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Upstart Announces Third Quarter 2024 Results

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Upstart Holdings, Inc. (NASDAQ: UPST), leading AI lending marketplace, announced its third-quarter 2024 results, ending September 30, 2024. Revenue reached $162 million, a 20% increase YoY and 27% sequentially. Total fee revenue was $168 million, up 14% YoY and 28% sequentially. 188,149 loans were originated, totaling $1.6 billion, up 30% YoY and 43% sequentially. Conversion rate improved to 16.3% from 9.5% YoY. Despite a GAAP net loss of $6.8 million, an improvement from the $40.3 million loss YoY, adjusted net loss was $5.3 million, down from $3.9 million YoY. Adjusted EBITDA was $1.4 million, down from $2.3 million YoY. For Q4 2024, Upstart projects revenue of $180 million and adjusted EBITDA of $5 million.

Upstart Holdings, Inc. (NASDAQ: UPST), il principale marketplace di prestiti basato su AI, ha annunciato i risultati del terzo trimestre 2024, chiuso il 30 settembre 2024. I ricavi hanno raggiunto 162 milioni di dollari, con un incremento del 20% rispetto all'anno precedente e del 27% rispetto al trimestre precedente. Il totale dei ricavi da commissioni è stato di 168 milioni di dollari, in aumento del 14% su base annua e del 28% in sequenza. Sono stati originati 188.149 prestiti, per un totale di 1,6 miliardi di dollari, con una crescita del 30% rispetto all'anno precedente e del 43% rispetto al trimestre precedente. Il tasso di conversione è migliorato, passando dal 9,5% al 16,3% su base annua. Nonostante una perdita netta GAAP di 6,8 milioni di dollari, in miglioramento rispetto alla perdita di 40,3 milioni di dollari dell'anno precedente, la perdita netta rettificata è stata di 5,3 milioni di dollari, in calo rispetto ai 3,9 milioni di dollari dell'anno precedente. L'EBITDA rettificato è stato di 1,4 milioni di dollari, in calo rispetto ai 2,3 milioni di dollari dell'anno precedente. Per il quarto trimestre 2024, Upstart prevede ricavi di 180 milioni di dollari e un EBITDA rettificato di 5 milioni di dollari.

Upstart Holdings, Inc. (NASDAQ: UPST), el principal mercado de préstamos basado en IA, anunció sus resultados para el tercer trimestre de 2024, finalizando el 30 de septiembre de 2024. Los ingresos alcanzaron 162 millones de dólares, un aumento del 20% interanual y del 27% secuencial. El ingreso total por comisiones fue de 168 millones de dólares, un aumento del 14% interanual y del 28% secuencial. Se originaron 188,149 préstamos, totalizando 1.6 mil millones de dólares, un incremento del 30% interanual y del 43% secuencial. La tasa de conversión mejoró al 16.3% desde el 9.5% interanual. A pesar de una pérdida neta GAAP de 6.8 millones de dólares, mejora respecto a la pérdida de 40.3 millones de dólares del año anterior, la pérdida neta ajustada fue de 5.3 millones de dólares, una disminución desde los 3.9 millones de dólares del año anterior. El EBITDA ajustado fue de 1.4 millones de dólares, bajando desde los 2.3 millones de dólares del año anterior. Para el cuarto trimestre de 2024, Upstart proyecta ingresos de 180 millones de dólares y un EBITDA ajustado de 5 millones de dólares.

업스타트 홀딩스(나스닥: UPST), 선도적인 AI 대출 시장,은 2024년 3분기 결과를 발표했습니다. 2024년 9월 30일로 종료되었습니다. 수익은 1억 6200만 달러에 도달했으며, 이는 전년 대비 20% 증가하고, 직전 분기 대비 27% 증가한 것입니다. 총 수수료 수익은 1억 6800만 달러로, 전년 대비 14%, 직전 분기 대비 28% 증가했습니다. 188,149건의 대출이 실행되었으며, 총액은 16억 달러로, 전년 대비 30%, 직전 분기 대비 43% 증가했습니다. 전환율은 전년 대비 9.5%에서 16.3%로 개선되었습니다. GAAP 기준으로는 680만 달러의 순손실을 기록했으나, 이는 전년의 4천30만 달러 손실보다 개선된 것입니다. 조정된 순손실은 530만 달러로, 전년의 390만 달러에서 감소했습니다. 조정된 EBITDA는 140만 달러로, 전년의 230만 달러에서 감소했습니다. 2024년 4분기 동안 Upstart는 1억 8000만 달러의 수익과 500만 달러의 조정된 EBITDA를 예측하고 있습니다.

