UiPath (PATH) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this enterprise automation software developer, should get reflected in its stock price. After all, empirical research shows a strong correlatio ...

Group 1 - Michael Wiggins De Oliveira is an inflection investor, focusing on buying undervalued companies at pivotal moments when their profitability is expected to increase significantly over the next year [1] - The investment strategy emphasizes technology and the Great Energy Transition, including uranium, with a concentrated portfolio of approximately 15 to 20 stocks and an average holding period of 18 months [1] - Michael has over 10 years of experience analyzing companies in the tech and energy sectors, and has built a following of over 40,000 on Seeking Alpha [2] Group 2 - Michael leads the investing group Deep Value Returns, which offers insights through a concentrated portfolio of value stocks, timely updates on stock picks, and a weekly webinar for live advice [3] - The Deep Value Returns community is described as active, vibrant, and supportive, providing accessible chat options for both new and experienced investors [3]

Revenue Performance - Revenue for the quarter ended October 31, 2024, was $354.7 million, representing a 9% increase year-over-year[146] - Year-to-date revenue reached $1,006.0 million, reflecting an 11% increase year-over-year[146] - Annualized renewal run-rate (ARR) as of October 31, 2024, was $1,606.6 million, up 17% year-over-year[146] - Total revenue for the three months ended October 31, 2024, increased by $28.7 million, or 9%, compared to the same period in 2023, primarily driven by a $39.4 million increase in subscription services revenue[184] - Total revenue increased by $103.2 million, or 11%, for the nine months ended October 31, 2024, compared to the same period in 2023, driven by a $112.8 million increase in subscription services revenue[197] Subscription Services - Subscription services revenue for the three months ended October 31, 2024, was $206.9 million, representing a 24% increase from $167.5 million in the same period of 2023[184] - Subscription services revenue increased by $14.8 million, or 52%, for the three months ended October 31, 2024, compared to the same period in 2023[185] Cost and Margin Analysis - Gross margin for the three months ended October 31, 2024, was 82%, down from 85% in the same period last year[147] - Total cost of revenue for the three months ended October 31, 2024, was $63.8 million, up from $49.9 million in the same period of 2023, reflecting an increase in subscription services costs[179] - Gross profit for the three months ended October 31, 2024, was $290.9 million, compared to $276.0 million for the same period in 2023, resulting in a gross margin of 82%[179] - Total cost of revenue increased by $39.8 million, or 28%, for the nine months ended October 31, 2024, primarily due to a $45.3 million increase in cost of subscription services revenue[198] - Gross margin decreased to 82% for the three months ended October 31, 2024, compared to 85% for the same period in 2023[186] Operating Expenses - Total operating expenses for the three months ended October 31, 2024, were $334.3 million, slightly up from $331.8 million in the same period of 2023[179] - The company expects operating expenses to increase in absolute dollars as it continues to invest in research and development[172] - Research and development expense increased by $12.5 million, or 15%, for the three months ended October 31, 2024, compared to the same period in 2023[190] - Sales and marketing expense decreased by $4.1 million, or 2%, for the three months ended October 31, 2024, compared to the same period in 2023[187] - General and administrative expense decreased by $5.9 million, or 11%, for the three months ended October 31, 2024, compared to the same period in 2023[191] - General and administrative expenses rose by $4.9 million, or 3%, for the nine months ended October 31, 2024, amounting to $177.1 million, compared to $172.2 million in the prior year[204] Profit and Loss - Operating loss for the three months ended October 31, 2024, was $(43.4) million, an improvement from $(55.8) million in the same period of 2023[179] - Net loss for the three months ended October 31, 2024, was $(10.7) million, compared to $(31.5) million in the same period of 2023[179] - The provision for income taxes decreased by $18.8 million for the three months ended October 31, 2024, compared to the same period in 2023[196] - The provision for income taxes decreased by $18.6 million for the nine months ended October 31, 2024, resulting in a benefit of $(7.2) million compared to a provision of $11.4 million in the same period of 2023[208] Cash Flow and Financial Position - Cash flow from operations for the nine months ended October 31, 2024, was $174.5 million, compared to $153.5 million for the same period in 2023[147] - Cash and cash equivalents, restricted cash, and marketable securities totaled $1,603.9 million as of October 31, 2024, down from $1,880.3 million as of January 31, 2024[147] - As of October 31, 2024, the company had cash, cash equivalents, and marketable securities totaling $1,603.4 million, with an accumulated deficit of $2,039.7 million[209] - Net cash provided by operating activities for the nine months ended October 31, 2024, was $174.5 million, a 13.7% increase from $153.5 million in the same period of 2023[216] - Net cash used in investing activities for the nine months ended October 31, 2024, was $28.8 million, significantly lower than $430.9 million in the prior year[219] - Net cash used in financing activities for the nine months ended October 31, 2024, was $433.5 million, compared to $115.0 million in the same period of 2023[221] Strategic Actions - Restructuring actions approved on July 8, 2024, aim to streamline operations and focus on AI and innovation[154] - The company authorized a stock repurchase program of up to $1 billion, with $500 million authorized on September 1, 2023, and an additional $500 million on August 30, 2024[213] Foreign Currency Impact - Approximately 53% of the company's revenues and 37% of its expenses were denominated in non-U.S. dollar currencies for the nine months ended October 31, 2024[230] - The estimated translation impact of a hypothetical 10% change in foreign currency exchange rates would amount to $26.3 million for the nine months ended October 31, 2024[230] - The company recognized net foreign currency transaction gains of $1.9 million for the nine months ended October 31, 2024[230] - A hypothetical 10% change in interest rates would not have materially impacted the company's financial statements for the nine months ended October 31, 2024[229]

