Upstart(NASDAQ:UPST) stock is falling hard on Tuesday following the release of its earnings report for the first quarter of 2022.
The worst news for Upstart from its most recent earnings report is in its outlook. Starting with the second quarter 2022 guidance, the company expects revenue of$295 million to $305 million. This would see it missing Wall Street’s estimate of $334.81 million for the quarter.
Moving on to its outlook for the full year of 2022, revenue guidance comes in at approximately $1.25 billion. Yet again, that would be well below analysts’ estimate of $1.4 billion for the year.
So what’s behind that low guidance? Here’s what Upstart CFO Sanjay Datta said in the company’sQ1 conference call.
“The combination of inflation and monetary tightening imply the non-trivial risk of a recession potentially later this year. Given the general macro uncertainties and the emerging prospects of a recession later this year, we have deemed it prudent to reflect a higher degree of conservatism in our forward expectations.”
Adding to all of this are mixed results for the first quarter of the year. Upstart reported adjusted earnings per share of 61 cents on revenue of $310 million. Wall Street was looking for an adjusted EPS of 51 cents on revenue of $313.98 million.
UPST stock is down 56.42% on Tuesday.
