The AI Lending Giant’s Big Comeback
Upstart (NASDAQ:UPST) just blew past expectations with a staggering 36% share price surge today. The catalyst? A strong Q3 2024 performance that’s turning heads on Wall Street. Total revenue came in at $162 million, up 20% year-over-year, while lending volume jumped an eye-popping 43% sequentially. CEO Dave Girouard wasn’t shy about celebrating the win, stating, We’re back in growth mode, as the company also returned to positive adjusted EBITDAa critical milestone after several challenging quarters.
The numbers behind the hype tell a compelling story. Upstart originated 188,149 loans totaling $1.6 billion this quarter, a 30% boost from last year, thanks to rising conversion rates that climbed to 16.3% from 9.5% a year ago. Despite a GAAP net loss of $6.8 million, it’s a sharp improvement from the $40.3 million loss in Q3 2023. Contribution profits also rose 9%, hitting $102.4 million with a solid 61% margin, demonstrating the platform’s efficiency in scaling operations.
Wall Street analysts are taking notice. Upstart’s bullish Q4 outlook projects $180 million in revenue, with adjusted EBITDA expected to hit $5 million. Investors are flocking to the AI lending leader as it solidifies its position in the fintech space. The big question now? Can Upstart sustain this momentum and deliver on its promise of long-term growth. Stay tuned.
This article first appeared on GuruFocus.
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