Upstart Holdings, Inc. (UPST) saw its stock soar 27% in pre-market trading on Wednesday following the company's impressive fourth-quarter 2024 earnings report and upbeat guidance for 2025, driven by the strong growth of its AI-powered lending platform.
The San Mateo-based fintech company reported quarterly earnings of $0.26 per share, significantly beating the analyst consensus estimate of a $0.04 loss per share. Revenue for the quarter came in at $218.96 million, a solid 20% above the $182.18 million projected by analysts, representing a 56% year-over-year increase.
Upstart's robust performance was fueled by a surge in loan origination, with 245,663 loans originated for a total of $2.1 billion, up 68% year-over-year and 33% from the prior quarter. The company's conversion rate also improved to 19.3%, up from 11.6% in Q4 2023, driven by enhancements in its AI-powered underwriting models.
Looking ahead, Upstart provided an upbeat outlook for 2025, forecasting first-quarter revenue of approximately $200 million, above the $193.8 million consensus estimate. For the full year, the company expects revenue to reach $1 billion, a 57% increase from 2024, and aims to achieve at least breakeven on a GAAP net income basis, while generating $180 million in adjusted EBITDA.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.