Artificial intelligence (AI) lending platform Upstart Holdings posted fourth-quarter and full year 2021 results for the period ended Dec. 31, 2021, that beat analysts’ consensus estimates of $262.9 million with fourth-quarter sales of $304.8 million, up 252% from same quarter in 2020, according to a Tuesday (Feb. 15) press release.
Diluted earnings per share of $0.89 blew past Wall Street’s forecast of $0.51 per share. The positive results and strong forecast set shares of Upstart soaring all day on Wednesday (Feb. 16), according to reports. The tech stock was up 31% at 10:19 a.m. ET and at 2:20 p.m. was up 30%.
See also: Upstart’s Triple-Digit Growth Shows AI-Based Lending’s Heady Pace
The firm was co-founded in 2012 by CEO David Girouard, former Google enterprise president; Head of Operations Anna M. Counselman, former Google manager of online sales and operations; and Head of Product Paul Gu. The company is headquartered in in San Mateo, California and Columbus, Ohio.
Upstart develops partnerships with banks and credit unions to expand access to affordable credit. With Upstart’s AI platform, banks and credit unions powered by Upstart have improved approval rates and lower loss rates. Upstart loans are fully automated, provide an instant answer, and approve over two-thirds of loans.
Read more: New Risk Scoring Model Opens Credit Doors for Small Businesses Banks Leave Behind
“With triple-digit growth and record profits, Q4 was an exceptional finish to a breakout year for Upstart. 2021 will be remembered as the year AI lending came to the forefront, kicking off the most impactful transformation of credit in decades,” Girouard said in the release.
“But AI lending isn’t a one-category phenomenon. I’m also happy to report that, with help from an epic push by our team in the last few weeks of the year, auto loan originations on our platform are now ramping quickly and will provide growth opportunities to Upstart for years to come.”
The company also announced a share repurchase program with authorization to purchase up to $400 million of common stock.
“With the volatility in the trading of our stock, we have seen what we believe to be attractive buying conditions at various times over the past year, and our profitability puts us in a position to be able to initiate this program and take advantage of those situations on behalf of our shareholders,” said Sanjay Datta, CFO of Upstart.
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