Upstart Holdings, Inc. (NASDAQ: UPST), le principal marché de prêts basé sur l'IA, a annoncé ses résultats pour le troisième trimestre 2024, clos le 30 septembre 2024. Le chiffre d'affaires a atteint 162 millions de dollars, soit une augmentation de 20 % par rapport à l'année précédente et de 27 % par rapport au trimestre précédent. Le chiffre d'affaires total des commissions s'est établi à 168 millions de dollars, en hausse de 14 % par rapport à l'année précédente et de 28 % par rapport au trimestre précédent. 188 149 prêts ont été consentis, totalisant 1,6 milliard de dollars, soit une hausse de 30 % par rapport à l'année précédente et de 43 % par rapport au trimestre précédent. Le taux de conversion s'est amélioré à 16,3 %, contre 9,5 % l'année précédente. Malgré une perte nette GAAP de 6,8 millions de dollars, une amélioration par rapport à la perte de 40,3 millions de dollars de l'année précédente, la perte nette ajustée s'est élevée à 5,3 millions de dollars, en baisse par rapport à 3,9 millions de dollars l'année précédente. L'EBITDA ajusté s'élevait à 1,4 million de dollars, en baisse par rapport à 2,3 millions de dollars l'année précédente. Pour le quatrième trimestre 2024, Upstart prévoit un chiffre d'affaires de 180 millions de dollars et un EBITDA ajusté de 5 millions de dollars.

Upstart Holdings, Inc. (NASDAQ: UPST), der führende AI-Kreditmarktplatz, hat seine Ergebnisse für das dritte Quartal 2024 bekannt gegeben, das am 30. September 2024 endet. Der Umsatz erreichte 162 Millionen Dollar, was einem Anstieg von 20 % im Vergleich zum Vorjahr und 27 % im Vergleich zum vorherigen Quartal entspricht. Der gesamte Gebührenumsatz belief sich auf 168 Millionen Dollar, was einem Anstieg von 14 % im Vergleich zum Vorjahr und 28 % im Vergleich zum vorherigen Quartal entspricht. Es wurden 188.149 Kredite vergeben, die insgesamt 1,6 Milliarden Dollar ergeben, was einem Anstieg von 30 % im Vergleich zum Vorjahr und 43 % im Vergleich zum vorherigen Quartal entspricht. Die Konversionsrate verbesserte sich auf 16,3 % von 9,5 % im Vorjahresvergleich. Trotz eines GAAP-Nettoverlusts von 6,8 Millionen Dollar, einer Verbesserung gegenüber dem Nettoverlust von 40,3 Millionen Dollar im Vorjahr, betrug der bereinigte Nettoverlust 5,3 Millionen Dollar, ein Rückgang von 3,9 Millionen Dollar im Vorjahresvergleich. Das bereinigte EBITDA betrug 1,4 Millionen Dollar, nach einem Rückgang von 2,3 Millionen Dollar im Vorjahr. Für das vierte Quartal 2024 erwartet Upstart einen Umsatz von 180 Millionen Dollar und ein bereinigtes EBITDA von 5 Millionen Dollar.

Positive
  • Revenue increased 20% YoY to $162 million.
  • Total fee revenue rose 14% YoY to $168 million.
  • Loan origination volume surged 30% YoY to 188,149 loans totaling $1.6 billion.
  • Conversion rate improved to 16.3% from 9.5% YoY.
  • GAAP net loss improved to $6.8 million from $40.3 million YoY.
Negative
  • Income (loss) from operations was ($45.2) million, down from ($43.8) million YoY.
  • Adjusted net income (loss) was ($5.3) million, down from ($3.9) million YoY.
  • Contribution margin declined to 61% from 64% YoY.
  • Adjusted EBITDA margin decreased to 1% from 2% YoY.

Insights

The Q3 results show mixed signals with some positive momentum. Revenue grew 20% YoY to $162 million and transaction volume increased 30% YoY to $1.6 billion. The sequential growth is particularly noteworthy - revenue up 27% and lending volume up 43% quarter-over-quarter.

However, profitability remains challenging. While the company returned to positive adjusted EBITDA of $1.4 million, this represents a decline from $2.3 million last year. The operating loss widened slightly to $45.2 million. The improved net loss of $6.8 million vs $40.3 million last year appears largely due to non-operational factors.

