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

Radek Strnad /
2023/08/08 10:49 am EDT

AI lending platform Upstart (NASDAQ:UPST) will be announcing earnings results today after market hours. Here's what you need to know.

Last quarter Upstart reported revenues of $110.1 million, down 64.6% year on year, beating analyst revenue expectations by 10.3%. It was an exceptional quarter for the company, with an impressive beat of analysts' revenue estimates and optimistic revenue 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 decline 41.3% year on year to $135.3 million, a deceleration on the 17.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.07 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 missed Wall St's revenue estimates twice over the last two years.

With Upstart being the first among its peers to report earnings this season, we don't have anywhere else to look at to get a hint at how this quarter will unravel for vertical software stocks, but investors in the segment have had steady hands going into the earnings, with the stocks down on average 1.4% over the last month. Upstart is up 25.6% during the same time, and is heading into the earnings with analyst price target of $23.7, compared to share price of $51.88.

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.