UiPath Inc. (NYSE:PATH) Q3 2025 Results Conference Call December 5, 2024 5:00 PM ET Company Participants Monica Gould - Investor Relations Daniel Dines - Chief Executive Officer Ashim Gupta - Chief Financial Officer Conference Call Participants Mark Murphy - JPMorgan Raimo Lenschow - Barclays Jake Roberge - William Blair Bryan Bergin - TD Cowen Michael Richards - RBC Capital Markets Sanjit Singh - Morgan Stanley Terry Tillman - Truist Securities Chirag Ved - Evercore Kingsley Crane - Canaccord Genuity Brian ...

For the quarter ended October 2024, UiPath (PATH) reported revenue of $354.65 million, up 8.8% over the same period last year. EPS came in at $0.11, compared to $0.12 in the year-ago quarter.The reported revenue represents a surprise of +2.03% over the Zacks Consensus Estimate of $347.61 million. With the consensus EPS estimate being $0.07, the EPS surprise was +57.14%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their ...

Earnings Performance - UiPath reported quarterly earnings of $0.11 per share, beating the Zacks Consensus Estimate of $0.07 per share, representing a 57.14% earnings surprise [1] - The company's earnings were $0.12 per share a year ago, adjusted for non-recurring items [1] - In the previous quarter, UiPath posted earnings of $0.04 per share, surpassing the expected $0.03 per share, with a 33.33% surprise [1] - Over the last four quarters, the company has consistently surpassed consensus EPS estimates [2] Revenue Performance - UiPath posted revenues of $354.65 million for the quarter ended October 2024, exceeding the Zacks Consensus Estimate by 2.03% [2] - This compares to year-ago revenues of $325.92 million [2] - The company has topped consensus revenue estimates in each of the last four quarters [2] Stock Performance and Market Comparison - UiPath shares have declined approximately 38.3% since the beginning of the year, while the S&P 500 has gained 27.6% [4] - The stock's immediate price movement will depend on management's commentary during the earnings call [3] Future Outlook and Earnings Estimates - The current consensus EPS estimate for the coming quarter is $0.17 on $423.36 million in revenues [8] - For the current fiscal year, the consensus EPS estimate is $0.40 on $1.42 billion in revenues [8] - The estimate revisions trend for UiPath is mixed, resulting in a Zacks Rank 3 (Hold) [7] Industry Context - UiPath belongs to the Zacks Technology Services industry, which is currently in the top 28% of over 250 Zacks industries [9] - The top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [9] Peer Comparison - Skillsoft Corp (SKIL), another company in the same industry, is expected to report a quarterly loss of $3.01 per share for the quarter ended October 2024, representing a year-over-year improvement of 12.8% [10] - Skillsoft Corp's revenues are expected to be $129.76 million, down 6.6% from the year-ago quarter [11]

