UiPath's Revenue Shortfall Sparks Share Price Decline
UiPath's Q4 Revenue Reports and Guidance
UiPath, Inc. (NYSE: PATH) has recently released its financial results for the fourth quarter, revealing some significant data points that have influenced its stock performance.
The Financial Highlights
During the fourth quarter, UiPath reported earnings of nine cents per share, which surpassed analysts' expectations of three cents. However, the revenue figure of $424 million fell short of the consensus estimate of $425.36 million, although it marked an increase from the $405.25 million recorded in the same quarter last year.
Key Performance Indicators
Among the most critical metrics reported were:
- Annual Recurring Revenue (ARR): As of January 31, 2025, this stood at $1.666 billion, reflecting a 14% increase year-over-year.
- Net New ARR: UiPath achieved a net new ARR of $60 million.
- Retention Rate: The dollar-based net retention rate was reported at a robust 110%.
- Gross Margin: The non-GAAP gross margin was reported at an impressive 87%.
Innovative Developments in Fiscal Year 2025
CEO Daniel Dines highlighted that fiscal 2025 was marked by significant innovation, introducing a range of new AI capabilities. He specifically mentioned products such as Autopilot, Agent Builder, Agentic Orchestration, and Agentic Testing, which are set to redefine the future of automation.
Strategic Acquisition of Peak
In addition to their financial disclosures, UiPath announced the acquisition of Peak, an AI-native company, although specific deal terms were not disclosed. This acquisition is seen as a strategic move to bolster their vertical AI solutions.
Future Outlook for UiPath
Looking ahead, the company has set its first-quarter revenue guidance between $330 million to $335 million, a notable decline from the prior estimate of $368.08 million. This cautious outlook has raised concerns among investors and analysts alike.
Market Reaction and Current Stock Performance
Following the announcements, shares of UiPath saw a decline of approximately 14.37% in after-hours trading, now priced at $10.13. Such a significant drop reflects investors' response to the revenue miss and weaker guidance.
Conclusion
As UiPath navigates through this challenging period marked by a revenue shortfall and cautious outlook, it will be critical to track its upcoming product launches and market strategies. The acquisition of Peak may provide new opportunities to enhance their offerings and support future growth.
Frequently Asked Questions
What were UiPath's earnings for the fourth quarter?
UiPath reported earnings of nine cents per share, which exceeded the analyst consensus estimate of three cents per share.
How much revenue did UiPath generate in the fourth quarter?
The company generated $424 million in revenue, which fell short of the $425.36 million estimated by analysts.
What is the ARR for UiPath as of January 31, 2025?
UiPath reported an ARR of $1.666 billion, an increase of 14% year-over-year.
What does the acquisition of Peak mean for UiPath?
The acquisition is expected to enhance UiPath's vertical AI solutions, further solidifying its market position in automation technology.
What is UiPath's revenue guidance for the first quarter?
UiPath anticipates first-quarter revenues to be between $330 million and $335 million, lower than previous estimates.
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