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UiPath Reports First Quarter Fiscal 2022 Financial Results

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ARR of $653 million increased 64 percent year-over-year driven by record net new ARR of $72 million

UiPath, Inc. (NYSE: PATH), a leading enterprise automation software company, today announced financial results for its first quarter fiscal 2022 ended April 30, 2021.

"We had an exceptionally strong start to fiscal year 2022 with first quarter ARR growing 64 percent year-over-year to $653 million, a testament to our leadership position in enterprise software automation," commented Daniel Dines, UiPath Co-Founder and Chief Executive Officer. "We believe automation is the next layer in the software stack. Our vision is to enable the fully automated enterprise through our unique combination of UI Automation, API Management, and AI to best emulate human workers and help organizations assign all automatable work to robots enterprise-wide. Our end-to-end automation platform, flexible deployment model, and growing ecosystem of partners position us well to capitalize on the more than $60 billion market opportunity ahead of us."

Ashim Gupta, UiPath Chief Financial Officer, added, "I am pleased with our first quarter fiscal 2022 results as we continue to execute well against our land and expand go-to-market strategy. We have experienced rapid growth and now have over 8,500 customers worldwide, including 1,105 customers with ARR of $100,000 or greater and 104 customers with ARR of $1 million or greater. Given our existing momentum, we plan to continue to invest in growth while maintaining operational rigor as we run our business."

Fiscal First Quarter 2022 Financial Highlights

  • ARR of $652.6 million increased 64 percent year-over-year.

  • Revenue of $186.2 million increased 65 percent year-over-year.

  • GAAP gross margin was 74 percent.

  • Non-GAAP gross margin was 88 percent.

  • Cash flow used in operations was $(17.5) million.

  • Non-GAAP free cash flow was $(20.1) million.

  • Balance sheet: Cash, cash equivalents, restricted cash, and marketable securities increased to $1.9 billion as of April 30, 2021.

Recent Business Highlights

  • UiPath completed its initial public offering (IPO): The offering consisted of 27,474,393 shares of its Class A common stock at a price to the public of $56.00 per share, which consisted of 13,000,000 shares issued and sold by UiPath and 14,474,393 shares sold by the selling stockholders. Net proceeds from the IPO totaled $692.4 million, and UiPath did not receive any proceeds from the shares sold by the selling stockholders. UiPath is listed on the NYSE under the ticker symbol "PATH".

  • Released UiPath Platform 21.4: As previously announced, highlights of this platform release include three new products and over 100 major customer driven new features and deeper integrations across every pillar of our end-to-end platform. Innovations include the all-new Automation Ops, designed to help customers manage and govern high scale deployments of the UiPath Studio family of products and Attended Robots enterprise-wide. New AI-powered capabilities were also introduced to speed the discovery and prioritization of processes to automate, led by the general availability of Task Mining. Other upgrades included a seamless user experience across the platform and the continued rapid expansion of Automation Cloud™. We have over 5,000 customers and partners registered for our 21.4 Release Show and 15,000 developers are expected to join UiPath DevCon next week.

  • Acquired Cloud Elements to bring together Ui Automation and Computer Vision with API Management: With the March 2021 acquisition of Cloud Elements, a pioneering API integration platform, UiPath will be able to offer both enterprise-grade user interface (UI) and application programming interface (API) based automation capabilities in a single platform. This means that UiPath customers now have the flexibility to automate processes using an optimal mix of UI and API-based automation.

  • Expanded technology partnership: UiPath and Tableau launched a Tableau Activity which allows customers to easily utilize data produced or retrieved by robotic automations in their Tableau reports and the UiPath extension for Tableau which triggers a robot directly from a Tableau report or dashboard.

  • Recognized as a leader in The Forrester Wave™: Robotic Process Automation, Q1 2021: Among the 14 vendors evaluated, UiPath earned the highest ranking in each of three categories: Current Offering, Strategy, and Market Presence. The Company also received the highest possible scores in the criteria of product vision; performance; supporting products and services; partner ecosystem; delivery model; enterprise RPA customers; enterprise customers; and product revenue.

  • Delivered COVID-19 Aid: Supported Oxygen for India with a contribution of over $1 million in corporate and employee donations to send and distribute oxygen supplies throughout the country.

  • Appointed new Chief People Officer and first Chief Culture Officer: UiPath appointed Bettina Koblick, most recently Chief People Officer (CPO) at ServiceMax, as its Chief People Officer, and Andreea Baciu, interim UiPath CPO, as UiPath’s first Chief Culture Officer. Both appointees bring significant experience from software companies of varied scale and stage.

  • Expanded mission to democratize automation and drive diversity in the technology industry: The UiPath Academic Alliance partnered with seven Historically Black Colleges and Universities (HBCUs) to train students on RPA. These partnerships with HBCUs are intended to bring workforce development opportunities, along with the skills, training, and knowledge to not only thrive in digitally-led work environments, but to also shape them. To date, UiPath Academic Alliance has partnered with more than 750 academic institutions globally.

