Latest news with #DaveGirouard
Yahoo
5 days ago
- Business
- Yahoo
Upstart Showcases AI Breakthroughs and Business Momentum at Inaugural 'AI Day'
NEW YORK, May 14, 2025--(BUSINESS WIRE)--Upstart Holdings, Inc. (NASDAQ: UPST), the leading artificial intelligence (AI) lending marketplace, today hosted its first-ever AI Day investor event in New York City, where executives highlighted the company's proprietary AI, differentiated business model, and unique financial profile. "Upstart is building the foundation model for credit, and no one else is even trying," said Co-founder and CEO Dave Girouard. "From the scale of our AI infrastructure to our winning business model, we're on track to become the 'everything store for credit' in the 21st century." At the event, Girouard outlined the $1 trillion opportunity in credit and Upstart's leading role in delivering the AI that is changing how loans are underwritten, automated, and serviced. He also reiterated his four goals for 2025: 10X Upstart's advantage in AI; prepare Upstart's funding supply for rapid growth; return to GAAP profitability in the second half of the year; and giant leaps toward best rates and best process for all. Co-founder and Chief Technology Officer Paul Gu walked investors through the company's journey in developing a vertically integrated AI model trained on over 90 million datapoints. Gu emphasized how Upstart's use of advanced techniques—such as proprietary loss functions, embeddings, and dynamic macro modeling—delivers more accurate underwriting and faster approvals than traditional lenders. Chief Marketing Officer and Senior Vice President of Growth Chantal Rapport detailed how Upstart's winning business model—driven by industry-leading AI, marketplace capital, and brand advantage—is driving growth across the full credit spectrum. She positioned Upstart as a "category of one" business that is reshaping borrower expectations with speed and ease. Chief Financial Officer Sanjay Datta showed how Upstart's growth trajectory, pricing power, margins, operating leverage, and profits have created a unique financial profile that results in business model resilience. He also pointed to potential future revenue streams for Upstart, including ratable fee revenue, subscriptions, revolving credit, and servicing for all. The presentations, as well as a video replay of the event, are available on Upstart's Investor Relations website. About Upstart Upstart (NASDAQ: UPST) is the leading AI lending marketplace, connecting millions of consumers to more than 100 banks and credit unions that leverage Upstart's AI models and cloud applications to deliver superior credit products. With Upstart AI, lenders can approve more borrowers at lower rates while delivering the exceptional digital-first experience customers demand. More than 90% of loans are fully automated, with no human intervention by Upstart. Founded in 2012, Upstart's platform includes personal loans, automotive retail and refinance loans, home equity lines of credit, and small-dollar "relief" loans. Upstart is based in San Mateo, California. This press release and the AI Day webcast contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding our outlook for the second quarter of 2025 and the full-year of 2025. Forward-looking statements give our current expectations and projections relating to our financial condition; macroeconomic factors; plans; objectives; product development; growth opportunities; assumptions; risks; future performance; business; investments; and results of operations, including revenue (including revenue from fees and net interest income (loss)), contribution margin, net income (loss), non-GAAP adjusted net income (loss), Adjusted EBITDA, basic weighted-average share count and diluted weighted-average share count. Forward-looking statements are based on information available at the time those statements are made or management's good faith beliefs and assumptions as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in, or suggested by, the forward-looking statements. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that we expected and should not be read as a guarantee of future performance or results. Neither we nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. We undertake no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law. More information about factors that could affect our results of operations and risks and uncertainties are provided in our public filings with the Securities and Exchange Commission (the "SEC"), including "Risk Factors" in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, copies of which may be obtained by visiting our investor relations website at or the SEC's website at Moreover, we operate in very competitive and rapidly changing environments, and new risks may emerge from time to time. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Additional information will be available in other future reports that we file with the SEC from time to time, which could cause actual results to vary from expectations. View source version on Contacts Investors Sonya Banerjeeir@ Press Tom Brennanpress@
Yahoo
5 days ago
- Business
- Yahoo
Upstart to Host First-Ever 'AI Day' Investor Event Today (May 14, 2025)
