Shares of UiPath (PATH 1.28%) popped on Thursday after the autonomous software provider reported solid third-quarter growth metrics.
By the close of trading, UiPath's stock price was up more than 24%.
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AI agents are here
UiPath is a leader in agentic automation, which uses artificial intelligence (AI) to complete complex processes that require decision-making and adaptation. Surging interest in AI agents is thus playing right into UiPath's wheelhouse.
"Enterprises are accelerating their AI and automation strategies, and they're looking for a unified platform rather than stand-alone tools," CEO Daniel Dines said in a press release.
UiPath's revenue rose 16% year over year to $411 million. The gains were driven by new customer wins and higher sales to existing clients, as shown by the company's dollar-based net retention rate of 107%.
UiPath's annualized renewal run rate (ARR), in turn, grew 11% to nearly $1.8 billion.
NYSE: PATH
Key Data Points
Moreover, the software specialist's profitability is improving as it scales its business. UiPath produced $13 million in operating income, compared to a loss of $43 million in the prior-year period.
UiPath is set to profit from the AI boom
Looking ahead to the fourth quarter, UiPath expects revenue of $462 million to $467 million and adjusted operating income of $140 million.
During a conference call with analysts, Dines explained why he believes UiPath is well-positioned to benefit from the AI megatrend.
"Our automation strategy, combining the reliability of deterministic automation with the intelligence and adaptability of agentic AI, continues to align with what customers want most: trusted enterprise-grade automation that delivers tangible ROI [return on investment] fast," Dines said.
