upstart q4 earnings date

And probably as important as anything is as we add subsequent channels, being able to cross-sell is going to be really important to us as well, and that becomes quite accretive to us. Upstart Market Cap $2B Today's Change (-0.60%) -$0.18 Current Price $29.57 Price as of June 2, 2023, 4:00 p.m. Just as we get into early '22 here and now you've got your goals, is there anything we should think about in terms of where you see opportunity now and where that might cause a mix shift to occur over the course of this year? Fourth Quarter 2021 Financial Highlights Revenue. Upstart will host a conference call and webcast at 1:30 p.m. Pacific Time today. In addition, during today's call, unless otherwise stated, references to our results are provided as non-GAAP financial measures and are reconciled to our GAAP results, which can be found in the earnings release and supplemental tables. Market-beating stocks from our award-winning analyst team. So contribution margin is all about fee -- revenue from fees. Yeah, hey, Simon, great to hear from you. So first of all, congratulations on a very strong quarter. Live webcast. So that effort is continuing as well, including the small dollar product, which is really going to help us move that part of the market even faster, I think. Invest better with The Motley Fool. Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Well, I would say in the personal lending category, we're pushing really across almost all parts of the credit spectrum as I think we said in the last earnings call. Quickly running through our results, starting at the top of the P&L. And any time you go from a situation where you have a small amount of data and you're acting conservatively, over time, having a lot more data and then relaxing your constraints around risk, then your average delinquencies will rise just mathematically. They are refactoring our platform from a single product platform into a multiproduct platform. And so, they do absorb a significant amount of the capacity that we create. I mean, I think, the thing that's unique about us is there's really two separate functions that operate very independently. I have some specific personal goals for Upstart in 2022. And we want to ensure that opportunity and mobility are available to all Americans, particularly for those whom the financial system has failed in the past. For the next earning release, we expect the company to report earnings of -$0.05 per share, reflecting a year-over-year decrease of 600%. They're building, accelerating, strengthening our core business. Hey, Nat, it's Sanjay. Sanjay? Earnings Data Report Date Aug 08, 2023 Not Confirmed Period Ending 2023 (Q2) Consensus EPS Forecast -$0.07 Last Year's EPS $0.01 Same Quarter Last Year Analyst Consensus Moderate Sell Based on 12 Analysts Ratings Upstart Holdings (UPST) Earnings, Revenues Date & History Earnings Revenues For the fourth quarter of fiscal 2023, Cerner contributed $1.5 billion to total revenues. And we've been consistently messaging that we have been predicting that that would revert at some point and those little dots would return to the sort of position where we originally expected them to be. Thanks so much for taking my question this evening. And in the long run, I don't see why we would not sort of meet, if not exceed our current level of profitability as we scale multiple businesses. So how -- I will say for sure, last year, there was a very severe need for loans out there, almost unprecedented in terms of excess deposits, lack of loans in the banking world last year. And I would think that if you think about the auto business itself, it's going to go through a cycle much like the personal loan business did where in the early days you're ramping, you're developing your sort of acquisition programs. Now that's a statement that's equally true about all vintages and equal in magnitude about all vintages. Hey, good afternoon. They do go up and down as a function of other things. And we believe that auto is going to go through a similar cycle, maybe a more accelerated one because we know the playbook now. Thanks for taking my questions. But we're optimistic and we're just really excited because there's a certain threshold you cross where it becomes real and viable and there was a time when we really needed 50%, 100% improvements to the funnel in order to really have this thing start to scale. Zacks Rank Education - Learn about the Zacks Rank, Zacks Rank Home - Zacks Rank resources in one place, Zacks Premium - The only way to fully access the Zacks Rank. There may be delays, omissions, or inaccuracies Or what does that visibility look like? And eventually, as a lot of people want to hear about the mortgage market, we just think that we're building the skills and the confidence. So what that ultimate split will look like by the end of the year, we're not really guiding to, but certainly in the early half of the year. Our core thesis is that over a period of years, AI lending will rapidly gain market share over legacy approaches to credit and Upstart is in the pole position to benefit from that. We are seeing really great progress in digital, other channels that aren't nearly as targeted as you might see elsewhere and being competitive in prime is really helpful for us because it allows us to use those types of marketing channels. And in rough terms, I think we'll run the personal loan business at a contribution margin that's close to 50%. So it's very broad. Real time prices by BATS. As well as the Spanish product, which is still nascent for us, but I think is showing promises, way to just bring more people in the fold. