Shares of UiPath (PATH +1.01%) are up more than 20% this week as of this writing, according to data provided by S&P Global Market Intelligence, including an 11% after-hours pop on Thursday after the robotic-process automation (RPA) company released strong quarterly results.
NYSE: PATH
Key Data Points
Helping customers harness the power of AI
UiPath stock had steadily climbed around 10% to start this week leading up to its earnings release late Thursday. But shares roared higher in after-hours trading today as the company announced third-quarter revenue grew 24% year over year to $325.9 million, translating to adjusted (non-GAAP) earnings of $69.1 million, or $0.12 per share. Analysts, on average, were only expecting earnings of $0.07 per share on revenue of $315.5 million.
UiPath also saw a healthy 24% increase in annual recurring revenue (ARR) to $1.378 billion exiting the quarter. Its dollar-based net-retention rate (DBNRR) remained steady at 121% as well, meaning existing customers spent an average of 21% more on UiPath's solutions after their first year.
UiPath co-CEOs Rob Enslin and Daniel Dines both expressed excitement for investments the company is making in artificial intelligence (AI) solutions to bolster UiPath's competitive position and value proposition.
"In our most recent platform release, [...] we delivered scores of new capabilities that seamlessly translate the potential of AI into tangible action, accelerate productivity, spark innovation, and drive business outcomes for our customers," Dines added.
UiPath also remained comfortably cash-flow positive, generating operating cash flow of $42 million and adjusted (non-GAAP) free cash flow of $44 million during the quarter.
What's next for UiPath stock?
Looking to the current fiscal Q4, UiPath issued guidance for revenue of $381 million to $386 million, up 24% year over year and roughly in line with analysts' expectations. UiPath also called for ARR to increase to a range of $1.45 billion to $1.455 billion by the end of the fiscal year.
All told, this was as strong a quarter as any investor could have hoped for. With shares now up 80% year to date -- but also down around 80% from UiPath's post-initial public offering (IPO) highs of nearly $80 per share in 2021 -- I'm perfectly content to continue holding my shares of this innovative business as its growth story plays out.
