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UPST Upstart

Exhibit 99.1

Upstart Announces Fourth Quarter 2020 and Fiscal Year 2020 Results

SAN MATEO, Calif. – March 17, 2021 – Upstart Holdings, Inc. (NASDAQ: UPST), a leading artificial intelligence (AI) lending platform, today announced financial results for its fourth quarter and fiscal year ended December 31, 2020. Upstart will host a conference call and webcast at 1:30 p.m. Pacific Time today. An earnings presentation and link to the webcast are available at ir.upstart.com.

“We’re excited to share our financial results for the first time as a public company. Despite the COVID-19 pandemic, we delivered strong growth and profits in Q4 and for the full year 2020. This combination is rare among FinTechs and demonstrates the growing advantages of AI-based lending,” said Dave Girouard, CEO of Upstart. He added, “We believe virtually all lending will be powered by AI in the future, and we’re in the earliest stages of helping our bank partners successfully navigate that transformation.”

Separately, Upstart today announced it has entered into a definitive agreement to acquire Prodigy Software, Inc., a provider of cloud-based automotive retail software. With the acquisition of Prodigy, Upstart will accelerate its efforts to offer AI-enabled auto loans through the tens of thousands of auto dealers nationwide where the majority of auto loans are originated.

Fourth Quarter 2020 Financial Highlights

 

  

Revenue. Total revenue was $86.7 million, an increase of 39% year-over-year for the fourth quarter. Total revenue from fees was $84.4 million, an increase of 38% year-over-year.

 

  

Lending Volume and Conversion Rate. Bank partners originated 123,396 loans across our platform in the fourth quarter of 2020, up 57% from the same quarter of the prior year. Conversion on rate requests was 17.4% in the fourth quarter of 2020, up from 14.9% in the same quarter of the prior year.

 

  

Income from Operations. In the fourth quarter of 2020, income from operations was $10.4 million, an increase of 196% year-over-year for the fourth quarter.

 

  

Net Income and EPS. In the fourth quarter of 2020, GAAP net income was $1.0 million and adjusted net income was $5.4 million. Accordingly, GAAP net income per share was $0.00, and diluted adjusted net income per share was $0.07 based on the weighted-average common shares outstanding during the period. In the fourth quarter of 2019, GAAP net income was $6.1 million and adjusted net income was $7.7 million.

 

  

Contribution Profit. Fourth quarter 2020 contribution profit was $41.4 million with a contribution margin of 49% compared to $23.4 million in contribution profit and a 38% contribution margin in the fourth quarter of 2019. Contribution profit grew 77% in the fourth quarter of 2020 versus the comparable quarter last year.

 

  

Adjusted EBITDA. Fourth quarter adjusted EBITDA was $15.5 million, which represents a 123% year-over-year increase compared to a fourth quarter 2019 adjusted EBITDA of $7.0 million. The fourth quarter 2020 adjusted EBITDA margin was 18% of total revenue and the adjusted EBITDA margin was 11% in the fourth quarter of 2019.

Fiscal Year 2020 Financial Highlights

 

  

Revenue. Fiscal year 2020 total revenue was $233.4 million, an increase of 42% year-over-year. Total revenue from fees was $228.6 million, an increase of 43% year-over-year.

 

  

Lending Volume and Conversion Rate. Bank partners originated 300,379 loans across our platform in 2020, up 40% year-over-year. Conversion on rate requests was 15.2% in 2020, up from 13.1% in the prior year.

 

  

Income from Operations. Fiscal year 2020 income from operations was $11.8 million, an increase of 357% year-over-year.

 

  

Net Income and EPS. For the fiscal year 2020, GAAP net income was $6.0 million and adjusted net income was $17.5 million. Accordingly, GAAP diluted net income per share was $0.00, and diluted adjusted net income per share was $0.23 based on the weighted-average common shares outstanding during the period. In the fiscal year 2019, GAAP net loss was $0.5 million and adjusted net income was $3.3 million.

 

  

Contribution Profit. Fiscal year 2020 contribution profit totaled $105.1 million, or 46% contribution margin, compared to $48.9 million, or 31% contribution margin in fiscal year 2019. Contribution profit grew 115% year-over-year.