Financial Outlook

For the fiscal second quarter 2022, UiPath expects:

  • ARR in the range of $702 million and $704 million

  • Revenue in the range of $180 million and $185 million

  • Non-GAAP operating loss in the range of $(35) million and $(25) million

For the fiscal full year 2022, UiPath expects:

  • ARR in the range of $850 million and $855 million

Reconciliation of non-GAAP operating loss guidance to the most directly comparable GAAP measure is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and low visibility with respect to the charges excluded from this non-GAAP measure; in particular, the measures and effects of stock-based compensation expense specific to equity compensation awards that are directly impacted by unpredictable fluctuations in our stock price. We expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future GAAP financial results.

Partial Early Lock-Up Release

UiPath announced today that a partial early lock-up release will occur immediately prior to the opening of trading on June 10, 2021 with respect to its shares of Class A common stock, par value $0.00001 per share, pursuant to the terms of certain lock-up agreements entered into by UiPath’s directors and executive officers, the selling stockholders, and certain other stockholders with the underwriters of UiPath’s initial public offering.

Pursuant to the terms of the lock-up agreements, the lock-up restrictions automatically end with respect to 30% of certain securities owned as of March 31, 2021 by the selling stockholders and UiPath’s directors, certain executive officers, employees, former employees, and certain other stockholders. The lock-up restrictions will continue to apply with respect to all remaining securities subject to the lock-up agreements.

Conference Call and Webcast

UiPath will host a conference call today, Tuesday, June 8, 2021, at 5:00 p.m. Eastern Time, to discuss the Company's fiscal first quarter 2022 financial results and guidance. To access this call, dial 1-201-689-8057 (domestic) or 1-877-407-8309 (international). The passcode is 13719454. A replay of this conference call will be available through June 22, 2021 at 1-201-612-7415 (domestic) or 1-877-660-6853 (international). The replay passcode is 13719454. A live webcast of this conference call will be available on the "Investor Relations" page of the Company's website (https://ir.uipath.com), and a replay will be archived on the website as well.

About UiPath

UiPath has a vision to deliver the Fully Automated Enterprise™, one where companies use automation to unlock their greatest potential. UiPath offers an end-to-end platform for automation, combining the leading Robotic Process Automation (RPA) solution with a full suite of capabilities that enable every organization to rapidly scale digital business operations.

Forward Looking Statements

Statements we make in this press release may include statements which are not historical facts and are considered forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995, which are. usually identified by the use of words such as "anticipates," "believes," "estimates," "expects," "intends," "may," "plans," "projects," "outlook", "seeks," "should," "will," and variations of such words or similar expressions.

We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Securities Exchange Act and are making this statement for purposes of complying with those safe harbor provisions.

These forward-looking statements include, but are not limited to, statements regarding our financial guidance for the second fiscal quarter and full year fiscal 2022, the estimated addressable market opportunity for our platform, the successful integration of new features into our platform, and the success of our collaborations with third parties. Accordingly, actual results could differ materially or such uncertainties could cause adverse effects on our results. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks include, but are not limited to, risks and uncertainties related to: (1) our recent rapid growth may not be indicative of our future growth; (2) our limited operating history; (3) our ability to successfully manage our growth; (4) our ability and the ability of our platform to satisfy and adapt to customer demands; (5) our business depends on our existing customers renewing their licenses and purchasing additional licenses and products from us and our channel partners; (6) our ability to attract and retain customers; (7) the competitive markets in which we participate; (8) general market, political, economic, and business conditions; (9) our ability to maintain and expand our distribution channels; (10) our reliance on third-party providers of cloud-based infrastructure; and (11) the potential impact that the COVID-19 pandemic and any related economic downturn could have on our or our customers’ businesses, financial condition and results of operations.

Further information on risks that could cause actual results to differ materially from our guidance can be found in the final prospectus for our initial public offering, dated April 20, 2021 and filed with the Securities and Exchange Commission (SEC) on April 21, 2021, and in our Quarterly Report on Form 10-Q that will be filed for the fiscal quarter ended April 30, 2021. Any forward-looking statements contained in this press release are based on assumptions that we believe to be reasonable as of this date. Except as required by law, we assume no obligation to update these forward-looking statements

Key Performance Metric and Non-GAAP Financial Measures

Annualized Renewal Run-rate (ARR) is a key performance metric we use in managing our business because it illustrates our ability to acquire new subscription customers and to maintain and expand our relationships with existing subscription customers. We define ARR as annualized invoiced amounts per solution SKU from subscription licenses and maintenance obligations assuming no increases or reductions in the subscriptions. ARR does not include the costs we may incur to obtain such subscription licenses or provide such maintenance and does not reflect any actual or anticipated reductions in invoiced value due to contract non-renewals or service cancellations other than for specific bad debt or disputed amounts. Additionally, though we use ARR as a forward-looking metric in the management of our business, it does not include invoiced amounts reported as perpetual licenses or professional services revenue in our consolidated statement of operations, and is not a forecast of future revenue, which can be impacted by contract start and end dates, duration, and renewal rates. Investors should not place undue reliance on ARR as an indicator of future or expected results. Our definition of ARR may differ from the definition used by other companies and therefore comparability may be limited.

