Actions of Holdings reached (NASDAQ: UPST) exploded Thursday morning, after the artificial intelligence (AI)The lending platform announced its fourth quarter and full year 2020 results. After announcing an acquisition that will bring it into the auto loan segment, Upstart has also given investors more prospects for the future.
As of 10:50 a.m. EDT, the company’s shares were up 76% on the day.
Upstart said fourth quarter revenue increased 39% year over year to $ 86.7 million. Annual revenue increased 42% to $ 233 million from 2019. But it’s the forecast, along with the shift to the auto loan segment, that is attracting investors today.
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Upstart had first quarter revenue of $ 115 million in the middle of the range and annual revenue of around $ 500 million. This is a growth of 115% over the year, that any high growth company would envy.
Part of this growth will come from the acquisition of Prodigy Software. He expects the deal to be done by the end of June. The shift to auto loans opens up a new market for Upstart. Prodigy’s software helps “bridge the gap between how dealerships work and the new way people buy cars,” according to Upstart.
Investor enthusiasm for the potential pushed the market cap to nearly $ 8 billion, more than 176% higher than at the start of the year.
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