 

  

Adjusted EBITDA. Fiscal year 2020 adjusted EBITDA totaled $31.5 million, which represents a 463% year-over-year increase compared to a fiscal year 2019 adjusted EBITDA of $5.6 million. The fiscal year 2020 adjusted EBITDA margin was 13% of total revenue, and the adjusted EBITDA margin was 3% in the fiscal year 2019.

Financial Outlook

For the first quarter of 2021, Upstart expects:

 

  

Revenue of $112 to $118 million

 

  

Contribution Margin of approximately 44%

 

  

Net Income of $7.8 to $8.3 million

 

  

Adjusted Net Income of $13.4 to $14.2 million

 

  

Adjusted EBITDA of $14.6 to $15.3 million

 

  

Basic Weighted-Average Share Count of approximately 74.3 million shares

 

  

Diluted Weighted-Average Share Count of approximately 92.4 million shares

For the 2021 fiscal year, Upstart expects:

 

  

Revenue of approximately $500 million

 

  

Contribution Margin of approximately 41%

 

  

Adjusted EBITDA Margin of approximately 10%

Upstart has not reconciled the forward-looking non-GAAP measures above to comparable forward-looking GAAP measures because of the potential variability and uncertainty of incurring these costs and expenses in the future. Accordingly, a reconciliation is not available without unreasonable effort.


Key Operating Metrics and Non-GAAP Financial Measures

For a description of key operating measures, please see the section titled “Key Operating Metrics” below.

Reconciliations of non-GAAP financial measures to the most directly comparable financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see the section titled “About Non-GAAP Financial Measures” below.

Conference Call and Webcast

 

  

Live Conference Call and Webcast at 1:30 p.m. PT on March 17, 2021. To access the call in the U.S. and Canada, dial +1 800-437-2398 (code 3352996), and outside of the U.S. and Canada, dial +1 323-289-6576 (code 3352996). A webcast is available at ir.upstart.com.

 

  

Event Replay. To replay the call in the U.S. and Canada, dial +1 888-203-1112 (code 3352996), and outside of the U.S. and Canada, dial +1 719-457-0820 (code 3352996). A call replay is available through March 24, 2021. A webcast will be archived at ir.upstart.com.

About Upstart

Upstart is a leading AI lending platform partnering with banks to expand access to affordable credit. By leveraging Upstart’s AI platform, Upstart-powered banks can have higher approval rates and lower loss rates, while simultaneously delivering the exceptional digital-first lending experience their customers demand. More than two-thirds of Upstart loans are approved instantly and are fully automated. Upstart was founded by ex-Googlers in 2012 and is based in San Mateo, California and Columbus, Ohio.

Press

press@upstart.com

Investors

ir@upstart.com


Forward-Looking Statements

This press release contains forward-looking statements, including but not limited to, statements regarding our outlook for the full year and first quarter of 2021 and Upstart’s ability to offer AI-enabled auto loans due to its proposed acquisition of Prodigy. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “anticipate”, “estimate”, “expect”, “project”, “plan”, “project”, “intend”, “target”, “aim”, “believe”, “may”, “will”, “should”, “could”, “can have”, “likely” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. Forward-looking statements give our current expectations and projections relating to our financial condition; plans; objectives; assumptions; risks; future performance; business; and results of operations, including revenue, net income (loss), adjusted EBITDA, adjusted EBITDA margin, contribution margin, non-GAAP adjusted net income, basic weighted average share count and fully diluted weighted average share count. Neither we nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. The forward-looking statements included in this press release and on the related teleconference call relate only to events as of the date hereof. Upstart undertakes no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that we expected. More information about factors that could affect our results of operations are described in greater detail in our public filings with the Securities and Exchange Commission, copies of which may be obtained by visiting our investor relations website at www.upstart.com or the SEC’s website at www.sec.gov.

Key Operating Metrics

We review a number of operating metrics, including number of loans transacted and conversion rate, to evaluate our business, measure our performance, identify trends affecting our business, formulate business plans, and make strategic decisions.

We define the number of loans transacted as the transaction volume, measured by number of loans facilitated on our platform, between a borrower and originating bank during the period presented. We believe this metric to be a good proxy for our overall scale and reach as a platform.

