Upstart Holdings (NASDAQ: UPST) reported Q4 EPS of $0.07, $0.05 better than the analyst estimate of $0.02. Revenue for the quarter rose 39% to $86.7 million versus the consensus estimate of $74.06 million.

Fourth Quarter 2020 Financial Highlights

• Revenue. Total revenue was $86.7 million, an increase of 39% year-over-year for the fourth quarter. Total fee revenue was $84.4 million, an increase of 38% year-over-year.
• Lending Volume and Conversion Rate. Bank partners originated 123,396 loans across our platform in the fourth quarter of 2020, up 57% from the same quarter of the prior year. Conversion on rate requests was 17.4% in the fourth quarter of 2020, up from 14.9% in the same quarter of the prior year.
• Income from Operations. In the fourth quarter of 2020, income from operations was $10.4 million, an increase of 196% year-over-year for the fourth quarter.
• Net Income and EPS. In the fourth quarter of 2020, GAAP net income was $1.0 million and adjusted net income was $5.4 million. Accordingly, GAAP net income per share was $0.00, and diluted adjusted net income per share was $0.07 based on the weighted-average common shares outstanding during the period. In the fourth quarter of 2019, GAAP net income was $6.1 million and adjusted net income was $7.7 million.
• Contribution Profit. Fourth quarter 2020 contribution profit was $41.4 million with a contribution margin of 49% compared to $23.4 million in contribution profit and a 38% contribution margin in the fourth quarter of 2019. Contribution profit grew 77% in the fourth quarter of 2020 versus the comparable quarter last year.
• Adjusted EBITDA. Fourth quarter adjusted EBITDA was $15.5 million, which represents a 123% year-over-year increase compared to a fourth quarter 2019 adjusted EBITDA of $7.0 million. The fourth quarter 2020 adjusted EBITDA margin was 18% of total revenue and the adjusted EBITDA margin was 11% in the fourth quarter of 2019.

“We’re excited to share our financial results for the first time as a public company. Despite the COVID-19 pandemic, we delivered strong growth and profits in Q4 and for the full year 2020. This combination is rare among FinTechs and demonstrates the growing advantages of AI-based lending,” said Dave Girouard, CEO of Upstart. He added, “We believe virtually all lending will be powered by AI in the future, and we’re in the earliest stages of helping our bank partners successfully navigate that transformation.”

GUIDANCE:

Upstream Worldwide, Inc. sees Q1 2021 revenue of $112-118 million, versus the consensus of $73.78 million.

Upstream Worldwide, Inc. sees FY2021 revenue of $500 million, versus the consensus of $354.3 million.

For the first quarter of 2021, Upstart expects:

• Revenue of $112 to $118 million
• Contribution Margin of approximately 44%
• Net Income of $7.8 to $8.3 million
• Adjusted Net Income of $13.4 to $14.2 million
• Adjusted EBITDA of $14.6 to $15.3 million
• Basic Weighted-Average Share Count of approximately 74.3 million shares
• Diluted Weighted-Average Share Count of approximately 92.4 million shares

For the 2021 fiscal year, Upstart expects:

• Revenue of approximately $500 million
• Contribution Margin of approximately 41%
• Adjusted EBITDA Margin of approximately 10%

For earnings history and earnings-related data on Upstream Worldwide, Inc. (UPST) click here.