Summary by Moomoo AI
Upstart Holdings, Inc., leveraging artificial intelligence in consumer credit underwriting, reported mixed financial results and business developments. The company's Transaction Volume in dollars saw a 6% decrease in Q2 2024 compared to Q2 2023, while the number of loans increased by 31% in the same period. Despite this, revenue from fees net decreased by 9% year-over-year in Q2 2024. The company's net loss widened to $54.47 million in Q2 2024 from $28.17 million in Q2 2023. Adjusted EBITDA also turned negative, reflecting a challenging macroeconomic environment. Upstart's business development efforts include expanding its AI lending marketplace and securing multiple committed capital and co-investment arrangements to improve loan funding capacity. The company's future plans focus on enhancing AI models, expanding loan offerings, and diversifying capital sources for its lending marketplace. Upstart's strategy to navigate the current economic climate includes workforce reductions and leveraging its balance sheet to support loan funding.