This earnings press release includes the following financial measures defined as non-GAAP financial measures by the SEC, including non-GAAP cost of revenue, non-GAAP gross profit and margin, non-GAAP operating expenses, non-GAAP operating loss and margin, non-GAAP net loss and non-GAAP net income (loss) per share and non-GAAP free cash flow. These non-GAAP financial measures exclude:

· stock-based compensation expense;

· amortization of acquired intangibles;

· employer payroll tax expense related to employee equity transactions;

· in the case of non-GAAP net loss, the associated tax adjustments with the related add-backs; and

· in the case of free cash flow, purchases of property and equipment and capitalization of software development costs.

UiPath uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating UiPath’s ongoing operational performance. UiPath believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing its financial results with other companies in UiPath’s industry, many of which present similar non-GAAP financial measures to investors. On-GAAP financial measures are financial measures that are derived from the consolidated financial statements, but that are not presented in accordance with generally accepted accounting principles in the United States (GAAP). We believe these non-GAAP financial measures provide investors with useful supplementary information in evaluating our performance. Investors should consider these non-GAAP financial measures in addition to, and not as a substitute for, our financial performance measures prepared in accordance with GAAP. Further, our non-GAAP information may be different from the non-GAAP information provided by other companies. The information below provides a reconciliation of non-GAAP financial measures used in this press release to the most directly comparable GAAP financial measures. We encourage investors to consider our GAAP results alongside our supplemental non-GAAP measures, and to review the reconciliation between GAAP results and non-GAAP measures that is included at the end of this earnings press release. This earnings press release and any future releases containing such non-GAAP reconciliations can also be found on the Investor Relations page of UiPath’s website at https://ir.uipath.com.

UiPath, Inc.

Condensed Consolidated Statements of Operations

in thousands, except per share data

(unaudited)

Three Months Ended April 30,

2021

2020

Revenue:

Licenses

$

100,216

$

63,759

Maintenance and support

77,642

43,196

Services and other

8,359

6,148

Total revenue

186,217

113,103

Cost of revenue:

Licenses

2,454

1,417

Maintenance and support

14,179

5,543

Services and other

32,377

6,678

Total cost of revenue

49,010

13,638

Gross profit

137,207

99,465

Operating expenses:

Sales and marketing

205,751

90,931

Research and development

93,040

26,729

General and administrative

74,415

26,676

Total operating expenses

373,206

144,336

Operating loss

(235,999

)

(44,871

)

Interest income

941

530

Other expense, net

(3,218

)

(7,837

)

Loss before income taxes

(238,276

)

(52,178

)

Provision for income taxes

1,387

662

Net loss

$

(239,663

)

$

(52,840

)

Net loss per share attributable to common stockholders, basic and diluted

$

(1.11

)

$

(0.33

)

Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted

215,352

159,003

UiPath, Inc.

Condensed Consolidated Balance Sheets

in thousands, except per share data

(unaudited)

As of

April 30, 2021

January 31, 2021

Assets

Current assets

Cash and cash equivalents

$

1,796,267

$

357,690

Restricted cash, current

13,500

7,000

Marketable securities

83,263

102,828

Accounts receivable, net of allowance for doubtful accounts of $2,137 and $2,879, respectively

136,520

172,286

Contract assets, current

35,058

34,221

Deferred contract acquisition costs, current

13,624

10,653

Prepaid expenses and other current assets

41,672

49,752

Total current assets

2,119,904

734,430

Restricted cash, non-current

6,500

Contract assets, non-current

9,136

2,085

Deferred contract acquisition costs, non-current

44,618

32,553

Property and equipment, net

15,149

14,822

Operating lease right-of-use assets

16,490

17,260

Intangible assets, net

20,423

10,191

Goodwill

58,478

28,059

Deferred tax asset, non-current

7,836

8,118

Other assets, non-current

14,536

12,443

Total assets

$

2,306,570

$

866,461

Liabilities, Convertible Preferred Stock, and Stockholders' Equity (Deficit)