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Yeah, Nat, I guess, maybe another way of putting it is that we're not -- maybe there's an analogy to where we are in sort of general lending on defaults. So it's really hard to say where that will go on balance. So that's sort of one outcome. Overall, the categories we're in today or expect to enter represent an addressable market of more than $6 trillion in annual originations. Nike reported earnings per share of 99 cents and revenue of $12.23 billion in the fourth quarter of last year. They don't want the models to be underpredicting or overpredicting defaults or prepayments. So there's probably seven or eight key inputs to that formula of how good does that business look come December. And we have what we would consider to be pretty exceptional skills in direct mail. Webcast: Click here Supporting Materials: Upstart Fourth Quarter & Full Year 2022 Earnings Presentation And now, we've done that, and we can sort of get to the place where we can get much smaller wins one at a time to really grow from here. But if you think of like first one, 12 months from now, what do you think may drive kind of upside? I guess, what I would say as a general statement is that the overall take rate that we earn over the life of an auto loan, we anticipate at scale to be in the same ballpark to what we earn on personal loans. This is an estimated date of earnings release. But -- and that might mean again, if banks decide they want a higher return on the loans they are getting through the Upstart platform, then they can choose to do that. Thank you. And as long as you're predicting that correctly and pricing the loans accordingly, our view is that this is a good thing. And the important thing about that is the second one, at least in our view, is much harder than the ones that come after that. On the other side, you sort of have the business that is bringing more banks on, bringing more investors on and sort of feeding the engine, if you will. With this as context, for Q1 of 2022, we are expecting revenues of $295 million to $305 million, representing a year-over-year growth rate of 148% at the midpoint; contribution margin of approximately 46%; net income of $18 million to $22 million; adjusted net income of $50 million to $52 million; adjusted EBITDA of $56 million to $58 million; and a diluted weighted average share count of approximately 95.9 million shares. We saw -- in the fourth quarter, we had unprecedented performance in direct mail, which has always been an important channel for us. But is there any levers you have in place that can drive some upside in EBITDA margins. Thanks so much. And so, each new business we get into, we're planning on getting into business lending, small business lending later this year, a small dollar lending. Hey, Ramsey, this is Dave. Good afternoon, and thank you for joining us on today's conference call to discuss Upstart's fourth quarter and full year 2021 financial results. There's no doubt that, in our view, direct mail will be important to that. I mean, it's pretty broad, computer scientists, data scientists, machine learning engineers, product managers. Yeah, I would say, importantly, we have not run out of things to do by any stretch. [Operator instructions] And we'll take our first question from Simon Clinch with Atlantic Equities. publicly available sources. -0.11 (-0.31%) Hi. That situation is certainly not baked into our model, an assumption that the price of used cars is going to continue to go up. