What happened

Fintech company Upstart Holdings (UPST -0.58%), which provides an artificial intelligence-powered lending platform to help banks make smarter decisions, reported its second-quarter results Tuesday afternoon. And it would be fair to say investors are impressed with the results.

As of 10 a.m. EDT Wednesday, Upstart was higher by about 25%, handily outpacing the major market averages.

Person cheering while looking at laptop.

Image source: Getty Images.

So what

To put it mildly, Upstart shattered the market's expectations. The company posted revenue of $194 million for the quarter, more than 10 times what it produced in the pandemic-stricken second quarter of 2020 and well ahead of the $158 million analysts had been looking for. And unlike many fintechs, Upstart is quite profitable. For the quarter, Upstart earned $0.62 per share, more than doubling the $0.25 expected by analysts.

Going beyond the headline numbers, it's even more impressive. Upstart's bank partners originated $2.8 billion of loans on the platform, a 62% quarter-over-quarter increase.

Now what

Upstart also increased its guidance, which is likely fueling today's move just as much as the second-quarter numbers. The company now expects third-quarter revenue of $205 million to $215 million, while analysts had been expecting about $162 million.

For the full year, Upstart now expects about $750 million in revenue, a significant bump from the previous guidance of $600 million. Plus, Upstart's adjusted EBITDA margin is now forecast to be about 17% as opposed to the 10% the company had previously been guiding for.

The bottom line is that Upstart's second-quarter earnings was an absolute blowout in pretty much every possible way. The company's AI-powered lending platform is catching on quickly, and if the company can keep this momentum alive, things could get very interesting.