UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ___________________________________________ FORM 10-Q ___________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File Number: 001-40348 UiPath, Inc. (Ex ...

UiPath Inc. (NYSE:PATH) Bank of America 2023 Global Technology Conference June 7, 2023 1:40 PM ET Company Participants Rob Enslin - Co Chief Executive Officer Conference Call Participants Brad Sills - Bank of America Merrill Lynch Brad Sills Thanks everybody, welcome. Delighted to be welcoming UiPath to the conference. We're very fortunate to have Co-⁠⁠CEO, Rob Enslin joins us. Thank you, Rob for being here. Rob Enslin Thanks, Brad. Brad Sills Looking forward to the discussion. I've got some questions that ...

UiPath Inc. (NYSE:PATH) Baird 2023 Global Consumer, Technology & Services Conference Transcript June 6, 2023 3:10 PM ET Executives Ashim Gupta - Chief Financial Officer Analysts Mark Marcon - Baird Mark Marcon Good afternoon, everybody. My name is Mark Marcon. I follow human capital technology and solutions for Baird. Our next presenting company is UiPath, one of the absolute leading companies within the fast-growing RPA space. We are extremely pleased to have Ashim Gupta here with us, the CFO. Ashim is goi ...

[Special Note Regarding Forward-Looking Statements](index=3&type=section&id=SPECIAL%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This section highlights that the Quarterly Report contains forward-looking statements about UiPath's future operations, financial condition, business strategy, and plans, cautioning investors against undue reliance due to inherent risks and uncertainties - The report contains forward-looking statements regarding future results, business strategy, and management plans, identifiable by words like 'anticipate,' 'expect,' 'will,' or 'would'[9](index=9&type=chunk) - Forward-looking statements are based on current expectations and projections, subject to risks and uncertainties outlined in the 'Risk Factors' section of the 2023 Form 10-K[10](index=10&type=chunk) - The company does not undertake to update any forward-looking statements to reflect events or circumstances after the report date, except as required by law[12](index=12&type=chunk) [PART I. Financial Information](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents UiPath's unaudited condensed consolidated financial statements, including balance sheets, statements of operations, comprehensive loss, stockholders' equity, and cash flows, with detailed explanatory notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) ASSETS (in thousands) | ASSETS (in thousands) | April 30, 2023 | January 31, 2023 | | :---------------------- | :------------- | :--------------- | | Cash and cash equivalents | $1,311,576 | $1,402,119 | | Marketable securities | $469,071 | $354,774 | | Accounts receivable, net | $233,307 | $374,217 | | Total current assets | $2,257,274 | $2,344,407 | | Total assets | $2,642,683 | $2,735,206 | LIABILITIES AND STOCKHOLDERS' EQUITY (in thousands) | LIABILITIES AND STOCKHOLDERS' EQUITY (in thousands) | April 30, 2023 | January 31, 2023 | | :-------------------------------------------------- | :------------- | :--------------- | | Deferred revenue | $385,895 | $398,334 | | Total current liabilities | $503,389 | $626,452 | | Total liabilities | $687,146 | $815,048 | | Total stockholders' equity | $1,955,537 | $1,920,158 | | Total liabilities and stockholders' equity | $2,642,683 | $2,735,206 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) (in thousands, except per share data) | (in thousands, except per share data) | Three Months Ended April 30, 2023 | Three Months Ended April 30, 2022 | | :------------------------------------ | :-------------------------------- | :-------------------------------- | | Revenue: | | | | Licenses | $134,039 | $117,004 | | Subscription services | $146,352 | $115,494 | | Professional services and other | $9,197 | $12,568 | | Total revenue | $289,588 | $245,066 | | Gross profit | $245,921 | $200,050 | | Operating loss | $(46,411) | $(115,952) | | Net loss | $(31,901) | $(122,561) | | Net loss per share, basic and diluted | $(0.06) | $(0.23) | [Condensed Consolidated Statements of Comprehensive Loss](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) (in thousands) | (in thousands) | Three Months Ended April 30, 2023 | Three Months Ended April 30, 2022 | | :------------- | :-------------------------------- | :-------------------------------- | | Net loss | $(31,901) | $(122,561) | | Other comprehensive income (loss), net | $2,462 | $(458) | | Comprehensive loss | $(29,439) | $(123,019) | [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) (in thousands) | (in thousands) | Balance as of January 31, 2023 | Balance as of April 30, 2023 | | :------------- | :----------------------------- | :--------------------------- | | Total Stockholders' Equity | $1,920,158 | $1,955,537 | | Net loss | $(31,901) | $(31,901) |\n| Stock-based compensation | $85,125 | $85,125 | | Other comprehensive income, net | $2,462 | $2,462 | (in thousands) | (in thousands) | Balance as of January 31, 2022 | Balance as of April 30, 2022 | | :------------- | :----------------------------- | :--------------------------- | | Total Stockholders' Equity | $1,921,917 | $1,880,194 | | Net loss | $(122,561) | $(122,561) | | Stock-based compensation | $102,085 | $102,085 | | Other comprehensive loss, net | $(458) | $(458) | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) (in thousands) | (in thousands) | Three Months Ended April 30, 2023 | Three Months Ended April 30, 2022 | | :------------- | :-------------------------------- | :-------------------------------- | | Net cash provided by (used in) operating activities | $67,341 | $(52,884) | | Net cash used in investing activities | $(135,552) | $(15,697) | | Net cash used in financing activities | $(20,630) | $(18,187) | | Net decrease in cash and cash equivalents | $(90,543) | $(89,506) | | Cash and cash equivalents - end of period | $1,311,576 | $1,679,217 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures for the condensed consolidated financial statements, covering organization, accounting policies, revenue, marketable securities, acquisitions, and other financial components [1. Organization and Description of Business](index=9&type=section&id=1.