Revenue and Growth - Revenue for Q3 fiscal 2025 was $355 million, representing a 9% increase year-over-year[3] - Annualized Renewal Run-rate (ARR) reached $1.607 billion, up 17% year-over-year[3] - Net new ARR for the quarter was $56 million[3] - For Q4 fiscal 2025, revenue is expected to be between $422 million and $427 million[5] - ARR is projected to be between $1.669 billion and $1.674 billion as of January 31, 2025[5] - Total revenue for the three months ended October 31, 2023, was $354.7 million, a 8.1% increase from $325.9 million in the same period last year[24] - Subscription services revenue increased by 23.5% year-over-year to $206.9 million, compared to $167.5 million in the prior year[24] Profitability and Margins - GAAP gross margin was 82%, while non-GAAP gross margin was 85%[3] - Non-GAAP operating income for Q3 was $50 million, with a GAAP operating loss of $(43) million[3] - Gross profit for the nine months ended October 31, 2023, was $823.6 million, up from $760.2 million, reflecting a gross margin improvement[24] - GAAP gross profit for the three months ended October 31, 2023, was $290.890 million, with a gross margin of 82%, down from 85% in the previous year[30] - Non-GAAP gross profit for the same period was $300.364 million, with a non-GAAP gross margin of 85%, compared to 87% in the previous year[30] Losses and Expenses - Operating loss for the three months ended October 31, 2023, was $(43.4) million, an improvement from $(55.8) million in the same quarter last year[24] - Net loss for the three months ended October 31, 2023, was $(10.7) million, compared to $(31.5) million in the same period last year[24] - Net loss for the nine months ended October 31, 2023, was $125.488 million, compared to a loss of $123.799 million in the previous period[28] - GAAP net loss for the three months ended October 31, 2024, was $(10,655), an improvement from $(31,537) in the same period in 2023[34] - GAAP operating loss for the three months ended October 31, 2024, was $(43,364), compared to $(55,819) in the same period in 2023[32] Cash and Assets - Cash, cash equivalents, and marketable securities totaled $1.6 billion as of October 31, 2024[3] - Cash and cash equivalents decreased to $773.6 million as of October 31, 2024, down from $1,061.7 million as of January 31, 2024[26] - Total current assets decreased to $2.18 billion from $2.58 billion in the previous quarter[26] - Total cash, cash equivalents, and restricted cash at the end of the period was $774.068 million, down from $1.003 billion at the end of the previous period[28] Deferred Revenue and Liabilities - Deferred revenue increased to $494.4 million as of October 31, 2024, compared to $486.8 million in the previous quarter[26] - Total liabilities as of October 31, 2024, were $931.4 million, slightly down from $938.6 million as of January 31, 2024[26] Shareholder Information - The company reported a weighted-average share count of 551,036 for the three months ended October 31, 2023[24] - GAAP weighted average common shares outstanding, diluted, for the three months ended October 31, 2024, were 553,942, compared to 577,499 in the same period in 2023[34] Operating Activities - Net cash provided by operating activities increased to $174.483 million from $153.480 million year-over-year[28] - The company experienced a net cash used in investing activities of $28.807 million, a significant improvement from $430.930 million in the previous period[28] Stock and Compensation - The company reported stock-based compensation expense of $270.520 million for the nine months ended October 31, 2023, slightly down from $283.025 million[28] - The company repurchased $381.403 million of Class A common stock during the period, compared to $52.649 million in the previous period[28] Guidance and Future Projections - Non-GAAP operating income guidance for Q4 is approximately $100 million[5] - Non-GAAP net income for the nine months ended October 31, 2024, was $156,788, compared to $181,866 for the same period in 2023, indicating a decrease of 13.8%[34] - Non-GAAP adjusted free cash flow for the nine months ended October 31, 2024, was $182,868, compared to $162,965 for the same period in 2023, representing an increase of 12.2%[35] - Non-GAAP operating income for the three months ended October 31, 2024, was $49,721, an increase from $43,679 in the same period in 2023[32] - Non-GAAP net income per share, diluted, for the three months ended October 31, 2024, was $0.11, unchanged from the same period in 2023[34]

Core Viewpoint - UiPath Inc. is set to report its third-quarter fiscal 2025 results, with expectations of a significant earnings decline despite projected revenue growth in subscription services [1][15]. Financial Estimates - The Zacks Consensus Estimate for earnings in the upcoming quarter is 7 cents, reflecting a 41.7% decline from the same quarter last year [2][15]. - Revenue estimates stand at $347.6 million, indicating a 6.7% year-over-year growth [2][15]. - Subscription services revenues are expected to reach $200.1 million, representing a 19.5% year-over-year growth [8]. Earnings Performance - UiPath has a strong earnings surprise history, with an average surprise of 42.4% over the trailing four quarters [3][4]. - The company has an Earnings ESP of 0.00% and a Zacks Rank of 3, indicating a lesser chance of an earnings beat this time [6][7]. Customer Metrics - As of the second quarter of fiscal 2025, UiPath reported 10,810 customers, a slight decrease from 10,890 in the previous year [12][13]. - However, customers generating $100,000 or more in annual recurring revenues (ARR) increased from 1,930 to 2,163, and those with $1 million or more in ARR grew by 15.3% year-over-year [13][14]. Retention Rates - The company achieved a dollar-based gross retention rate of 97% and a net retention rate of 115% in the second quarter of fiscal 2025, attributed to the effectiveness of its automation platform [14]. Stock Performance - UiPath's stock has gained 15% over the past month, outperforming its industry growth of 20% and the Zacks S&P 500 composite's 4.5% rise [9].

Analysts on Wall Street project that UiPath (PATH) will announce quarterly earnings of $0.07 per share in its forthcoming report, representing a decline of 41.7% year over year. Revenues are projected to reach $347.61 million, increasing 6.7% from the same quarter last year.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Prior to a company's e ...

Group 1 - The company faced significant turmoil with the sudden resignation of CEO Rob Enslin amid poor revenue and operating margin guidance for fiscal year 2025 [1] - The company is involved in the technology sector, particularly focusing on automation and software solutions [1] Group 2 - The article reflects on the author's background in investing and technology, indicating a personal interest in tech stocks [1]