November 7, 2024 - $Upstart (UPST.US)$ shares surged 18.93% to $65.97 in post-market trading on Thursday. It announced financial results for its third quarter of fiscal year 2024 ended September 30, 2024.
“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
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
