PresentationThanks, everyone, for joining us today. My name is Scott Berg. I lead the enterprise software and SaaS research efforts here at Needham. Thanks for joining us for our 20th Annual Growth Conference here. Today, with us right now, we have UiPath. We have the company's CFO and COO, Ashim Gupta. Thanks for joining us so much, Ashim. Appreciate the time. Yes, got lots of stuff to talk about here. But I guess, for those that are less familiar, how about an overview of UiPath?Ashim GuptaCFO & COO That' ...

Summary of UiPath FY Conference Call (January 13, 2026) Company Overview - **Company**: UiPath (NYSE: PATH) - **Founded**: By Daniel Dines in Romania, initially with eight people - **Current Status**: $1.5 billion to $1.8 billion in Annual Recurring Revenue (ARR) [3][4] - **Revenue Distribution**: 50% international and 50% domestic [4] Core Business and Product Development - **Core Offering**: Robotic Process Automation (RPA) with recent expansions into AI, including advanced intelligent document processing and process intelligence [4][5] - **Agentic Automation**: Introduced as a new approach to automation, emphasizing the integration of natural language processing [5] - **Financial Health**: $1.5 billion in cash, no debt, and strong buyback performance with over $800 million in stock repurchased [5] Market Position and Growth Strategy - **Market Dynamics**: UiPath is positioned as a leader in the RPA market, with a focus on efficiency and process transformation [9] - **Partnerships**: Collaborations with major tech companies like NVIDIA, Google, Microsoft, Snowflake, and OpenAI to enhance product offerings and customer choice [11][14] - **Verticalization**: Emphasized as a strategy to accelerate time to value for customers, allowing for tailored solutions that meet specific industry needs [17][18] Customer Engagement and Sales Performance - **Sales Improvement**: Reported first quarter of net new ARR growth in two years, attributed to improved execution and customer engagement [26][28] - **Customer Demand**: Increased interest in agentic automation and process orchestration, with a shift from traditional RPA discussions to broader automation solutions [34][35] - **Federal Business**: Noted strong performance in federal contracts, indicating a complex but stable opportunity landscape [40][41] Financial Outlook and Margin Management - **Gross Margin Headwinds**: Anticipated continued SaaS headwinds due to cloud adoption, but overall operating margins expected to remain strong [46][48] - **GAAP Profitability**: Achieved first GAAP profitability in the third quarter, indicating improved financial health and capital efficiency [50][51] Competitive Landscape - **Differentiation**: UiPath's combination of deterministic and probabilistic capabilities in its agentic platform is seen as a competitive advantage [56] - **Observability**: Focus on process observability as a key differentiator, allowing for real-time monitoring and governance of automated processes [58][59] Key Takeaways - **Execution Focus**: The company emphasizes the importance of execution and customer engagement in driving growth and stability [27][28] - **Continuous Improvement**: Commitment to not becoming complacent and continuously seeking improvement in operations and customer relationships [31][32] - **Future Opportunities**: Anticipation of further growth through enhanced partnerships and the development of tailored solutions for specific industries [54][55]