Upstart Holdings, Inc. · NASDAQ:UPST

Upstart — Q2 2022 Earnings Presentation

25 slides from Upstart's earnings presentation, Aug 8, 2022

  1. Slide 1: Q2 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 Q2 FY 2022 Earnings August 8, 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: 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

  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: Q2'22 Key financial highlights

    IBDROOT\PROJECTS\IBD-NY\GRIFFINS2019\645303_1\Presentations\2020.12.02 Roadshow Deck\2020.12.02 Roadshow v7.pptx Q2’22 Key financial highlights Revenue, millions Revenue Contribution profit Revenue: $228M, up 18% Y|Y Income (Loss) from Operations: $(32.1M), down from $36.3M in Q2’21 Contribution Profit

  6. 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 Small Business Loans from $5K-$200K 73%

  7. 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

  8. 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 37 different OEMs including VW, Toyota, Ford, Honda, Subaru, Mitsubishi, Kia, & BMW. Tripled dealership footprin

  9. 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 $ 4 Mortgage 4.2T Small Business 644B Auto $ 2 770B Personal $ 3 129B 1 Total mortgage originations using data provided by TransUnion for Q1 2021 – Q4

  10. Slide 10: Q2'22 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 Q2’22 summary P&L and non-GAAP metrics (in millions, except ratios and per share data) Q2’22 Q1’22 Q|Q Q2’21 Y|Y Revenue $228.2 $310.1 (26%) $193.9 18% Revenue from Fees $258.3 $314.0 (18

  11. 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) Q2’22 Q1’22 Q2’21 Cash and Restrict

  12. Slide 12: 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) Q2’22 Q1’22 Testing and Evaluation (R&D) $484 $445 Auto $385 $230 Other $99 $215 Core Personal $140 $153 Total $624 $598 12

  13. Slide 13: 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 Q2’22 Q1’22 Q|Q Q2’21 Y|Y Number of Loans 311,245 454,483 (31.5%) 285,676 9.0% Transaction Dollars 3

  14. Slide 14: Loan Funding

    IBDROOT\PROJECTS\IBD-NY\GRIFFINS2019\645303_1\Presentations\2020.12.02 Roadshow Deck\2020.12.02 Roadshow v7.pptx Loan Funding (in millions, except ratios) Banks and Credit Unions Q2’22 Q1’22 Q|Q Q2’21 Y|Y Number of Loans 64,699 81,484 (20.6%) 44,019 47.0% Transaction Dollars $914 $1,078 (15.2%) $579

  15. Slide 15: Outlook

    IBDROOT\PROJECTS\IBD-NY\GRIFFINS2019\645303_1\Presentations\2020.12.02 Roadshow Deck\2020.12.02 Roadshow v7.pptx Outlook Q3’22 Revenue ~ $170 million Contribution Margin ~ 59% Net Income ~ $(42) million Non-GAAP Adjusted Net Income1 ~ $(9) million Adjusted EBITDA1 ~ $0 Diluted weighted average share

  16. 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) December 31, June 30, 2021 2022 Assets Cash $ 986,608 $ 790,431 Restricted cash 204,633 123,990 Loans (at fair value)

  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) Three Months Ended June 30, Six Months Ended June 30, 2021 2022 2021 2022 Revenue: Revenue from fees, net $ 187,297 $

  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) Six Months Ended June 30, 2021 2022 Cash flows from operating activities Net income $ 47,386 $ 2,821 Adjustments to re

  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) Six Months Ended June 30, 2021 2022 Cash flows from investing activities Purchase of loans held-for-investment (42,548

  20. 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) Three Months Ended June 30, Six Months Ended June 30, 2021 2022 2021 2022 Revenue from fees, net $ 187,297 $ 258

  21. Slide 21: 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 June 30, Six Months Ended June 30, 2021 2022 2021 2022 Total revenue $ 193,946 $ 228,162 $ 31

  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, and per share data) Three Months Ended June 30, Six Months Ended June 30, 2021 2022 2021 2022 Net income (loss)

  23. Slide 23: 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

  24. Slide 24: 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”

  25. Slide 25: 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 — Q2 2022 Earnings Presentation on 6ix