Upstart Holdings Inc. whiffed with its outlook for the current quarter, even as it beat top-line expectations in the most recent one.
The company, which using artificial intelligence to inform lending decisions, posted a fourth-quarter net loss of $42.4 million, or 50 cents a share, compared with $55.3 million, or 67 cents a share, in the year-earlier quarter.
On an adjusted basis, Upstart
UPST,
lost 11 cents a share, matching the consensus view based on analysts tracked by FactSet.
Upstart’s revenue dropped to $140.3 million from $146.9 million a year before, whereas the FactSet consensus was for $134.8 million.
Shares were halted prior to the report’s release after Tuesday’s closing bell.
Chief Executive Dave Girouard called out a “difficult lending environment” in Upstart’s earnings release but said the company’s “numbers will show that we’ve actually become more efficient in 2023.
“And even while becoming more efficient, we’ve laid the groundwork to become a more resilient and diversified company that can thrive through a wide range of economic conditions,” he said.
Looking at the first quarter, Upstart is modeling about $125 million in revenue, while analysts had been projecting $152.3 million.
The company also models a loss of $25 million on the basis of earnings before interest, taxes, depreciation and amortization (Ebitda). The FactSet consensus was calling for roughly $5 million in adjusted Ebitda.