%20Organization%20and%20Description%20of%20Business) This note describes UiPath, Inc.'s incorporation, headquarters, and its core offering of an end-to-end automation platform - UiPath, Inc. was incorporated in Delaware in June 2015 and is headquartered in New York, New York[29](index=29&type=chunk) - The company offers an end-to-end automation platform, the UiPath Business Automation Platform, enabling customers to discover, automate, and operate mission-critical automation programs at scale[29](index=29&type=chunk) [2. Summary of Significant Accounting Policies](index=9&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the preparation of unaudited condensed consolidated financial statements in accordance with U.S. GAAP and SEC regulations, noting no significant policy changes - The unaudited condensed consolidated financial statements are prepared in accordance with U.S. GAAP and SEC interim reporting regulations, with certain footnotes condensed or omitted[31](index=31&type=chunk) - No significant changes to accounting policies occurred during the three months ended April 30, 2023[30](index=30&type=chunk) - The company's fiscal year ends on January 31[34](index=34&type=chunk) [3. Revenue Recognition](index=10&type=section&id=3.%20Revenue%20Recognition) This note details revenue recognition policies, including geographical breakdown and the aggregate amount of transaction price allocated to remaining performance obligations Revenue by Geographical Region (in thousands) | Revenue by Geographical Region (in thousands) | Three Months Ended April 30, 2023 | Three Months Ended April 30, 2022 | | :------------------------------------------- | :-------------------------------- | :-------------------------------- | | Americas | $123,452 (43%) | $114,151 (47%) | | Europe, Middle East, and Africa | $96,931 (33%) | $69,603 (28%) | | Asia-Pacific | $69,205 (24%) | $61,312 (25%) | | Total revenue | $289,588 (100%) | $245,066 (100%) | - Revenue from the United States represented **38%** and **42%** of total revenue for the three months ended April 30, 2023 and 2022, respectively[41](index=41&type=chunk) - The aggregate amount of transaction price allocated to remaining performance obligations was **$903.9 million** as of April 30, 2023, with **62%** expected to be recognized as revenue over the next 12 months[45](index=45&type=chunk) [4. Marketable Securities](index=11&type=section&id=4.%20Marketable%20Securities) This note provides a breakdown of marketable securities by type, amortized cost, and estimated fair value, along with maturity information and unrealized losses Marketable Securities (in thousands) | Marketable Securities (in thousands) | Amortized Cost (April 30, 2023) | Estimated Fair Value (April 30, 2023) | | :----------------------------------- | :------------------------------ | :------------------------------------ | | Commercial paper | $63,814 | $63,814 | | Treasury bills and U.S. government securities | $370,011 | $369,632 | | Corporate bonds | $24,968 | $24,933 | | Municipal bonds | $3,767 | $3,731 | | Agency bonds | $12,697 | $12,671 | | Total marketable securities | $475,257 | $474,781 | - As of April 30, 2023, **$5.7 million** of marketable securities had remaining contractual maturities of one year or more, with the remainder maturing in less than one year[48](index=48&type=chunk) - Unrealized losses are due to market conditions, not credit-related factors[50](index=50&type=chunk) [5. Fair Value Measurement](index=12&type=section&id=5.%20Fair%20Value%20Measurement) This note details the fair value hierarchy for financial assets, classifying them into Level 1 (quoted prices) and Level 2 (observable inputs) Financial Assets (in thousands) | Financial Assets (in thousands) | Level 1 (April 30, 2023) | Level 2 (April 30, 2023) | Total (April 30, 2023) | | :------------------------------ | :----------------------- | :----------------------- | :--------------------- | | Money market | $612,577 | — | $612,577 | | Corporate bonds | — | $24,137 | $24,137 | | Commercial paper | — | $55,690 | $55,690 | | Agency bonds | $5,667 | — | $5,667 | | Total cash equivalents | $618,244 | $79,827 | $698,071 | | Commercial paper | — | $63,814 | $63,814 | | Treasury bills and U.S. government securities | $369,632 | — | $369,632 | | Corporate bonds | — | $24,933 | $24,933 | | Municipal bonds | — | $3,731 | $3,731 | | Agency bonds | $12,671 | — | $12,671 | | Total marketable securities | $382,303 | $92,478 | $474,781 | | Total | $1,000,547 | $172,305 | $1,172,852 | - Money market funds, treasury bills, U.S. government securities, and agency bonds are classified as **Level 1** (quoted market prices in active markets)[53](index=53&type=chunk) - Commercial paper, corporate bonds, and municipal bonds are classified as **Level 2** (valued using observable inputs other than quoted prices)[53](index=53&type=chunk) [6. Business Acquisitions](index=12&type=section&id=6.%20Business%20Acquisitions) This note details the acquisition of Re:infer LTD. for **$44.6 million** in July 2022, aimed at enhancing AI-powered automation capabilities - On July 29, 2022, UiPath acquired Re:infer LTD., a natural language processing company, for **$44.6 million**[54](index=54&type=chunk)[55](index=55&type=chunk) - The acquisition aimed to accelerate UiPath's technology roadmap, expand AI-powered automation capabilities, and unlock new automation opportunities[54](index=54&type=chunk) Purchase Consideration (in thousands) | Purchase Consideration (in thousands) | Amount | | :------------------------------------ | :----- | | Cash paid at closing | $30,117 | | Fair value of Class A common stock issued | $2,965 |\n| Loan note (current) | $5,863 | | Loan note (non-current) | $5,570 | | Working capital adjustment | $66 | | Total | $44,581 | [7. Intangible Assets and Goodwill](index=15&type=section&id=7.