Upstart Holdings, Inc. (NASDAQ:UPST) Barclays 15th Annual Emerging Payments and FinTech Forum Conference Call May 19, 2025 10:20 AM ET Company Participants Dave Girouard - Co-Founder and Chief Executive Officer Conference Call Participants Ramsey El-Assal - Barclays Capital, Inc. Ramsey El-Assal All right, all ready. Welcome back. I am very happy to welcome Dave Girouard, Founder and CEO of Upstart to our conference today. Dave, thanks so much for joining us. It's always a pleasure to talk to you. Dave Giro ...

Summary of Upstart Conference Call Company Overview - **Company**: Upstart - **Industry**: Fintech, specifically focused on personal loans and credit products Key Points Macro Economic Commentary - Upstart's business is closely linked to consumer financial health, focusing on savings and credit performance rather than just spending [5][6] - The Upstart Macro Index indicates that while consumer health has improved since the end of COVID stimulus, it remains elevated with significant risks priced into loans [6][8] - The long-term personal savings rate is currently low, around 4%, compared to the historical average of 8-9%, indicating financial strain on average American families [7] AI and Technology Integration - Upstart has been leveraging AI since its inception to create better risk models, differentiating itself from competitors who may only recently be adopting AI [10][11] - The company emphasizes the importance of continuous improvement in AI models, which are updated weekly, leading to better credit products [12] - Upstart's focus on improving customer experience through technology has resulted in 92% of loans being instantly approved, significantly enhancing conversion rates [18][21] Shift in Customer Demographics - Super prime customers now account for approximately one-third of personal loan originations, indicating a shift towards serving a broader customer base [22][25] - Upstart aims to provide the best rates and processes for all borrowers, not just a specific segment, enhancing its market position [24][26] Distribution Channels - The largest source of loans is now returning customers, accounting for 30-40% of loans, reducing customer acquisition costs [28] - Upstart plans to increase direct-to-consumer marketing to better communicate its unique value proposition [29][30] Resilience to Macro Stress - Upstart is working towards reducing macro volatility by diversifying its borrower base and product offerings, including secured loans [32][33] - Two-thirds of Upstart's funding now comes from long-term partnerships, providing a more stable growth path [34] Capital Partnerships - Upstart's capital partners are attracted to its reliable yield and structured co-investment opportunities, which align interests for long-term growth [35][37] - The company is expanding its partnerships to include auto and home equity loans, which are more appealing to lenders than unsecured loans [45][46] Product Development - Upstart is actively developing new products, including auto refinancing and home equity lines of credit (HELOC), with positive performance indicators emerging [49][52] - The company aims to create a seamless experience for secured products, similar to its unsecured loans, with a focus on automation [60][61] Future Product Offerings - Upstart plans to expand its product lineup to include revolving credit products and potentially a subscription service for enhanced customer experience [64][68] - The company envisions becoming a comprehensive credit destination, offering the best rates and processes across various credit products [70][71] Additional Insights - Upstart's approach to credit is distinct from traditional banks, focusing solely on credit products rather than being a multi-service platform [71] - The company believes in the potential of AI to revolutionize the credit industry, aiming for a future where loans can be obtained effortlessly and at the best rates [62][70]

Upstart (UPST) Update / Briefing May 14, 2025 09:00 AM ET Speaker0 Please welcome VP of Investor Relations, Sonia Banerjee. Speaker1 Good morning. Good morning. Can you hear me? Just making sure. Welcome to Upstart AI Day. My name is Sonia. I'm the Head of Investor Relations for Upstart. And on behalf of the entire team, we are so glad that you were able to make it today. If you're here in the room with us or joining us on the webcast, we appreciate your engagement and your time. We have a fantastic morning ...

