Upstart Holdings Shares Plummeted 18% Following Disappointing Preliminary Q2 Results
<p><a href='https://financialmodelingprep.com/financial-summary/UPST'> Upstart Holdings, Inc.(NASDAQ:UPST) </a> shares plunged more than 18% pre-market following the company’s announced preliminary Q2 results, with significantly reduced revenue guidance of $228 million (vs. $295-$305 million prior). </p> 
<p>The company expects the contribution margin to be approximately 47% (vs. 45% prior), and net income (loss) to be in the range of ($31)-($27) million (vs. ($4)-$0 million prior). </p>
<p>The shortfall is due to (1) funding constraints as appetite has waned from credit buyers and the ABS market, and (2) losses related to selling loans at a discount to par to convert on-balance sheet loans into cash. According to the company, these two factors driving the revenue shortfall were split roughly evenly. </p>
NASDAQ:UPST