Stock Story -
AI lending platform Upstart (NASDAQ:UPST) will be announcing earnings results tomorrow after market close. Here's what to expect.
Upstart beat analysts' revenue expectations by 2.4% last quarter, reporting revenues of $127.8 million, up 24.2% year on year. It was a slower quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its gross margin.
Is Upstart a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Upstart's revenue to decline 8.3% year on year to $124.5 million, improving from the 40.5% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.39 per share.
The majority of analysts covering the company have 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 three times over the last two years.
Looking at Upstart's peers in the vertical software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Olo delivered year-on-year revenue growth of 27.6%, beating analysts' expectations by 4.1%, and Q2 Holdings reported revenues up 11.8%, topping estimates by 1.2%. Olo traded up 12.7% following the results while Q2 Holdings was also up 3.8%.
Read the full analysis of Olo's and Q2 Holdings's results on StockStory.
Growth stocks have seen elevated volatility as investors debate the Fed's monetary policy, and while some of the vertical software stocks have fared somewhat better, they have not been spared, with share prices down 3.7% on average over the last month. Upstart is up 2.2% during the same time and is heading into earnings with an average analyst price target of $20 (compared to the current share price of $23.72).
