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SAN MATEO, Calif. - Upstart Holdings, Inc. (NASDAQ:UPST) saw its shares surge 20% in after-hours trading following the release of its fourth-quarter 2024 financial results and optimistic guidance for 2025. The AI-powered lending platform reported revenue that significantly exceeded analyst expectations and provided an upbeat outlook for the coming year.
Upstart reported Q4 revenue of $219 million, surpassing the analyst consensus of $182.07 million and marking a 56% increase YoY. The company’s adjusted EPS came in at $0.26, though its GAAP EPS of -$0.03 missed the analyst estimate of -$0.04.
For the first quarter of 2025, Upstart anticipates revenue of approximately $200 million, above the consensus estimate of $184.6 million. The company’s full-year 2025 revenue projection of about $1 billion also outpaces analyst expectations of $823.14 million.
Dave Girouard, co-founder and CEO of Upstart, commented on the results, stating, "In Q4 of 2024, our business grew dramatically across all product categories, delivered Adjusted EBITDA at levels not seen since the first quarter of 2022, and came within a whisker of returning to GAAP profitability."
The company’s transaction volume saw substantial growth, with 245,663 loans originated in Q4, totaling $2.1 billion, up 68% YoY. Upstart’s conversion rate improved to 19.3%, compared to 11.6% in Q4 2023.
Adjusted EBITDA for Q4 2024 reached $38.8 million, a significant improvement from $0.6 million in the same quarter of the previous year. The adjusted EBITDA margin rose to 18% of total revenue, up from 0% in Q4 2023.
Despite the strong revenue performance, Upstart reported a GAAP net loss of $2.8 million for the quarter, though this was an improvement from the $42.4 million loss in Q4 2023.
The company’s positive outlook and strong Q4 performance appear to have resonated with investors, as reflected in the substantial after-hours stock price increase.
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