Upstart Holdings, Inc., a leading artificial intelligence lending platform, has reported a significant decrease in Transaction Volume, both in dollars and number of loans, for the year ended December 31, 2023. The company's Transaction Volume in dollars fell by 59% to $4,645,669, while the number of loans decreased by 61% to 437,659. This contraction was attributed to reduced funding availability due to macroeconomic uncertainty and increased consumer risk and cost of funds. Despite these challenges, Upstart's Contribution Margin improved to 63%, up from 49% in the previous year. However, Adjusted EBITDA turned negative at $(17,217), a decline from $37,161 in the prior year, and Adjusted Net Income also dropped to a loss of $(46,933). The company's Conversion Rate decreased to 9.7%, and the Percentage of Loans Fully Automated rose...Show More

Upstart Holdings, Inc., a leading artificial intelligence lending platform, has reported a significant decrease in Transaction Volume, both in dollars and number of loans, for the year ended December 31, 2023. The company's Transaction Volume in dollars fell by 59% to $4,645,669, while the number of loans decreased by 61% to 437,659. This contraction was attributed to reduced funding availability due to macroeconomic uncertainty and increased consumer risk and cost of funds. Despite these challenges, Upstart's Contribution Margin improved to 63%, up from 49% in the previous year. However, Adjusted EBITDA turned negative at $(17,217), a decline from $37,161 in the prior year, and Adjusted Net Income also dropped to a loss of $(46,933). The company's Conversion Rate decreased to 9.7%, and the Percentage of Loans Fully Automated rose to 87%. Upstart's business development efforts focused on improving AI models and expanding product offerings, including the launch of a HELOC product. The company also faced a challenging macroeconomic environment, leading to workforce reductions and a shift in strategy to secure committed capital arrangements to stabilize loan funding. Upstart's future plans include continued investment in AI model development, product expansion, and diversification of capital sources for its lending marketplace.