The Q4 guidance suggests continued sequential growth but ongoing profitability challenges, with projected revenue of $180 million but a net loss of $35 million. The improved conversion rate of 16.3% vs 9.5% last year is a positive operational indicator.

SAN MATEO, Calif.--(BUSINESS WIRE)-- Upstart Holdings, Inc. (NASDAQ: UPST), the leading artificial intelligence (AI) lending marketplace, today announced financial results for its third quarter of fiscal year 2024 ended September 30, 2024. Upstart will host a conference call and webcast at 1:30 p.m. Pacific Time today. An earnings presentation and link to the webcast are available at ir.upstart.com.

“With 43% sequential growth in lending volume and a return to positive adjusted EBITDA, we continue to strengthen Upstart’s position as the fintech leader in artificial intelligence,” said Dave Girouard, co-founder and CEO of Upstart. “Even without a significant boost from the macroeconomy, we’re back in growth mode.”

Third Quarter 2024 Financial Highlights

  • Revenue. Total revenue was $162 million, an increase of 20% from the third quarter of 2023, and up 27% sequentially. Total fee revenue was $168 million, an increase of 14% year-over-year, and up 28% sequentially.
  • Transaction Volume and Conversion Rate. 188,149 loans were originated, totaling $1.6 billion across our platform in the third quarter of 2024, up 30% from the same quarter of the prior year, and up 43% sequentially. Conversion on rate requests was 16.3% in the third quarter of 2024, up from 9.5% in the same quarter of the prior year.
  • Income (Loss) from Operations. Income (loss) from operations was ($45.2) million, down from ($43.8) million in the same quarter of the prior year.
  • Net Income (Loss) and EPS. GAAP net income (loss) was ($6.8) million, up from ($40.3) million in the third quarter of the prior year. Adjusted net income (loss) was ($5.3) million, down from ($3.9) million in the same quarter of the prior year. Accordingly, GAAP diluted earnings per share was ($0.07), and diluted adjusted earnings per share was ($0.06) based on the weighted-average common shares outstanding during the quarter.
  • Contribution Profit. Contribution profit was $102.4 million in the third quarter of 2024, up 9% year-over-year, with a contribution margin of 61% compared to a 64% contribution margin in the same quarter of the prior year.
  • Adjusted EBITDA. Adjusted EBITDA was $1.4 million, down from $2.3 million in the same quarter of the prior year. The third quarter 2024 Adjusted EBITDA margin was 1% of total revenue, down from 2% in the same quarter of the prior year.

Financial Outlook

For the fourth quarter of 2024, Upstart expects:

  • Revenue of approximately $180 million
    • Revenue From Fees of approximately $185 million
    • Net Interest Income (Loss) of approximately ($5) million
  • Contribution Margin of approximately 59%
  • Net Income (Loss) of approximately ($35) million
  • Adjusted Net Income (Loss) of approximately ($5) million
  • Adjusted EBITDA of approximately $5 million
  • Basic Weighted-Average Share Count of approximately 91.7 million shares
  • Diluted Weighted-Average Share Count of approximately 91.7 million shares

Upstart has not reconciled the forward-looking non-GAAP measures above to comparable forward-looking GAAP measures because of the potential variability and uncertainty of incurring these costs and expenses in the future. Accordingly, a reconciliation is not available without unreasonable effort.

Key Operating Metrics and Non-GAAP Financial Measures

For a description of our key operating measures, please see the section titled “Key Operating Metrics” below.

Reconciliations of non-GAAP financial measures to the most directly comparable financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see the section titled "About Non-GAAP Financial Measures” below.

Conference Call and Webcast

  • Live Conference Call and Webcast at 1:30 p.m. PT on November 7, 2024. To access the call in the United States and Canada: +1 888-394-8218, conference code 8726199. To access the call outside of the United States and Canada: +1 313-209-4906, conference code 8726199. A webcast is available at ir.upstart.com.
  • Event Replay. A webcast of the event will be archived for one year at ir.upstart.com.

About Upstart

Upstart (NASDAQ: UPST) is the leading AI lending marketplace, connecting millions of consumers to more than 100 banks and credit unions that leverage Upstart’s AI models and cloud applications to deliver superior credit products. With Upstart AI, lenders can approve more borrowers at lower rates across races, ages, and genders, while delivering the exceptional digital-first experience customers demand. More than 80% of borrowers are approved instantly, with zero documentation to upload. Founded in 2012, Upstart’s platform includes personal loans, automotive retail and refinance loans, home equity lines of credit, and small-dollar “relief” loans. Upstart is based in San Mateo, California, and also has offices in Columbus, Ohio and Austin, Texas.

