AI lending platform Upstart (NASDAQ: UPST) will be reporting earnings this Tuesday after market hours. Here’s what to look for.
Upstart beat analysts’ revenue expectations by 13.6% last quarter, reporting revenues of $257.3 million, up 102% year on year. It was a stunning quarter for the company, with EBITDA guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.
Is Upstart a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Upstart’s revenue to grow 73.1% year on year to $280.6 million, improving from the 20.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.42 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 only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 6.5% on average.
Looking at Upstart’s peers in the vertical software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Agilysys delivered year-on-year revenue growth of 16.1%, beating analysts’ expectations by 3.1%, and Cadence Design Systems reported revenues up 10.1%, topping estimates by 0.9%. Agilysys traded up 22.7% following the results while Cadence Design Systems was down 3%.
Read our full analysis of Agilysys’s results here and Cadence Design Systems’s results here.
Investors in the vertical software segment have had fairly steady hands going into earnings, with share prices down 1% on average over the last month. Upstart is down 9.4% during the same time and is heading into earnings with an average analyst price target of $74.69 (compared to the current share price of $47.68).
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