Upstart stock plummets after cuts Q2 net loss, revenue guidance below estimates

Jul. 08, 2022 4:47 AM ETUpstart Holdings, Inc. (UPST)By: Meghavi Singh, SA News Editor21 Comments
  • Upstart Holdings(NASDAQ:UPST) plunged ~18% after-hours trading after the firm said Thursday it now expects a Q2 net loss in the range of $31M to $27M.
  • The company previously said it anticipated a breakeven quarter to a loss of $4M.
  • Revenue in the three months ended June 30 is now estimated to have been about $228M, compared with the previously issued range of $295M to $305M vs. consensus of $297.64M.
  • "Our revenue was negatively impacted by two factors approximately equally. First, our marketplace is funding constrained, largely driven by concerns about the macroeconomy among lenders and capital market participants. Second, in Q2, we took action to convert loans on our balance sheet into cash, which, given the quickly increasing rate environment, negatively impacted our revenue," said Dave Girouard, co-founder and CEO of Upstart.
  • The company will report its quarterly results on Aug.08 after the market close.

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