Upstart Holdings, Inc. (UPST) saw its stock soar 27% in pre-market trading on Wednesday following the company's impressive fourth-quarter 2024 earnings report and upbeat guidance for 2025, driven by the strong growth of its AI-powered lending platform.

The San Mateo-based fintech company reported quarterly earnings of $0.26 per share, significantly beating the analyst consensus estimate of a $0.04 loss per share. Revenue for the quarter came in at $218.96 million, a solid 20% above the $182.18 million projected by analysts, representing a 56% year-over-year increase.

Upstart's robust performance was fueled by a surge in loan origination, with 245,663 loans originated for a total of $2.1 billion, up 68% year-over-year and 33% from the prior quarter. The company's conversion rate also improved to 19.3%, up from 11.6% in Q4 2023, driven by enhancements in its AI-powered underwriting models.

Looking ahead, Upstart provided an upbeat outlook for 2025, forecasting first-quarter revenue of approximately $200 million, above the $193.8 million consensus estimate. For the full year, the company expects revenue to reach $1 billion, a 57% increase from 2024, and aims to achieve at least breakeven on a GAAP net income basis, while generating $180 million in adjusted EBITDA.