Upstart Holdings (UPST) Q2 Earnings Beat, Revenues Up Y/Y
Upstart Holdings UPST reported second-quarter 2021 non-GAAP earnings of 62 cents per share, which surpassed the Zacks Consensus Estimate by 158.33%. The company reported loss of 25 cents in the year-ago quarter.
Net revenues of $194 million were significantly better than $17.4 million reported in the year-ago quarter and beat the consensus mark by 24.15%.
Quarter Details
Revenues from fees (96.6% of total revenues) were $187.3 million, much higher than $13.3 million reported in the year-ago quarter.
Bank partners originated 286,864 loans, totaling $2.80 billion across Upstart’s platform in the second quarter, up 1,605% year over year.
Upstart Holdings, Inc. Price, Consensus and EPS Surprise
Upstart Holdings, Inc. price-consensus-eps-surprise-chart | Upstart Holdings, Inc. Quote
Conversion on rate requests was 24% in the second quarter of 2021, up from 9% in the same quarter of the prior year.
Other revenues (3.4% of total revenues) surged 64.3% year over year to $6.6 million.
Sales and marketing expenses were $76 million compared with $5.4 million reported in the year-ago quarter.
Customer operations surged 265% year over year to $24.2 million.
Engineering and product development expenses rose 310% year over year to $31.4 million in the reported quarter.
General and administrative expenses soared 190% year over year to $26.1 million.
Contribution margin was 52% compared with 32% reported in the year-ago quarter.
Operating income was $36.3 million against operating loss of $11.4 million.
Balance Sheet
As of Jun 30, 2021 cash and cash equivalents were $325.3 million compared with $463.1 million as of Mar 31, 2021.
Guidance
For the third quarter of 2021, Upstart expects revenues between $205 million and $215 million.
Contribution margin is expected to be roughly 45%. Adjusted EBITDA is expected between $30 million and $34 million.
For 2021, Upstart now expects revenues of $750 million. Contribution margin is expected to be roughly 45%. Adjusted EBITDA margin is expected to be roughly 17%.
Zacks Rank & Stocks to Consider
Upstart currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks in the broader technology sector include Airbnb ABNB, CyberArk Software CYBR and Agilent Technologies A. All the three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
While both Airbnb and CyberArk are set to report their earnings results on Aug 12, Agilent is set to release the same on Aug 17.
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