%20Intangible%20Assets%20and%20Goodwill) This note provides a breakdown of acquired intangible assets and goodwill, including amortization expenses and foreign currency translation effects Acquired Intangible Assets, Net (in thousands) | Acquired Intangible Assets, Net (in thousands) | April 30, 2023 | January 31, 2023 | | :--------------------------------------------- | :------------- | :--------------- | | Developed technology | $16,241 | $17,422 | | Customer relationships | $3,960 | $4,573 | | Trade names and trademarks | $30 | $39 | | Other intangibles | $936 | $976 | | Total | $21,167 | $23,010 | - Amortization of acquired intangible assets was **$2.1 million** for the three months ended April 30, 2023, up from **$1.4 million** in the prior year period[58](index=58&type=chunk) Goodwill (in thousands) | Goodwill (in thousands) | Amount | | :---------------------- | :----- | | Balance as of January 31, 2023 | $88,010 | | Effect of foreign currency translation | $1,197 |\n| Balance as of April 30, 2023 | $89,207 | [8. Operating Leases](index=16&type=section&id=8.%20Operating%20Leases) This note details operating lease costs for real estate and vehicles, including lease terms and weighted-average discount rates - Operating leases consist of real estate and vehicles with remaining lease terms of one to 15 years[62](index=62&type=chunk) Lease Costs (in thousands) | Lease Costs (in thousands) | Three Months Ended April 30, 2023 | Three Months Ended April 30, 2022 | | :------------------------- | :-------------------------------- | :-------------------------------- | | Operating lease cost | $3,071 | $2,759 | | Short-term lease cost | $1,300 | $1,508 | | Variable lease cost | $621 | $207 | | Sublease income | $(532) | $(532) | | Total | $4,460 | $3,942 | - Weighted-average remaining lease term was **11.8 years** as of April 30, 2023, with a weighted-average discount rate of **7.1%**[63](index=63&type=chunk) [9. Condensed Consolidated Balance Sheet Components](index=17&type=section&id=9.%20Condensed%20Consolidated%20Balance%20Sheet%20Components) This note provides detailed breakdowns of prepaid expenses, other current assets, property and equipment, and accrued expenses and other current liabilities Prepaid Expenses and Other Current Assets (in thousands) | Prepaid Expenses and Other Current Assets (in thousands) | April 30, 2023 | January 31, 2023 | | :----------------------------------------------------- | :------------- | :--------------- | | Prepaid expenses and service credits | $77,600 | $67,794 | | Other current assets | $43,829 | $26,356 | | Total | $121,429 | $94,150 | Property and Equipment, Net (in thousands) | Property and Equipment, Net (in thousands) | April 30, 2023 | January 31, 2023 | | :--------------------------------------- | :------------- | :--------------- | | Computers and equipment | $28,847 | $28,450 | | Leasehold improvements | $21,505 | $19,622 | | Furniture and fixtures | $6,495 | $6,485 | | Construction in progress | $572 | $2,419 | | Property and equipment, gross | $57,419 | $56,976 | | Less: accumulated depreciation | $(30,508) | $(27,931) | | Property and equipment, net | $26,911 | $29,045 | Accrued Expenses and Other Current Liabilities (in thousands) | Accrued Expenses and Other Current Liabilities (in thousands) | April 30, 2023 | January 31, 2023 | | :------------------------------------------------------------ | :------------- | :--------------- | | Accrued expenses | $14,089 | $19,411 | | Withholding tax from employee equity transactions | $2,132 | $3,772 | | Employee stock purchase plan withholdings | $8,121 | $3,365 | | Payroll taxes and other benefits payable | $4,106 | $7,644 | | Income tax payable | $6,317 | $8,750 | | Value-added taxes payable | $3,528 | $6,381 | | Operating lease liabilities, current | $7,253 | $6,997 | | Deferred consideration for business acquisition, current | $5,863 | $5,863 | | Other | $11,729 | $14,462 | | Total | $63,138 | $76,645 | [10. Credit Facility](index=18&type=section&id=10.%20Credit%20Facility) This note describes the **$200.0 million** senior secured revolving credit facility, its maturity, and the absence of outstanding amounts as of April 30, 2023 - The company has a **$200.0 million** senior secured revolving credit facility, maturing October 30, 2023[71](index=71&type=chunk) - As of April 30, 2023, there were no amounts outstanding under the Credit Facility[72](index=72&type=chunk) - Obligations under the Credit Facility are secured by substantially all assets, excluding intellectual property[71](index=71&type=chunk) [11. Commitments and Contingencies](index=18&type=section&id=11.%20Commitments%20and%20Contingencies) This note details outstanding letters of credit, restructuring actions, employee termination benefits, defined contribution plan contributions, and non-cancelable purchase obligations - Outstanding letters of credit totaled **$5.6 million** as of April 30, 2023, primarily for office space and credit line facilities[73](index=73&type=chunk) - The company approved restructuring actions in June and November 2022, reducing its global workforce by approximately **5%** and an additional **6%** respectively, to manage operating expenses and improve sales productivity[77](index=77&type=chunk) Restructuring-Related Employee Termination Benefits (in thousands) | Restructuring-Related Employee Termination Benefits (in thousands) | Amount | | :--------------------------------------------------------------- | :----- | | Accrued restructuring costs as of January 31, 2023 | $3,889 | | Restructuring costs incurred during the three months ended April 30, 2023 | $889 | | Amount paid during the three months ended April 30, 2023 | $(3,734) |\n| Accrued restructuring costs as of April 30, 2023 | $1,044 | - Total matching contributions to defined contribution plans were **$5.6 million** for the three months ended April 30, 2023, up from **$5.0 million** in the prior year[79](index=79&type=chunk) Non-Cancelable Purchase Obligations (in thousands) | Non-Cancelable Purchase Obligations (in thousands) | Amount | | :------------------------------------------------- | :----- | | Remainder of year ending January 31, 2024 | $52,760 | | Year ending January 31, 2025 | $101,556 |\n| Year ending January 31, 2026 | $55,768 | | Year ending January 31, 2027 | $20,271 | | Year ending January 31, 2028 | $8,245 |\n| Thereafter | — | | Total | $238,600 | [12. Stockholders' Equity](index=20&type=section&id=12.