Upstart (UPST) shares are rallying after reporting better-than-expected third quarter results.

The AI-powered lending platform reported revenue of $162 million, beating analyst projections of $150.4 million. The company also narrowed its losses, posting an adjusted loss of $0.06 per share versus the anticipated $0.14 loss.

Upstart CEO Dave Girouard joins Market Domination Overtime to discuss the company's return to growth trajectory.

"Our business has kind of gotten into a nice growth mode again," he explains, attributing the success to their AI models that form the core of their lending platform. "Better models lead to better conversion," Girouard notes, pointing to the subsequent surge in platform activity.

Girouard emphasizes Upstart's pioneering role in the AI lending space: "We've been an AI company for a long time, really focused on a very specific flavor of it: predictive AI for helping inform credit decisions and really making the credit origination process work well."

He expresses optimism about the industry's future, suggesting that the increasing adoption of AI technology by banks and credit lenders signals strong growth potential for Upstart.

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This post was written by Angel Smith