Upstart Holdings Inc (NASDAQ: UPST) tanked more than 11% in extended hours even though it reported market-beating results for its fourth financial quarter.
Upstart stock down on downbeat guidance
The tech stock is throwing a tantrum on the company’s future outlook that came in significantly below expectations. For its current quarter, Upstart is now calling for $100 million in revenue and $45 million of adjusted EBITDA loss.
In comparison, analysts were at $158.6 million and $13.2 million, respectively. Still, CEO Dave Girouard said in the earnings press release:
We’re a much better company than we were a year ago. We begin the new year with more advanced technology, faster AI model development, dramatically more training data, and a strengthened leadership team.
Earlier in February, the Nasdaq-listed firm said it will lower its headcount by about 20%. None of the Wall Street analysts that cover Upstart stock currently have a buy rating on it.
Upstart stock is still up roughly 10% for the year.
Upstart’s fourth-quarter financial highlights
- Lost $55.3 million that translates to 67 cents per share
- That compares to $58.9 million of net income last year
- Adjusted loss printed at 25 cents as per the press release
- Revenue crashed 52% year-over-year to $147 million
- Consensus was 47 cents loss (adj) on $134 million revenue
According to Upstart Holdings, lending partners originated $1.50 billion worth of loans in the fourth quarter – down a whopping 62% on a year-over-year basis. Nonetheless, the Chief Executive added:
We’re on an important journey to reinvent credit so that it works for everyone and excited to remind the world what Upstart is capable of.
Upstart stock is still up 10% for the year.
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