To The Moon

$UiPath(PATH)$ is scheduled to report their quarterly results for period ending 31 July 2024 on 05 September 2024 after the market close.

UiPath is expected to report a 5.7% increase in revenue to $303.673 million from $287.31 million a year ago. UiPath has provided a revenue guidance on 29 May 2024 for the period ended 31 July, to be between $300.00 million and $305.00 million.

The consensus EPS forecast for this upcoming earnings is 3 cents.

2024 Gartner® Magic Quadrant™ for Robotic Process Automation

Organizations do not need to employ an expensive LLM for every automation. Many robots just need to execute a workflow with high reliability at the lowest cost.

Though UiPath is leading in the RPA space but we need to understand that a new era of AI agents is approaching; an era where robots learn new AI skills and begin to make independent decisions.

This would be a challenges for UiPath.

Sage Business Cloud - Competitor For BPM

One of UiPath business is in the Business Process Management (BPM), but they are not in the leadership for this area, where more and more incumbents would be coming with AI enabled solutions, we will need to see how UiPath going to excel in this space.

Sage Business Cloud competes with other products in the Business Process Management (BPM) categories. It has a 21.14% market share in the Business Process Management (BPM) category, and Sage Business Cloud has 16,594 customers in 10 countries.

UiPath competes with other products in the Project Collaboration, categories. It has a 7.78% market share in the Business Process Management (BPM) category, and UiPath has 6,109 customers in 10 countries.

Comparing the customer bases of Sage Business Cloud and UiPath, we can see that Sage Business Cloud has 16,594 customer(s), while UiPath has 6,109 customer(s). In the Business Process Management (BPM) category, with 16,594 customer(s) Sage Business Cloud stands at 1st place by ranking, while UiPath with 6,109 customer(s), is at the 4th place.

Why UiPath Need To Up Its Game Plan To Compete With Microsoft

UiPath specializes in legacy traditional RPA. $Microsoft(MSFT)$ Power Automate Desktop (Power Automates RPA) is nearly as advanced as UiPath.

But the barrier to entry into UiPath is very high. If you are in the business of helping organization to automate their process, you will find that why MS APIs can really help to boost the strength of Power Automate.

One more thing customer would be concerned is Microsoft is a cheaper option as there is so much easier to build on the Power Platform. UiPath support model is getting customers to pay for their Technical support, because they are a complex product with significant issues , this makes customer very difficult to switch to other providers.

UiPath excels when used to automate legacy systems without specific integrations. Power Platform offer API integrations which will mean newer and more technical customers would appreciate.

UiPath (PATH) Price Target Forecast

Based on 8 Wall Street analysts offering 12 month price targets for UiPath in the last 3 months. The average price target is $14.33 with a high forecast of $16.00 and a low forecast of $13.00. The average price target represents a 12.66% change from the last price of $12.72.

Considering how the market is looking at UiPath, there have been so many companies offering products much powerful and easy deployment than UiPath.

UiPath would be hard to gain much in its stock price.

UiPath (PATH) Year-To-Date Returns

UiPath having lost more than 40% of its stock price, this has make investors wary about this stock. Considering that they are still leading in the RPA space, but the leadership does not seem to do much help to its stock price.

So considering whether the sales of its RPA software would improved, I would think it would be hard as speaking from my personal experience with RPA, there is so much manual technical intervention needed to make UiPath work for new business processes.

Considering the cost to support this kind of automation, if you as a customer, would you consider this company? As investors, I would not consider this stock unless we can see some improvement on its product.

UiPath (PATH) Technical (MACD and KDJ)

Technical is showing some potential downside from MACD and KDJ, as investors does not seem to come back for the demand for this stock before its earnings.

UiPath future sales growth might be a concern with competitors coming hard on them on the BPM business as well.

Summary

I am expecting UiPath to either provide a lower EPS as their sales might missed estimate, and their operating expenses to increase due to their effort to enhance their UiPath products to support non legacy business processes.

I will be monitoring UiPath closely during 05 Sep trading as there might be some selling by investors to take profit before the earnings.

Appreciate if you could share your thoughts in the comment section whether you think UiPath could announce plans to grow their products and sales growth?

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.