Upstart Holdings’ Revenue Breakdown by Segment (2019-2023)

This statistic highlights Upstart Holdings’ Revenue by Segment, split across Interest income and Fair value adjustments, net, and Revenue from fees, net, reported on a quarterly basis from Q1 2019 onwards.

Upstart Holdings Inc. and its subsidiaries use cutting-edge data science and technology to help people get credit. Upstart provides a unique, cloud-based artificial intelligence lending platform to its bank partners to assist them to originate credit. More banks are adopting the Upstart platform as the company’s technology improves, and consumers are gaining access to more affordable, frictionless lending.

Upstart Holdings’ Revenue by Segment

(All figures in millions, except for percentage)

Upstart Holdings Inc.’s total revenue grew from $86.71 million in Q4 2020 to $304.85 million in Q4 2021, marking an increase of 251.57% ($218.14) on a year on year basis. Quarterly, the company’s total revenue rose from $228.45 million in Q3 2021 to $304.85 million in Q4 2021, projecting an incline of 33.44% ($76.4 million).

Interest income and fair value adjustments, net

Interest income and fair value adjustments, net are interest income, interest expense, and net changes in the fair value of financial instruments held at fair value in the ordinary course of business, such as loans, notes receivable, and residual certificates, payable to securitization noteholders and residual certificate holders.

Interest revenue is collected over the life of a loan and is recorded based on the terms of the underlying agreements with borrowers for loans carried on the Company’s condensed consolidated balance sheets. It also covers interest generated but not collected on outstanding loans.

Interest expense is mostly made up of interest on the Company’s borrowings and notes issued as part of the consolidated securitizations.

Changes in the fair value of financial instruments, other than loan servicing assets and liabilities, common stock warrant obligations, and convertible preferred stock warrant liabilities, are included in fair value and other adjustments, net.

Upstart‘s revenue from this segment increased from $2.29 million in Q4 2020 to $18.03 million in Q3 2021, making a huge increment of 687.34% ($15.74 million). There was a further slight decline in the revenue from $18.03 million in Q3 2021 to $17.46 million in Q4 2021, setting a decline of 3.16% ($0.57 million). This segment contributes 5.73% of the total revenue in Q4 2021.

Revenue from fees, net

This segment is divided into two categories.

Platform and Referral Fees, Net

In exchange for using our AI lending platform, which includes the collecting of loan application data, credit risk underwriting, verification and fraud detection, and the delivery of electronic loan offers and accompanying documentation, the company charges their bank partners platform fees. In exchange for referring borrowers from Upstart.com, it also charges referral fees to its bank partners. Referral fees are paid to bank partners on a per-borrower basis when a loan is originated.

Servicing Fees, Net

Servicing fees are calculated as a percentage of outstanding principal and are charged monthly to any entities holding loans facilitated through the company’s platform to compensate it for activities such as collection, processing, and reconciliation of payments received, investor reporting, and borrower customer support that we perform throughout the loan term.

There was a constant increase in the revenue from this segment. There was a growth of 240.43% ($202.97 million) from $84.42 million in Q4 2020 to $287.39 million in Q4 2021 in a year. On comparing quarterly, the revenue grew from $210.42 million in Q3 2021 to $287.39 million in Q4 2021 making an increment of 36.58% ($76.97 million). The major proportion of the revenue is generated from this segment amounting to 94.27% in Q4 2021.

About the Company

Upstart Network, Inc. was established in Delaware in 2012. Upstart Holdings, Inc. was formed in December 2013 as part of the restructuring and now serves as a holding company for Upstart Network, Inc. Upstart is based in San Mateo, California, and Columbus, Ohio, and operates mostly in the United States. The fiscal year of Upstart finishes on December 31st. Upstart is a prominent artificial intelligence (AI) lending platform that aims to increase access to credit while lowering the risk and cost of lending to banking partners. Upstart was one of the first startups to use artificial intelligence in the multibillion-dollar lending market. To achieve outstanding credit performance and enhance customer access to credit, Upstart goes beyond the FICO score and heavily relies on non-traditional criteria. Upstart’s algorithm is far more accurate than traditional lending models, allowing it to approve a higher number of applications with a lower loss rate. Because credit reality is vital, the company’s objective is to enable hassle-free lending based on true risk.

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