UiPath, Inc. (PATH), an enterprise automation software company, released its first quarterly earnings after its first public offering. The company exceeded profit and revenue estimates, owing to strong ARR growth. However, during the June 8 extended trading session, shares fell 7.2 percent.
In the fields of robotic process automation (RPA) and artificial intelligence, UiPath is a market leader (AI). The business saves time and money by automating routine business operations, allowing staff to focus on more important, strategic tasks.
The quarter’s earnings were $0.02 per share, compared to a loss of $0.09 per share the year before. The company was predicted to lose $0.10 per share, according to the earnings whisper number.
The company posted revenue of $186.2 million, up 65 percent year over year, above the $167.3 million profit whisper number.
License income increased by 57.2 percent to $100.22 million, maintenance and support revenue increased by 79.7% to $77.64 million, and services and other revenue increased by 35.9% to $8.36 million.
The company’s annualized renewal run-rate (ARR) was $652.6 million at the end of the quarter, up 64 percent year over year, backed by $72 million in net new ARR.
The company has 8,500 clients around the world, with 1,105 of them giving more than $100,000 to ARR and 104 giving more than $1 million.
“We believe automation is the next step in the software stack,” said Daniel Dines, the company’s Co-Founder and CEO. Our end-to-end automation platform, flexible deployment approach, and expanding ecosystem of partners position us well to take advantage of the $60 billion market opportunity that lies ahead.”
Revenue and ARR are expected to be in the range of $180 – $185 million and $702 – $704 million in the second quarter, according to the business. Revenue is expected to be $176.11 million, according to the consensus estimate.
The business expects ARR to be between $850 and $855 million for the whole fiscal year 2022.
Following the announcement, Oppenheimer analyst Brian Schwartz kept his Hold recommendation on the stock, stating, “PATH has open-ended growth as the firm exerts its market leading position as the defining pure-play software supplier in RPA to gain share… However, high-quality software firms are frequently accompanied by high valuations, and we believe the stock is adequately valued at current levels, so we would wait for a better entry point.”
With a Moderate Buy consensus rating based on 8 Buys and 12 Holds, the Wall Street community is cautiously enthusiastic about the stock. The average analyst price objective for UiPath is $75.50, implying that the stock is adequately priced at present prices. Since it began trading on April 21, the stock has gained 10.1 percent.
UiPath receives a 7 out of 10 from TipRanks’ Smart Score algorithm, indicating that the stock is likely to perform in line with market averages.