Shares of Upstart Holdings Inc. plunged 35% in after-hours trading Monday after the company, which uses artificial intelligence in lending decisions, topped expectations with its most recent results but cut its forecast for the full year.
The company reported first-quarter net income of $32.7 million, or 34 cents a share, compared with $10.1 million, or 11 cents a share, in the year-earlier period. After adjusting for stock-based compensation and other expenses, Upstart UPST,
Upstart’s revenue jumped to $310 million from $121 million, while analysts had been expecting $300 million. The company generated $314 million in fee revenue, up 170% from a year prior, whereas the FactSet consensus was for $287 million.
For the second quarter, Upstart anticipates revenue of $295 million to $305 million, while analysts had been expecting $335 million.
The company also cut its outlook for the full year, as it now expects revenue of roughly $1.25 billion. Its prior forecast was for about $1.4 billion in revenue.
“While this year is shaping up to be a challenging one for the economy, we know the drill and are confident that we can navigate whatever 2022 and beyond might hold,” Chief Executive Dave Girouard said in a statement.
Shares of Upstart have lost 31% over the past three months as the S&P 500 SPX,
