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UiPath Inc (PATH) Reports Robust Revenue and ARR Growth in Q3 Fiscal 2024

  • Revenue reached $326 million, marking a 24% increase compared to the same period last year.

  • Annualized Renewal Run-rate (ARR) grew to $1.378 billion, also up by 24% year-over-year.

  • Non-GAAP operating income stood at $44 million, with cash flow from operations hitting $42 million.

  • UiPath expects Q4 fiscal 2024 revenue to be in the range of $381 million to $386 million.

On November 30, 2023, UiPath Inc (NYSE:PATH) released its 8-K filing, announcing financial results for its third quarter fiscal year 2024, which ended on October 31, 2023. The company, a leader in enterprise automation software, reported significant year-over-year growth in both revenue and ARR, attributing the success to strong execution and the transformational impact of its enterprise automation solutions.

Financial Performance Overview

UiPath Inc (NYSE:PATH) reported a substantial 24% increase in revenue, reaching $326 million for the third quarter of fiscal 2024. The company's ARR followed suit, also growing by 24% to $1.378 billion. This growth was complemented by a net new ARR of $70 million and a dollar-based net retention rate of 121%. The non-GAAP gross margin was reported at 87%, while GAAP gross margin stood at 85%. Despite a GAAP operating loss of $(56) million, the company achieved a non-GAAP operating income of $44 million. The net cash flow from operations was $42 million, and non-GAAP adjusted free cash flow also reached $44 million.

Balance Sheet and Cash Flow Highlights

As of October 31, 2023, UiPath Inc (NYSE:PATH) had a strong balance sheet with cash, cash equivalents, and marketable securities totaling $1.8 billion. The company's focus on operational excellence has resulted in improved profitability and cash flow, as evidenced by the positive figures in both GAAP and non-GAAP measures.

Forward-Looking Expectations

Looking ahead to the fourth quarter of fiscal 2024, UiPath Inc (NYSE:PATH) anticipates revenue to be in the range of $381 million to $386 million, with an ARR expected to be between $1.450 billion and $1.455 billion as of January 31, 2024. The company also forecasts non-GAAP operating income to be approximately $78 million.

Recent Business Highlights

UiPath Inc (NYSE:PATH) continues to innovate, as highlighted by the release of new AI platform features that aim to transform enterprise tasks and processes. The company's commitment to AI and automation has been recognized with UiPath being named a Leader in the IDC MarketScape: Worldwide Intelligent Document Processing 2023-2024 Vendor Assessment report. Furthermore, UiPath's Clipboard AI was honored as one of TIME Magazine's Best Inventions of 2023, showcasing the company's influence on productivity enhancement.

Investor and Analyst Perspectives

Rob Enslin, UiPath Co-Chief Executive Officer, expressed satisfaction with the third quarter results, emphasizing the strategic role of enterprise automation in digital transformation. Daniel Dines, Co-Founder and Co-CEO, highlighted the company's commitment to customer needs, which is fundamental to UiPath's success. Ashim Gupta, UiPath Chief Financial Officer, noted the company's strong top-line growth and improvements in profitability and cash flow, indicating a balance between growth and profitability for long-term success.

Value investors and potential GuruFocus.com members may find UiPath Inc (NYSE:PATH)'s consistent performance and strategic investments in AI and automation promising for future growth. The company's robust financial results and optimistic outlook for the coming quarter reflect its potential to maintain a leading position in the enterprise automation market.

For a detailed analysis of UiPath Inc (NYSE:PATH)'s financials and future prospects, readers are encouraged to visit GuruFocus.com for comprehensive investment insights and data.

Explore the complete 8-K earnings release (here) from UiPath Inc for further details.

This article first appeared on GuruFocus.

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