Upstart's Q1 Beat Sends Stock Soaring and Q2 Outlook Positive
Upstart Holdings' stock surged 31% in after-hours trading after the AI-powered lending platform reported better-than-expected Q1 earnings and provided a positive outlook for Q2, with expected break-even adjusted EBITDA and higher revenue. The company's Q1 revenue of $103.0M beat the consensus estimate, but dropped from the prior quarter and year-ago quarter. Upstart's bank partners originated fewer loans during the quarter, contributing to a decline in contribution profit and margin. Despite industry headwinds, Upstart secured multiple long-term funding agreements during the quarter.