Upstart shares rise by 25% after announcing financial results 

Upstart Holdings Inc. (NASDAQ: UPST) is a leading AI (artificial intelligence) lending platform that grew by 25% in share price after announcing its full-year and fourth-quarter financials for 2021. The company reported $0.89 EPS in the fourth quarter, beating the $0.51 analyst estimate by 38 cents. In addition, total revenue in the fourth quarter came to about $304.8 million, beating the $263.84 million as well.

Management statements 

Upstart's Chief Executive Officer and Co-Founder, Dave Girouard said:

The CEO continued to say:

Financial results 

The company reported $305 million in fourth-quarter revenue, representing 252% increase from the same quarter of the previous fiscal year. In addition, total fee revenue came to $287 million, representing a 240% year-over-year increase.

Bank partners facilitated around 495,205 loans across the whole platform, totalling around $4.1 billion. This represented a 301$ year-over-year increase compared to the fourth quarter of the previous fiscal year.

It recorded $68.9 million in GAAP net income in the fourth quarter, a growth of $1 million from the same quarter in the previous fiscal year. Accordingly, Upstart recorded $0.61 in diluted earnings per share and $0.89 in diluted adjusted earnings per share.

Adjusted EBITDA grew from $15.5 million to $91 million in the fourth quarter of the 2021 financial year. The 30% adjusted EBITDA margin of total revenue recorded in the fourth quarter represented an 18% increase from what they got in the same quarter of the previous fiscal year. Contribution profit increased by 261% coming in at around $149.5 million in the fourth quarter of the 2021 financial year.