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities. So that's one thing that's happening, but that's just sort of a reflection of our business journey. And that's really what we're seeing as well. OK. Researching stocks has never been so easy or insightful as with the ZER Analyst and Snapshot reports. Next, we'll take from Pete Christiansen with Citi. That's helpful. Thank you. For their last quarter, Upstart (UPST) reported earnings of -$0.47 per share, beating the Zacks Consensus Estimate of $-0.82 per share. Yeah, hey, Ramsey, this is Sanjay. Transaction Volume and Conversion Rate. Join Upstarts Fourth Quarter and Full Year 2022 Earnings Conference Call on Feb. 14 at 4:30 PM ET. Research, Inc. nor its Information Providers can guarantee the accuracy, And so, depending on which segments are growing because each one has sort of a different elasticity profile, some can sort of result in value as their models improve through the volume and others through take rate. Next, we'll move on to James Faucette with Morgan Stanley. The online lending marketplace went public at $20 on Dec. 16, 2020, and its shares hit an all . First, I was just wondering if I could follow up on the margin commentary. For the first quarter of 2022, Upstart expects revenues between $295 million and $305 million. Those are all things that are helping us win in the primary end of the market. And were it not for our consumer presence and scale, we would not control our destiny, and our AI models would not be learning as quickly as they are. That is certainly trickier in times when things are changing very quickly as they did two years ago when COVID first hit. Zacks Style Scores Education - Learn more about the Zacks Style Scores. Expenses in sales and marketing and customer operations, as always, grew in proportion to revenue, albeit in Q4, at a rate of increasing economy of scale. And then, on a separate question on auto. But despite that and despite that headwind that we're selling into, as you can see, we are expanding pretty rapidly. In addition to all of the proprietary analysis in the Snapshot, the report also visually displays the four components of the Zacks Rank (Agreement, Magnitude, Upside and Surprise); provides a comprehensive overview of the company business drivers, complete with earnings and sales charts; a recap of their last earnings report; and a bulleted list of reasons to buy or sell the stock. I just have two. Before I turn it over to Q&A, I want to highlight as a final note that we recently announced the authorization from our board of directors to repurchase up to $400 million of Upstart shares. Growth in general and administrative spend registered at 22% sequentially as operating leverage continues to improve. Viewed in this context, rising absolute default rates that are correctly predicted and priced are not a bug, but in fact, a feature of our platform and a trend we expect to see continue as we successfully progress against our core corporate mission of expanding access to credit. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. It's not just about the secular vintage-over-vintage profile of our business, but it's more about each individual vintage returning to a higher level of default. Hi, greetings from the U.K. It's not sort of a longer-term sort of increase in default profile, which I was just reacting, too, because we see it discussed a lot in the public forum. We are really happy with how 2021 turned out. Thanks, everybody. This combination means we can dramatically strengthen the competitive position of banks who partner with us, while simultaneously helping consumers find the very best credit product available for them. But as I said, I think auto as it scales, if we get to the numbers that we're talking about, it should pull down the full year numbers by -- on the order of 5%. Over the last 18 months or so, there's been such absolutely absurd appreciation in the used car market. They are rearchitecting our code base from a monolith into a suite of micro services. It was the first quarter with more than $4 billion in loan transactions on our platform, a record not just for Upstart, but potentially for the entire personal lending industry. More generally, I guess, I would say this like when our models get better, it can result in one of two things. Upstart Holdings, Inc. (NASDAQ:NASDAQ:UPST) Q4 2021 Earnings Conference Call February 15, 2022 4:30 PM ETCompany ParticipantsJason Schmidt - Vice President of Investor RelationsDave. So proving that our models and our technologies and our skills and our teams can kind of adapt to a second very different product just gives us that much more confidence as we get into small dollars, small business. I would say it's -- I won't call it a majority, but it's just maybe the most significant category of loans we have right now, the biggest category of new loans that we're sort of running R&D on. Taken together, these components resulted in Q4 GAAP net income of $58.9 million, up 102% q on q and an adjusted EBITDA of $91 million, up 54% q on q. If you do not, click Cancel. So taken all together, we don't have precise guidance for you. I would like to turn the conference back over to Dave Girouard for any additional or closing remarks. Were it not for the AI models at the core of Upstart, we would have little unique value to offer our bank partners. Making the world smarter, happier, and richer. We are definitely bringing on more banks that really trend toward the primary end of the spectrum and will make us more competitive there, and we would anticipate that will keep going. So maybe they won't have as much demand. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. So that's just something -- I think we're sort of like incubating new businesses as we go. A second macro topic de jure relates to rising interest rates and inflation. And how if suddenly stimulus, there's a lot of relief stimulus added to that price appreciation. And that does mean, as the economy is shifting, the environment shifting, that our models are keeping up with it as quickly as possible and trying to get -- stay as accurate as possible. And as they have in the last few months, as really stimulus has gone away and we're kind of returning to normal. So the revenue profile will be different. Can you just explain a bit where -- what marketing strategies you've expanded upon to drive increased eyeballs to the Upstart platform? Prior to the conference call, the fourth quarter and full year 2022 earnings press release and investor presentation will be available on Upstart's investor relations website at ir.upstart.com. Just wondering, how do you see yourself performing more toward the prime end where cost of capital is more of a competitive edge there? And then, the second component is we are actually profitable. So it is opportunistic, and I think that as the volatility in our stock continues, we'll watch it, and we'll be in a position to take advantage of that aspect. Great. As we stare down the year ahead of us, we are cognizant of the fluidity in the macro environment. And that feels like what personal loans felt like just a couple of years ago. And look, there's -- we have a conviction that there's just been numerous instances over the past year, where knowing what we know about our business and our opportunity, we are of the opinion that it's been undervalued. Also, the truth about a lot of marketing isn't as targeted as you'd like, meaning you can't always target a specific part of this credit spectrum, if you will, in marketing. And again, those banks decide what return they need given what they're seeing in the market, what other choices they have in terms of deploying their balance sheet or their deposits. But as we get more and more in our portfolio, that have matured and are sort of now "cash cows," I think that the natural profitability of the overall model will just kind of trend to its equilibrium direction, which we believe is higher than where it is today. So I appreciate your read on that. Are you seeing headway in that particular area? The price of credit is the price of opportunity and the price of mobility. Our bank and credit union partners originated almost 500,000 loans in the quarter. Our improved contribution margins versus Q3 reflect refinements we've made to our digital and direct-to-mail targeting models, take rate optimizations, improvements to life cycle marketing which drove a higher proportion of low-cost loans, and shrinking operations unit costs as our automation rate recovered to 70%. They want to be as accurate as they can. Makes sense. But the fact that we had been sort of predicting it for more than a year, and seeing it finally materialize separately is not a huge impact to our business. Where are you seeing greater success? Maybe 2023 is the year we get into home or mortgage. Fourth Quarter 2022 Earnings Presentation Upstart Q4 2022 CEO commentary Form 10-K Q3 Upstart Network, Inc. Third Quarter 2022 Earnings Conference Call Upstart Network, Inc. Third Quarter 2022 Earnings Release Upstart Network, Inc. Third Quarter 2022 Earnings Presentation Upstart Q3 2022 CEO commentary Form 10-Q Q2 Upstart Network, Inc. Thank you for joining us on our earnings call covering our fourth quarter and full year 2021 results. Upstart's initial public offering (IPO) took place on Dec. 16, 2020, after the company priced its offering at $20 per share. Returns as of 06/30/2023. 7:58 PM ET. That's helpful. So in closing, I would like to share a few thoughts about Upstart that have struck me in the last few months as useful ways to understand who we are and what we're building. To make the world smarter, happier, and richer. The report will be for the fiscal Quarter ending Dec 2022. So the way to think about it is we have prices we charge to our bank partners, and those are costs that they absorb. Good evening, guys. I think, generally, the biggest challenge for auto retail at the moment is the supply chain that car manufacturers and the auto industry overall is seeing, meaning it can be challenging to sell software to a dealership that helps them sell more cars when they don't have enough cars to sell in the first place. These are the people that are refining our models, leading our expansion into new areas. In addition to reaching $1 billion in annualized revenue and record profits, Q4 was special for other reasons. As we, along with our bank partners, investors, have been anticipating this shift and as the loans on our platform have been priced accordingly, we are not expecting any meaningful adverse impact from rising defaults on our volumes or