Upstart Holdings Inc UPST shares are trading lower Wednesday after the company reported worse-than-expected financial results and issued weak guidance, citing challenging economic conditions.
Upstart said third-quarter revenue decreased 31% year-over-year to $157 million, which came in below average analyst estimates of $169.42 million, according to Benzinga Pro. The cloud-based lending company reported a quarterly net loss of 24 cents per share, which missed average estimates of 8 cents per share.
"With a healthy balance sheet, robust unit economics, and strong pricing power, we believe that we're well positioned to navigate an extended period of economic uncertainty while continuing to invest strategically in future growth," said Dave Girouard, co-founder and CEO of Upstart.
Upstart expects fourth-quarter revenue to be between $125 million and $145 million versus average estimates of $185.33 million. The company anticipates a quarterly net loss of $87 million.
See Also: High Interest Rates Bad News For Upstart And Affirm
UPST Price Action: Upstart is making new 52-week lows on Wednesday.
Upstart shares were down 20.1% at $15.22 at time of publication.
Photo: courtesy of Upstart.
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