%20Stockholders'%20Equity) This note details the company's contribution of Class A common stock to a donor-advised fund and provides a breakdown of accumulated other comprehensive income - The company contributed **0.3 million** shares of Class A common stock, valued at **$4.2 million**, to a donor-advised fund as part of its Pledge 1% commitment[85](index=85&type=chunk) Accumulated Other Comprehensive Income (in thousands) | Accumulated Other Comprehensive Income (in thousands) | Foreign Currency Translation Adjustments | Unrealized Gain (Loss) on Marketable Securities | Accumulated Other Comprehensive Income | | :---------------------------------------------------- | :--------------------------------------- | :---------------------------------------------- | :------------------------------------- | | Balance as of January 31, 2023 | $8,231 | $(619) | $7,612 | | Other comprehensive income, net of tax | $2,319 | $143 | $2,462 | | Balance as of April 30, 2023 | $10,550 | $(476) | $10,074 | [13. Equity Incentive Plans and Stock-Based Compensation](index=21&type=section&id=13.%20Equity%20Incentive%20Plans%20and%20Stock-Based%20Compensation) This note outlines the shares reserved under equity incentive and employee stock purchase plans, and details stock options, restricted stock units, and stock-based compensation expense - The 2021 Equity Incentive Plan reserved **173.7 million** shares of Class A common stock as of April 30, 2023, with automatic annual increases[88](index=88&type=chunk) - The 2021 Employee Stock Purchase Plan (ESPP) authorized **21.5 million** shares of Class A common stock as of April 30, 2023, also with automatic annual increases[89](index=89&type=chunk) Stock Options (in thousands) | Stock Options (in thousands) | Outstanding as of January 31, 2023 | Outstanding as of April 30, 2023 | | :--------------------------- | :--------------------------------- | :------------------------------- | | Stock Options | 13,898 | 15,160 | | Weighted Average Exercise Price | $3.32 | $2.97 | | Weighted Remaining Contractual Life (years) | 7.7 | 7.6 | | Aggregate Intrinsic Value | $169,324 | $172,461 | Restricted Stock Units (RSUs) (in thousands) | Restricted Stock Units (RSUs) (in thousands) | Unvested as of January 31, 2023 | Unvested as of April 30, 2023 | | :------------------------------------------- | :------------------------------ | :---------------------------- | | RSUs | 36,785 | 41,210 | | Weighted Average Grant Date Fair Value Per Share | $22.48 | $20.70 | Stock-Based Compensation Expense (in thousands) | Stock-Based Compensation Expense (in thousands) | Three Months Ended April 30, 2023 | Three Months Ended April 30, 2022 | | :---------------------------------------------- | :-------------------------------- | :-------------------------------- | | Cost of subscription services revenue | $3,178 | $3,216 | | Cost of professional services and other revenue | $2,699 | $3,874 | | Sales and marketing | $33,123 | $50,758 | | Research and development | $24,773 | $26,623 | | General and administrative | $21,275 | $16,983 | | Total | $85,048 | $101,454 | [14. Income Taxes](index=23&type=section&id=14.%20Income%20Taxes) This note details the provision for income taxes, effective tax rate, and unrecognized tax benefits, highlighting the impact of valuation allowances on deferred tax assets - Provision for income taxes was **$3.6 million** for the three months ended April 30, 2023, down from **$4.8 million** in the prior year[101](index=101&type=chunk) - The effective tax rate was **(12.8%)** for the three months ended April 30, 2023, compared to **(4.1%)** in the prior year, primarily due to a full valuation allowance against U.S., Romania, and U.K. deferred tax assets[101](index=101&type=chunk)[102](index=102&type=chunk) - Gross unrecognized tax benefits totaled **$2.3 million** as of April 30, 2023[103](index=103&type=chunk) [15. Net Loss Per Share Attributable to Common Stockholders](index=23&type=section&id=15.%20Net%20Loss%20Per%20Share%20Attributable%20to%20Common%20Stockholders) This note presents the calculation of basic and diluted net loss per share for Class A and Class B common stock, along with anti-dilutive common stock equivalents (in thousands except per share amounts) | (in thousands except per share amounts) | Three Months Ended April 30, 2023 | Three Months Ended April 30, 2022 | | :-------------------------------------- | :-------------------------------- | :-------------------------------- | | Net loss (Class A) | $(27,186) | $(103,914) | | Net loss (Class B) | $(4,715) | $(18,647) | | Weighted-average shares (Class A) | 475,425 | 459,449 | | Weighted-average shares (Class B) | 82,453 | 82,453 | | Net loss per share, basic and diluted | $(0.06) | $(0.23) | Anti-dilutive Common Stock Equivalents (in thousands) | Anti-dilutive Common Stock Equivalents (in thousands) | Three Months Ended April 30, 2023 | Three Months Ended April 30, 2022 | | :---------------------------------------------------- | :-------------------------------- | :-------------------------------- | | Unvested RSUs | 37,351 | 27,271 | | Outstanding stock options | 13,883 | 13,786 | | Shares subject to repurchase | 63 | 862 | | Shares issuable under ESPP | 897 | 1,035 | | Returnable shares from business acquisition | 427 | — | | Total weighted-average anti-dilutive common stock equivalents | 52,621 | 42,954 | [16. Related Party Transactions](index=24&type=section&id=16.