Upstart (UPST) reported earnings on Wed 17 March 21 (a/h)

 ** charts after earnings **

Upstart beats by $0.05, beats on revs; guides Q1 revs above consensus; guides FY21 revs above consensus

Reports Q4 (Dec) earnings of $0.07 per share, $0.05 better than the S&P Capital IQ Consensus of $0.02; revenues rose 41.9% year/year to $86.7 mln vs the $73.5 mln S&P Capital IQ Consensus.

Bank partners originated 123,396 loans across our platform in the fourth quarter of 2020, up 57% from the same quarter of the prior year.

Conversion on rate requests was 17.4% in the fourth quarter of 2020, up from 14.9% in the same quarter of the prior year.

Co issues upside guidance for Q1, sees Q1 revs of $112-$118 mln vs. $75.30 mln S&P Capital IQ Consensus. Sees adjusted net income of $13.4-$14.2 mln.

Co issues upside guidance for FY21, sees FY21 revs of approximately $500 mln vs. $359.45 mln S&P Capital IQ Consensus. Contribution Margin of approximately 41%.

Upstart agrees to acquire Prodigy Software; terms not disclosed

Upstart has entered into a definitive agreement to acquire Prodigy Software, a provider of cloud-based automotive retail software. With the acquisition of Prodigy, Upstart will accelerate 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.

More than $2 bln in vehicle sales have been powered by Prodigy at franchised dealers from brands such as Toyota, Honda, and Ford.

The transaction is expected to close in the second quarter of calendar year 2021.