Why Upstart Holdings Stock Plummeted Today
Shares of Upstart Holdings (NASDAQ: UPST) were down 30% as of 11 a.m. EDT Wednesday, according to data provided by S&P Global Market Intelligence, after the AI lending platform followed better-than-expected second-quarter results with discouraging forward guidance.
On the former, Upstart's quarterly revenue declined a whopping 40% year over year to $135.8 million, translating to a generally accepted accounting principles (GAAP) net loss of $28.2 million, or $0.34 per share. Adjusted for items like stock-based compensation, non-GAAP net income arrived at $5.4 million, or $0.06 per share. Analysts, on average, were looking for an adjusted net loss of $0.07 per share on slightly lower revenue of $135.3 million.
Digging further into Upstart's results, its lending partners originated 109,447 loans during the quarter, totaling $1.2 billion -- down 64% year over year. Conversion on rate requests was 9%, down from 13% in the same year-ago period.
Source Fool.com
