UiPath (PATH) came out with quarterly earnings of $0.04 per share, beating the Zacks Consensus Estimate of $0.03 per share. This compares to earnings of $0.09 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 33.33%. A quarter ago, it was expected that this enterprise automation software developer would post earnings of $0.11 per share when it actually produced earnings of $0.13, delivering a surprise of 18.18%. Over the last fo ...

Revenue and ARR Performance - Revenue of $316 million, a 10% year-over-year increase[1][2] - ARR of $1.551 billion, a 19% year-over-year increase[1][2] - Net new ARR of $43 million[2] - Dollar-based net retention rate of 115%[2] - Q3 FY2025 revenue guidance of $345 million to $350 million[5] - FY2025 revenue guidance updated to $1.420 billion to $1.425 billion[5] - FY2025 ARR guidance updated to $1.665 billion to $1.670 billion[5] - Total revenue for the three months ended July 31, 2024, was $316.253 million, with subscription services contributing $194.673 million[21] Cash Flow and Liquidity - Non-GAAP adjusted free cash flow of $49 million[2] - Cash, cash equivalents, and marketable securities totaling $1.7 billion as of July 31, 2024[2] - Cash and cash equivalents as of July 31, 2024, were $939.313 million, down from $1,061.678 million as of January 31, 2024[22] - Net cash provided by operating activities increased to $146.4 million in the six months ended July 31, 2024, from $111.6 million in the same period in 2023[23] - Cash, cash equivalents, and restricted cash decreased to $939.8 million as of July 31, 2024, from $1.06 billion at the beginning of the period[23] - Non-GAAP adjusted free cash flow for the six months ended July 31, 2024, was $149.8 million, compared to $119.3 million in the same period in 2023[27] Stock Repurchase and Financing Activities - $500 million expansion of stock repurchase program authorized[3] - Net cash used in financing activities was $260.9 million for the six months ended July 31, 2024, primarily due to repurchases of Class A common stock[23] - Purchases of marketable securities were $697.8 million for the six months ended July 31, 2024, compared to $709.2 million in the same period in 2023[23] Profitability and Margins - Gross profit for the six months ended July 31, 2024, was $532.720 million, compared to $484.244 million for the same period in 2023[21] - Net loss for the six months ended July 31, 2024, was $114.833 million, compared to $92.262 million for the same period in 2023[21] - GAAP gross margin for the six months ended July 31, 2024, was 82%, compared to 84% in the same period in 2023[24] - Non-GAAP gross margin for the six months ended July 31, 2024, was 85%, compared to 87% in the same period in 2023[24] - Non-GAAP operating income for the six months ended July 31, 2024, was $56.8 million, compared to $78.4 million in the same period in 2023[25] - GAAP operating loss for the six months ended July 31, 2024, was $(152.8) million, compared to $(124.0) million in the same period in 2023[25] - Non-GAAP net income for the six months ended July 31, 2024, was $97.0 million, compared to $112.8 million in the same period in 2023[26] - GAAP net loss for the six months ended July 31, 2024, was $(114.8) million, compared to $(92.3) million in the same period in 2023[26] - Non-GAAP operating margin for the six months ended July 31, 2024, was 9%, compared to 14% in the same period in 2023[25] - GAAP operating margin for the six months ended July 31, 2024, was (23)%, compared to (21)% in the same period in 2023[25] - Non-GAAP net income per share, diluted, for the six months ended July 31, 2024, was $0.17, compared to $0.20 in the same period in 2023[26] - GAAP net loss per share, basic and diluted, for the six months ended July 31, 2024, was $(0.20), compared to $(0.16) in the same period in 2023[26] Expenses and Costs - GAAP cost of subscription services for the six months ended July 31, 2024, was $80.3 million, up from $49.9 million in the same period in 2023[24] - Non-GAAP cost of subscription services for the six months ended July 31, 2024, was $69.0 million, up from $41.3 million in the same period in 2023[24] - Non-GAAP sales and marketing expenses for the six months ended July 31, 2024, were $290.2 million, compared to $253.6 million in the same period in 2023[25] - Stock-based compensation expense was $183.0 million for the six months ended July 31, 2024, slightly down from $187.1 million in the same period in 2023[23] Balance Sheet and Liabilities - Total current assets as of July 31, 2024, were $2,274.334 million, compared to $2,580.412 million as of January 31, 2024[22] - Deferred revenue as of July 31, 2024, was $462.509 million, down from $486.805 million as of January 31, 2024[22] - Total liabilities as of July 31, 2024, were $867.752 million, compared to $938.644 million as of January 31, 2024[22] - Accumulated deficit as of July 31, 2024, was $2,029.014 million, compared to $1,914.181 million as of January 31, 2024[22] Non-GAAP Financial Measures - Non-GAAP financial measures exclude stock-based compensation, amortization of acquired intangibles, employer payroll tax expense related to employee equity transactions, restructuring costs, and charitable donations of Class A common stock[18][19] - Dollar-based net retention rate is calculated by dividing the Current Period ARR by the Prior Period ARR, excluding ARR from new customers, and may fluctuate based on the customer cohort used for calculation[16]

