AI lending platform Upstart (NASDAQ:UPST) will be reporting earnings tomorrow after market hours. Here's what investors should know.
Last quarter Upstart reported revenues of $140 million, down 39.2% year on year, beating analyst revenue expectations by 3.5%. It was a slower quarter for the company, with underwhelming guidance for the next quarter. Transaction volume missed and was down significantly year on year. Also the conversion on rate requests was 9%, below the expectation of 10%. Lastly, revenue and adjusted EBITDA guidance for next quarter missed analysts' estimates and its gross margin declined.
Is Upstart buy or sell heading into the earnings? Find out by reading the original article on StockStory.
This quarter analysts are expecting Upstart's revenue to decline 12.8% year on year to $139.7 million, improvement on the 29.9% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.02 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates twice over the last two years.
Looking at Upstart's peers in the vertical software segment, some of them have already reported Q3 earnings results, giving us a hint what we can expect. Procore Technologies (NYSE:PCOR) delivered top-line growth of 33% year on year, beating analyst estimates by 6.1% and Agilysys (NASDAQ:AGYS) reported revenues up 22.8% year on year, exceeding estimates by 3.1%. Procore Technologies traded down 6.1% on the results, and Agilysys was up 21.7%.
Read the full analysis of Procore Technologies's and Agilysys's results on StockStory.
Technology stocks have been hit hard on fears of higher interest rates and while some of the vertical software stocks have fared somewhat better, they have not been spared, with share price declining 2.7% over the last month. Upstart is up 7.2% during the same time, and is heading into the earnings with analyst price target of $23.8, compared to share price of $30.5.
The author has no position in any of the stocks mentioned.