Should You Buy, Sell, or Hold UiPath Stock Before Q3 Earnings?

Core Viewpoint - UiPath Inc. is set to report its third-quarter fiscal 2025 results, with expectations of a significant earnings decline despite projected revenue growth in subscription services [1][15]. Financial Estimates - The Zacks Consensus Estimate for earnings in the upcoming quarter is 7 cents, reflecting a 41.7% decline from the same quarter last year [2][15]. - Revenue estimates stand at $347.6 million, indicating a 6.7% year-over-year growth [2][15]. - Subscription services revenues are expected to reach $200.1 million, representing a 19.5% year-over-year growth [8]. Earnings Performance - UiPath has a strong earnings surprise history, with an average surprise of 42.4% over the trailing four quarters [3][4]. - The company has an Earnings ESP of 0.00% and a Zacks Rank of 3, indicating a lesser chance of an earnings beat this time [6][7]. Customer Metrics - As of the second quarter of fiscal 2025, UiPath reported 10,810 customers, a slight decrease from 10,890 in the previous year [12][13]. - However, customers generating $100,000 or more in annual recurring revenues (ARR) increased from 1,930 to 2,163, and those with $1 million or more in ARR grew by 15.3% year-over-year [13][14]. Retention Rates - The company achieved a dollar-based gross retention rate of 97% and a net retention rate of 115% in the second quarter of fiscal 2025, attributed to the effectiveness of its automation platform [14]. Stock Performance - UiPath's stock has gained 15% over the past month, outperforming its industry growth of 20% and the Zacks S&P 500 composite's 4.5% rise [9].