We define conversion rate as the number of loans transacted in a period divided by the number of rate inquiries received, which we record when a borrower requests a loan offer on our platform. We track this metric to understand the impact of improvements to the efficiency of our borrower funnel on our overall growth.


About Non-GAAP Financial Measures

In addition to our results determined in accordance with generally accepted accounting principles in the United States (“GAAP”), we believe the non-GAAP measures of contribution profit (loss), contribution margin, adjusted EBITDA, adjusted EBITDA margin, adjusted net income or loss, and adjusted net income or loss per share are useful in evaluating our operating performance. Certain of these non-GAAP measures exclude stock-based compensation, warrant expenses, depreciation, amortization, and other non-operating expenses. We exclude stock-based compensation and income and expense on warrants and other non-operating expenses because they are non-cash in nature and exclude in order to facilitate comparisons to other companies’ results.

We believe non-GAAP information is useful in evaluating the operating results, ongoing operations, and for internal planning and forecasting purposes. We also believe that non-GAAP financial measures provide consistency and comparability with past financial performance and assist investors with comparing Upstart to other companies some of which use similar non-GAAP financial measures to supplement their GAAP results. We believe non-GAAP financial measures are presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with GAAP and may be different from similarly-titled non-GAAP financial measures used by other companies.

Key limitations of our non-GAAP financial measures include:

 

  

Contribution Profit is not a GAAP financial measure of, nor does it imply, profitability. Even if our revenue exceeds variable expenses over time, we may not be able to achieve or maintain profitability, and the relationship of revenue to variable expenses is not necessarily indicative of future performance;

 

  

Contribution Profit does not reflect all of our variable expenses and involves some judgment and discretion around what costs vary directly with loan volume. Other companies that present contribution profit calculate it differently and, therefore, similarly titled measures presented by other companies may not be directly comparable to ours;

 

  

Although depreciation expense is a non-cash charge, the assets being depreciated may have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements;

 

  

Adjusted EBITDA excludes stock-based compensation expense, which has been, and will continue to be for the foreseeable future, a significant recurring expense for our business and an important part of our compensation strategy;

 

  

Adjusted EBITDA does not reflect: (1) changes in, or cash requirements for, our working capital needs; (2) interest expense, or the cash requirements necessary to service interest or principal payments on our debt, which reduces cash available to us; or (3) tax payments that may represent a reduction in cash available to us;

 

  

The expenses and other items that we exclude in our calculation of Adjusted EBITDA may differ from the expenses and other items, if any, that other companies may exclude from Adjusted EBITDA when they report their operating results.

Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures are used in this press release.


UPSTART HOLDINGS, INC.

CONSOLIDATED BALANCE SHEETS

(In Thousands, Except Share and Per Share Data)

(Unaudited)

 

   December 31, 
  

 

 

 
   2019  2020 

Assets

   

Cash

  $44,389  $250,819 

Restricted cash

   35,678   60,514 

Loans (at fair value)

   232,305   78,460 

Notes receivable and residual certificates (at fair value)

   34,116   19,074 

Property, equipment, and software, net

   6,030   10,032 

Operating lease right of use assets

   16,190   18,310 

Other assets (includes $4,725 and $6,831 at fair value as of December 31, 2019 and 2020, respectively)

   24,754   40,046 
  

 

 

  

 

 

 

Total assets

  $393,462  $477,255 
  

 

 

  

 

 

 

Liabilities, Convertible Preferred Stock, and Stockholders’ Equity (Deficit)

   

Liabilities:

   

Accounts payable

  $6,559  $13,775 

Payable to investors

   19,620   45,501 

Borrowings

   118,609   62,626 

Payable to securitization note holders and residual certificate holders (includes $89,672 and $0 at fair value and $41,343 and $0 to related parties as of December 31, 2019 and 2020, respectively)

   96,107   —   

Accrued expenses and other liabilities (includes $12,446 and $9,530 at fair value as of December 31, 2019 and 2020, respectively)

   34,648   35,669 

Operating lease liabilities

   17,061   19,432 
  

 

 

  

 

 

 

Total liabilities

   292,604   177,003 
  

 

 

  

 

 

 

Commitments and contingencies

   

