Upstart issus (NASDAQ:UPST) | Seeking Alpha

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Upstart Holdings (NASDAQ:UPST) stock is plummeting 42% in Monday after-hours trading after its guidance for Q2 and full-year 2022 trailed consensus estimates.

Q2 revenue guidance of $295M-$305M is lower than the consensus of $334.8M; expects Q2 adjusted EBITDA of $32M-$34M vs. $59.2M Visible Alpha consensus, and Q2 adjusted net income of $28M-$30M indicates a decline from $32.7M reported in Q1 2021.

The provider of an AI-driven lending platform also expects a contribution margin of 45% vs. Visible Alpha consensus of 45.33%.

For the full year, Upstart (UPST) expects revenue of ~$1.25B, short of the $1.40B consensus; the company also expects 2022 contribution margin of ~48% and adjusted EBITDA margin ~15% vs. 20% reported in Q1.

“While this year is shaping up to be a challenging one for the economy, we know the drill and are confident that we can navigate whatever 2022 and beyond might hold,” said Upstart (UPST) co-founder and CEO Dave Girouard.

Q1 revenue of $310M topped the consensus estimate of $300M, and rose from $305M in Q4 and $121.3M in the year-ago quarter.

Q1 adjusted EBITDA of $62.6M compared with $56.4M Visible Alpha consensus and $91M in Q4 2021.

Q1 adjusted EPS from $0.61, topping the $0.53 consensus, fell from $0.87 in Q4 2021 and increased from $0.22 in Q1 2021.

During the quarter, Upstart’s (UPST) bank partners generated 465,537 loans, totaling $4.5B across its platform. That compares with 495,205 loans originated in Q4 2021 totaling $4.1B across its platform.

Conversion on rate requests was 21% vs. 24% in Q4.

Conference call at 4:30 PM ET.

Earlier, Upstart stock down 41% on guiding revenue below consensus despite Q1 earnings beat

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