Forward-Looking Statements

This press release contains forward-looking statements, including but not limited to, statements regarding our outlook for the fourth quarter of 2024, continuing to strengthen our position as the FinTech leader in artificial intelligence, and our return to growth mode. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as "anticipate", "estimate", "expect", "project", "plan", "intend", “target”, “aim”, "believe", "may", "will", "should", “becoming”, “look forward”, “could”, "can have", "likely" and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. Forward-looking statements give our current expectations and projections relating to our financial condition; macroeconomic factors; plans; objectives; product development; growth opportunities; assumptions; risks; future performance; business; investments; and results of operations, including revenue (including revenue from fees and net interest income (loss)), contribution margin, net income (loss), non-GAAP adjusted net income (loss), Adjusted EBITDA, basic weighted-average share count and diluted weighted-average share count. Neither we nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. The forward-looking statements included in this press release and on the related conference call and webcast relate only to events as of the date hereof. Upstart undertakes no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that we expected. More information about factors that could affect our results of operations and risks and uncertainties are provided in our public filings with the Securities and Exchange Commission (the "SEC"), copies of which may be obtained by visiting our investor relations website at www.upstart.com or the SEC’s website at www.sec.gov. These risks and uncertainties include, but are not limited to, our ability to manage the adverse effects of macroeconomic conditions and disruptions in the banking sector and credit markets, including inflation and related changes in interest rates and monetary policy; our ability to access sufficient loan funding, including through securitizations, committed capital and other co-investment arrangements, whole loan sales, and warehouse credit facilities; the effectiveness of our credit decisioning models and risk management efforts, including reflecting the impact of macroeconomic conditions on borrowers' credit risk; our ability to retain existing, and attract new, lending partners; our future growth prospects and financial performance; our ability to manage risks associated with the loans on our balance sheet; our ability to improve and expand our platform and products; and our ability to operate successfully in a highly-regulated industry.

Key Operating Metrics

We review a number of operating metrics, including transaction volume, dollars; transaction volume, number of loans; and conversion rate to evaluate our business, measure our performance, identify trends affecting our business, formulate business plans and make strategic decisions.

We define “transaction volume, dollars” as the total principal of loan originations (or committed amounts for HELOCs) facilitated on our marketplace during the periods presented. We define “transaction volume, number of loans” as the number of loan originations (or commitments issued for HELOCs) facilitated on our marketplace during the periods presented. We believe these metrics are good proxies for our overall scale and reach as a platform.

We define “conversion rate” as the transaction volume, number of loans in a period divided by the number of rate inquiries received that we estimate to be legitimate, which we record when a borrower requests a loan offer on our platform. We track this metric to understand the impact of improvements to the efficiency of our borrower funnel on our overall growth.

About Non-GAAP Financial Measures

In addition to our results determined in accordance with generally accepted accounting principles in the United States (“GAAP”), we believe the non-GAAP measures of Contribution Profit, Contribution Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income (Loss), and Adjusted Net Income (Loss) Per Share are useful in evaluating our operating performance. Certain of these non-GAAP measures exclude stock-based compensation and certain payroll tax expense, expense on convertible notes, depreciation, amortization, as well as certain items that are not related to core business and ongoing operations, such as gain on debt extinguishment and reorganization expenses. We exclude stock-based compensation, expense on convertible notes and other non-operating expenses because they are non-cash in nature and are excluded in order to facilitate comparisons to other companies’ results.

We believe non-GAAP information is useful in evaluating the operating results, ongoing operations, and for internal planning and forecasting purposes. We also believe that non-GAAP financial measures provide consistency and comparability with past financial performance and assist investors with comparing Upstart to other companies, some of which use similar non-GAAP financial measures to supplement their GAAP results. However, non-GAAP financial measures are presented for supplemental informational purposes only and should not be considered a substitute for, or superior to, financial information presented in accordance with GAAP and may be different from similarly titled non-GAAP financial measures used by other companies.

