Upstart Down In Premarket As Q2 Prel. Results Fall Below Its Guidance
Shares of Upstart Holdings, Inc. (UPST) are down more than 16% in pre-market on Friday after the company announced preliminary second-quarter results, below its guidance.
Upstart is an AI lending marketplace partnering with banks and credit unions.
The company expects revenue to be about $228 million, lower than the previous guidance of $295 million-$305 million. On average, 10 analysts polled by Thomson Reuters expect the company to report revenue of $297.68 million for the quarter.
Upstart expects to report net loss in the range of $31 million-$27 million in the second quarter, wider than $4 million loss to breakeven expected earlier.
“Our revenue was negatively impacted by two factors approximately equally. First, our marketplace is funding constrained, largely driven by concerns about the macroeconomy among lenders and capital market participants. Second, in Q2, we took action to convert loans on our balance sheet into cash, which, given the quickly increasing rate environment, negatively impacted our revenue,” said Dave Girouard, co-founder and CEO of Upstart.
UPST closed at $33.74, up 1.96% on Thursday.
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