UiPath(US:PATH)2025-12-08 22:28Revenue Performance - Quarter-to-date revenue of $411.1 million increased 16% year-over-year[149] - Year-to-date revenue of $1,129.5 million increased 12% year-over-year[149] - Total revenue for the three months ended October 31, 2025, was $411.1 million, a 16% increase from $354.7 million in the same period of 2024, driven by a $40.7 million increase in subscription services revenue and a $12.9 million increase in licenses revenue[174] - Total revenue for the nine months ended October 31, 2025, was $1,129,465,000, an increase of $123,447,000, or 12%, from $1,006,018,000 in 2024, with subscription services revenue growing by $116,513,000, or 20%[184] Customer Metrics - The number of customers with ARR ≥ $1 million increased to 333 from 302 year-over-year[155] - Dollar-based net retention rate was 107% as of October 31, 2025, down from 113% in 2024[155] Profitability and Margins - Gross margin was 83% for the three and nine months ended October 31, 2025, compared to 82% for the same period in 2024[149] - Gross profit for the three months ended October 31, 2025, was $342.3 million, resulting in a gross margin of 83%, compared to 82% in the same period of 2024[176] - Total cost of revenue increased by $5.0 million, or 8%, to $68.8 million for the three months ended October 31, 2025, driven by a $9.4 million increase in costs associated with professional services[175] - Total cost of revenue increased by $14,641,000, or 8%, to $197,049,000 for the nine months ended October 31, 2025, compared to $182,408,000 in 2024, with a gross margin of 83%[185] Operating Expenses - Operating expenses decreased by $5.0 million, or 1.5%, to $329.2 million for the three months ended October 31, 2025, primarily due to a reduction in sales and marketing expenses[177] - Sales and marketing expenses decreased by $8.0 million, or 4%, to $179.2 million, representing 44% of total revenue, down from 53% in Q3 2024[178] - Sales and marketing expenses decreased by $56,507,000, or 10%, to $505,150,000 for the nine months ended October 31, 2025, compared to $561,657,000 in 2024, representing 45% of revenue[187] - Research and development expenses for the three months ended October 31, 2025, were $96,869,000, a slight decrease of $107, or 0%, compared to $96,976,000 in the same period of 2024, representing 23% of revenue[179] - Research and development expenses for the nine months ended October 31, 2025, were $281,012,000, an increase of $9,037,000, or 3%, from $290,049,000 in 2024, accounting for 26% of revenue[188] - General and administrative expenses increased by $3,085,000, or 6%, to $53,175,000 for the three months ended October 31, 2025, compared to $50,090,000 in 2024, accounting for 13% of revenue[180] - General and administrative expenses decreased by $16,376,000, or 9%, to $160,743,000 for the nine months ended October 31, 2025, compared to $177,119,000 in 2024, representing 14% of revenue[189] Net Income and Tax - The company reported a net income of $198.8 million for the three months ended October 31, 2025, compared to a net loss of $10.7 million in the same period of 2024[172] - Benefit from income taxes increased by $162.4 million for the nine months ended October 31, 2025, compared to the same period in 2024, primarily due to the release of valuation allowance associated with U.S. federal and New York City and State DTAs[193] - The effective tax rate was significantly impacted by a benefit from income taxes of $(174.2) million for the three months ended October 31, 2025, compared to $(14.8) million in Q3 2024[172] Cash Flow and Financial Position - Cash flow from operations was $188.9 million for the nine months ended October 31, 2025, compared to $174.5 million for the same period in 2024[149] - Cash and cash equivalents, restricted cash, and marketable securities were $1,520.2 million as of October 31, 2025, down from $1,724.1 million as of January 31, 2025[149] - As of October 31, 2025, the company had cash, cash equivalents, and marketable securities totaling $1,519.8 million, with an accumulated deficit of $1,810.0 million[194] - Net cash provided by operating activities for the nine months ended October 31, 2025, was approximately 1% lower than the $174.5 million reported for the same period in 2024[201] - Net cash provided by investing activities for the nine months ended October 31, 2025, was $20.2 million, driven by $585.1 million in maturities of marketable securities[203] - Net cash used in financing activities for the nine months ended October 31, 2025, was $358.0 million, primarily due to $329.1 million in repurchases of Class A common stock[205] Strategic Initiatives - The company completed a workforce restructuring to streamline operations and focus on AI and innovation[151] - The company expects operating expenses to decrease as a percentage of revenue over the long term[168] - The company anticipates a reasonable possibility of realizing a valuation allowance for U.S. state deferred tax assets within the next 12 months, which could result in an income tax benefit[171] - The company maintained a partial valuation allowance on U.S. state deferred tax assets and a full valuation allowance on Romania deferred tax assets as of October 31, 2025[171] - The company may require additional equity or debt financing in the future to support its operations and innovation efforts[196] Foreign Currency Impact - Approximately 51% of the company's revenues and 40% of its expenses for the nine months ended October 31, 2025, were denominated in non-U.S. dollar currencies, resulting in net foreign currency transaction losses of $6.5 million[215] - The estimated translation impact of a hypothetical 10% change in foreign currency exchange rates would amount to $34.0 million for the nine months ended October 31, 2025[215]