Upstart (NASDAQ: UPST), an AI lending platform, experienced a dip in shares after announcing that it would be cutting its full-year revenue outlook amid rising interest rates and the volatile economy. The stock plummeted 59.9% during morning trading on Tuesday and was halted for a short time after the U.S. market opened.
The company reported earnings of USD0.61 per share, compared to the expected USD0.53 a share. Meanwhile, revenue amounted to USD310.14 Million, higher than analysts anticipated USD300.13 Million.
“Upstart just delivered our seventh consecutive profitable quarter and our fourth straight quarter with triple-digit year-on-year revenue growth,” said Dave Girouard co-founder and CEO of Upstart. “While this year is shaping up to be a challenging one for the economy, we know the drill and are confident that we can navigate whatever 2022 and beyond might hold.”
The artificial intelligence platform now expects second-quarter revenue to range between USD295 Million and USD305 Million, though analysts had predicted USD335 Million.
“Given the general macro uncertainties and the emerging prospect of a recession later this year, we have deemed it prudent to reflect a higher degree of conservatism in our forward expectations,” said CFO Sanjay Datta on Upstart’s earnings call Monday.