Core Insights - The article emphasizes that individuals with bad credit still have viable loan options available, particularly through specialized lenders like Upstart, which offers a more inclusive approach to loan approval [1][5][36]. Group 1: Upstart's Loan Offerings - Upstart is highlighted as the top choice for bad credit loans, utilizing AI to assess applicants beyond just credit scores, considering factors like education and income [6][8][23]. - Loan amounts range from $1,000 to $50,000, with APRs between 6.70% and 35.99%, depending on the borrower's creditworthiness [9]. - Upstart's repayment terms are fixed at either 36 or 60 months, providing a structured payment schedule for borrowers [10]. Group 2: Benefits of Upstart - Upstart accepts borrowers with credit scores as low as 300, and for college students or recent graduates, there is no credit score requirement [12]. - The platform offers fast funding, with funds available as soon as the next business day after approval [12][26]. - There are no prepayment penalties, allowing borrowers to pay off loans early without incurring additional costs [12]. Group 3: Understanding Bad Credit Loans - Bad credit loans are designed for individuals with poor credit histories, providing access to funds that traditional lenders may deny [17][36]. - These loans may come with higher interest rates due to the associated risks, but they also offer opportunities for borrowers to rebuild their credit [17][37]. - The article outlines various types of bad credit loans, including personal loans, secured loans, payday loans, and peer-to-peer loans [21]. Group 4: Application Process and Requirements - Upstart's application process is entirely digital, requiring minimal documentation, which can be completed online in just a few minutes [25][27]. - Approval is often instant, with funds typically disbursed the same day or within one business day, making it suitable for urgent financial needs [26][27]. - The article advises borrowers to focus on key features when applying for bad credit loans, such as fair interest rates, no prepayment penalties, and clear terms [38][44].

Upstart Holdings (UPST) and Affirm Holdings (AFRM) are the two well-known names in the fintech industry. These fintech innovators are using artificial intelligence (AI) to upend traditional lending, offering faster, more efficient and often more inclusive credit solutions.Upstart focuses on AI-driven personal loans, while Affirm is best known for its "buy now, pay later" (BNPL) model. Both target similar customer bases and banking partners, but their approaches, financials and future outlooks differ signifi ...

Investors came in to Upstart's (UPST 5.53%) first-quarter earnings report hoping the company would maintain its momentum from the end of last year.Its growth has accelerated thanks to a new artificial intelligence (AI) model, Model 18 or M18, that has significantly improved its conversion rate thanks to an even broader prediction set that includes approximately 1 million predictions per applicant, or six times its prior model.With those tailwinds behind it, Upstart's results in Q1 did not disappoint. Revenu ...

Artificial intelligence (AI) lending stock Upstart Holdings Inc (NASDAQ:UPST) was last seen down 11.9% at $45.27, brushing off upbeat first-quarter results as well as a strong full-year forecast, after the company's second-quarter outlook spooked investors. No fewer than four analysts slashed their price targets after the event, including Morgan Stanley all the way to $50 from $70. Options traders are blasting Upstart stock in response. So far today, 62,000 calls and 47,000 puts have been exchanged , which ...

Upstart Holdings, Inc. UPST shares are trading lower on Wednesday.On Tuesday, Upstart reported first-quarter earnings of 30 cents per share, which beat the analyst consensus estimate of 17 cents.Quarterly revenue was $213.37 million. That’s up from $127.79 million in the same period last year. The company beat the consensus estimate of $199.49 millionHere are the key analysts’ takes on the stock:JPMorgan analyst Reginald L. Smith reiterated the Neutral rating on Upstart, lowering the price forecast from $79 ...

Upstart Holdings, Inc. (UPST) reported $213.37 million in revenue for the quarter ended March 2025, representing a year-over-year increase of 67%. EPS of $0.30 for the same period compares to -$0.31 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $200.74 million, representing a surprise of +6.29%. The company delivered an EPS surprise of +57.89%, with the consensus EPS estimate being $0.19.While investors scrutinize revenue and earnings changes year-over-year and how they compare ...

Highlights Upstart saw growth in loan originations, with platform originations up 89% year over year to $2.1 billion, driven by personal loans, which grew 83%. The company is moving into the super-prime borrower space, which now accounts for 32% of originations. Despite growth and management commentary about improved borrower health and strong credit performance, the shares declined over 18% in after-hours trading as contribution margins decreased slightly. Lending platform Upstart Holdings' first quarter r ...