Convertible preferred stock $0.0001 par value; 53,927,657 and 70,000,000 shares authorized as of December 31, 2019 and 2020, respectively; aggregate liquidation preference of $166,257 and $0 as of December 31, 2019 and 2020 respectively; 47,349,577 and 0 shares issued and outstanding as of December 31, 2019 and 2020, respectively

   162,546   —   

Stockholders’ equity (deficit):

   

Common stock, $0.0001 par value; 90,000,000 and 700,000,000 shares authorized as of December 31, 2019 and 2020, respectively; 14,561,398 and 73,314,026 shares issued and outstanding as of December 31, 2019 and 2020 respectively

   2   7 

Additional paid-in capital

   12,489   369,467 

Accumulated deficit

   (75,205  (69,222
  

 

 

  

 

 

 

Total Upstart Holdings, Inc. stockholders’ equity (deficit)

   (62,714  300,252 

Noncontrolling interests

   1,026   —   
  

 

 

  

 

 

 

Total stockholders’ equity (deficit)

   (61,688  300,252 
  

 

 

  

 

 

 

Total liabilities, convertible preferred stock, and stockholders’ equity (deficit)

  $393,462  $477,255 
  

 

 

  

 

 

 


UPSTART HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS and COMPREHENSIVE INCOME (LOSS)

(In Thousands, Except Share and Per Share Amounts)

(Unaudited)

 

   Three Months Ended
December 31,
  Year Ended
December 31,
 
   2019  2020  2019  2020 

Revenue:

     

Revenue from fees, net

  $61,148  $84,421  $159,847  $228,600 

Interest income and fair value adjustments, net (includes $703, $0, $2,963, and $1,014 from related parties expense and $1,804, $0, $7,400, and of related parties fair value adjustments for the three months ended December 31, 2019 and 2020, and years ended December 31, 2019 and 2020, respectively

   1,424   2,289   4,342   4,816 
  

 

 

  

 

 

  

 

 

  

 

 

 

Total revenue

   62,572   86,710   164,189   233,416 
  

 

 

  

 

 

  

 

 

  

 

 

 

Operating expenses:

     

Sales and marketing

   31,939   34,546   93,175   99,659 

Customer operations

   8,354   12,789   24,947   37,581 

Engineering and product development

   7,297   14,151   18,777   38,802 

General, administrative, and other

   11,466   14,831   31,865   45,609 
  

 

 

  

 

 

  

 

 

  

 

 

 

Total operating expenses

   59,056   76,317   168,764   221,651 
  

 

 

  

 

 

  

 

 

  

 

 

 

Income (loss) from operations

   3,516   10,393   (4,575  11,765 

Other income

   204   52   1,036   5,549 

Income (expense) on warrants and other non-operating expenses, net

   1,219   (9,047  (1,407  (11,364
  

 

 

  

 

 

  

 

 

  

 

 

 

Net income (loss) before income taxes

   4,939   1,398   (4,946  5,950 

Provision for income taxes

   74   371   74   371 
  

 

 

  

 

 

  

 

 

  

 

 

 

Net income (loss) before attribution to noncontrolling interests

   4,865   1,027   (5,020  5,579 

Net loss attributable to noncontrolling interests

   (1,186  —     (4,554  (404
  

 

 

  

 

 

  

 

 

  

 

 

 

Net income (loss) attributable to Upstart Holdings, Inc. common stockholders

  $6,051  $1,027  $(466 $5,983 

Net income (loss) per share attributable to Upstart Holdings, Inc. common stockholders, basic

  $0.06  $—    $(0.03 $—   

Net income (loss) per share attributable to Upstart Holdings, Inc. common stockholders, diluted

  $0.05  $—    $(0.03 $—   

Weighted-average number of shares outstanding used in computing net income (loss) per share attributable to Upstart Holdings, Inc. common stockholders, basic

   14,401,927   26,001,856   14,335,611   17,513,670 

Weighted-average number of shares outstanding used in computing net income (loss) per share attributable to Upstart Holdings, Inc. common stockholders, diluted

   24,978,484   26,001,856   14,335,611   17,513,670 


UPSTART HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

(Unaudited)

 

   Year Ended December 31, 
  2019  2020 

Cash flows from operating activities

   

Net income (loss) before attribution to noncontrolling interests

  $(5,020 $5,579 

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

   