Key limitations of our non-GAAP financial measures include:

  • Contribution Profit and Contribution Margin are not GAAP financial measures of, nor do they imply, profitability. Even if our revenue exceeds variable expenses over time, we may not be able to achieve or maintain profitability, and the relationship of revenue to variable expenses is not necessarily indicative of future performance;
  • Contribution Profit and Contribution Margin do not reflect all of our variable expenses and involve some judgment and discretion around what costs vary directly with loan volume. Other companies that present contribution profit and contribution margin may calculate it differently and, therefore, similarly titled measures presented by other companies may not be directly comparable to ours;
  • Although depreciation expense is a non-cash charge, the assets being depreciated may have to be replaced in the future, and Adjusted EBITDA and Adjusted EBITDA Margin do not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements;
  • Adjusted EBITDA and Adjusted EBITDA Margin exclude stock-based compensation expense and certain employer payroll taxes on employee stock transactions. Stock-based compensation expense has been, and will continue to be for the foreseeable future, a significant recurring expense for our business and an important part of our compensation strategy. The amount of employer payroll tax-related expense on employee stock transactions is dependent on our stock price and other factors that are beyond our control and which may not correlate to the operation of the business;
  • Adjusted EBITDA and Adjusted EBITDA Margin do not reflect: (1) changes in, or cash requirements for, our working capital needs; (2) interest expense, or the cash requirements necessary to service interest or principal payments on our debt, which reduces cash available to us; or (3) tax payments that may represent a reduction in cash available to us; and
  • The expenses and other items that we exclude in our calculation of Adjusted EBITDA and Adjusted EBITDA Margin may differ from the expenses and other items, if any, that other companies may exclude from adjusted EBITDA and adjusted EBITDA margin when they report their operating results.

Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included below.

UPSTART HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In Thousands, Except Share and Per Share Data)

(Unaudited)

 

 

December 31,

 

September 30,

 

2023

 

2024

Assets

 

 

 

Cash

$

368,405

 

$

445,274

Restricted cash

 

99,382

 

 

210,493

Loans (at fair value)(1)

 

1,156,413

 

 

656,120

Property, equipment, and software, net

 

42,655

 

 

38,328

Operating lease right of use assets

 

54,694

 

 

46,318

Beneficial interest assets (at fair value)

 

41,012

 

 

131,483

Non-marketable equity securities

 

41,250

 

 

41,250

Goodwill

 

67,062

 

 

67,062

Other assets (includes $48,897 and $70,676 at fair value as of December 31, 2023 and September 30, 2024, respectively)

 

146,227

 

 

172,652

Total assets

$

2,017,100

 

$

1,808,980

Liabilities and Stockholders’ Equity

 

 

 

Liabilities:

 

 

 

Payable to investors

$

53,580

 

$

60,778

Borrowings

 

1,040,424

 

 

887,367

Payable to securitization note holders (at fair value)

 

141,416

 

 

100,335

Accrued expenses and other liabilities (includes $10,510 and $18,671 at fair value as of December 31, 2023 and September 30, 2024, respectively)

 

84,051

 

 

111,616

Operating lease liabilities

 

62,324

 

 

53,348

Total liabilities

 

1,381,795

 

 

1,213,444

Stockholders’ equity:

 

 

 

Common stock, $0.0001 par value; 700,000,000 shares authorized; 86,330,303 and 90,998,255, shares issued and outstanding as of December 31, 2023 and September 30, 2024, respectively

 

9

 

 

9

Additional paid-in capital

 

917,872

 

 

1,003,929

Accumulated deficit

 

(282,576)

 

 

(408,402)

Total stockholders’ equity

 

635,305

 

 

595,536

Total liabilities and stockholders’ equity

$

2,017,100

 

$

1,808,980

(1)

Includes $179.1 million and $118.5 million of loans, at fair value, contributed as collateral for the consolidated securitization as of December 31, 2023 and September 30, 2024, respectively.

UPSTART HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS and COMPREHENSIVE LOSS

(In Thousands, Except Share and Per Share Data)

(Unaudited)

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2023

 

2024

 

2023

 

2024

Revenue:

 

 

 

 

 

 

 

Revenue from fees, net

$

146,755

 

$

167,590

 

$

407,585

 

$

436,190

Interest income, interest expense, and fair value adjustments, net:

 

 

 

 

 

 

 

Interest income(1)

 

37,692

 

 

40,845

 

 

116,923

 

 

144,899

Interest expense(1)

 

(9,414)

 

 

(10,818)

 

 

(20,828)

 

 

(33,002)

Fair value and other adjustments(1)

 

(40,476)

 

 

(35,477)

 

 

(130,430)

 

 

(130,523)