%20Related%20Party%20Transactions) This note discloses expenses related to the use of an aircraft owned by the Co-Chief Executive Officer for business purposes - No expense was incurred for the use of an aircraft owned by the Co-Chief Executive Officer for the three months ended April 30, 2023[108](index=108&type=chunk) - For the three months ended April 30, 2022, **$0.8 million** in expenses were incurred for business use of the aircraft[108](index=108&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on UiPath's financial condition and results, covering business overview, key performance metrics, macroeconomic impacts, restructuring, and detailed comparisons of financial items [Overview](index=25&type=section&id=Overview) This section provides an overview of UiPath's evolution from RPA to an end-to-end AI-powered automation platform, aiming to accelerate human achievement - UiPath, incorporated in 2015, has evolved from RPA into an end-to-end AI-powered automation platform[111](index=111&type=chunk) - The UiPath Business Automation Platform enables customers to discover, automate, and operate mission-critical automation programs at scale, driving operational efficiencies[112](index=112&type=chunk) - The company's vision is to enable automation across all knowledge work to accelerate human achievement[111](index=111&type=chunk) [Business Highlights for the Three Months Ended April 30, 2023](index=25&type=section&id=Business%20Highlights%20for%20the%20Three%20Months%20Ended%20April%2030,%202023) This section summarizes key financial and operational achievements for the quarter, including revenue, ARR, gross margin, and cash flow from operations Metric | Metric | Three Months Ended April 30, 2023 | | :----- | :-------------------------------- | | Revenue | $289.6 million (up 18% YoY) | | ARR | $1,248.9 million (up 28% YoY) | | Gross margin | 85% (up from 82% YoY) | | Cash flow from operations | $67.3 million (vs. $(52.9) million YoY) |\n| Cash, cash equivalents, and marketable securities | $1,786.4 million (vs. $1,759.8 million as of Jan 31, 2023) | [The Macroeconomic Environment and Foreign Currency Fluctuations](index=25&type=section&id=The%20Macroeconomic%20Environment%20and%20Foreign%20Currency%20Fluctuations) This section discusses how macroeconomic factors and foreign currency fluctuations impact demand and near-term results, including potential effects from financial services liquidity concerns - Macroeconomic factors and foreign currency fluctuations impact demand for the platform and near-term results[115](index=115&type=chunk) - Liquidity concerns in the financial services industry may affect the business due to significant cash, cash equivalents, and marketable securities holdings[115](index=115&type=chunk) [Fiscal Year 2023 Restructuring Actions](index=26&type=section&id=Fiscal%20Year%202023%20Restructuring%20Actions) This section details the fiscal year 2023 restructuring actions, including workforce reductions, aimed at simplifying go-to-market strategy and improving operational efficiency - In fiscal year 2023, the board approved two rounds of restructuring, reducing the global workforce by approximately **5%** and an additional **6%**[116](index=116&type=chunk) - These actions aimed to simplify the go-to-market approach, improve sales productivity, and enhance operational efficiency and customer centricity[116](index=116&type=chunk) [Key Performance Metric (ARR)](index=26&type=section&id=Key%20Performance%20Metric) This section defines ARR as a key performance metric, detailing its growth drivers and customer distribution - ARR is the key performance metric, measuring the ability to acquire and expand relationships with subscription customers[118](index=118&type=chunk) ARR Data (in thousands) | ARR Data (in thousands) | At April 30, 2023 | At April 30, 2022 | | :---------------------- | :---------------- | :---------------- | | ARR | $1,248,883 | $977,067 | | Incremental ARR | $271,816 | $324,487 | | Customers with ARR ≥ $1 million | 240 | 168 | | Percent of current period revenue (ARR ≥ $1 million) | 45% | 40% | | Customers with ARR ≥ $100 thousand | 1,858 | 1,574 | | Percent of current period revenue (ARR ≥ $100 thousand) | 82% | 79% | | Dollar-based net retention rate | 122% | 138% | - ARR growth of **28%** was driven approximately **20%** by new customers and **80%** by existing customers[118](index=118&type=chunk) [Components of Results of Operations](index=27&type=section&id=Components%20of%20Results%20of%20Operations) This section details UiPath's financial results components, including revenue streams, cost of revenue, operating expenses, interest income, other income/expense, and income tax provision, explaining recognition and trend factors [Revenue](index=27&type=section&id=Revenue) This note describes revenue sources from software licenses, SaaS products, and professional services, and the transition to 'Flex Offerings' impacting recognition - Revenue is derived from software licenses, SaaS products, and professional services[121](index=121&type=chunk) - The company is transitioning to 'Flex Offerings,' unifying on-premise and cloud deployment options, which is expected to shift more revenue recognition to subscription services over time[122](index=122&type=chunk)[123](index=123&type=chunk) - License revenue is recognized at a point in time, while subscription services (maintenance, support, SaaS) are recognized ratably over the term[124](index=124&type=chunk)[125](index=125&type=chunk) [Cost of Revenue](index=28&type=section&id=Cost%20of%20Revenue) This note details the components of cost of revenue for licenses, subscription services, and professional services, including personnel, hosting, and amortization costs - Cost of licenses revenue includes direct delivery costs, software development amortization, and acquired developed technology amortization[127](index=127&type=chunk) - Cost of subscription services revenue primarily consists of personnel-related expenses for support teams, hosting costs, and amortization of acquired developed technology and capitalized software development costs[128](index=128&type=chunk) - Cost of professional services and other revenue includes personnel-related expenses for the professional services team and third-party consulting services[129](index=129&type=chunk) [Operating Expenses](index=28&type=section&id=Operating%20Expenses) This note outlines operating expenses, including sales and marketing, R&D, and G&A, with personnel-related costs as the most significant component, and expected trends - Operating expenses comprise sales and marketing, research and development, and general and administrative expenses, with personnel-related costs being the most significant component[130](index=130&type=chunk) - Sales and marketing expenses are expected to decrease as a percentage of revenue over the longer term[131](index=131&type=chunk) - Research and development expenses are expected to increase in absolute dollars as the company invests in new technology and platform enhancements[132](index=132&type=chunk) [Interest Income](index=29&type=section&id=Interest%20Income) This note explains that interest income is