From the press release. Looks bad for UPST holders.
-Upstart Holdings, Inc. (NASDAQ: UPST), a leading artificial intelligence (AI) lending marketplace, today announced preliminary unaudited financial results for the second quarter ending June 30, 2022. Upstart also announced that its final second quarter fiscal year 2022 business and financial results will be released on Monday, August 8, 2022 after the market close.
Second Quarter 2022 Preliminary Unaudited Financial Results:
Revenue is expected to be approximately $228 million, previously guided at $295 to $305 million
Contribution margin is expected to be approximately 47%, previously guided at approximately 45%
Net Income (loss) is expected to be in the range of ($31)-($27) million, previously guided at ($4) to $0 million
“Inflation and recession fears have driven interest rates up and put banks and capital markets on cautious footing,” said Dave Girouard, co-founder and CEO of Upstart. “Our revenue was negatively impacted by two factors approximately equally. First, our marketplace is funding constrained, largely driven by concerns about the macroeconomy among lenders and capital market participants. Second, in Q2, we took action to convert loans on our balance sheet into cash, which, given the quickly increasing rate environment, negatively impacted our revenue.”
Ouch.
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