Upstart reported impressive Q2 results, with revenue soaring and GMV more than tripling

From Nasdaq: 2024-09-03 10:57:14

coupled with execution on the auto front/growing visibility could mean investors changing their side,” Mizuho analyst Kevin Barker wrote.Earlier this month, Upstart reported impressive Q2 results, beating both top and bottom-line estimates. Revenue surged 1,345% year-over-year to $257 million, significantly surpassing analysts’ expectations by $32.5 million. Adjusted EBITDA came in at $54.4 million, representing a margin of 21.2%, compared to 26.2% in Q1. GMV more than tripled year-over-year to $3.18 billion.The strong performance was primarily fueled by a 1,946% increase in platform revenue to $251.8 million, outpacing service revenue growth of 67% to $5.2 million. Upstart’s partnership and network revenue soared 1,088% to $232.2 million, whereas GMV increased dramatically, with loans facilitated through the platform totaling $1.20 billion, compared to $394.8 million in Q2 2023. Total platform transactions surged 540% year-over-year. The number of active adopters of its AI platform grew 84% year-over-year to 3.6 million in Q2.The company also significantly expanded its network of lending partners during the quarter. Upstart now collaborates with 26 notable banks and financial institutions, including FitB Bank, Ally Financial, and Citibank. The company aims to provide superior credit products by leveraging its AI modeling approach in conjunction with the expertise of its partner banks. Moving forward, Upstart anticipates a GMV increase of at least 83% year-over-year in Q3 to $3.85 billion, with revenue expected to climb to $245 million to $255 million, and an adjusted EBITDA margin between 18% and 19%. The company set its FY25 revenue estimate between $880 million and $900 million, which equates to a yearly growth rate of 131%, and an adjusted EBITDA margin of around 21%. Given its strong prospects, management has pointed to reve…



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