Upstart (UPST) Surprises with Strong Q4, Stock Soars

Highlights:

* Revenue: $219 million, surpassing estimates of $182.4 million (56.1% YoY growth)
* Adjusted EPS: $0.26, significantly exceeding expectations of -$0.04
* Adjusted Operating Income: $121.9 million, crushing estimates of -$35.49 million (55.7% margin)
* Revenue guidance beats analyst estimates by 21.5%, implying 57.1% growth in FY2025
* EBITDA guidance for Q1 CY2025 exceeds expectations by 183.5%

Overview:

Upstart (NASDAQ:UPST), an AI-powered lending platform, has reported impressive results for Q4 CY2024. Founded by a former Google executive, Upstart facilitates loans for banks and consumers.

Sales Growth:

* Magnificent 56.1% YoY revenue growth in Q4 CY2024
* Revenue guidance suggests a 56.5% YoY increase for next quarter
* Analysts forecast a 30.1% revenue growth over the next 12 months

Total Transaction Volume:

* Q4 transaction volume reached $2.11 billion
* Boasts a consistent YoY growth rate of 26.4% over the past four quarters
* Outpacing revenue growth, indicating improved risk assessment

Customer Acquisition Efficiency:

* Upstart's CAC payback period is negative, highlighting competitive market dynamics and ongoing investment requirements

Key Takeaways:

Upstart's exceptional Q4 exceeded market expectations, driving a 23.7% surge in stock price. Despite a strong quarter, investors should carefully consider Upstart's valuation, business qualities, and recent performance before making investment decisions.