Upstart Holdings, Inc. (UPST) experienced a significant pre-market plunge of 14.24% following the release of its first-quarter financial results that disappointed investors with profit metrics falling short of Wall Street expectations.

The AI-powered lending platform reported adjusted earnings of 30 cents per share for the quarter ended March 31, missing the analyst consensus estimate of 42 cents per share. While revenue rose 44.4% year-over-year to $308.21 million, beating expectations of $301.34 million, the company's profitability metrics raised concerns among investors.

Upstart reported a net loss of $6.65 million for the first quarter, widening from a loss of $2.4 million in the prior-year period. Adjusted EBITDA declined to $40.5 million from $42.6 million a year earlier, significantly below the $57 million analysts had anticipated. The company's operating expenses rose 45% year-over-year to $315.73 million, contributing to the wider loss. Following the results, several analysts cut their price targets on the stock, including Piper Sandler reducing its target to $46 from $56 and Jefferies lowering its target to $27 from $33.