Change in fair value of financial instruments (includes ($7,400) and ($4,238) to related parties for the years ended December 31, 2019 and 2020, respectively)

   34,716   29,049 

Stock-based compensation

   3,806   11,513 

Loss (gain) on loan servicing arrangements and sale of noncontrolling interests, net

   856   (1,530

Depreciation and amortization

   774   2,278 

Incentive share expense

   —     787 

Noncash interest expense

   74   73 

Gain on repurchased and retired convertible preferred stock warrants

   (3,657  —   

Net changes in operating assets and liabilities:

   

Purchase of loans for immediate resale to investors

   (1,779,180  (2,540,948

Proceeds from immediate resale of loans to investors

   1,779,180   2,540,948 

Purchase of loans held-for-sale

   —     (116,127

Principal payments received for loans held-for-sale

   —     18,218 

Net proceeds from sale of loans held-for-sale

   —     47,604 

Other assets

   (11,957  (13,186

Operating lease liability and right-of-use asset

   871   251 

Accounts payable

   3,613   7,033 

Payable to investors

   (14,875  19,446 

Accrued expenses and other liabilities

   22,381   4,709 
  

 

 

  

 

 

 

Net cash provided by operating activities

   31,582   15,697 
  

 

 

  

 

 

 

Cash flows from investing activities

   

Principal payments received for loans held by consolidated securitizations

   158,921   24,018 

Net proceeds from sale of loans held-for-investment

   100,678   97,340 

Principal payments received for loans held-for-investment

   48,124   15,758 

Principal payments received for notes receivable and repayments of residual certificates

   8,760   14,665 

Purchase of loans held-for-investment

   (265,286  (9,655

Purchase of notes receivable and residual certificates

   (485  (4

Purchase of property and equipment

   (4,004  (1,355

Capitalized software costs

   (1,275  (4,250
  

 

 

  

 

 

 

Net cash provided by investing activities

   45,433   136,517 
  

 

 

  

 

 

 

Cash flows from financing activities

 

Proceeds from initial public offering, net of underwriting discounts and offering

   —     159,488 

Payments made on securitization notes and certificates (includes $3,262 and $0 paid to related parties for the years ended December 31, 2019 and 2020, respectively)

   (176,742  (26,126

Repayments of borrowings

   (109,939  (148,113


UPSTART HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

(Unaudited)

 

   Year Ended December 31, 
   2019  2020 

Repayments of notes payable

   (22,637  —   

Distributions made to noncontrolling interests

   (4,960  (622

Repurchase and retirement of convertible preferred stock warrants

   (1,426  —   

Repurchase and retirement of convertible preferred stock

   (661  —   

Proceeds from borrowings

   153,491   92,057 

Proceeds from issuance of notes payable

   39,863   —   

Proceeds from issuance of convertible preferred stock, net of issuance costs

   1,912   —   

Proceeds from exercise of convertible preferred stock warrants

   1,631   6 

Proceeds from exercise of stock options

   278   2,362 
  

 

 

  

 

 

 

Net cash (used in) provided by financing activities

   (119,190  79,052 
  

 

 

  

 

 

 

Net increase (decrease) in cash and restricted cash

   (42,175  231,266 

Cash and restricted cash

   

Beginning of year

   122,242   80,067 
  

 

 

  

 

 

 

End of year

   $ 80,067  $ 311,333 
  

 

 

  

 

 

 

Supplemental disclosures of cash flow information

   

Cash paid for interest

  $26,871  $8,028 

Cash paid for amounts included in the measurement of lease liabilities

   1,905   4,158 

Supplemental disclosures of non-cash operating activities

   

Total right-of-use assets capitalized

  $16,190  $5,506 

Supplemental disclosures of non-cash investing and financing activities

   

Reclassification of common stock warrant liability related to cashless exercise

  $—    $2,971 

Reclassification of preferred stock warrant liability related to cash exercise

   —     12,177 

Reclassification of common stock warrant liability to equity upon termination of repurchase option

   —     2,945 

Derecognition of loans held-for-investment in consolidated VIE

   154,864   57,222 

Derecognition of payable to securitization note holders and residual certificate holders

