UiPath(PATH) - 2025 Q3 - Quarterly Report

Revenue Performance - Revenue for the quarter ended October 31, 2024, was $354.7 million, representing a 9$1,006.0 million, reflecting an 11% increase year-over-year[146] - Annualized renewal run-rate (ARR) as of October 31, 2024, was $1,606.6 million, up 17$28.7 million, or 9%, compared to the same period in 2023, primarily driven by a $39.4 million increase in subscription services revenue[184] - Total revenue increased by$103.2 million, or 11%, for the nine months ended October 31, 2024, compared to the same period in 2023, driven by a $112.8 million increase in subscription services revenue[197] Subscription Services - Subscription services revenue for the three months ended October 31, 2024, was$206.9 million, representing a 24% increase from $167.5 million in the same period of 2023[184] - Subscription services revenue increased by$14.8 million, or 52%, for the three months ended October 31, 2024, compared to the same period in 2023[185] Cost and Margin Analysis - Gross margin for the three months ended October 31, 2024, was 82%, down from 85% in the same period last year[147] - Total cost of revenue for the three months ended October 31, 2024, was $63.8 million, up from$49.9 million in the same period of 2023, reflecting an increase in subscription services costs[179] - Gross profit for the three months ended October 31, 2024, was $290.9 million, compared to$276.0 million for the same period in 2023, resulting in a gross margin of 82%[179] - Total cost of revenue increased by $39.8 million, or 28$45.3 million increase in cost of subscription services revenue[198] - Gross margin decreased to 82% for the three months ended October 31, 2024, compared to 85% for the same period in 2023[186] Operating Expenses - Total operating expenses for the three months ended October 31, 2024, were $334.3 million, slightly up from$331.8 million in the same period of 2023[179] - The company expects operating expenses to increase in absolute dollars as it continues to invest in research and development[172] - Research and development expense increased by $12.5 million, or 15$4.1 million, or 2%, for the three months ended October 31, 2024, compared to the same period in 2023[187] - General and administrative expense decreased by $5.9 million, or 11$4.9 million, or 3%, for the nine months ended October 31, 2024, amounting to $177.1 million, compared to$172.2 million in the prior year[204] Profit and Loss - Operating loss for the three months ended October 31, 2024, was $(43.4) million, an improvement from$(55.8) million in the same period of 2023[179] - Net loss for the three months ended October 31, 2024, was $(10.7) million, compared to$(31.5) million in the same period of 2023[179] - The provision for income taxes decreased by $18.8 million for the three months ended October 31, 2024, compared to the same period in 2023[196] - The provision for income taxes decreased by$18.6 million for the nine months ended October 31, 2024, resulting in a benefit of $(7.2) million compared to a provision of$11.4 million in the same period of 2023[208] Cash Flow and Financial Position - Cash flow from operations for the nine months ended October 31, 2024, was $174.5 million, compared to$153.5 million for the same period in 2023[147] - Cash and cash equivalents, restricted cash, and marketable securities totaled $1,603.9 million as of October 31, 2024, down from$1,880.3 million as of January 31, 2024[147] - As of October 31, 2024, the company had cash, cash equivalents, and marketable securities totaling $1,603.4 million, with an accumulated deficit of$2,039.7 million[209] - Net cash provided by operating activities for the nine months ended October 31, 2024, was $174.5 million, a 13.7$153.5 million in the same period of 2023[216] - Net cash used in investing activities for the nine months ended October 31, 2024, was $28.8 million, significantly lower than$430.9 million in the prior year[219] - Net cash used in financing activities for the nine months ended October 31, 2024, was $433.5 million, compared to$115.0 million in the same period of 2023[221] Strategic Actions - Restructuring actions approved on July 8, 2024, aim to streamline operations and focus on AI and innovation[154] - The company authorized a stock repurchase program of up to $1 billion, with$500 million authorized on September 1, 2023, and an additional $500 million on August 30, 2024[213] Foreign Currency Impact - Approximately 53$26.3 million for the nine months ended October 31, 2024[230] - The company recognized net foreign currency transaction gains of $1.9 million for the nine months ended October 31, 2024[230] - A hypothetical 10% change in interest rates would not have materially impacted the company's financial statements for the nine months ended October 31, 2024[229]