Upstart Holdings, Inc. · NASDAQ:UPST

Upstart — Q4 2021 Earnings Presentation

27 slides from Upstart's earnings presentation, Feb 15, 2022

  1. Slide 1: Q4 and FY 2021 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 FY 2021 Earnings February 15, 2022

  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: Upstart's mission

    IBDROOT\PROJECTS\IBD-NY\GRIFFINS2019\645303_1\Presentations\2020.12.02 Roadshow Deck\2020.12.02 Roadshow v7.pptx Upstart’s mission Enable effortless credit based on true risk 3

  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 platform partnering with banks to improve access to affordable credit A leading AI lending platform with scale, rapid growth and profits Two-si

  5. Slide 5: Our value propositions to consumers and bank partners

    IBDROOT\PROJECTS\IBD-NY\GRIFFINS2019\645303_1\Presentations\2020.12.02 Roadshow Deck\2020.12.02 Roadshow v7.pptx Our value propositions to consumers and bank partners Higher approval rates, lower APRs 70% instantly approved - no document uploads, calls or waiting1 Consumers More inclusive - improved

  6. Slide 6: $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 Consumer Business Mortgage $ 1 $ 4 4.6T 644B Small Business Auto $ 2 727B Personal $ 3 96B 1 Total mortgage originations using data provided by TransUnion

  7. Slide 7: Q4'21 Key financial highlights

    IBDROOT\PROJECTS\IBD-NY\GRIFFINS2019\645303_1\Presentations\2020.12.02 Roadshow Deck\2020.12.02 Roadshow v7.pptx Q4’21 Key financial highlights Revenue, millions Revenue: $305M, up 252% Y|Y Income from Operations: $60.4M, up 481% Y|Y Contribution Profit: $149M, up 261% Y|Y, and representing 52% of fee

  8. Slide 8: FY21 Key financial highlights

    IBDROOT\PROJECTS\IBD-NY\GRIFFINS2019\645303_1\Presentations\2020.12.02 Roadshow Deck\2020.12.02 Roadshow v7.pptx FY21 Key financial highlights Revenue, millions Revenue: $849M, up 264% Y|Y Income from Operations: $141M, up 1,097% Y|Y Contribution Profit: $398M, up 279% Y|Y, and representing 50% of fee

  9. Slide 9: Auto opportunity update

    IBDROOT\PROJECTS\IBD-NY\GRIFFINS2019\645303_1\Presentations\2020.12.02 Roadshow Deck\2020.12.02 Roadshow v7.pptx Auto opportunity update Dealer Rooftops Expect $1.5B in FY22 Auto financing volume Auto loan originations Tripled dealership footprint Y|Y and grew 41% Q|Q Auto Refi funnel performance is n

  10. Slide 10: Q4'21 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 Q4’21 summary P&L and non-GAAP metrics (in millions, except ratios and per share data) Q4’21 Q3’21 Q|Q Q4’20 Y|Y Revenue $304.8 $228.4 33% $86.7 252% Revenue from Fees $287.4 $210.4 37% $

  11. Slide 11: FY21 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 FY21 summary P&L and non-GAAP metrics (in millions, except ratios and per share data) FY21 FY20 Y|Y Revenue $848.6 $233.4 264% Revenue from Fees $801.3 $228.6 251% Income from Operations

  12. Slide 12: 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) Q4’21 Q3’21 Q4’20 Cash and Restrict

  13. Slide 13: 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 Transaction Volume, Number of Loans (000s), Transaction Volume, Dollars (Millions) Conversion Rate(1) 1 In the third quarter of 2021, we modified our calculation of C

  14. Slide 14: Fully automated loans

    IBDROOT\PROJECTS\IBD-NY\GRIFFINS2019\645303_1\Presentations\2020.12.02 Roadshow Deck\2020.12.02 Roadshow v7.pptx Fully automated loans 70% of Upstart loans were fully automated and instantly approved in Q4’21 while fraud rates remained minimal Note: Fraud rate represents recorded instances of ID the

  15. Slide 15: Continued profitable growth

    IBDROOT\PROJECTS\IBD-NY\GRIFFINS2019\645303_1\Presentations\2020.12.02 Roadshow Deck\2020.12.02 Roadshow v7.pptx Continued profitable growth Q4’19 – Q4’21 Quarterly Financial Summary ($ ($ millions) mm) GAAP Total Revenue Contribution Profit GAAP Net Income / (Loss) Q4’19 Q1’20 Q2’20 Q3’20 Q4’20 Q1’21

  16. Slide 16: Outlook

    IBDROOT\PROJECTS\IBD-NY\GRIFFINS2019\645303_1\Presentations\2020.12.02 Roadshow Deck\2020.12.02 Roadshow v7.pptx Outlook Q1’22 FY22 Revenue $295 to $305 million approximately $1.4 billion Contribution Margin approximately 46% approximately 45% Net Income $18 to 22 million Non-GAAP Adjusted Net Incom

  17. 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) December 31, December 31, 2020 2021 Assets Cash $ 250,819 $ 986,608 Restricted cash 60,514 204,633 Loans (at fair valu

  18. Slide 18: 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, 2020 2021 2020 2021 Revenue: Revenue from fees, net $ 84,421 $

  19. Slide 19: 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, 2020 2021 Cash flows from operating activities Net income before attribution to noncontrolling

  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) Year Ended December 31, 2020 2021 Cash flows from investing activities Principal payments received for loans held by c

  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) Year Ended December 31, 2020 2021 Cash flows from financing activities Proceeds from initial public offering, net of u

  22. Slide 22: 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, 2020 2021 2020 2021 Revenue from fees, net $ 84,421 $ 28

  23. Slide 23: 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, 2020 2021 2020 2021 Total revenue $ 86,710 $ 304,848 $ 2

  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, and per share data) Three Months Ended Year Ended December 31, December 31, 2020 2021 2020 2021 Net income attri

  25. Slide 25: 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

  26. Slide 26: 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”

  27. Slide 27: 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 2021 Earnings Presentation on 6ix