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What To Expect From Upstart’s Q4 Earnings


Jabin Bastian /
2022/02/14 5:49 am EST

AI lending platform Upstart (NASDAQ:UPST) will be announcing earnings results tomorrow after market close. Here's what to expect.

Last quarter Upstart reported revenues of $228.4 million, up 249% year on year, beating analyst revenue expectations by 6.31%. It was a very strong quarter for the company, with a very optimistic guidance for the next quarter and an exceptional revenue growth.

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 159% year on year to $227.6 million, improving on the 31.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.51 per share.

Upstart Total Revenue

The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing 6 upwards revisions over the last thirty days. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time since going public on average by 13.5%.

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. Unity delivered top-line growth of 43.3% year on year, beating analyst estimates by 6.81% and Doximity reported revenues up 66.7% year on year, exceeding estimates by 13.4%. Unity traded up 17.5% on results, Doximity was up 24%. Read our full analysis of Unity's results here and Doximity's results here.

Investors in the software segment have had steady hands going into the earnings, with the stocks up on average 1.62% over the last month. Upstart is down 9.02% during the same time, and is heading into the earnings with analyst price target of $305.5, compared to share price of $99.99.

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.