Core Insights - UiPath Inc. reported better-than-expected first-quarter financial results, with earnings of 11 cents per share and sales of $356.62 million, surpassing analyst estimates [1][2] - The company launched its agentic automation platform, which has received positive early feedback from customers and partners, indicating growing interest in enterprise automation [2] - UiPath raised its fiscal 2026 revenue guidance to a range of $1.549 billion to $1.554 billion, exceeding previous estimates [3] Financial Performance - Quarterly earnings were reported at 11 cents per share, beating the consensus estimate of 10 cents [1] - Quarterly sales reached $356.62 million, surpassing the analyst consensus estimate of $332.87 million [1] - The company expects second-quarter revenue to be between $345 million and $350 million, above estimates of $333.12 million [3] Guidance and Analyst Reactions - Fiscal 2026 revenue guidance was raised from $1.52 billion to $1.53 billion to a new range of $1.549 billion to $1.554 billion, compared to estimates of $1.53 billion [3] - Following the earnings announcement, various analysts adjusted their price targets for UiPath, with increases noted across multiple firms [6]

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 in analyzing companies, particularly in the tech and energy sectors, and has built a following of over 40,000 on Seeking Alpha [2] Group 2 - The Investing Group Deep Value Returns, led by Michael, offers insights through its concentrated portfolio of value stocks, timely updates on stock picks, and a weekly webinar for live advice [3] - The group provides "hand-holding" support for both new and experienced investors, fostering an active and vibrant community accessible via chat [3] - Seeking FCF is associated with Michael Wiggins De Oliveira, indicating a collaborative approach in investment strategies [3]

Group 1 - UiPath's share price has shown a bounce after reporting solid first quarter earnings, with revenue growth being stronger due to easier comparables [1] - Narweena, an asset manager led by Richard Durant, focuses on identifying market dislocations resulting from a poor understanding of long-term business prospects [1] - The firm believes excess risk-adjusted returns can be achieved by targeting businesses with secular growth opportunities in markets with barriers to entry [1] Group 2 - Narweena's research process emphasizes company and industry fundamentals to uncover unique insights, with a high risk appetite and long-term investment horizon [1] - The aging population, low population growth, and stagnating productivity growth are expected to create a different set of investment opportunities compared to the past [1] - Many industries may face stagnation or secular decline, which could paradoxically improve business performance due to decreased competition [1] Group 3 - The economy is increasingly dominated by asset-light businesses, leading to a declining need for infrastructure investments over time [1] - A large pool of capital is pursuing a limited set of investment opportunities, resulting in rising asset prices and compressed risk premia [1] - Richard Durant holds undergraduate degrees in engineering and finance and an MBA, and has passed the CFA exams, indicating a strong educational background [1]

Further information on risks that could cause actual results to differ materially from our guidance and other forward-looking statements can be found in our Annual Report on Form 10-K for the fiscal year ended January 31, 2025 filed with the United States Securities and Exchange Commission (SEC), in our Quarterly Reports on Form 10-Q filed with the SEC, and in other filings and reports that we may file from time to time with the SEC. Any forward-looking statements contained in this presentation are based on ...

Core Insights - UiPath reported revenue of $356.62 million for the quarter ended April 2025, marking a year-over-year increase of 6.4% and exceeding the Zacks Consensus Estimate of $332.33 million by 7.31% [1] - The company's EPS for the same period was $0.11, down from $0.13 a year ago, but it surpassed the consensus EPS estimate of $0.10 by 10% [1] Financial Performance Metrics - Annual Recurring Revenue (ARR) was reported at $1.69 billion, matching the average estimate from three analysts [4] - Net New ARR was $27 million, exceeding the average estimate of $22.09 million from three analysts [4] - The dollar-based net retention rate was 108%, slightly below the average estimate of 109.6% from two analysts [4] - Revenue from licenses was $128.29 million, which is lower than the year-over-year figure by 8.5% and above the average estimate of $115.46 million from four analysts [4] - Revenue from professional services and other was $11.04 million, surpassing the average estimate of $9.68 million from four analysts [4] - Subscription services revenue reached $217.30 million, exceeding the average estimate of $207.27 million from four analysts [4] Stock Performance - UiPath shares have returned +8.4% over the past month, outperforming the Zacks S&P 500 composite's +6.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Group 1: Earnings Performance - UiPath reported quarterly earnings of $0.11 per share, exceeding the Zacks Consensus Estimate of $0.10 per share, but down from $0.13 per share a year ago, representing an earnings surprise of 10% [1] - The company posted revenues of $356.62 million for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 7.31%, compared to $335.11 million in the same quarter last year [2] - Over the last four quarters, UiPath has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - UiPath shares have increased approximately 1.8% since the beginning of the year, outperforming the S&P 500's gain of 0.1% [3] - The company's earnings outlook, including current consensus earnings expectations for upcoming quarters, will be crucial for investors [4] - The current consensus EPS estimate for the coming quarter is $0.07 on revenues of $332.2 million, and for the current fiscal year, it is $0.52 on revenues of $1.53 billion [7] Group 3: Industry Context - The Internet - Software industry, to which UiPath belongs, is currently ranked in the top 24% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]

