Upstart Holdings Inc. (UPST) stock soared in the after-market on Wednesday, March 18, 2021, gained 48.05%, after the company announced its financial results for its fourth quarter and fiscal year ended December 31, 2020, and made some other announcement.
Financial Highlights of Fourth Quarter 2020
- UPTS revenue was $86.7 million for the reported quarter.
- income from operations was $10.4 million in the fourth quarter.
- GAAP net income was $1.0 million and adjusted net income was $5.4 million.
- contribution profit was $41.4 million in the fourth quarter.
- Adjusted EBITDA was $15.5 million.
Financial Highlights of Fiscal Year 2020
- total revenue was $233.4 million for the Fiscal year 2020.
- For full-year 2020, income from operations was $11.8 million.
- adjusted net income was $17.5 million and GAAP net income was $6.0 million.
- 2020 contribution profit totalled $105.1 million,
- adjusted EBITDA totalled $31.5 million for the Fiscal year 2020
Financial Outlook for Q1 2021
- For the first quarter of 2021, UPST is expecting Revenue of $112 to $118 million
- Net Income of $7.8 to $8.3 million and Adjusted Net Income of $13.4 to $14.2 million is expected for Q1.
- Adjusted EBITDA of $14.6 to $15.3 million is targeted for Q1.
- Contribution Margin of approximately 44%.
Financial Outlook for the Fiscal year 2021
- Upstart targeting revenue of approximately $500 million for 2021.
- Adjusted EBITDA margin of approximately 10% for full-year
- Contribution Margin of approximately 41% is expected for 2021
Acquiring Prodigy Software
Upstart Holdings announced its intention to acquire Prodigy Software on Wednesday, March 17, 2021. The company said that it has entered into a definitive agreement with Prodigy.
Prodigy is a provider of cloud-based automotive retail software. Upstart is accelerating its efforts to offer AI-enabled auto loans through the tens of thousands of auto dealers nationwide where the majority of auto loans are originated, with the acquisition of Prodigy.