NEW YORK, May 14, 2025--(BUSINESS WIRE)--Upstart Holdings, Inc. (NASDAQ: UPST), the leading artificial intelligence (AI) lending marketplace, will host its inaugural AI Day for investors today at 9:00 a.m. ET in New York City. The event will feature presentations from Upstart's senior leadership team, offering insights into the company's industry-leading AI platform, the structural advantages of its business model, and the expansive growth opportunity ahead. Agenda: 9:00 a.m. – Dave Girouard, Co-founder and CEO: The Opportunity 9:30 a.m. – Paul Gu, Co-founder and CTO: Our AI Advantage 10:30 a.m. – Chantal Rapport, Chief Marketing Officer & SVP of Growth: Our Category-of-One Business 11:00 a.m. – Sanjay Datta, Chief Financial Officer: Profitability & Resilience 11:30 a.m.-12:15 p.m. – Executive Q&A A live webcast of the event will be available on Upstart's Investor Relations website. A video replay and the presentation materials will also be accessible following the event. To register for the webcast, please click here. About Upstart Upstart (NASDAQ: UPST) is the leading AI lending marketplace, connecting millions of consumers to more than 100 banks and credit unions that leverage Upstart's AI models and cloud applications to deliver superior credit products. With Upstart AI, lenders can approve more borrowers at lower rates while delivering the exceptional digital-first experience customers demand. More than 90% of loans are fully automated, with no human intervention by Upstart. Founded in 2012, Upstart's platform includes personal loans, automotive retail and refinance loans, home equity lines of credit, and small-dollar "relief" loans. Upstart is based in San Mateo, California. The AI Day webcast may include forward-looking statements. For more information, please refer to the forward-looking statements disclaimer that will be available on the accompanying AI Day materials at Upstart's Investor Relations website. View source version on Contacts Investors Sonya Banerjeeir@ Press Tom Brennanpress@ Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
6 days ago
- Business
- Yahoo
1 Amazing Artificial Intelligence (AI) Stock Down 88% You'll Wish You'd Bought on the Dip in 2025
Upstart developed a unique artificial intelligence (AI) algorithm that could make traditional loan assessment methods obsolete. Upstart CEO Dave Girouard thinks the world's $25 trillion in annual loan originations could be assessed entirely by AI within the next decade. Upstart is leading that revolution, and its stock looks very attractive at the current price. 10 stocks we like better than Upstart › Upstart Holdings (NASDAQ: UPST) developed an artificial intelligence (AI) algorithm to originate loans on behalf of banks and financial institutions, and it appears to be far more effective at determining the creditworthiness of potential borrowers than traditional assessment methods. Upstart stock has nearly doubled over the past year, but it remains 88% below its all-time high, which was set during the tech frenzy in 2021. Demand for loans plummeted when interest rates soared in 2022 and 2023, which dealt a blow to the company's financial performance. But earlier this month, Upstart reported its financial results for the first quarter of 2025 (ended March 31), and they revealed extremely strong -- and accelerating -- revenue growth. Its stock is starting to look like a bargain, so here's why investors might wish they had bought the dip when they look back on this moment in the future. Fair Isaac's FICO credit scoring system has been central to the banking industry's assessment methods for over three decades. It uses five key metrics to determine a potential borrower's creditworthiness, including their existing debts and their repayment history, but Upstart thinks it's outdated. AI makes it possible to analyze high volumes of data in a matter of seconds, enabling Upstart's algorithm to consider over 2,500 metrics on every applicant. As a result, the company says it produces a more accurate overview of a borrower's ability to repay their loan. It approves double the number of applications than traditional assessment methods, and at a much lower average interest rate, while maintaining the same risk profile. Inside a traditional bank, it would take a human assessor days, if not weeks, to manually analyze as much data as Upstart's AI algorithm. The company is slowly phasing humans out of the process entirely -- during the first quarter of 2025, it originated 240,706 loans in total, and a staggering 92% of those approvals were fully automated thanks to AI. The bulk of Upstart's originations are unsecured personal loans, but it has a growing presence in automotive loans and also in the home equity line of credit (HELOC) segment. At the company's "AI Day 2025" earlier this month, CEO Dave Girouard hinted at a potential expansion into small business loans, industrial loans, and credit cards over the long term. Girouard said there are around $25 trillion worth of originations worldwide each year across all loan segments, which translates into a $1 trillion opportunity in terms of fee revenue. He believes all human assessment methods will be replaced by AI within the next decade, and since Upstart is leading the transformation, it could capture a sizable chunk of that value. Upstart generated $213 million in total revenue during the first quarter of 2025. It was a 67% increase from the same quarter in 2024, marking the fastest growth rate in around three years. It was also the third consecutive quarter in which that growth rate accelerated, highlighting the significant momentum in loan demand. As I mentioned earlier, Upstart originated 240,706 loans during the quarter. They had a face value of $2.1 billion, which was a whopping 89% jump compared to the value of the loans the company originated in the same quarter last year. That growth rate also accelerated for the third straight quarter. Upstart also made significant progress at the bottom line because its operating expenses only increased by 11.6%, which was a much slower pace than the increase in its revenue. The company still lost $2.4 million on a generally accepted accounting principles (GAAP) basis, but that was a 96.2% reduction from the $64.6 million net loss it delivered in the year-ago quarter. Upstart's preferred measure of profitability is adjusted earnings before interest, tax, depreciation, and amortization (EBITDA), which is a non-GAAP metric. It excludes one-off and non-cash expenses like stock-based compensation, so it's a good indicator of the actual cash the business is generating. It was positive to the tune of $42.5 million during the quarter, which was a big swing from the loss of $20.3 million from the year-ago period. When Upstart stock peaked in 2021, its price-to-sales (P/S) ratio surged to around 