40 annotations
We went from the resolution of the bankruptcy to essentially the announcement of the bankruptcy and it had the effect of pulling some charges forward from future quarters up into Q3,
(No comment added)
Transcript
2023 Q3
8 Nov 23
whereas the less affluent borrowers who were earlier affected last year, in the sort of -- in the environment that we've been through are now much more stable.
(No comment added)
Transcript
2023 Q3
8 Nov 23
And what that model quickly understood is that what's happening in very recent months, is that the -- what you might think of as the primary or the more affluent borrowers are sort of starting to accelerate in their default trends
(No comment added)
Transcript
2023 Q3
8 Nov 23
the explicit constraint on growth right now is on the demand. It's on the borrower side and the approvability of the borrowers
(No comment added)
Transcript
2023 Q3
8 Nov 23
The ABS market, spreads are still wide, but they are tightening
(No comment added)
Transcript
2023 Q3
8 Nov 23
With this context in mind, for Q4 of 2023, we expect total revenues of approximately $135 million, consisting of revenue from fees of $150 million and net interest income of approximately negative $15 million
(No comment added)
Transcript
2023 Q3
8 Nov 23
designed to serve as a visible market reset as well as a public vote of confidence in our current degree of model calibration
(No comment added)
Transcript
2023 Q3
8 Nov 23
the institutional funding markets remain distracted with a bounty of trading opportunities coming from the banking sector
(No comment added)
Transcript
2023 Q3
8 Nov 23
higher-income borrowers has become more conservative over this past quarter, as their loss rates accelerate and converge with the broader default trends across the borrower spectrum.
(No comment added)
Transcript
2023 Q3
8 Nov 23
The decline in aggregate deposit base, which started in mid-2022 has now thankfully eased but anemic savings rates are so far hindering a rebound in liquidity.
(No comment added)
Transcript
2023 Q3
8 Nov 23
We continue to look for a return to normal for personal savings rates, which are highly correlated with risk and therefore, with pricing on our platform
(No comment added)
Transcript
2023 Q3
8 Nov 23
We continue to look for a return to normal for personal savings rates, which are highly correlated with risk and therefore, with pricing on our platform
(No comment added)
Transcript
2023 Q3
8 Nov 23
In the third quarter, rates were at an all-time high in our marketplace, higher than we expected them to be, reflecting both decades high interest rates and significantly elevated risk in the consumer economy.
(No comment added)
Transcript
2023 Q3
8 Nov 23
Actual payments made relating to the Company’s repurchase and indemnification obligations were immaterial
No actual payments have been made
10-Q
2022 Q2
24 Oct 22
Under the terms of the loan purchase and loan servicing agreements between the Company and institutional investors, as well as in agreements with investors in securitizations and pass-through certificate transactions, the Company may, in certain circumstances, become obligated to repurchase loans from such investors
Obligation to repurchase loans from institutional investors in some cases
10-Q
2022 Q2
24 Oct 22
Borrower payment collections for loans that are more than 30 days past due or charged off are generally outsourced to third-party collection agencies
Don't do their own collections
10-Q
2022 Q2
24 Oct 22
Revenue from Fees, Net
Revenue sources
10-Q
2022 Q2
24 Oct 22
To provide funding support beyond our bank partners, we have built, and continue to expand, a broad network of institutional investors that can fund Upstart-powered loans through secondary loan purchasing and issuance of pass-through certificates and asset-backed securitizations. This diverse network of capital helps to minimize our reliance on any one funding source. However, any trend towards reduced participation by banks will generally erode the overall competitiveness of the offers on our platform, and any declining trend in the participation of broader institutional investment markets with respect to funding availability for Upstart-powered loans will adversely affect our business.
Working to reduce reliance on banks but that will reduce competitiveness of loan prices due to higher WACC
10-Q
2022 Q2
24 Oct 22
Since 2018 through to the end of 2021, all quarterly vintages of loans retained by our bank partners, to date are currently forecasted to meet or exceed the target returns set at the time of loan origination
Loan performance for recent vintages is strong
10-Q
2022 Q2
24 Oct 22
ross River Bank, or CRB, a New Jersey-chartered community bank, originates a substantial majority of the loans on our platform. In the three months ended March 31, 2021 and 2022, CRB originated 56% and 52%, respectively, of the Transaction Volume, Number of Loans. CRB also accounts for a large portion of our revenues. In the three months ended March 31, 2021 and 2022, fees received from CRB accounted for 60% and 46%, respectively, of our total revenue
Customer concentration
10-Q
2022 Q1
20 May 22