Total interest income, interest expense, and fair value adjustments, net

 

(12,198)

 

 

(5,450)

 

 

(34,335)

 

 

(18,626)

Total revenue

 

134,557

 

 

162,140

 

 

373,250

 

 

417,564

Operating expenses:

 

 

 

 

 

 

 

Sales and marketing

 

33,042

 

 

43,229

 

 

88,371

 

 

111,337

Customer operations

 

36,914

 

 

39,302

 

 

114,301

 

 

117,394

Engineering and product development

 

54,941

 

 

64,887

 

 

222,986

 

 

186,431

General, administrative, and other

 

53,505

 

 

59,874

 

 

156,616

 

 

170,508

Total operating expenses

 

178,402

 

 

207,292

 

 

582,274

 

 

585,670

Loss from operations

 

(43,845)

 

 

(45,152)

 

 

(209,024)

 

 

(168,106)

Other income, net

 

3,540

 

 

5,078

 

 

11,334

 

 

8,993

Gain on debt extinguishment

 

 

 

33,361

 

 

 

 

33,361

Net loss before income taxes

 

(40,305)

 

 

(6,713)

 

 

(197,690)

 

 

(125,752)

Provision for income taxes

 

10

 

 

45

 

 

44

 

 

74

Net loss

$

(40,315)

 

$

(6,758)

 

$

(197,734)

 

$

(125,826)

 

 

 

 

 

 

 

 

Net loss per share, basic

$

(0.48)

 

$

(0.07)

 

$

(2.38)

 

$

(1.42)

Net loss per share, diluted

$

(0.48)

 

$

(0.07)

 

$

(2.38)

 

$

(1.42)

Weighted-average number of shares outstanding used in computing net loss per share, basic

 

84,404,966

 

 

90,119,481

 

 

83,158,146

 

 

88,534,495

Weighted-average number of shares outstanding used in computing net loss per share, diluted

 

84,404,966

 

 

90,119,481

 

 

83,158,146

 

 

88,534,495

(1)

Balances for the three and nine months ended September 30, 2023 include $10.0 million of interest income, ($3.8) million of interest expense, and $0.4 million of fair value and other adjustments, net related to the consolidated securitization. Balances for the three months ended September 30, 2024 include $6.7 million of interest income, ($2.3) million of interest expense, and ($5.7) million of fair value and other adjustments, net related to the consolidated securitization. Balances for the nine months ended September 30, 2024 include $23.1 million of interest income, ($7.5) million of interest expense, and ($25.6) million of fair value and other adjustments, net related to the consolidated securitization.

UPSTART HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

(Unaudited)

 

 

Nine Months Ended
September 30,

 

2023

 

2024

Cash flows from operating activities

 

 

 

Net loss

$

(197,734)

 

$

(125,826)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

Change in fair value of loans

 

131,222

 

 

167,545

Change in fair value of servicing assets

 

16,888

 

 

12,838

Change in fair value of servicing liabilities

 

(1,655)

 

 

(877)

Change in fair value of beneficial interest assets

 

9,128

 

 

(35,825)

Change in fair value of beneficial interest liabilities

 

(848)

 

 

12,633

Change in fair value of other financial instruments

 

(3,418)

 

 

8,263

Stock-based compensation

 

142,273

 

 

103,604

Gain on loan servicing rights, net

 

(10,432)

 

 

(11,448)

Gain on debt extinguishment

 

 

 

(33,361)

Depreciation and amortization

 

15,800

 

 

15,850

Non-cash interest expense

 

2,296

 

 

2,156

Other

 

(2,260)

 

 

(10,874)

Net changes in operating assets and liabilities:

 

 

 

Purchases of loans held-for-sale

 

(2,076,734)

 

 

(2,626,246)

Proceeds from sale of loans held-for-sale

 

1,875,358

 

 

2,613,039

Principal payments received for loans held-for-sale

 

139,582

 

 

157,010

Principal payments received for loans held by consolidated securitization

 

12,302

 

 

36,532

Payments on beneficial interest liabilities

 

 

 

(3,692)

Other assets

 

27

 

 

(2,110)

Operating lease liability and right-of-use asset

 

1,563

 

 

(600)

Payable to investors for beneficial interest assets(1)

 

5,749

 

 

Accrued expenses and other liabilities

 

(25,220)

 

 

18,646

Net cash provided by operating activities

 

33,887

 

 

297,257

 

 

 

 

Cash flows from investing activities

 