50, which was a completely unsustainable valuation. But the 88% decline in the stock since then, combined with the company's rapid revenue growth, has pushed its P/S ratio down to 5.7. That's a 35% discount to its long-term average of 8.8 dating back to when Upstart went public in 2020. Plus, management's guidance suggests the company will deliver a record $1.01 billion in revenue during the 2025 full year, which places the stock at a forward P/S ratio of 4.2: In other words, Upstart stock would have to double by the end of this year just to trade in line with its long-term average P/S ratio of 8.8. Considering the company's accelerating revenue growth, I think that's a real possibility. The decline in interest rates at the end of 2024 was a big tailwind for Upstart's business in the first quarter of 2025. Wall Street is anticipating two more cuts from the Federal Reserve this year (according to the CME Group's FedWatch tool), which should drive even more demand for loans. But the opposite is also true -- if the Fed cuts rates slower than expected, Upstart's recent momentum could temporarily hit a wall. But investors should stay focused on the long-term opportunity at hand, because if the number of loans assessed by AI continues to grow as CEO Dave Girouard expects, then Upstart stock could be poised for substantial upside over the next decade. Before you buy stock in Upstart, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Upstart wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,389!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $830,492!* Now, it's worth noting Stock Advisor's total average return is 982% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Upstart. The Motley Fool recommends CME Group and Fair Isaac. The Motley Fool has a disclosure policy. 1 Amazing Artificial Intelligence (AI) Stock Down 88% You'll Wish You'd Bought on the Dip in 2025 was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
Upstart Showcases AI Breakthroughs and Business Momentum at Inaugural 'AI Day'
NEW YORK, May 14, 2025--(BUSINESS WIRE)--Upstart Holdings, Inc. (NASDAQ: UPST), the leading artificial intelligence (AI) lending marketplace, today hosted its first-ever AI Day investor event in New York City, where executives highlighted the company's proprietary AI, differentiated business model, and unique financial profile. "Upstart is building the foundation model for credit, and no one else is even trying," said Co-founder and CEO Dave Girouard. "From the scale of our AI infrastructure to our winning business model, we're on track to become the 'everything store for credit' in the 21st century." At the event, Girouard outlined the $1 trillion opportunity in credit and Upstart's leading role in delivering the AI that is changing how loans are underwritten, automated, and serviced. He also reiterated his four goals for 2025: 10X Upstart's advantage in AI; prepare Upstart's funding supply for rapid growth; return to GAAP profitability in the second half of the year; and giant leaps toward best rates and best process for all. Co-founder and Chief Technology Officer Paul Gu walked investors through the company's journey in developing a vertically integrated AI model trained on over 90 million datapoints. Gu emphasized how Upstart's use of advanced techniques—such as proprietary loss functions, embeddings, and dynamic macro modeling—delivers more accurate underwriting and faster approvals than traditional lenders. Chief Marketing Officer and Senior Vice President of Growth Chantal Rapport detailed how Upstart's winning business model—driven by industry-leading AI, marketplace capital, and brand advantage—is driving growth across the full credit spectrum. She positioned Upstart as a "category of one" business that is reshaping borrower expectations with speed and ease. Chief Financial Officer Sanjay Datta showed how Upstart's growth trajectory, pricing power, margins, operating leverage, and profits have created a unique financial profile that results in business model resilience. He also pointed to potential future revenue streams for Upstart, including ratable fee revenue, subscriptions, revolving credit, and servicing for all. The presentations, as well as a video replay of the event, are available on Upstart's Investor Relations website. About Upstart Upstart (NASDAQ: UPST) is the leading AI lending marketplace, connecting millions of consumers to more than 100 banks and credit unions that leverage Upstart's AI models and cloud applications to deliver superior credit products. With Upstart AI, lenders can approve more borrowers at lower rates while delivering the exceptional digital-first experience customers demand. More than 90% of loans are fully automated, with no human intervention by Upstart. Founded in 2012, Upstart's platform includes personal loans, automotive retail and refinance loans, home equity lines of credit, and small-dollar "relief" loans. Upstart is based in San Mateo, California. This press release and the AI Day webcast contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding our outlook for the second quarter of 2025 and the full-year of 2025. Forward-looking statements give our current expectations and projections relating to our financial condition; macroeconomic factors; plans; objectives; product development; growth opportunities; assumptions; risks; future performance; business; investments; and results of operations, including revenue (including revenue from fees and net interest income (loss)), contribution margin, net income (loss), non-GAAP adjusted net income (loss), Adjusted EBITDA, basic weighted-average share count and diluted weighted-average share count. Forward-looking statements are based on information available at the time those statements are made or management's good faith beliefs and assumptions as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in, or suggested by, the forward-looking statements. