UiPath Delivers a Surprise Profit, but the Stock's Gains Shrink After Hours

Dow Jones03-14

Shares of UiPath Inc. were up as much as 13.7% in Wednesday’s aftermarket action following the company’s upbeat financial results, but those gains largely evaporated as the company’s earnings call went on.

The stock was recently up just 1.9%, as management called out that the second half of the new fiscal year is likely to be stronger than the first, consistent with past seasonal patterns.

The automation-software company posted fiscal fourth-quarter net income of $33.9 million, or 6 cents a share, whereas it notched a loss of $27.7 million, or 5 cents a share, in the year-earlier period. This marked the company’s first quarter of GAAP profitability.

On an adjusted basis, UiPath logged earnings per share of 22 cents, while analysts tracked by FactSet were modeling 16 cents.

UiPath’s revenue rose to $405 million from $309 million, while analysts were looking for $384 million. Annual recurring revenue was $1.464 billion, up 22%.

“Our platform is highly differentiated and customers are making meaningful commitments to UiPath,” Chief Financial Officer Ashim Gupta said on the earnings call. The company’s offering lets customers “take action” around artificial intelligence, he added, and UiPath plans to invest more in generative AI.

For the fiscal first quarter, UiPath expects $330 million to $335 million in revenue, whereas analysts were looking for $347 million. For the full fiscal year, it’s modeling $1.555 billion to $1.560 billion in revenue, while the FactSet consensus was for $1.530 billion.

“Looking ahead to fiscal year 2025, this afternoon’s guidance reflects typical seasonal patterns in the business as well as our plans to strategically invest to further expand our market leadership while continuing to drive operating leverage,” Gupta said in a release.

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