 

 

Purchases and originations of loans held-for-investment

 

(121,294)

 

 

(196,580)

Proceeds from sale of loans held-for-investment

 

774

 

 

Principal payments received for loans held-for-investment

 

78,327

 

 

99,768

Principal payments received for notes receivable and repayments of residual

 

3,556

 

 

4,004

Purchases of property and equipment

 

(1,285)

 

 

(837)

Capitalized software costs

 

(9,135)

 

 

(5,734)

Acquisition of beneficial interest assets

 

(39,505)

 

 

(63,246)

Proceeds from beneficial interest assets

 

 

 

2,808

Net cash used in investing activities

 

(88,562)

 

 

(159,817)

 

 

 

 

Cash flows from financing activities

 

 

 

Proceeds from warehouse borrowings

 

529,494

 

 

297,587

Proceeds from convertible notes issuance, net of debt issuance costs paid to lender

 

 

 

423,002

Payment of debt issuance costs to third party

 

 

 

(1,455)

Repayments of warehouse borrowings

 

(514,792)

 

 

(293,179)

Payments for repurchases of convertible notes

 

 

 

(325,344)

Purchase of capped calls

 

 

 

(40,883)

Settlement of capped calls

 

 

 

580

Principal payments made on securitization notes

 

(10,016)

 

 

(42,705)

Payable to investors(1)

 

(50,668)

 

 

12,990

Proceeds from issuance of securitization notes

 

165,318

 

 

Proceeds from issuance of common stock under employee stock purchase

 

8,431

 

 

7,685

Proceeds from exercise of stock options

 

9,475

 

 

12,281

Taxes paid related to net share settlement of equity awards

 

(6)

 

 

(19)

Net cash provided by financing activities

 

137,236

 

 

50,540

Change in cash and restricted cash

 

82,561

 

 

187,980

Cash and restricted cash

 

 

 

Cash and restricted cash at beginning of period

 

532,467

 

 

467,787

Cash and restricted cash at end of period

$

615,028

 

$

655,767

(1)

During the nine months ended September 30, 2024, the Company elected to change the presentation of changes in payable to investors balance on the condensed consolidated statement of cash flows. Under the new presentation, a portion of the payable to investors balance related to fiduciary cash was reclassified from operating to financing activities.

UPSTART HOLDINGS, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In Thousands, Except Share and Per Share Data)

(Unaudited)

 

 

Three Months Ended
September 30,

Nine Months Ended
September 30,

 

2023

 

2024

 

2023

 

2024

Revenue from fees, net

$

146,755

 

$

167,590

 

$

407,585

 

$

436,190

Loss from operations

 

(43,845)

 

 

(45,152)

 

 

(209,024)

 

 

(168,106)

Operating Margin

 

(30)%

 

 

(27)%

 

 

(51)%

 

 

(39)%

Sales and marketing, net of borrower acquisition costs(1)

$

9,444

 

$

10,480

 

$

26,012

 

$

30,552

Customer operations, net of borrower verification and servicing costs(2)

 

7,911

 

 

6,837

 

 

26,774

 

 

21,624

Engineering and product development

 

54,941

 

 

64,887

 

 

222,986

 

 

186,431

General, administrative, and other

 

53,505

 

 

59,874

 

 

156,616

 

 

170,508

Interest income, interest expense, and fair value adjustments, net

 

12,198

 

 

5,450

 

 

34,335

 

 

18,626

Contribution Profit

$

94,154

 

$

102,376

 

$

257,699

 

$

259,635

Contribution Margin

 

64%

 

 

61%

 

 

63%

 

 

60%

(1)

 

Borrower acquisition costs were $23.6 million and $32.7 million for the three months ended September 30, 2023 and 2024, respectively, and $62.4 million and $80.8 million for nine months ended September 30, 2023 and 2024, respectively. Borrower acquisition costs consist of our sales and marketing expenses adjusted to exclude costs not directly attributable to attracting a new borrower, such as payroll-related expenses for our business development and marketing teams, as well as other operational, brand awareness and marketing activities. These costs do not include reorganization expenses.

(2)

 

Borrower verification and servicing costs were $29.0 million and $32.5 million for the three months ended September 30, 2023 and 2024, respectively, and $87.5 million and $95.8 million for nine months ended September 30, 2023 and 2024. Borrower verification and servicing costs consist of payroll and other personnel-related expenses for personnel engaged in loan onboarding, verification and servicing, as well as servicing system costs. It excludes payroll and personnel-related expenses and stock-based compensation for certain members of our customer operations team whose work is not directly attributable to onboarding and servicing loans. These costs do not include reorganization expenses.

