Upstart Holdings, Inc., a leading artificial intelligence lending platform, has reported its financial performance for the quarter ended March 31, 2024. The company saw a significant increase in Transaction Volume, both in dollars and the number of loans, which rose by 13% and 42% respectively, compared to the same period in 2023. This growth was attributed to improved funding availability through committed capital and other loan funding arrangements with institutional investors. Upstart's Conversion Rate also improved to 14% from 8.2% year-over-year, while the Percentage of Loans Fully Automated rose to 90% from 84%, indicating enhanced operational efficiency. Despite these positive trends, the company experienced a net loss of $64.6 million, although this was an improvement from the $129.2 million net loss in the previous year. The net loss...Show More

Upstart Holdings, Inc., a leading artificial intelligence lending platform, has reported its financial performance for the quarter ended March 31, 2024. The company saw a significant increase in Transaction Volume, both in dollars and the number of loans, which rose by 13% and 42% respectively, compared to the same period in 2023. This growth was attributed to improved funding availability through committed capital and other loan funding arrangements with institutional investors. Upstart's Conversion Rate also improved to 14% from 8.2% year-over-year, while the Percentage of Loans Fully Automated rose to 90% from 84%, indicating enhanced operational efficiency. Despite these positive trends, the company experienced a net loss of $64.6 million, although this was an improvement from the $129.2 million net loss in the previous year. The net loss included non-cash items such as changes in the fair value of financial instruments and stock-based compensation. Upstart's Contribution Profit increased to $81.1 million, with a Contribution Margin of 59%, reflecting a slight improvement in profitability. Adjusted EBITDA loss was reduced to $20.3 million from $31.1 million year-over-year, and Adjusted Net Loss per share improved to $0.31 from $0.47. The company's cash flow from operating activities turned positive, providing $52.6 million, a significant improvement from the $75.7 million used in the same period last year. Upstart continues to focus on expanding its AI lending capabilities and improving its platform to drive future growth. The company's strategy includes partnering with banks and credit unions to offer AI lending solutions and expanding its product offerings, such as the introduction of small dollar loans and home equity lines of credit (HELOCs). Upstart's balance sheet remains strong with $300.5 million in cash as of March 31, 2024, and the company is actively working on expanding its loan funding capacity to support its marketplace.