Shares of Upstart Holdings, Inc. (UPST) plummeted 16.71% in after-hours trading on Tuesday following the release of its first-quarter earnings report and future outlook. The AI-driven lending platform's financial results and guidance appear to have disappointed investors, triggering a significant sell-off.

Upstart reported a Q1 loss per share of $0.03, with a net income loss of $2.447 million. The company's revenue, primarily from fees, came in at $185.475 million for the quarter. These figures suggest that Upstart is struggling to maintain profitability in the current economic environment, which may be causing concern among shareholders.

Adding to the negative sentiment, Upstart provided guidance that seems to have fallen short of market expectations. The company forecasts Q2 revenue of approximately $225 million and full-year revenue of about $1.01 billion. This outlook may indicate slower growth or challenges in the lending market, prompting investors to reassess the company's near-term prospects and long-term potential in the fintech sector.