economics. We believe in our core that AI lending isn't a one-category phenomenon, but will eventually transform virtually all flavors of credit. It's really hard to say. And lo and behold, since October or November, each of those vintage curves is now reverting back to where we expected. Accordingly, we scaled our marketing program spend in Q4 by 19% q on q while simultaneously improving loan unit economics. The information on this website does not constitute an offer to sell securities or a solicitation of an offer to buy securities. So there are certainly scenarios where it could be better than that and some where we would be less than that. So auto is the one that we're, obviously, investing in this year. But it's not really a conviction around returning capital to shareholders as much as it is taking advantage of the volatility of the stock and the profitability we have as a business model already. I hope everyone had an accretive Valentine's Day. The balance of growth was driven by higher-funnel conversion rates which were up 140 basis points or 6% relatively q on q despite the significant expansion in funnel traffic. I cannot help but express my amazement for all the Upstart team accomplished in 2021, particularly given the circumstances under which they accomplished it. So they're all different. We'll take our next question from Ramsey El-Assal with Barclays. Calculated by Time-Weighted Return since 2002. We also now have 42 banks and credit unions, as well as more than 150 institutional investors funding loans on the Upstart platform, providing deep and diverse sources of liquidity to keep the engine humming and the AI models learning. But if it does happen, does that make the loan more risky? And third, to move aggressively to unlock Upstart's addressable market while simultaneously upgrading our ability to pursue it. So what's going to happen if that normalizes? I think, mostly, our hope is we're going to bring on a lot of bank capacity, and it's going to continue to create a better sort of net experience for consumers than the platform and we feel pretty good about that this year. I think, the great thing that we're excited about is we are really comfortable now. I would say that the direct reliance we have when you sort of exceed the balance sheet capacity of your aggregate banking footprint is on the buyers of the loans as a, what we call, a forward flow buyer. Thank you. Upstart Holdings UPST is slated to release fourth-quarter 2022 results on Feb 14. The securitization markets are almost more of an indirect thing for us because it's the loan buyers themselves that then securitize the loans. That does conclude today's question-and-answer session. Copyright 2012 - 2023 Upstart Network, Inc. All rights reserved. According to Zacks Investment Research, based. Zacks Ranks stocks can, and often do, change throughout the month. So the combination of the fee model, the acquisition costs, which are still immature, the operations, which is still sort of early stage are such that as the volume of auto gets bigger, the mix between the two, the auto will pull down the overall contribution margin. The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. 2950 S. Delaware Street, San Mateo, CA 94403, Upstart Fourth Quarter & Full Year 2022 Earnings Presentation, Do not sell or share my personal information. Thanks. Yes. Operating expenses in Q4 were $244 million, growing 22% sequentially over the prior quarter. At scale and at maturity, we think that it will have the same sort of profitability profile as our core business today. If you wish to go to ZacksTrade, click OK. Jason Schmidt -- Vice President, Investor Relations. So we're not sort of baking in the current world in that respect into how we're pricing. But I would say there's a significant fraction of them that are more than happy to sort of buy the loans and just earn the yield without looking for liquidity in the ABS market. Total fee revenue was $287 million, an increase of 240% year-over-year. Well, look, obviously, it's early in the year, and we have sort of achieved lift off, if you will, with auto. The Zacks Consensus Estimate for the same is pegged at $271.03 million indicating year over year . * When you check your rate, we check your credit report. This increase in volume is distinguished by participation across a widening swath of borrower segments, at one end of the spectrum, attracting growing numbers of applicants meeting the traditional definition of prime where we have historically not competed, at the other end, bringing more hidden prime borrowers into the lendable universe under the national bank rate cap as partner banks increasingly eliminate hard eligibility criteria, leading our models free to perform their magic. So these are the kind of dynamics that the 40-plus banks and credit unions in our platform have available to them and can make decisions on their own.

Connecticut Breaking News Today, Articles U