UiPath Shares Plunge 20% Post Q4 Earnings – Read Why

Benzinga2022-03-31

UiPath Inc (NYSE:PATH) reported fourth-quarter revenue growth of 39.4% year-over-year to $289.7 million, beating the consensus estimate of $283.57 million.

ARR of $925.3 million (+59% Y/Y) and a Net new ARR of $106.9 million (+72% Y/Y).

UiPath clocked and adjusted EPS of $0.05, beating the consensus of $0.03. Its gross margin contracted by 452 bps to 85.8%.

The company recorded an operating loss for the quarter of $(50.88) million, compared to a profit of $14.59 million a year ago.

Net cash used in operating activities for FY22 totaled $54.96 million, compared to cash generated of $29.18 million in 4Q21. Non-GAAP adjusted free cash flow was negative $21.5 million.

PATH’s cash, cash equivalents, and marketable securities were $1.9 billion as of January 31, 2022.

Separately, UiPath announced the appointment of Chris Weber as Chief Business Officer, a former Microsoft (NASDAQ:MSFT) executive with more than 25 years of enterprise software experience.

1Q23 Outlook: UiPath expects Revenue of $223 million - $225 million versus a consensus of $243 million, ARR in the range of $960 million to $965 million; and Non-GAAP operating loss in the range of $(30) million to $(25) million

FY23 outlook: UiPath sees Revenue of $1.075 billion - $1.085 billion, lower than the consensus of $1.18 billion. It sees ARR in the range of $1.20 billion to $1.21 billion as of January 31, 2023

It expects Non-GAAP operating income in the range of $0 to $10 million. PATH shares have lost about 29.2% year-to-date

Price Action: PATH is trading lower by 21.9% at $22.68 during the post-market session on Wednesday.

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