earned on cash deposits, cash equivalents, and marketable securities - Interest income is earned on cash deposits, cash equivalents, and marketable securities[135](index=135&type=chunk) [Other Income (Expense), Net](index=29&type=section&id=Other%20Income%20(Expense),%20Net) This note clarifies that other income (expense), net primarily consists of foreign exchange gains and losses, and gains/losses from foreign currency forward contracts - Primarily consists of foreign exchange gains and losses, and gains/losses from foreign currency forward contracts[136](index=136&type=chunk) [Provision For Income Taxes](index=29&type=section&id=Provision%20For%20Income%20Taxes) This note covers the provision for income taxes, including U.S. federal, state, and foreign taxes, and the maintenance of a full valuation allowance on certain deferred tax assets - Includes U.S. federal and state income taxes and foreign jurisdiction taxes[137](index=137&type=chunk) - A full valuation allowance is maintained on U.S. federal and state, Romanian, and U.K. deferred tax assets[137](index=137&type=chunk) [Results of Operations (Comparison of the Three Months Ended April 30, 2023 and 2022)](index=30&type=section&id=Results%20of%20Operations) This section compares UiPath's financial performance for the three months ended April 30, 2023, and 2022, detailing changes in revenue, costs, operating expenses, interest income, and tax provision, attributing shifts to various operational and market factors [Revenue](index=33&type=section&id=Revenue) This section details the increase in total revenue, primarily driven by growth in subscription services and licenses, with contributions from both new and existing customers Revenue (in thousands) | Revenue (in thousands) | Three Months Ended April 30, 2023 | Three Months Ended April 30, 2022 | Change | Change % | | :--------------------- | :-------------------------------- | :-------------------------------- | :----- | :------- | | Licenses | $134,039 | $117,004 | $17,035 | 15% | | Subscription services | $146,352 | $115,494 | $30,858 | 27% | | Professional services and other | $9,197 | $12,568 | $(3,371) | (27)% | | Total revenue | $289,588 | $245,066 | $44,522 | 18% | - Total revenue increased by **$44.5 million**, or **18%**, driven by a **$30.9 million** increase in subscription services revenue and a **$17.0 million** increase in licenses revenue[142](index=142&type=chunk) - Approximately **25%** of the total revenue increase was from new customers, and **75%** was from existing customers[142](index=142&type=chunk) [Cost of Revenue and Gross Margin](index=33&type=section&id=Cost%20of%20Revenue%20and%20Gross%20Margin) This section analyzes the decrease in total cost of revenue and the improvement in gross margin, attributing changes to professional services costs and personnel adjustments Cost of Revenue (in thousands) | Cost of Revenue (in thousands) | Three Months Ended April 30, 2023 | Three Months Ended April 30, 2022 | Change | Change % | | :----------------------------- | :-------------------------------- | :-------------------------------- | :----- | :------- | | Licenses | $2,547 | $2,537 | $10 | —% | | Subscription services | $23,078 | $21,045 | $2,033 | 10% | | Professional services and other | $18,042 | $21,434 | $(3,392) | (16)% | | Total cost of revenue | $43,667 | $45,016 | $(1,349) | (3)% | | Gross margin | 85% | 82% | | | - Total cost of revenue decreased by **$1.3 million**, or **3%**, primarily due to a decrease in professional services costs, partially offset by an increase in subscription services costs[143](index=143&type=chunk) - Gross margin increased to **85%** from **82%**, driven by strong revenue growth and a net reduction in personnel-related expenses and third-party vendor costs for professional services[144](index=144&type=chunk) [Operating Expenses](index=33&type=section&id=Operating%20Expenses) This section details changes in sales and marketing, research and development, and general and administrative expenses, highlighting the impact of personnel-related costs and restructuring Operating Expenses (in thousands) | Operating Expenses (in thousands) | Three Months Ended April 30, 2023 | Three Months Ended April 30, 2022 | Change | Change % | | :-------------------------------- | :-------------------------------- | :-------------------------------- | :----- | :------- | | Sales and marketing | $160,406 | $189,782 | $(29,376) | (15)% | | Research and development | $75,342 | $68,690 | $6,652 | 10% | | General and administrative | $56,584 | $57,530 | $(946) | (2)% | - Sales and marketing expense decreased by **$29.4 million (15%)**, mainly due to a **$31.7 million** decrease in personnel-related expenses, including **$17.6 million** less in stock-based compensation, and reduced headcount from restructuring[146](index=146&type=chunk) - Research and development expense increased by **$6.7 million (10%)**, primarily due to a **$3.6 million** increase in personnel-related expenses (higher gross salaries and headcount, partially offset by lower stock-based compensation)[147](index=147&type=chunk) - General and administrative expense decreased by **$0.9 million (2%)**, driven by lower consulting fees, software expense, and credit loss expense, partially offset by a **$3.7 million** increase in charitable donations[148](index=148&type=chunk) [Interest Income](index=34&type=section&id=Interest%20Income) This section highlights the significant increase in interest income, primarily due to higher interest rates on marketable securities, money market accounts, and cash deposits Interest Income (in thousands) | Interest Income (in thousands) | Three Months Ended April 30, 2023 | Three Months Ended April 30, 2022 | Change | Change % | | :----------------------------- | :-------------------------------- | :-------------------------------- | :----- | :------- | | Interest income | $13,848 | $991 | $12,857 | 1,297% | - Interest income increased by **$12.9 million**, or **1,297%**, due to a period-over-period increase in interest rates on marketable securities, money market accounts, and cash deposits[150](index=150&type=chunk) [Other Income (Expense), Net](index=35&type=section&id=Other%20Income%20(Expense),%20Net) This section explains