Upstart names new board member with finance expertise

SAN MATEO, Calif. - Upstart (NASDAQ: NASDAQ:UPST), a leading AI lending platform with a market capitalization of $8.1 billion, announced the appointment of Peter Bernard to its Board of Directors, bringing in a wealth of experience in banking and risk management. The company has shown remarkable momentum, delivering a 232% return over the past year according to InvestingPro data.

Bernard currently serves as the Board Chair of Barclays (LON:BARC) Bank U.S. and has a notable history in the financial sector, including a former role as the chief operating officer at Root Capital and managing director and chief risk officer at D. E. Shaw & Co. His earlier career included positions at RiskMetrics, New Bond Trading, and J.P. Morgan Chase & Co.

Dave Girouard, co-founder and CEO of Upstart, expressed confidence in Bernard’s appointment, citing his "deep expertise in banking and risk management" as valuable assets for the company’s growth and innovation, particularly in funding operations. While currently trading above its InvestingPro Fair Value, the company has demonstrated strong revenue growth of 23% year-over-year and maintains a healthy current ratio of 14.3, indicating robust liquidity.

Bernard himself acknowledged the transformative role of AI in lending, stating his enthusiasm for contributing to Upstart’s development into a lasting enterprise.

Upstart’s platform is known for connecting consumers with banks and credit unions through AI models and cloud applications that aim to offer superior credit products. The company prides itself on high rates of instant loan approvals and minimal documentation requirements. For deeper insights into Upstart’s financial health and growth prospects, including 12 additional ProTips and comprehensive valuation metrics, investors can access the detailed Pro Research Report available on InvestingPro.

This move comes as Upstart continues to expand its reach in the lending market with products including personal, automotive, home equity, and small-dollar loans. The information regarding Bernard’s appointment is based on a press release statement from Upstart.

In other recent news, Upstart Holdings, Inc. reported impressive fourth-quarter 2024 financial results, with revenue reaching $219 million, significantly surpassing the analyst consensus of $182.07 million and marking a 56% increase year-over-year. The company also provided an optimistic outlook for 2025, projecting full-year revenue of approximately $1 billion, well above the analyst expectations of $823.14 million. In addition, Upstart launched a $500 million at-the-market equity offering program, as detailed in their latest SEC filing, with BTIG, LLC acting as the sales agent.

Citi analyst Peter Christiansen raised the price target for Upstart to $108 from $87, maintaining a Buy rating, citing the company’s significant turnaround and a 21% revenue beat for the fourth quarter. Similarly, Mizuho (NYSE:MFG) Securities increased its price target to $110 from $90, keeping an Outperform rating, and noted Upstart’s improved financial outlook and potential for continued outperformance. Upstart’s Q4 2024 adjusted EBITDA reached $38.8 million, a substantial increase from the previous year’s $0.6 million, with an adjusted EBITDA margin rising to 18% of total revenue.

Despite a GAAP net loss of $2.8 million for the quarter, this was a marked improvement from the $42.4 million loss in Q4 2023. Upstart’s transaction volume also grew significantly, with 245,663 loans originated in Q4, totaling $2.1 billion, up 68% year-over-year. The company plans to elaborate on its AI model enhancements during an investor day in New York City, offering deeper insights into its technology and growth strategy.

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