Upgrade IPO timing, Why Upstart Spooked Investors, and more

Howdy Toasterites! 😎

With Nick still in Hawaii chillin’, you’re stuck with me this week. A few stories have dropped in the last few days so here’s my quick and dirty briefing.

-Carlos

(Lending) Upgrade IPO is coming 2027-ish

So about that Upgrade IPO everyone keeps asking about... yeah, it's still not happening (yet). Renaud gave an 18 month target for the IPO, while adding:

“We recently exceeded $1 billion in annual revenue run rate, our operations are cash flow positive, and we see predictable growth in the next 3 to 4 years.”

Their metrics look good, and they’ve been upgrading their exec team, too (sorry, couldn’t help myself 😀 ).

“Upgrade notes that it has boosted its management team by adding Jeffrey Meiler, former CEO of Best Egg, as Chief Operating Officer, Jason Swift as SVP, Operations Strategy, and Sumit Agarwal as Head of Cards.” [Crowdfundinsider]

(Earnings) Upstart Earnings Beat Expectations and Stock Dropped 18%

Upstart had a great quarter. Go see the numbers for yourself in Upstart’s recent press release.

But the stock was hit hard after the earnings call, raising questions about what spooked investors.

According, to MarketWatch, two things spooked investors: (1) Upstart holding more loans on balance sheet, while Wall St prefers they sell them off (2) Upstart cut their guidance on net interest income to $65MM for the full year, down from $90MM previously. [MarketWatch]