Upstart Holdings, Inc. (UPST), the pioneering AI-powered lending platform, witnessed a remarkable surge in its stock price on Wednesday, with shares soaring by 29.94% in pre-market trading. This significant surge was fueled by the company's impressive fourth-quarter 2024 earnings report and an optimistic outlook for the year 2025, demonstrating the growing demand for its innovative AI-driven lending solutions.

During the fourth quarter, Upstart achieved exceptional growth across all its product categories, including personal loans, auto refinancing, and home equity lines of credit (HELOCs). This growth was driven by continued enhancements in the company's AI models, which improved risk assessment accuracy and conversion rates. Notably, Upstart launched its advanced Model 19, introducing the Payment Transition Model (PTM) feature, which enabled more precise risk evaluation by considering intermediate delinquency states.

The company's loan origination volumes surged, with a 68% year-over-year increase in the fourth quarter, reaching a total of 245,663 loans worth $2.1 billion. Upstart's conversion rate also improved to 19.3%, up from 11.6% in the fourth quarter of 2023, reflecting the effectiveness of its AI-powered underwriting models. Additionally, the company benefited from a favorable macroeconomic environment, with moderating default rates contributing to the strong performance.

Looking ahead, Upstart provided an upbeat outlook for the year 2025, forecasting total revenue of approximately $1 billion, a significant 57% increase from 2024. The company anticipates revenue from fees to reach $920 million and aims to achieve at least breakeven on a GAAP net income basis, while generating $180 million in adjusted EBITDA. Moreover, Upstart announced plans to host an "Upstart AI Day" on May 14, where it will provide in-depth insights into its technology, business model, and future strategy.