Upstart (UPST) Q1 Earnings: What To Expect

Jabin Bastian /
2022/05/06 7:12 am EDT
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AI lending platform Upstart (NASDAQ:UPST) will be announcing earnings results next Monday after market hours. Here's what to expect.

Last quarter Upstart reported revenues of $304.8 million, up 252% year on year, beating analyst revenue expectations by 15.9%. It was a very strong quarter for the company, with an impressive beat of analyst estimates and a very optimistic guidance for the next quarter.

Is Upstart buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Upstart's revenue to grow 145% year on year to $300.1 million, improving on the 81.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.53 per share.

Upstart Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 14%.

Looking at Upstart's peers in the vertical software segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Q2 Holdings delivered top-line growth of 15% year on year, beating analyst estimates by 1.21%. Q2 Holdings traded flat on the results. Read our full analysis of Q2 Holdings's results here.

Tech stocks have been under pressure since the end of last year and software stocks have been swept alongside with it, with share price down on average 17% over the last month. Upstart is down 13.1% during the same time, and is heading into the earnings with analyst price target of $172.5, compared to share price of $89.5.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.