(Upstart) Shares of Upstart Holdings fell more than 45% in premarket on Tuesday after guiding a revenue of $295 million to $305 million in the second quarter of 2022.
The revenue guidance for the second quarter came short of the first quarter 2022 revenue of $310 million. The first quarter revenues had risen by 156% from the prior year.
Upstart also projects a contribution margin of 45% in the second quarter, which is lower compared to a reported margin of 47% in the first quarter. The contribution profit in the first quarter was reported at $147.8 million, an increase of 165% from the prior year.
Further guidance of a net income of between a loss of $4 million to $0 million in the second quarter came lower to a GAAP net income of $32.7 million in the first quarter. The income had increased from $10.1 million in the first quarter of 2021.
Upstart now expects revenue of around $1.25 billion in FY22, with a contribution margin of 48%. Adjusted EBITDA is expected at around 15%.
UPST: NASDAQ is down -46.25%.
