AI lending platform Upstart (NASDAQ:UPST) will be reporting earnings tomorrow afternoon. Here’s what to expect.
Upstart beat analysts’ revenue expectations by 2.5% last quarter, reporting revenues of $127.6 million, down 6% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and optimistic revenue guidance for the next quarter.
Is Upstart a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Upstart’s revenue to grow 11.6% year on year to $150.2 million, a reversal from the 14.4% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.15 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Upstart has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Upstart’s peers in the vertical software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Cadence delivered year-on-year revenue growth of 18.8%, beating analysts’ expectations by 2.9%, and Agilysys reported revenues up 16.5%, topping estimates by 1.1%. Cadence traded up 12.5% following the results while Agilysys was down 7.9%.
Read our full analysis of Cadence’s results here and Agilysys’s results here.
There has been positive sentiment among investors in the vertical software segment, with share prices up 7% on average over the last month. Upstart is up 19.1% during the same time and is heading into earnings with an average analyst price target of $30.62 (compared to the current share price of $51.10).
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
