What happened

Shares of UiPath (PATH 0.26%) were jumping today after the robotic process automation software specialist posted its second-quarter earnings report. The company beat analysts' estimates on the top and bottom lines and modestly raised its guidance for the year.

As of 1 p.m. ET, the stock was up 10.3%.

So what

In a challenging environment for the software industry, UiPath's revenue rose 19% to $287.3 million, which was ahead of analysts' estimates for $282.1 million.

The company, whose software helps businesses deploy bots and use low-code software to automate processes, said that annual recurring revenue (ARR) in the quarter climbed 25% to $1.3 billion, a sign of solid demand going forward.

Gross margin remained strong at 83%, or 86% on an adjusted basis. On the bottom line, the company reported adjusted earnings per share of $0.09, up from a per-share loss of $0.02 in the period a year ago, and better than expectations for a profit of $0.03 per share.

UiPath also announced a $500 million share repurchase program, a sign that management thinks the stock is undervalued. At its current market cap of $10 billion, that would allow the company to buy back roughly 5% of its stock.

Management also called out the opportunity in AI, with co-CEO Rob Enslin saying, "I am energized by the excitement around our continuous investments in AI which are driving business outcomes for our customers. Looking to the second half of the year, momentum is building across the business as customers recognize the need for efficiency in the current operating environment and the long-term structural advantages of automation."

Now what

UiPath hiked its full-year top-line forecast modestly, calling for $1.273 billion-$1.278 billion, equal to 20.3% growth, up from an earlier range of $1.267 billion-$1.272 billion. It also called for adjusted operating income of $188 million, up from $69.2 million, showing it's making significant improvements on the bottom line. 

Investors are clearly excited about the potential in AI. If UiPath can tap into that, the stock could continue to rebound.