What happened

Shares of workplace automation software company UiPath (PATH -0.95%) jumped on Friday following the release of financial results for the third quarter of its fiscal 2023. As of 10 a.m. ET, UiPath stock was up about 9%.

So what

Q3 results were strong for UiPath. Revenue of $263 million was up 19% from the same quarter last year and significantly surpassed management's guidance of $245 million on the high end. Moreover, annual recurring revenue (ARR) jumped 36% year over year to $1.11 billion, which was more than the $1.093 billion management had hoped for.

Many on Wall Street abandoned UiPath stock when its revenue growth rate slowed and its operating cash flow trended lower. One notable exception has been Cathie Wood -- UiPath stock enjoys a 4.7% allocation in the ARK Innovation ETF.

Maybe the analyst community will warm to UiPath after its Q3 results. One analyst already has: According to The Fly, Mizuho analyst Siti Panigrahi raised his price target for UiPath from $14 per share to $15 per share.

Now what

UiPath's stock price is up thanks to the company beating its guidance in Q3. However, if I'm being critical, its fourth-quarter guidance looks a little light. Management expects to generate Q4 revenue of $279 million at best, which would be almost a 4% year-over-year decline.

Moreover, UiPath management thinks it will increase its ARR by $66 million in Q4. For perspective, its ARR increased by $66.8 million in Q3. This is noteworthy because, as the company notes in its filings with the Securities and Exchange Commission (SEC), the fourth quarter tends to be its strongest quarter for landing new deals. In other words, you'd expect Q4 to outpace Q3.

UiPath shareholders will need to wait patiently for the company's growth to resume.