Financial Data and Key Metrics Changes - The company reported first quarter revenue of $357 million, representing a 6% year-over-year increase, and an annual recurring revenue (ARR) of $1.693 billion, up 12% year-over-year [7][32] - The GAAP operating loss improved to $16 million from a loss of $49 million in the prior year, while non-GAAP operating income was $70 million, reflecting a 20% margin, an improvement of 450 basis points year-over-year [8][34] - Non-GAAP adjusted free cash flow generation was $117 million, representing a 33% margin, up over 250 basis points year-over-year [34] Business Line Data and Key Metrics Changes - The company emphasized the success of its agentic automation platform, which has seen strong adoption with thousands of autonomous agents created and over 250,000 agent runs to date [11] - The introduction of Maestro, the orchestration solution, has powered more than 11,000 process instances, indicating strong early demand [11] Market Data and Key Metrics Changes - The company ended the quarter with approximately 10,750 customers, with a notable increase in customers generating $100,000 or more in ARR to 2,365, and those with $1 million or more in ARR to 316 [32][33] - Dollar-based gross retention was reported at 97%, while the dollar-based net retention rate was 108% as of the first quarter [33] Company Strategy and Development Direction - The company is focused on expanding its agentic automation solutions and has introduced a new consumption-based pricing model to drive adoption [11][12] - A strategic AI partnership with Google Cloud aims to transform healthcare operations through an AI-powered medical record summarization agent [19] - The company is committed to developing targeted vertical solutions and enhancing its partner ecosystem to drive customer value [21][30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the variable macroeconomic environment but expressed confidence in the company's execution and the favorable shift in deal mix for the second quarter [41][70] - The company views fiscal 2026 as a foundational year for driving new revenue streams in fiscal 2027 and beyond as agentic automation scales [36] Other Important Information - The company repurchased 21.9 million shares of its Class A common stock at an average price of $10.4, reflecting its commitment to delivering value to shareholders [34] - The company has made significant progress in its public sector business, highlighted by a deal with the U.S. Air Force to accelerate digital transformation [25] Q&A Session Summary Question: Insights on the macroeconomic environment and FX impact - Management noted that the macroeconomic environment remains variable, but execution in the first quarter was strong, with minimal FX impact observed [40][42] Question: Customer feedback on the new pricing model - Initial customer feedback on the unified pricing model has been positive, as it aligns closely with software adoption [45] Question: Performance of the U.S. Federal business - The U.S. Federal business is in transition, with renewals on track, but continued pressure on new budgets is noted [48][50] Question: Quality and depth of the pipeline - Management expressed confidence in the quality of the pipeline, bolstered by customer interest in agentic automation [53][54] Question: Trends in retention rates - Management indicated that retention pressures are related to macroeconomic factors, but they are optimistic about stabilizing trends moving forward [66][67] Question: Growth outlook and deal mix - The favorable timing and mix of deals for the second quarter were highlighted, with larger deals contributing positively to revenue recognition [69][70] Question: Operational adjustments and efficiencies - Management confirmed that while the restructuring is complete, they continue to seek efficiencies and invest in high-return segments [101]

Financial Data and Key Metrics Changes - The company reported first quarter revenue of $357 million, representing a 6% year-over-year increase, and an ARR of $1.693 billion, up 12% year-over-year [6][31] - GAAP operating loss improved to $16 million from a loss of $49 million in the prior year, while non-GAAP operating income was $70 million, reflecting a 20% margin, an improvement of 450 basis points year-over-year [7][33] - Non-GAAP adjusted free cash flow generation was $117 million, representing a 33% margin, up over 250 basis points year-over-year [33] Business Line Data and Key Metrics Changes - The launch of the agentic automation platform has driven significant customer engagement, with over 15,000 participants registered for the launch events [9] - Adoption of AgentBuilder has accelerated, with customers creating thousands of autonomous agents and generating over 250,000 agent runs to date [11] - Maestro, the orchestration solution, powered more than 11,000 process instances, indicating strong early demand [11] Market Data and Key Metrics Changes - The company ended the quarter with approximately 10,750 customers, with those generating $100,000 or more in ARR increasing to 2,365, and those with $1 million or more in ARR rising to 316 [31][32] - Dollar-based gross retention was 97%, and dollar-based net retention rate was 108% as of the first quarter [32] Company Strategy and Development Direction - The company is focused on expanding its agentic automation capabilities, which are seen as a key differentiator in the market [10][19] - A strategic partnership with Google Cloud aims to transform healthcare operations through AI-powered solutions, indicating a commitment to vertical solutions [19][84] - The company is also enhancing its partner ecosystem to drive adoption and accelerate its strategy in the market [27][28] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a variable macroeconomic environment but expressed confidence in execution and revenue guidance for the second quarter [39][34] - The company views fiscal 2026 as a foundational year for driving new revenue streams in fiscal 2027 and beyond as agentic automation scales [34] - Management remains prudent in guidance, recognizing ongoing uncertainties in the market [39][34] Other Important Information - The company repurchased 21.9 million shares of Class A common stock at an average price of $10.4, reflecting a commitment to delivering value to shareholders [33] - The company introduced a new consumption-based pricing model to drive adoption of its agentic automation solutions [12][41] Q&A Session Summary Question: What is the current macroeconomic environment and its impact on guidance? - Management noted that while the macroeconomic environment remains variable, execution in the first quarter was strong, leading to an adjustment in revenue guidance [39][40] Question: How has customer feedback been regarding the new pricing model? - Initial reactions to the new pricing model have been positive, as it is tied closer to software adoption [41] Question: How did the U.S. Federal business perform? - The U.S. Federal business is in transition, with renewals progressing well, but there is still pressure on new budgets [46][48] Question: What is the outlook for net retention rate? - Management expects stabilization and potential improvement in net retention rate as new solutions are launched [87] Question: What drove the license outperformance in the quarter? - The outperformance was attributed to a favorable mix of deals rather than any unusual contributions [91] Question: What is the strategy for the partner program moving forward? - The partner program is crucial for driving customer engagement and adoption, particularly among mid-tier customers [80]

