Revenue and Growth - Revenue for the three months ended April 30, 2025, was $356.6 million, representing a 6% year-over-year increase[142]. - Annualized renewal run-rate (ARR) as of April 30, 2025, was $1,692.7 million, up 12% year-over-year, with 24% of this growth attributed to new customers[142][146]. - Total revenue for the three months ended April 30, 2025, was $356.6 million, an increase of $21.5 million or 6% compared to $335.1 million in the same period of 2024[167]. - Subscription services revenue increased by $32.2 million or 17%, reaching $217.3 million, while licenses revenue decreased by $11.8 million or 8% to $128.3 million[167]. - The company attributed 43% of total revenue growth to new customers and 57% to existing customers[167]. - The increase in subscription services revenue was driven by both prior period sales and new sales in the current period[167]. Financial Performance - Gross margin for the three months ended April 30, 2025, was 82%, slightly down from 83% in the same period of 2024[142]. - Operating loss improved to $(16.4) million for the three months ended April 30, 2025, compared to $(49.5) million in the same period of 2024[166]. - Net loss for the period was $(22.6) million, an improvement from $(28.7) million in the prior year[166]. - Interest income decreased by $1.2 million, or 9%, to $12.6 million for the three months ended April 30, 2025, compared to $13.8 million in the same period of 2024[173]. - Provision for income taxes decreased by $1.0 million, or 25%, to $2.8 million for the three months ended April 30, 2025, compared to $3.8 million in the same period of 2024[175]. Cash Flow and Liquidity - Cash flow from operations for the three months ended April 30, 2025, was $119.0 million, compared to $100.0 million for the same period in 2024[142]. - Cash and cash equivalents, restricted cash, and marketable securities totaled $1,591.9 million as of April 30, 2025, down from $1,724.1 million as of January 31, 2025[142]. - Net cash provided by operating activities was $119.0 million for the three months ended April 30, 2025, compared to $100.0 million in the same period of 2024[180]. - Net cash used in investing activities was $79.9 million for the three months ended April 30, 2025, driven by $153.4 million in purchases of marketable securities[184]. - Net cash used in financing activities was $235.2 million for the three months ended April 30, 2025, primarily due to $227.5 million in repurchases of Class A common stock[186]. - As of April 30, 2025, the company had cash, cash equivalents, and marketable securities totaling $1,591.5 million, with an accumulated deficit of $2,010.4 million[176]. Customer Metrics - The number of customers with ARR of $1 million or more increased to 316 as of April 30, 2025, from 288 in 2024[148]. - The dollar-based net retention rate was 108% as of April 30, 2025, down from 118% in 2024[148]. Expenses and Cost Management - Total cost of revenue rose by $8.5 million or 15% to $63.9 million, driven by a $8.2 million increase in professional services costs[168]. - Sales and marketing expenses decreased by $20.5 million or 11% to $159.7 million, representing 45% of total revenue[170]. - Professional services and other costs increased by 51% to $24.1 million, primarily due to higher third-party subcontractor costs[168]. - Research and development expenses are expected to increase in absolute dollars as the company invests in new technology and product enhancements[160]. - Research and development expenses increased by $9.2 million, or 11%, to $94.8 million for the three months ended April 30, 2025, compared to $85.6 million in the same period of 2024[171]. - General and administrative expenses decreased by $8.8 million, or 14%, to $54.7 million for the three months ended April 30, 2025, compared to $63.5 million in the same period of 2024[172]. Strategic Initiatives - The Fiscal Year 2025 Workforce Restructuring is substantially completed, aimed at streamlining operations and focusing on AI and innovation[144]. - The company continues to monitor macroeconomic impacts, including foreign currency fluctuations and interest rate volatility, which may affect demand and profitability[139][141]. Foreign Currency Impact - Approximately 55% of the company's revenues and 39% of its expenses were denominated in non-U.S. dollar currencies, with net foreign currency transaction losses of $13.1 million recognized[196]. - Other expense, net increased by $26.6 million for the three months ended April 30, 2025, primarily due to a $15.9 million increase in losses from foreign currency transactions[174].

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]

Core Viewpoint - UiPath reported a first-quarter total revenue of $356.6 million, exceeding analyst expectations of $332.4 million [1] - The company anticipates full-year revenue of approximately $1.55 billion, slightly above analyst expectations of $1.52 billion [1] - For the second quarter, revenue is expected to be between $345 million and $350 million, surpassing analyst expectations of $331.4 million [1] - Following the earnings report, PATH stock rose by 13.37% in after-hours trading [1] Financial Performance - First-quarter revenue: $356.6 million, compared to analyst expectations of $332.4 million [1] - Full-year revenue forecast: approximately $1.55 billion, against analyst expectations of $1.52 billion [1] - Second-quarter revenue guidance: $345 million to $350 million, exceeding analyst expectations of $331.4 million [1] Market Reaction - PATH stock experienced a significant increase of 13.37% in after-hours trading following the earnings announcement [1]