Upstart Holdings Slashes Q2 Outlook; Stock Down 18%
(RTTNews) - While announcing preliminary unaudited financial results for the second quarter on Friday, AI lending marketplace Upstart Holdings, Inc. (UPST) slashed its expectations for the second quarter.
For the second quarter, the company said it now projects a net loss in a range of $31 million to $27 million on revenues of about $228 million.
Previously, the company expected a net loss in the range of $4 million to $0 million on revenues between $295 million and $305 million.
The company said inflation and recession fears have driven interest rates up and put banks and capital markets on cautious footing.
"Our revenue was negatively impacted by two factors approximately equally. First, our marketplace is funding constrained, largely driven by concerns about the macroeconomy among lenders and capital market participants. Second, in Q2, we took action to convert loans on our balance sheet into cash, which, given the quickly increasing rate environment, negatively impacted our revenue," added Dave Girouard, co-founder and CEO of Upstart.
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