the increase in other income (expense), net, primarily due to gains from amortized discounts on marketable securities and reduced foreign currency transaction losses Other Income (Expense), Net (in thousands) | Other Income (Expense), Net (in thousands) | Three Months Ended April 30, 2023 | Three Months Ended April 30, 2022 | Change | Change % | | :----------------------------------------- | :-------------------------------- | :-------------------------------- | :----- | :------- | | Other income (expense), net | $4,294 | $(2,811) | $7,105 | 253% | - Other income (expense), net increased by **$7.1 million**, or **253%**, primarily due to gains from amortized discounts on marketable securities and lower foreign currency transaction losses compared to the prior period[151](index=151&type=chunk) [Provision For Income Taxes](index=35&type=section&id=Provision%20For%20Income%20Taxes) This section details the decrease in provision for income taxes, attributed to lower foreign tax expenses resulting from reduced earnings in certain foreign jurisdictions Provision For Income Taxes (in thousands) | Provision For Income Taxes (in thousands) | Three Months Ended April 30, 2023 | Three Months Ended April 30, 2022 | Change | Change % | | :---------------------------------------- | :-------------------------------- | :-------------------------------- | :----- | :------- | | Provision for income taxes | $3,632 | $4,789 | $(1,157) | (24)% | - Provision for income taxes decreased by **$1.2 million**, or **24%**, due to lower foreign tax expenses resulting from reduced earnings of cost-plus entities in certain foreign jurisdictions[152](index=152&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses UiPath's financial liquidity, capital sources, and future requirements, highlighting cash, cash equivalents, and marketable securities as primary sources for operations, capital expenditures, and acquisitions [Credit Facility](index=35&type=section&id=Credit%20Facility) This note describes the **$200.0 million** senior secured revolving credit facility, its maturity, and the absence of outstanding amounts as of April 30, 2023 - The company has a **$200.0 million** senior secured revolving credit facility, maturing October 2023, secured by substantially all assets except intellectual property[156](index=156&type=chunk)[157](index=157&type=chunk) - No amounts were outstanding under the Credit Facility as of April 30, 2023[158](index=158&type=chunk) [Cash Flows](index=36&type=section&id=Cash%20Flows) This section analyzes cash flows from operating, investing, and financing activities, detailing the drivers behind changes in each category Cash Flows (in thousands) | Cash Flows (in thousands) | Three Months Ended April 30, 2023 | Three Months Ended April 30, 2022 | | :------------------------ | :-------------------------------- | :-------------------------------- | | Net cash provided by (used in) operating activities | $67,341 | $(52,884) | | Net cash used in investing activities | $(135,552) | $(15,697) | | Net cash used in financing activities | $(20,630) | $(18,187) | - Net cash provided by operating activities was **$67.3 million** for the three months ended April 30, 2023, driven by higher cash collections from customers (up **39%** YoY), partially offset by operating expenditures[161](index=161&type=chunk) - Net cash used in investing activities was **$135.6 million**, primarily due to **$215.4 million** in marketable securities purchases and **$1.9 million** in capital expenditures, partially offset by **$79.0 million** in maturities[163](index=163&type=chunk) - Net cash used in financing activities was **$20.6 million**, mainly from tax withholdings on equity awards, partially offset by proceeds from ESPP contributions and stock option exercises[165](index=165&type=chunk) [Material Cash Requirements](index=37&type=section&id=Material%20Cash%20Requirements) This section states that no significant changes to material cash requirements were reported during the three months ended April 30, 2023 - No significant changes to material cash requirements were reported during the three months ended April 30, 2023, compared to the 2023 Form 10-K[167](index=167&type=chunk) [Critical Accounting Estimates](index=37&type=section&id=Critical%20Accounting%20Estimates) This section confirms no material changes to critical accounting estimates compared to those disclosed in the 2023 Form 10-K - There have been no material changes to critical accounting estimates compared to those disclosed in the 2023 Form 10-K[168](index=168&type=chunk) [Recent Accounting Pronouncements](index=37&type=section&id=Recent%20Accounting%20Pronouncements) This section states that no recent accounting pronouncements were reported - No recent accounting pronouncements were reported[169](index=169&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section outlines UiPath's market risk exposure from interest rate and foreign currency fluctuations, detailing the investment portfolio and potential financial statement impacts [Interest Rate Risk](index=37&type=section&id=Interest%20Rate%20Risk) This section assesses the impact of hypothetical interest rate changes on the company's cash, cash equivalents, and marketable securities - As of April 30, 2023, the company held **$1,311.6 million** in cash and cash equivalents and **$474.8 million** in marketable securities[171](index=171&type=chunk) - A hypothetical **10%** change in interest rates would not have a material impact on the condensed consolidated financial statements for the three months ended April 30, 2023[171](index=171&type=chunk) [Foreign Currency Exchange Risk](index=37&type=section&id=Foreign%20Currency%20Exchange%20Risk) This section details the company's exposure to foreign currency exchange risk, including the proportion of revenues and expenses denominated in non-U.S. dollar currencies and the estimated translation impact - Approximately **58%** of revenues and **35%** of expenses were denominated in non-U.S. dollar currencies for the three months ended April 30, 2023[172](index=172&type=chunk) - A hypothetical **10%** change in foreign currency exchange rates would result in an estimated translation impact of **$14.8 million** for the three months ended April 30, 2023[172](index=172&type=chunk) - Net foreign currency transaction losses of **$0.8 million** were recognized for the three months ended April 30, 2023[172](index=172&type=chunk) [Item 4. Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) This section details the evaluation of UiPath's disclosure controls and procedures and internal control over financial reporting, concluding effectiveness at a reasonable assurance level with no material changes identified [Evaluation of Disclosure Controls and Procedures](index=38&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) This section confirms that management, including Co-CEOs and CFO, concluded disclosure controls and procedures were effective as of April 30, 2023 - Management, including Co-CEOs and CFO, concluded that disclosure controls and procedures were effective at a reasonable assurance level as of April 30, 2023[174](index=174&type=chunk) [Changes in Internal Control Over Financial Reporting](index=38&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) This section states that no material changes in internal control over financial reporting were identified during the three months ended April 30, 2023 - No material changes in internal control over financial reporting were identified during the three months ended April 30, 2023[175](index=175&type=chunk) [Limitations on Effectiveness of Controls and Procedures](index=38&type=section&id=Limitations%20on%20Effectiveness%20of%20Controls%20and%20Procedures) This section acknowledges that control systems provide reasonable, not absolute, assurance due to inherent limitations like resource constraints and judgment errors - Control systems provide reasonable, not absolute, assurance due to inherent limitations like resource constraints, judgment errors, and potential circumvention[176](index=176&type=chunk) [PART II. Other Information](index=39&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) This section confirms the company is not a party to any litigation believed to have a material adverse effect on its business, operating results, cash flows, or financial condition - The company is not presently a party to any litigation that would individually or collectively have a material adverse effect on its business, operating results, cash flows, or financial condition[81](index=81&type=chunk) [Item 1A. Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) This section directs readers to the 2023 Form 10-K for comprehensive risk factors, confirming no material changes during the current reporting period - No material changes to the risk factors previously disclosed in Part I, Item 1A of the 2023 Form 10-K were identified[181](index=181&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=39&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section reports the issuance of **281,000** unregistered Class A common shares to a charitable fund and confirms no material change in IPO proceeds usage - On February 10, 2023, **281,000** shares of Class A common stock were issued to a charitable donor-advised fund for no consideration as part of the Pledge 1% commitment[182](index=182&type=chunk) - No material change in the planned uses of proceeds from the IPO was reported[184](index=184&type=chunk) [Item 3. Defaults Upon Senior Securities](index=39&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section confirms no defaults upon senior securities occurred during the reporting period - No defaults upon senior securities were reported[186](index=186&type=chunk) [Item 4. Mine Safety Disclosures](index=39&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section states that mine safety disclosures are not applicable to the company's operations - Mine safety disclosures are not applicable[187](index=187&type=chunk) [Item 5. Other Information](index=39&type=section&id=Item%205.%20Other%20Information) This section confirms no other information was reported - No other information was reported[188](index=188&type=chunk) [Item 6. Exhibits](index=40&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Quarterly Report on Form 10-Q, including agreements, certifications, and XBRL taxonomy documents - Exhibits include separation and advisory agreements, certifications from Co-CEOs and CFO, and XBRL taxonomy documents[189](index=189&type=chunk) [Signatures](index=41&type=section&id=Signatures) This section contains the required signatures, certifying the due authorization and filing of the report - The report is signed by Ashim Gupta, Chief Financial Officer, on behalf of UiPath, Inc. on June 2, 2023[192](index=192&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended January 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission file number 001-40348 UiPath, Inc. (Exact name of registrant as specified in its charter) Delaware 47-4333187 (State or other jurisd ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ___________________________________________ FORM 10-Q ___________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File Number: 001-40348 ________________ ...

UiPath Inc. (NYSE:PATH) Bank of America 2022 Global Technology Conference June 7, 2022 11:45 AM ET Company Participants Daniel Dines - Co Founder and Co Chief Executive Ashim Gupta - Chief Financial Officer Conference Call Participants Brad Sills - BofA Brad Sills Welcome everybody. I'm delighted to be welcoming UiPath to the conference. We're very fortunate today to have Daniel Dines, Co-Founder and Co-CEO; Ashim Gupta, CFO, from UiPath. I've got some questions that I'll go through. And if you guys have a ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ___________________________________________ FORM 10-Q ___________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File Number: 001-40348 _______________ ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended January 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission file number 001-40348 UiPath, Inc. (Exact name of registrant as specified in its charter) Delaware 47-4333187 (State or other jurisd ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ___________________________________________ FORM 10-Q ___________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File Number: 001-40348 UiPath, Inc. ...