Upstart (UPST) Reports Earnings Tomorrow. What To Expect

Adam Hejl /
2022/11/07 2:27 am EST

AI lending platform Upstart (NASDAQ:UPST) will be reporting earnings tomorrow after the bell. Here's what you need to know.

Last quarter Upstart reported revenues of $230.4 million, up 17.9% year on year, missing analyst expectations by 2.05%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of the top line analyst 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 decline 25.9% year on year to $169.4 million, a further deceleration on the 242% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.08 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 only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 10.4%.

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 the segment has been facing declining investor sentiment following the fears around raising interest rates, with the stocks down on average 5.91% over the last month. Upstart is down 9.66% during the same time, and is heading into the earnings with analyst price target of $24.42, compared to share price of $19.45.

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