AI lending platform Upstart (NASDAQ: UPST) will be reporting earnings this Tuesday after market hours. Here’s what investors should know.
Upstart beat analysts’ revenue expectations last quarter, reporting revenues of $296.1 million, up 35.2% year on year. It was a strong quarter for the company, with full-year revenue guidance exceeding analysts’ expectations and a decent beat of analysts’ revenue estimates.
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 43.1% year on year, slowing from the 67% increase it recorded in the same quarter last year.
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 rarely misses Wall Street’s revenue estimates.
Looking at Upstart’s peers in the vertical software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Q2 Holdings delivered year-on-year revenue growth of 14.1%, beating analysts’ expectations by 0.9%, and Cadence Design Systems reported revenues up 18.7%, topping estimates by 1.9%. Q2 Holdings traded down 3.4% following the results while Cadence Design Systems was also down 3.3%.
Read our full analysis of Q2 Holdings’s results here and Cadence Design Systems’s results here.
There has been positive sentiment among investors in the vertical software segment, with share prices up 8.7% on average over the last month. Upstart is up 21.9% during the same time and is heading into earnings with an average analyst price target of $43.93 (compared to the current share price of $32.80).
WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it.
This is what the early days of Palantir looked like before it became a $437 billion giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.