Current liabilities

Accounts payable

$

5,642

$

6,682

Accrued expenses and other current liabilities

51,057

36,660

Accrued compensation and employee benefits

49,802

110,736

Deferred revenues, current

222,089

211,078

Total current liabilities

328,590

365,156

Deferred revenues, non-current

55,224

61,325

Operating lease liabilities, non-current

12,968

14,152

Other liabilities, non-current

10,247

7,564

Total liabilities

407,029

448,197

Commitments and contingencies

Convertible preferred stock

1,221,968

Stockholders' equity (deficit)

Preferred stock

Class A common stock

4

1

Class B common stock

1

1

Additional paid-in capital

3,117,853

179,175

Accumulated other comprehensive loss

(8,294

)

(12,521

)

Accumulated deficit

(1,210,023

)

(970,360

)

Total stockholders’ equity (deficit)

1,899,541

418,264

Total liabilities, convertible preferred stock, and stockholders’ equity (deficit)

$

2,306,570

$

866,461

UiPath, Inc.

Condensed Consolidated Statements of Cash Flows

in thousands

(unaudited)

Three Months Ended April 30,

2021

2020

Cash flows from operating activities

Net loss

$

(239,663

)

$

(52,840

)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization

3,172

3,147

Amortization of deferred contract acquisition costs

4,920

8,006

Amortization of deferred loan cost

66

Net amortization of premium on marketable securities

558

Stock-based compensation expense

250,835

8,201

Non-cash operating lease costs

1,734

1,879

(Benefit from) provision for bad debt

(709

)

29

Deferred income taxes

21

(52

)

Changes in operating assets and liabilities:

Accounts receivable

35,973

9,769

Contract assets

(8,148

)

(4,781

)

Deferred contract acquisition costs

(20,205

)

(5,782

)

Prepaid expenses and other assets

7,666

1,109

Accounts payable

(528

)

4,251

Accrued expense and other liabilities

4,573

(1,646

)

Accrued compensation and employee benefits (1)

(60,433

)

(8,340

)

Operating lease liabilities, net

(1,807

)

(1,894

)

Deferred revenue

4,453

14,812

Net cash used in operating activities

(17,522

)

(24,132

)

Cash flows from investing activities

Purchases of marketable securities

(94,157

)

Sales of marketable securities

89,383

Maturities of marketable securities

23,755

Purchases of property and equipment

(2,200

)

(460

)

Capitalization of software development costs

(410

)

Payment related to business acquisition, net of cash acquired

(5,498

)

Net cash provided by (used in) investing activities

10,873

(460

)

Cash flows from financing activities

Proceeds from initial public offering, net of underwriting discounts and commissions

692,369

Payments of deferred offering costs

(2,406

)

Proceeds from issuance of convertible preferred shares, net of issuance costs

750,000

Issuance costs of convertible preferred shares

(164

)

Proceeds from exercise of stock options

3,114

536

Proceeds from credit facility

78,828

Net cash provided by financing activities

1,442,913

79,364

Effect of exchange rate changes

2,313

7,955

Net increase in cash, cash equivalents and restricted cash

1,438,577

62,727

Cash, cash equivalents and restricted cash - beginning of period

371,190

234,131

Cash, cash equivalents and restricted cash - end of period

$

1,809,767

$

296,858

(1)

Includes increase in accrued employer payroll tax related to employee equity transactions of $315 and $0, respectively.

UiPath, Inc.

Reconciliation of GAAP Cost of Revenue, Gross Profit and Margin to Non-GAAP Cost of Revenue, Gross Profit and Margin

in thousands, except percentages and per share data

(unaudited)

Three Months Ended April 30,

2021

2020

Licenses

GAAP cost of licenses

$

2,454

$

1,417

Less: Stock-based compensation expense

Less: Amortization of acquired intangible assets

646

586

Less: Employer payroll tax expense related to employee equity transactions

Non-GAAP cost of licenses

$

1,808

$

831

Maintenance and Support

GAAP cost of maintenance and support

$

14,179

$

5,543

Less: Stock-based compensation expense

6,214

85

Less: Amortization of acquired intangible assets

110

Less: Employer payroll tax expense related to employee equity transactions

Non-GAAP cost of maintenance and support

$

7,855

$

5,458

Services and Other

GAAP cost of services and other

$

32,377

$

6,678

Less: Stock-based compensation expense

18,931

298

Less: Amortization of acquired intangible assets

Less: Employer payroll tax expense related to employee equity transactions

Non-GAAP cost of services and other

$

13,446

$

6,380

Gross Profit and Margin

GAAP gross profit

$

137,207

$

99,465

GAAP gross margin

74

%

88

%

Plus: Stock-based compensation expense

25,145

383

Plus: Amortization of acquired intangible assets

756

586

Plus: Employer payroll tax expense related to employee equity transactions

Non-GAAP gross profit

$

163,108

$

100,434

Non-GAAP gross margin

88

%

89

%

UiPath, Inc.

Reconciliation of GAAP Operating Expenses, Loss, and Margin to Non-GAAP Operating Expenses, