Has The AI Stock Run Really Just Begun? Traders In Upstart Holdings, Inc. (NASDAQ: UPST) See Big Profits On Earnings News


(MENAFN- Investor Ideas) Investorideas , a go-to platform for big investing ideas, including AI and tech Stocks reports on trading for Upstart Holdings, Inc. (NASDAQ: UPST ), the leading artificial intelligence (AI) lending marketplace.

Ai stock fans are over the moon with today's stock performance for Upstart as it currently trades at $78.20, up 22.73, gaining 40.98% on volume of over 28 Million shares. The stock had a day's high of $81.56 as of this report.

Upstart just announced financial results for its third quarter of fiscal year 2024 ended September 30, 2024. Upstart will host a conference call and webcast at 1:30 p.m. Pacific Time today. An earnings presentation and link to the webcast are available at upstart.

"With 43% sequential growth in lending volume and a return to positive adjusted EBITDA, we continue to strengthen Upstart's position as the fintech leader in artificial intelligence," said Dave Girouard, co-founder and CEO of Upstart. "Even without a significant boost from the macroeconomy, we're back in growth mode."

Third Quarter 2024 Financial Highlights

Revenue. Total revenue was $162 million, an increase of 20% from the third quarter of 2023, and up 27% sequentially. Total fee revenue was $168 million, an increase of 14% year-over-year, and up 28% sequentially.

Transaction Volume and Conversion Rate. 188,149 loans were originated, totaling $1.6 billion across our platform in the third quarter of 2024, up 30% from the same quarter of the prior year, and up 43% sequentially. Conversion on rate requests was 16.3% in the third quarter of 2024, up from 9.5% in the same quarter of the prior year.

Income (Loss) from Operations. Income (loss) from operations was ($45.2) million, down from ($43.8) million in the same quarter of the prior year.

Net Income (Loss) and EPS. GAAP net income (loss) was ($6.8) million, up from ($40.3) million in the third quarter of the prior year. Adjusted net income (loss) was ($5.3) million, down from ($3.9) million in the same quarter of the prior year. Accordingly, GAAP diluted earnings per share was ($0.07), and diluted adjusted earnings per share was ($0.06) based on the weighted-average common shares outstanding during the quarter.

Contribution Profit. Contribution profit was $102.4 million in the third quarter of 2024, up 9% year-over-year, with a contribution margin of 61% compared to a 64% contribution margin in the same quarter of the prior year.

Adjusted EBITDA. Adjusted EBITDA was $1.4 million, down from $2.3 million in the same quarter of the prior year. The third quarter 2024 Adjusted EBITDA margin was 1% of total revenue, down from 2% in the same quarter of the prior year.

Financial Outlook

For the fourth quarter of 2024, Upstart expects:

Revenue of approximately $180 million

Revenue From Fees of approximately $185 million

Net Interest Income (Loss) of approximately ($5) million

Contribution Margin of approximately 59%

Net Income (Loss) of approximately ($35) million

Adjusted Net Income (Loss) of approximately ($5) million

Adjusted EBITDA of approximately $5 million

Basic Weighted-Average Share Count of approximately 91.7 million shares

Diluted Weighted-Average Share Count of approximately 91.7 million shares

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