Y|Y Number of Loans 152,120 185,663 (18%) 493,500 (69%) Transaction Dollars $1

  18. Slide 18: Lending by Product

    IBDROOT\PROJECTS\IBD-NY\GRIFFINS2019\645303_1\Presentations\2020.12.02 Roadshow Deck\2020.12.02 Roadshow v7.pptx Lending by Product (in millions, except number of loans and ratios) Personal Unsecured FY22 FY21 Y|Y Number of Loans 1,103,511 1,308,814 (16%) Transaction Dollars $10,677 $11,648 (8%) Aut

  19. Slide 19: Outlook

    IBDROOT\PROJECTS\IBD-NY\GRIFFINS2019\645303_1\Presentations\2020.12.02 Roadshow Deck\2020.12.02 Roadshow v7.pptx Outlook Q1’23 Revenue ~ $100 million Revenue From Fees ~$110 million Net Interest Income (Loss) ~($10) million Contribution Margin ~ 55% Net Income (Loss) ~ ($145) million Non-GAAP Adjust

  20. Slide 20: 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, December 31, 2021 2022 Assets Cash $ 986,608 $ 422,411 Restricted cash 204,633 110,056 Loans (at fair val

  21. Slide 21: 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 Year Ended December 31, December 31, 2021 2022 2021 2022 Revenue: Revenue from fees, net $ 287,387

  22. Slide 22: 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) Year Ended December 31, 2021 2022 Cash flows from operating activities Net income (loss) $ 135,443 $ (108,665) Adjustm

  23. Slide 23: 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) Year Ended December 31, 2021 2022 Cash flows from investing activities Purchase of loans held-for-investment (159,398)

  24. Slide 24: 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 Year Ended December 31, December 31 2021 2022 2021 2022 Revenue from fees, net $ 287,387 $ 15

  25. Slide 25: 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) Year Ended Three Months Ended December 31, December 31 2021 2022 2021 2022 Total revenue $ 304,848 $ 146,913 $ 8

  26. Slide 26: 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) Year Ended Three Months Ended December 31, December 31 2021 2022 2021 2022 Net income (loss)

  27. Slide 27: 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 transaction volume, $; transaction volume, number of loans; conversion rate; and percentage

  28. Slide 28: 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”

  29. Slide 29: 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!

Upstart Holdings — Q4 2022 Earnings Presentation on 6ix