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that we expected and should not be read as a guarantee of future performance or results. Neither we nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. We undertake no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law. More information about factors that could affect our results of operations and risks and uncertainties are provided in our public filings with the Securities and Exchange Commission (the "SEC"), including "Risk Factors" in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, copies of which may be obtained by visiting our investor relations website at or the SEC's website at Moreover, we operate in very competitive and rapidly changing environments, and new risks may emerge from time to time. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Additional information will be available in other future reports that we file with the SEC from time to time, which could cause actual results to vary from expectations. View source version on Contacts Investors Sonya Banerjeeir@ Press Tom Brennanpress@ Sign in to access your portfolio
Business Wire
14-05-2025
- Business
- Business Wire
Upstart Showcases AI Breakthroughs and Business Momentum at Inaugural 'AI Day'
NEW YORK--(BUSINESS WIRE)--Upstart Holdings, Inc. (NASDAQ: UPST), the leading artificial intelligence (AI) lending marketplace, today hosted its first-ever AI Day investor event in New York City, where executives highlighted the company's proprietary AI, differentiated business model, and unique financial profile. "Upstart is building the foundation model for credit, and no one else is even trying,' said Co-founder and CEO Dave Girouard. 'From the scale of our AI infrastructure to our winning business model, we're on track to become the 'everything store for credit' in the 21st century." At the event, Girouard outlined the $1 trillion opportunity in credit and Upstart's leading role in delivering the AI that is changing how loans are underwritten, automated, and serviced. He also reiterated his four goals for 2025: 10X Upstart's advantage in AI; prepare Upstart's funding supply for rapid growth; return to GAAP profitability in the second half of the year; and giant leaps toward best rates and best process for all. Co-founder and Chief Technology Officer Paul Gu walked investors through the company's journey in developing a vertically integrated AI model trained on over 90 million datapoints. Gu emphasized how Upstart's use of advanced techniques—such as proprietary loss functions, embeddings, and dynamic macro modeling—delivers more accurate underwriting and faster approvals than traditional lenders. Chief Marketing Officer and Senior Vice President of Growth Chantal Rapport detailed how Upstart's winning business model—driven by industry-leading AI, marketplace capital, and brand advantage—is driving growth across the full credit spectrum. She positioned Upstart as a "category of one" business that is reshaping borrower expectations with speed and ease. Chief Financial Officer Sanjay Datta showed how Upstart's growth trajectory, pricing power, margins, operating leverage, and profits have created a unique financial profile that results in business model resilience. He also pointed to potential future revenue streams for Upstart, including ratable fee revenue, subscriptions, revolving credit, and servicing for all. The presentations, as well as a video replay of the event, are available on Upstart's Investor Relations website. About Upstart Upstart (NASDAQ: UPST) is the leading AI lending marketplace, connecting millions of consumers to more than 100 banks and credit unions that leverage Upstart's AI models and cloud applications to deliver superior credit products. With Upstart AI, lenders can approve more borrowers at lower rates while delivering the exceptional digital-first experience customers demand. More than 90% of loans are fully automated, with no human intervention by Upstart. Founded in 2012, Upstart's platform includes personal loans, automotive retail and refinance loans, home equity lines of credit, and small-dollar 'relief' loans. Upstart is based in San Mateo, California. This press release and the AI Day webcast contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding our outlook for the second quarter of 2025 and the full-year of 2025. Forward-looking statements give our current expectations and projections relating to our financial condition; macroeconomic factors; plans; objectives; product development; growth opportunities; assumptions; risks; future performance; business; investments; and results of operations, including revenue (including revenue from fees and net interest income (loss)), contribution margin, net income (loss), non-GAAP adjusted net income (loss), Adjusted EBITDA, basic weighted-average share count and diluted weighted-average share count. Forward-looking statements are based on information available at the time those statements are made or management's good faith beliefs and assumptions as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in, or suggested by, the forward-looking statements. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that we expected and should not be read as a guarantee of future performance or results. Neither we nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. We undertake no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law. More information about factors that could affect our results of operations and risks and uncertainties are provided in our public filings with the Securities and Exchange Commission (the "SEC"), including 'Risk Factors' in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, copies of which may be obtained by visiting our investor relations website at or the SEC's website at Moreover, we operate in very competitive and rapidly changing environments, and new risks may emerge from time to time. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Additional information will be available in other future reports that we file with the SEC from time to time, which could cause actual results to vary from expectations.