UPSTART HOLDINGS, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In Thousands, Except Share and Per Share Data)

(Unaudited)

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2023

 

2024

 

2023

 

2024

Total revenue

$

134,557

 

$

162,140

 

$

373,250

 

$

417,564

Net loss

 

(40,315)

 

 

(6,758)

 

 

(197,734)

 

 

(125,826)

Net Loss Margin

 

(30)%

 

 

(4)%

 

 

(53)%

 

 

(30)%

Adjusted to exclude the following:

 

 

 

 

 

 

 

Stock-based compensation and certain payroll tax expenses(1)

$

36,446

 

$

34,794

 

$

144,991

 

$

107,639

Depreciation and amortization

 

4,934

 

 

5,390

 

 

15,800

 

 

15,850

Reorganization expenses

 

 

 

 

 

15,536

 

 

3,778

Expense on convertible notes

 

1,177

 

 

1,303

 

 

3,527

 

 

3,664

Gain on debt extinguishment

 

 

 

(33,361)

 

 

 

 

(33,361)

Provision for income taxes

 

10

 

 

45

 

 

44

 

 

74

Adjusted EBITDA

$

2,252

 

$

1,413

 

$

(17,836)

 

$

(28,182)

Adjusted EBITDA Margin

 

2%

 

 

1%

 

 

(5)%

 

 

(7)%

(1)

Payroll tax expenses include the employer payroll tax-related expense on employee stock transactions, as the amount is dependent on our stock price and other factors that are beyond our control and do not correlate to the operation of our business.

UPSTART HOLDINGS, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In Thousands, Except Share and Per Share Data)

(Unaudited)

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2023

 

2024

 

2023

 

2024

Net loss

$

(40,315)

 

$

(6,758)

 

$

(197,734)

 

$

(125,826)

Adjusted to exclude the following:

 

 

 

 

 

 

 

Stock-based compensation and certain payroll tax expenses(1)

 

36,446

 

 

34,794

 

 

144,991

 

 

107,639

Reorganization expenses

 

 

 

 

 

15,536

 

 

3,778

Gain on debt extinguishment

 

 

 

(33,361)

 

 

 

 

(33,361)

Adjusted Net Loss

$

(3,869)

 

$

(5,325)

 

$

(37,207)

 

$

(47,770)

Net loss per share:

 

 

 

 

 

 

 

Basic

$

(0.48)

 

$

(0.07)

 

$

(2.38)

 

$

(1.42)

Diluted

$

(0.48)

 

$

(0.07)

 

$

(2.38)

 

$

(1.42)

Adjusted Net Loss per share:

 

 

 

 

 

 

 

Basic

$

(0.05)

 

$

(0.06)

 

$

(0.45)

 

$

(0.54)

Diluted

$

(0.05)

 

$

(0.06)

 

$

(0.45)

 

$

(0.54)

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

Basic

 

84,404,966

 

 

90,119,481

 

 

83,158,146

 

 

88,534,495

Diluted

 

84,404,966

 

 

90,119,481

 

 

83,158,146

 

 

88,534,495

(1)

Payroll tax expenses include the employer payroll tax-related expense on employee stock transactions, as the amount is dependent on our stock price and other factors that are beyond our control and do not correlate to the operation of our business.

 

Press

press@upstart.com

Investors

ir@upstart.com

Source: Upstart Holdings, Inc.

FAQ

What were Upstart's Q3 2024 revenue results?

Upstart's Q3 2024 revenue was $162 million, a 20% increase year-over-year.

How did Upstart's loan origination volume perform in Q3 2024?

Upstart originated 188,149 loans totaling $1.6 billion in Q3 2024, a 30% year-over-year increase.

What was Upstart's GAAP net income (loss) for Q3 2024?

Upstart's GAAP net loss for Q3 2024 was $6.8 million, an improvement from a $40.3 million loss in the same quarter of the previous year.

What is Upstart's revenue guidance for Q4 2024?

Upstart expects Q4 2024 revenue to be approximately $180 million.

What was Upstart's adjusted EBITDA for Q3 2024?

Upstart's adjusted EBITDA for Q3 2024 was $1.4 million, down from $2.3 million in the same quarter of the previous year.

Upstart Holdings, Inc.

NASDAQ:UPST

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