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Is This an Overreaction to UiPath Earnings?

By Jose Najarro – Updated Sep 11, 2021 at 11:18AM

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UiPath's stock price dropped after the company reported strong growth.

Today's video focuses on UiPath's (PATH 5.95%) earnings, which were reported on Sept. 7 after the market closed. The initial reaction has brought a negative sentiment toward UiPath's stock price. Here are some highlights from the video. 

  1. UiPath reported $726 million of annualized renewal run-rate (ARR), representing a 60% year-over-year growth. The growth was driven by yearly and sequential increases in total customers, customers with over $100 thousand in ARR, and customers with over $1 million in ARR.
  2. The following are two yellow flags investors should keep an eye on. First, UiPath's lockup expiration date ends on Sept. 9. Second, there are reports of competitors planning on going public, one of which is Automation Anywhere. 
  3. UiPath has a strong balance sheet with roughly $1.9 billion in cash, cash equivalents, and marketable securities. UiPath needs to maintain a strong balance sheet since it is not profitable or positive in cash flow from operations. 

Click the video below for my full thoughts and analysis. 

*Stock prices used were the pre-market prices of Sept. 8, 2021. The video was published on Sept. 8, 2021.

Jose Najarro has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Jose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

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Stocks Mentioned

UiPath Inc. Stock Quote
UiPath Inc.
$12.47 (5.95%) $0.70

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