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Here’s the Reason Why Upstart Holdings, Inc. (UPST) Stock is Consistently Declining

 Upstart Holdings, Inc. (UPST), a company operating cloud-based artificial intelligence (AI) lending platform, has plunged 20.24% in aftermarket trading session and consequently is trading at $250.22 at the time of the writing. On Tuesday, UPST closed the day at $313.71 after declining 6.24% during regular trading hours. The consistent decline could be attributed to the company’s announcement of third-quarter 2021 results.


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Why UPST Declining?

In the late hours of Tuesday, UPST released the financial results for the third quarter of the fiscal year 2021. The quarter ended on 30th September 2021. The company generated total revenue of $65.39 million during the quarter against $228.45 million for the same period of 2020. The total operating expenses for the period were $53.15 million against $199.85 million for the same period of 2020. The net loss attributable to the company’s common stockholders was $9.66 million against $29.11 million for the same period of 2020. The net loss per basic and diluted share attributable to the company’s common stockholders for the period was $0.12 and $0.10 against $0.37 and $0.30 respectively for the same period of 2020.

Financial Outlook

UPST, while presenting quarterly results, also highlighted the financial outlook for the upcoming quarter. The company estimated that during the fourth quarter of 2021, its revenue would increase from $255 million to $265 million. The company expected the net income to increase from $16 million to $20 million, while the adjusted net income was estimated to increase from $48 million to $50 million. Also, the company estimated that the adjusted EBITDA would increase from $51 million to $53 million during the fourth quarter of fiscal 2021.

Executive Commentary

Dave Girouard co-founder and CEO of UPST, while commenting on the quarterly results said that since the company became public a year ago, it had tripled its revenue, profits, number of banks on its platform, and the number of auto-dealerships the company serves. He stressed that the results depict the company as taking steps in a positive direction.

What’s Ahead for UPST?

During the last three months, UPST has surged more than 80%, the primary reason being the reliance upon innovation by the company, which in turn is gaining investors’ attention. The estimate suggests that the company is in a good shape to achieve monumental success in the future.

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