UiPath(PATH) - 2025 Q2 - Quarterly Report

Revenue Growth - Revenue for the quarter ended July 31, 2024, was $316.3 million, representing a 10$651.4 million, reflecting a 13% year-over-year growth[110]. - Annualized Renewal Run-Rate (ARR) as of July 31, 2024, was $1,550.6 million, up 19$28.9 million, or 10%, for the three months ended July 31, 2024, compared to the same period in 2023, driven by a $34.7 million increase in subscription services revenue[140]. - Total revenue increased by$74.5 million, or 13%, for the six months ended July 31, 2024, compared to the same period in 2023, primarily due to a $73.5 million increase in subscription services revenue[149]. Customer Metrics - The number of customers with ARR greater than or equal to$1 million increased to 293, up from 254 year-over-year[121]. - Approximately 17% of ARR growth was attributed to new customers, while 83% came from existing customers[118]. - 37% of the total revenue growth was attributable to new customers, while 63% was from existing customers[140]. Revenue Composition - Subscription services revenue accounted for 62% of total revenue for the three months ended July 31, 2024, up from 56% in the same period last year[138]. - Licenses revenue decreased by $7.0 million, or 6$112.3 million for the three months ended July 31, 2024, primarily due to the transition to Flex Offerings[140]. - Professional services and other revenue increased by $1.3 million, or 16$9.3 million for the three months ended July 31, 2024[140]. - Subscription services revenue grew by 24%, reaching $379.8 million for the six months ended July 31, 2024, compared to$306.4 million in the prior year[149]. Profitability and Margins - Gross margin for the three months ended July 31, 2024, was 80%, down from 83% in the same period last year[110]. - Gross profit margin was 80% for the three months ended July 31, 2024, compared to 83% in the same period last year[138]. - Gross margin decreased to 82% for the six months ended July 31, 2024, compared to 84% for the same period in 2023, due to increased costs in subscription services[151]. Operating Expenses - Total operating expenses were $356.3 million for the three months ended July 31, 2024, representing 113$44.3 million, or 13%, for the six months ended July 31, 2024, primarily driven by a $29.5 million increase in personnel-related expenses[152]. - Research and development expenses increased by$11.8 million, or 14%, for the three months ended July 31, 2024, compared to the same period in 2023[144]. - General and administrative expenses increased by $3.9 million, or 7$3.0 million increase in software service expenses[145]. Net Loss and Taxation - The net loss for the three months ended July 31, 2024, was $86.1 million, compared to a net loss of$60.4 million in the same period last year[140]. - The effective tax rate is influenced by foreign tax rates and non-deductible expenses, with a provision for income taxes of $3.8 million for the three months ended July 31, 2024[137]. - The company maintains a full valuation allowance on its U.S. federal and state deferred tax assets, indicating uncertainty in realizing these assets[135]. Cash Flow and Investments - Cash flow from operations for the six months ended July 31, 2024, was$146.4 million, compared to $111.6 million for the same period in 2023[110]. - Net cash provided by operating activities was$146.4 million for the six months ended July 31, 2024, up from $111.6 million for the same period in 2023, driven by approximately 12$5.9 million for the six months ended July 31, 2024, compared to $370.7 million for the same period in 2023[165]. - Net cash used in financing activities was$260.9 million for the six months ended July 31, 2024, primarily due to $218.8 million in stock repurchases[166]. Stock Repurchase and Cash Position - As of July 31, 2024, the company had cash, cash equivalents, and marketable securities totaling$1,743.4 million, with an accumulated deficit of $2,029.0 million[158]. - The company authorized a stock repurchase program of up to$500.0 million on September 1, 2023, and an additional $500.0 million on August 30, 2024[161]. Foreign Currency Impact - Approximately 54$2.2 million recognized[174].