AI-powered lending platform Upstart (NASDAQ:UPST) will be announcing earnings results tomorrow after market hours. Here’s what to expect.
Upstart beat analysts’ revenue expectations by 8% last quarter, reporting revenues of $162.1 million, up 20.5% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ transaction volume estimates.
Is Upstart a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Upstart’s revenue to grow 30% year on year to $182.4 million, a reversal from the 4.5% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.04 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Upstart has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Upstart’s peers in the vertical software segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Doximity delivered year-on-year revenue growth of 24.6%, beating analysts’ expectations by 9.6%, and PTC reported revenues up 2.7%, topping estimates by 1.9%. Doximity traded up 35.5% following the results while PTC was down 9.6%.
Read our full analysis of Doximity’s results here and PTC’s results here.
There has been positive sentiment among investors in the vertical software segment, with share prices up 10.6% on average over the last month. Upstart is up 24.2% during the same time and is heading into earnings with an average analyst price target of $62.18 (compared to the current share price of $70.90).
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