Upstart Holdings, Inc. (UPST), a leading fintech company specializing in artificial intelligence (AI)-powered lending, delivered strong third-quarter results, sending its stock soaring in after-hours trading. The company reported a quarterly loss of seven cents per share, beating analyst estimates of a 15-cent loss. Revenue also surpassed expectations, clocking in at $162.14 million compared to the predicted $150.22 million. This represents a significant increase from the $134.55 million generated during the same period last year.
Upstart’s performance was driven by a notable surge in lending volume. The company originated 188,149 loans totaling $1.6 billion in the third quarter, marking a 30% year-over-year increase and a 43% sequential jump. Conversion rates on loan requests also improved, reaching 16.3% in the third quarter compared to 9.5% in the same period last year.
The positive results indicate a return to growth for Upstart, which CEO Dave Girouard attributes to the company’s “position as the fintech leader in artificial intelligence.” Girouard expressed confidence that the company is back in growth mode, even without a significant boost from the broader macroeconomy.
Looking ahead, Upstart anticipates continued momentum in the fourth quarter. The company expects revenue of $180 million, a net income loss of $35 million, and adjusted EBITDA of $5 million.
Following the release of these positive results, Upstart shares surged over 14% in after-hours trading, closing at $3.50. Investors appear to be reacting favorably to the company’s strong performance and its optimistic outlook for the future.
