Upstart Holdings Reports Impressive Year-End Financial Results
Upstart Reports Strong Financial Performance for 2024
Upstart Holdings, Inc. (NASDAQ: UPST), the premier artificial intelligence (AI) lending marketplace, has announced its impressive financial results for the fourth quarter and year ended December 31, 2024. This growth reflects Upstart’s commitment to innovation and customer service.
Remarkable Fourth Quarter Performance
In the fourth quarter of 2024, Upstart experienced dramatic growth across all product categories, achieving total revenue of $219 million. This represents a remarkable increase of 56% year-over-year and a 35% increase from the previous quarter. The total fee revenue was reported at $199 million, marking a 30% year-over-year increase.
Transaction Volume Growth
During this quarter, Upstart originated 245,663 loans, generating a transaction volume of $2.1 billion, which is a 68% increase compared to the same period last year. The conversion rate also improved significantly, rising to 19.3% from 11.6% in Q4 2023.
Profitability Improvements
Despite an operating loss of $4.8 million, Upstart's performance has improved from a loss of $47.5 million in the fourth quarter of the previous year. The net loss narrowed to $2.8 million, up significantly from $42.4 million last year.
Fiscal Year Results Highlight Consistent Growth
For the year 2024, Upstart reported total revenue of $637 million, an increase of 24% over the previous year. Furthermore, total fee revenue rose to $635 million, indicating 13% year-over-year growth.
Impressive Loan Origination Figures
In 2024, 697,092 loans were originated, resulting in a total transaction volume of $5.9 billion, up from 28% compared to 2023. The company’s conversion rate also increased to 16.5% from 9.7% last year, showing the effectiveness of its AI-driven lending model.
Adjusted EBITDA Represents Significant Milestone
Upstart’s adjusted EBITDA for the fourth quarter reached $38.8 million, a substantial improvement from $0.6 million last year, confirming a positive trend for the organization. The adjusted EBITDA margin was 18% of total revenue, compared with 0% in Q4 2023.
Future Outlook for Upstart Holdings
Looking into 2025, Upstart expects to generate approximately $200 million in revenue for the first quarter, with a robust revenue contribution from fees anticipated to be around $185 million. Furthermore, the company projects to achieve a GAAP net income margin at least breakeven for the full year.
Upstart AI Day
Upstart's upcoming “AI Day” scheduled for May 14, 2025, in New York City is anticipated to be a pivotal moment for the company. This event will showcase the company’s technology advancements and provide insights into its future business strategies, helping to strengthen its position within the fintech industry.
About Upstart Holdings
Founded in 2012, Upstart is a leading AI lending marketplace that connects millions of consumers with over 100 banks and credit unions. Its innovative AI models allow for more inclusive lending practices, approving borrowers at lower rates across diverse demographics.
Frequently Asked Questions
What financial results did Upstart report for Q4 2024?
Upstart reported a total revenue of $219 million, a 56% year-over-year increase.
How many loans did Upstart originate in 2024?
In 2024, Upstart originated 697,092 loans.
What is Upstart's adjusted EBITDA for the fourth quarter of 2024?
The adjusted EBITDA for Q4 2024 was $38.8 million, representing a significant increase from last year.
When is Upstart AI Day scheduled?
Upstart AI Day is scheduled for May 14, 2025, in New York City.
What does Upstart's growth strategy focus on?
Upstart's growth strategy focuses on leveraging AI technology to enhance lending processes and increase accessibility for borrowers.
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