Upstart Holdings Inc. (UPST) shares declined 20.53% in after-hours on Tuesday, November 9, 2021, and closed the daily trading at $249.30. Even in the regular trading session, UPST’s stock lost 6.24%. UPST shares have moved down 8.83% in the past week. Over the past three months, the stock has gained 83.24%, while over the past six months, it has gained 241.66%. The company has a current market of $23.67 billion and its outstanding shares stood at 76.67 million.
Let’s have a brief look at its recent news and developments.
UPST latest development
On November 9, 2021, Upstart Holdings, Inc. (UPST), reported financial results for its third quarter of the fiscal year 2021 ended September 30, 2021.
Q3 2021 financial highlights
- UPST reported total revenue of $228 million for Q3 2021 compared to $65.4 million in Q3 2020.
- Total operating expenses were $199.85 million in Q3 2021 compared to $53.15 million in Q3 2020.
- It earned GAAP net income of $29.1 million or GAAP diluted earnings per share of $0.30 in Q3 2021 compared to $9.7 million or GAAP diluted earnings per share of $0.10 in the third quarter of 2020.
- Adjusted EBITDA was $59.1 million in Q3 2021 compared to $15.5 million in the same quarter of the prior year.
Q4 2021 financial outlook
For the fourth quarter of 2021, Upstart expecting
- Total revenue in the range of $255 to $265 million
- Net income in the range of $16 to $20 million
- Adjusted Net Income in the range of $48 to $50 million
- Adjusted EBITDA in the range of $51 to $53 million
UPST joined the OCC project
On November 04, 2021, Upstart (UPST), joined the Office of the Comptroller of the Currency’s (OCC) Project REACh (Roundtable for Economic Access and Change) to promote financial inclusion through greater access to credit and capital. Since joining Project REACh, Upstart has been focused on the workstream to revitalize small minority depository institutions. Upstart is one of the first companies to apply AI to the multi-trillion-dollar credit industry.
UPST & FCCB partnership
On October 27, 2021, Four Corners Community Bank (FCCB) partnered with Upstart (UPST) to offer all-digital, AI-powered personal loans.
Four Corners Community Bank will be using Upstart on its bank website to directly provide AI-powered personal loans. In addition, Four Corners Community Bank will be part of the Upstart Referral Network.
BHLB partnership with UPST
On October 18, 2021, Berkshire Hills Bancorp, Inc. (BHLB) entered into a partnership with Upstart (UPST). The partnership will expand consumer lending options for Berkshire Bank consumers via a seamless, digital experience enabled by Upstart’s lending platform and the Upstart Referral Network.
Conclusion
The recent financial results improved significantly but still, they were unable to fulfil the expectations of the investors and analysts. Hence its stock poorly performed on Tuesday.
