Earnings To Watch: Upstart (UPST) Reports Q2 Results Tomorrow

Adam Hejl /
2022/08/07 6:27 am EDT
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AI lending platform Upstart (NASDAQ:UPST) will be reporting results tomorrow after market hours. Here's what to expect.

Last quarter Upstart reported revenues of $310.1 million, up 153% year on year, beating analyst revenue expectations by 3.33%. Despite the solid top-line growth, it was a weak quarter for the company, with revenue guidance for both the next quarter and the full year below analysts' estimates.

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 20.3% year on year to $235.2 million, slowing down from the 896% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.08 per share.

Upstart Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing eight downward revisions over the last thirty days. 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 12.4%.

Looking at Upstart's peers in the vertical software segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Q2 Holdings delivered top-line growth of 13.5% year on year, beating analyst estimates by 0.03% and 2U reported revenues up 1.79% year on year, missing analyst estimates by 5.03%. Q2 Holdings traded down 4.01% on the results, and 2U was down 3.18%. Read our full analysis of Q2 Holdings's results here and 2U's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 4.68% over the last month. Upstart is up 7.7% during the same time, and is heading into the earnings with analyst price target of $31.3, compared to share price of $29.5.

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