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UiPath stock jumps after Q3 beats

  • UiPath (NYSE:PATH) shares rose 14% on Friday after the automation software company reported better-than-expected third quarter results.
  • The firm generated adjusted earnings of $0.05 per share on revenue of $262.7M that grew 19% year-over-year. Excluding the FX headwind, revenue grew 29% Y/Y.
  • ARR was $1.11B (+36% Y/Y), driven by net new ARR of $67M. Excluding the FX headwind, total ARR grew 38% Y/Y.
  • Non-GAAP operating income was $18M, a third quarter record, which the company attributed to disciplined capital allocation and cost management. Adjusted gross margin was 86%, better than Bloomberg estimate of 85.2%.
  • For fiscal fourth quarter 2023, UiPath (PATH) expects ARR in the range of $1.174B to $1.176B, up from prior guidance of $1.153B to $1.158B. Total revenue is seen at $277M to $279M vs. consensus of $277.99M, and non-GAAP operating income of ~$35M.
  • Barclays analyst Raimo Lenschow says "guidance came in slightly better than consensus despite a continuing growth slowdown."