UiPath
shares are sharply higher in late trading Thursday after the enterprise automation software company posted better-than-expected results for its October quarter.
On the news, UiPath shares are 11.4% higher at $22.15.
For the fiscal third quarter, UiPath reported revenue of $326 million, up 24% from a year earlier and ahead of both the company’s guidance range of $313 million to $318 million and the Street consensus estimate as tracked by FactSet of $316 million.
Profits on an adjusted basis were 12 cents a share, above consensus at 7 cents. Under generally accepted accounting principles, the company lost 6 cents a share. Annualized recurring revenue was $1.378 billion, up 24%, and ahead of the company’s forecast range of $1.359 billion to $1.364 billion.
For the fiscal fourth quarter ending in January, UiPath projects revenue of between $381 million and $386 million, about in line with the Street consensus at $383 million. The company sees annualized recurring revenue reaching between $1.45 billion and $1.455 billion, a little ahead of consensus at $1.43 billion. UiPath projected non-GAAP operating income for the quarter of $78 million, in line with Street estimates.
UiPath’s software helps automate business processes—the company has been leveraging artificial intelligence and machine learning as part of its core for more than five years now. UiPath CFO Ashim Gupta notes that the company both levers existing large language models and develops its own more targeted AI software to help customers simplify complex processes. Gupta notes that UiPath has particular strength in the healthcare and financial services businesses, and that the company had a record quarter in its federal business.
Asked about the impact of macroeconomic issues on the business, Gupta said that “customers are still investing” where there is a return on investment. “And ours is really tangible and quantifiable,” he said.
Write to Eric J. Savitz at eric.savitz@barrons.com
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