   80,825   58,017 

Derecognition of notes payable held in consolidated VIE

   69,419   —   

Securities retained under unconsolidated securitization transactions

   31,160   —   

Transfer of notes receivable and residual certificate on deconsolidation of VIE

   3,699   —   

Capitalized stock-based compensation expense

   —     492 


UPSTART HOLDINGS, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In Thousands, Except Share and Per Share Amounts)

(Unaudited)

 

   Three Months Ended
December 31,
  Year Ended
December 31,
 
   2019  2020  2019  2020 

Income (loss) from operations

  $3,516  $10,393  $(4,575 $11,765 

sales and marketing, net of borrower acquisition costs(1)

   1,133   2,308   3,606   7,959 

Customer operations, net of borrower verification and servicing costs(2)

   1,390   1,996   3,609   5,769 

Engineering and product development

   7,297   14,151   18,777   38,802 

General, administrative, and other

   11,466   14,831   31,865   45,609 

Interest income and fair value adjustments, net

   (1,424  (2,289  (4,342  (4,816
  

 

 

  

 

 

  

 

 

  

 

 

 

Contribution Profit

  $ 23,378  $41,390  $48,940  $ 105,088 
  

 

 

  

 

 

  

 

 

  

 

 

 

Contribution Margin(3)

   38%   49%   31%   46% 

 

(1)

Borrower acquisition costs were $30.8 million, $32.2 million, $89.6 million, and $91.7 million for the three months ended December 31, 2019 and 2020 and years ended December 31, 2019 and 2020, respectively. Borrower acquisition costs consist of our sales and marketing expenses adjusted to exclude costs not directly attributable to attracting a new borrower, such as payroll-related expenses for our business development and marketing teams, as well as other operational, brand awareness and marketing activities.

(2)

Borrower verification and servicing costs were $7.0 million, $10.8 million, $21.3 million and $31.8 million for the three months ended December 31, 2019 and 2020 and years ended December 31, 2019 and 2020, respectively. Borrower verification and servicing costs consist of payroll and other personnel-related expenses for personnel engaged in loan onboarding, verification and servicing, as well as servicing system costs. It excludes payroll and personnel-related expenses and stock-based compensation for certain members of our customer operations team whose work is not directly attributable to onboarding and servicing loans.

(3)

Contribution Margin is calculated as Contribution Profit divided by revenue from fees, net for the relevant period.


UPSTART HOLDINGS, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In Thousands, Except Share and Per Share Amounts)

(Unaudited)

 

   Three Months Ended
December 31,
   Year Ended
December 31,
 
  2019  2020   2019  2020 

Net income (loss) attributable to Upstart Holdings, Inc. common stockholders

  $6,051  $1,027   $(466 $5,983 

Adjusted to exclude the following:

      

Stock-based compensation

   1,602   4,411    3,806   11,513 

Depreciation and amortization

   450   647    774   2,278 

(Income) expense on warrants and other non-operating expenses(1)

   (1.219  9,047    1,407   11,364 

Provision for income taxes

   74   371    74   371 
  

 

 

  

 

 

   

 

 

  

 

 

 

Adjusted EBITDA

  $6,958  $15,503   $5,595  $31,509 
  

 

 

  

 

 

   

 

 

  

 

 

 

Adjusted EBITDA Margin(2)

   11%   18%    3%   13% 

 

(1)

Consists of fair value adjustments to our warrant liability and interest expense on convertible notes.

(2)

Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by total revenue for the relevant period.

 

   Three Months Ended   Year Ended 
   December 31,   December 31, 
   2019   2020   2019  2020 

Net income (loss) attributable to Upstart Holdings, Inc. common stockholders

  $6,051   $1,027   $(466 $5,983 

Adjusted to exclude the following:

       

Stock-based compensation

   1,602    4,411    3,806   11,513 
  

 

 

   

 

 

   

 

 

  

 

 

 

Adjusted net income

  $7,653   $5,438   $3,340  $17,496 
  

 

 

   

 

 

   

 

 

  

 

 

 

Adjusted net income per share

       

Basic

  $0.54   $0.21   $0.23  $1.00 

Diluted

  $0.10   $0.07   $0.05  $0.23 

Weighted-average common shares outstanding

       

Basic

   14,301,641    26,001,856    14,335,611   17,513,670 

Diluted

   73,511,809    80,275,422    72,336,672   76,098,275