AI lending platform Upstart (NASDAQ:UPST) will be reporting earnings tomorrow after market close. Here's what to expect.
Last quarter Upstart reported revenues of $157.2 million, down 31.2% year on year, missing analyst expectations by 7.2%. It was a weak quarter for the company, with declining revenue and underwhelming 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 56.5% year on year to $132.7 million, a deceleration on the 248% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.47 per share.
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.
Looking at Upstart's peers in the vertical software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. 2U's revenues decreased 3.11% year on year, beating analyst estimates by 0.57% and Doximity reported revenues up 17.8% year on year, exceeding estimates by 3.4%. 2U traded up 0.5% on the results, and Doximity was down 15.7%. Read our full analysis of 2U's results here and Doximity's results here.
There has been positive sentiment among investors in the software segment, with the stocks up on average 10% over the last month. Upstart is down 5.44% during the same time, and is heading into the earnings with analyst price target of $14.9, compared to share price of $16.35.
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The author has no position in any of the stocks mentioned.