Upstart (NASDAQ:UPST) reported revenue for the second quarter that met the average analyst estimate, but its shares still traded 17.5% lower in after-hours trading.
The company said its revenue fell 40% year-over-year to $135.8 million, which compares to the average analyst estimate of $135.2M.
"As a result of our efforts over the past year to improve efficiency and operating leverage in our business, we achieved record-high contribution margin and positive cash flow in Q2," said Dave Girouard, co-founder and CEO of Upstart.
"While the economic environment continues to be challenging, Upstart has the opportunity to grow quickly and profitably when we return to a normalized economy. We’re in the pole position to lead the industry to an AI-enabled future that dramatically improves access to credit for hundreds of millions of Americans."
Upstart reported a surprising profit of 6 cents a share as analysts were looking for a loss per share of 7 cents.
Shares slumped on Monday after Morgan Stanley analysts recommended that investors “fade” the stock’s year-to-date rally.
Upstart shares are up 297.6% YTD through Tuesday’s close.