Core Insights - Analysts project that UiPath (PATH) will report quarterly earnings of $0.03 per share, reflecting a year-over-year decline of 66.7% [1] - Revenue is expected to reach $302.92 million, which represents a 5.4% increase from the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a reevaluation of initial estimates by analysts [1] Earnings Estimates and Projections - Revisions to earnings estimates are crucial indicators for predicting investor actions regarding the stock [2] - There is a strong correlation between earnings estimate revisions and short-term stock price performance [2] Key Metrics Projections - Analysts estimate 'Revenue- Licenses' at $109.52 million, indicating an 8.2% decline from the previous year [4] - 'Net New ARR' is projected to be $37.53 million, down from $59 million year-over-year [4] - The average prediction for 'ARR' stands at $1.55 billion, compared to $1.31 billion from the previous year [4] Stock Performance - Over the past month, UiPath shares have increased by 8.8%, outperforming the Zacks S&P 500 composite, which saw a 2.5% change [4] - Based on its Zacks Rank 3 (Hold), PATH is expected to perform in line with the overall market in the upcoming period [4]

Core Viewpoint - UiPath's stock has significantly declined, but there are potential recovery paths through operational efficiencies and leadership changes [1][4][5]. Company Performance - UiPath's stock is down approximately 54% from recent highs and about 82% from all-time highs, reflecting broader challenges in the tech sector [4]. - The company integrated RPA technology, saving a large financial client 10,000 man-hours annually, showcasing the productivity benefits of its solutions [2][3]. - Despite a slowdown, UiPath's annual recurring revenue (ARR) grew by 21% year-over-year last quarter, and sales increased by 16% [9]. Leadership Changes - CEO Rob Enslin's sudden resignation after four months raised concerns among investors, but the return of founder Daniel Dines may stabilize the company [7][8]. - Dines has a personal stake in the company's success and may bring renewed energy and direction [8]. Financial Health - UiPath maintains a strong balance sheet with nearly $2 billion in cash and investments, no long-term debt, and a favorable current asset to liability ratio [11]. - The company has positive cash flow with a 24% margin over the last four quarters, indicating operational efficiency [9]. Market Potential - The RPA market is projected to grow at a compound annual rate of 37% through 2032, presenting significant opportunities for UiPath [12]. - UiPath's current price-to-sales (P/S) ratio of about 5.2 is lower than its recent average and below peers like GitLab and CommVault Systems, suggesting potential undervaluation [13]. Investment Considerations - While challenges exist, the market may be pricing in all negatives without recognizing the opportunities, making UiPath a speculative buy for long-term investors [14].

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Core Viewpoint - UiPath's stock has decreased by 45% this year, indicating significant challenges for the company as it approaches its quarterly earnings report on September 5, 2024 [1]. Company Summary - UiPath is scheduled to report its quarterly earnings on September 5, 2024, marking a critical moment for the company [1]. - The stock prices referenced were from the trading day of August 27, 2024, highlighting the recent performance context [1].

UiPath, Inc. (PATH) shares have declined 45.9% in the past six months against the 6.9% rally of the industry it belongs to and the 12.1% rise in Zacks S&P 500 composite. Six-Months Price Performance Zacks Investment Research Image Source: Compared with other close competitors, PATH's performance falls short. Oracle Corporation (ORCL) has risen 25.1% and SAP SE (SAP) has gained 16.7% over the same period. Looking at the recent performance, PATH has gained 2.6% over the past month, suggesting that there might ...

In the latest trading session, UiPath (PATH) closed at $12.64, marking a +1.85% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.32%. Elsewhere, the Dow saw an upswing of 0.16%, while the tech-heavy Nasdaq depreciated by 0.85%. The the stock of enterprise automation software developer has risen by 0.4% in the past month, lagging the Business Services sector's gain of 0.64% and the S&P 500's gain of 1.52%. The upcoming earnings release of UiPath will be of great inte ...

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends UiPath. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

RADNOR, Pa., Aug. 16, 2024 /PRNewswire/ -- The law firm of Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) informs investors that a securities class action lawsuit has been filed in the United States District Court for the Southern District of New York against UiPath, Inc. ("UiPath") (NYSE: PATH). The action charges UiPath with violations of the federal securities laws, including omissions and fraudulent misrepresentations relating to the company's business, operations, and prospects. As a result of UiPat ...