Upstart Holdings, Inc. (NASDAQ: UPST) saw its shares plummet 5.23% in pre-market trading on Wednesday, as investors reacted to the company's mixed second-quarter earnings report. Despite posting strong revenue growth and raising its full-year guidance, Upstart's significant earnings miss overshadowed the positive aspects of its financial performance.
The AI-powered lending marketplace reported a loss of $0.17 per share for the quarter ended June 30, falling well short of analyst expectations for earnings of $0.24 per share. This disappointing bottom-line result came despite impressive top-line growth, with revenue surging to $257 million, representing a 102% increase year-over-year and exceeding the consensus estimate of $225.43 million.
Upstart's CEO, Dave Girouard, highlighted the company's return to "growth mode," citing triple-digit revenue growth and reaching GAAP profitability a quarter earlier than expected. The company also provided an optimistic outlook, forecasting third-quarter revenue of approximately $280 million and raising its full-year 2025 revenue guidance to $1.055 billion. However, investors seemed more focused on the profitability challenges, as evidenced by the stock's pre-market decline. The market's reaction suggests ongoing concerns about Upstart's ability to translate its strong revenue growth into consistent earnings performance.
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