The following is a summary of the Upstart Holdings, Inc. (UPST) Q3 2024 Earnings Call Transcript:

Financial Performance:

• In Q3 2024, Upstart reported a revenue of $168 million, up 28% sequentially, with a net revenue of $162 million, exceeding guidance by $12 million.

• Adjusted EBITDA turned positive at $1 million, ahead of schedule, signaling improvements in financial health.

• Net loss narrowed to $7 million, with an adjusted EPS of negative $0.06.

• The average loan size increased to $8,400 in Q3, up from $7,700 in the prior quarter, driven by model enhancements. Upstart ended the quarter with $445 million of unrestricted cash.

Business Progress:

• Upstart has expanded its auto loans and home equity lines of credit (HELOC), with auto loan originations increasing 46% sequentially to $26.5 million.

• The company signed its 11th certified digital retail OEM agreement, expanding its market opportunity by 14%.

• Loan servicing and collections improvements have been implemented using machine learning to customize borrower experiences and optimize collection timings, reflecting a 13% decrease in loan roll rates year-over-year and a decrease in 30-day delinquency rates.

Opportunities:

• Upstart's core personal loan product saw significant growth due to the launch of Model 18, which improved conversion rates and loan qualification.

• The T-Prime program aims to expand offerings to the super prime end of the credit spectrum, enhancing competitiveness and increasing capital efficiency.

• The expansion of HELOCs into more states, covering 55% of the U.S. population, and a faster application process demonstrates Upstart's growing influence and market penetration in this sector.

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