Upstart Holdings Inc UPST shares are flat in Tuesday’s after-hours session after the company reported better-than-expected financial results but issued weak guidance.

What Happened: Upstart said fourth-quarter revenue decreased 52% year-over-year to $147 million, which beat average analyst estimates of $133.59 million, according to Benzinga Pro. The company reported a quarterly net loss of 25 cents per share, which beat consensus estimates for a loss of 47 cents per share. 

Loan volume was down 62% on a year-over-year basis in the fourth quarter. Conversion rates totaled 11%, down from 24% year-over-year.

“Despite the economic headwinds of 2022 and continued funding challenges that have impacted our financial results, we’re a much better company than we were a year ago. We begin the new year with more advanced technology, faster AI model development, dramatically more training data, and a strengthened leadership team,” said Dave Girouard, co-founder and CEO of Upstart.

Upstart said it expects first-quarter revenue of approximately $100 million versus estimates of $157.99 million. The company anticipates revenue from fees to total $110 million, offset by a net interest income loss of approximately $10 million.

Upstart will hold a conference call to discuss these results at 4:30 p.m. ET.

See Also: Trading Strategies For Upstart Holdings Stock Before And After Q4 Earnings

UPST Price Action: Upstart has a 52-week high of $161 and a 52-week low of $12.01, according to Benzinga Pro.

Update: UPST stock was halted ahead of the earnings release. It was last down 5.18% at $60.72.

Photo: courtesy of Upstart.