Financial Performance - Revenue for Q1 fiscal 2026 was $357 million, representing a 6% increase year-over-year[5] - Annualized Renewal Run-rate (ARR) reached $1.693 billion, up 12% year-over-year, with net new ARR of $27 million[5][2] - Total revenue for the three months ended April 30, 2025, was $356.624 million, a 6.4% increase from $335.112 million in the same period of 2024[25] - Subscription services revenue increased to $217.303 million, up 17.4% from $185.131 million year-over-year[25] - Net loss for the quarter was $(22.555) million, or $(0.04) per share, compared to a net loss of $(28.736) million, or $(0.05) per share, in the prior year[25] - GAAP net loss for the three months ended April 30, 2025, was $22,555,000, an improvement from a loss of $28,736,000 in the same period of 2024[37] - Non-GAAP net income for the same period was $60,174,000, compared to $73,218,000 in 2024, reflecting a decrease of approximately 17.8%[37] Cash Flow and Margins - Non-GAAP adjusted free cash flow was $117 million, while cash flow from operations was $119 million[5] - GAAP gross margin stood at 82%, and non-GAAP gross margin was 84%[5] - Non-GAAP operating income for the quarter was $69.616 million, with a non-GAAP operating margin of 20%, up from 15% in the previous year[34] - GAAP net cash provided by operating activities increased to $119,002,000 in Q1 2025 from $100,037,000 in Q1 2024, representing a growth of 18.9%[40] - Non-GAAP adjusted free cash flow for the three months ended April 30, 2025, was $117,067,000, up from $101,277,000 in 2024, indicating an increase of 15.6%[40] Stock and Shareholder Actions - The company repurchased $227.525 million of Class A common stock during the quarter[29] - The weighted average common shares outstanding, basic and diluted, decreased to 548,451 in Q1 2025 from 569,925 in Q1 2024[37] - Stock-based compensation expense decreased to $76,361,000 in Q1 2025 from $88,727,000 in Q1 2024, a reduction of approximately 13.9%[37] - The company reported a charitable donation of Class A common stock valued at $4,187,000 in Q1 2025, down from $6,564,000 in Q1 2024[37] Future Projections - For Q2 fiscal 2026, revenue is expected to be in the range of $345 million to $350 million, with ARR projected between $1.715 billion and $1.720 billion[6] Product Development and Partnerships - The company launched its next-generation UiPath Platform for agentic automation, enhancing its product offerings[8] - UiPath Test Cloud was introduced to improve software testing efficiency using advanced AI[8] - The company announced a partnership with Google Cloud to develop a generative AI-based Medical Record Summarization agent[9] Market Recognition - UiPath achieved a dollar-based net retention rate of 108%[5] - The company was recognized as a Leader in the IDC MarketScape for Worldwide Business Automation Platforms 2025[8] Assets and Liabilities - Cash and cash equivalents decreased to $700.641 million from $879.196 million at the beginning of the year[27] - Total current assets decreased to $2.110 billion from $2.339 billion at the end of January 2025[27] - Total liabilities decreased to $945.981 million from $1.020 billion at the end of January 2025[27] Operating Loss - Operating loss improved to $(16.412) million compared to $(49.465) million in the same quarter of 2024[34] Restructuring Costs - The company incurred restructuring costs of $3,011,000 in Q1 2025, while there were no such costs reported in Q1 2024[37]

UiPath Inc. (PATH) is set to report first-quarter fiscal 2026 results on May 29, after the bell.The Zacks Consensus Estimate for earnings is pegged at 10 cents, indicating a 23% decline from the year-ago reported number. The consensus estimate for revenues is pinned at $332.3 million, implying a 0.8% year-over-year decline.One estimate for the fiscal first quarter has been revised downward in the past 60 days.Image Source: Zacks Investment ResearchThe company has an impressive earnings surprise history. Ear ...