AI lending platform Upstart (NASDAQ: UPST) will be reporting results this Tuesday morning. Here’s what to expect.
Upstart beat analysts’ revenue expectations last quarter, reporting revenues of $364.7 million, up 41.7% year on year. It was a slower quarter for the company, with full-year revenue guidance missing analysts’ expectations significantly.
Is Upstart a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Upstart’s revenue to grow 32% year on year, slowing from the 70.9% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Upstart rarely misses Wall Street’s revenue estimates.
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 Design Systems delivered year-on-year revenue growth of 22%, beating analysts’ expectations by 1.1%, and Q2 Holdings reported revenues up 11.9%, topping estimates by 2%. Cadence Design Systems traded up 6.5% following the results while Q2 Holdings was down 3.9%.
Read our full analysis of Cadence Design Systems’s results here and Q2 Holdings’s results here.
There has been positive sentiment among investors in the vertical software segment, with share prices up 5% on average over the last month. Upstart is down 5.2% during the same time and is heading into earnings with an average analyst price target of $37.94 (compared to the current share price of $23.09).
ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention.
AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.
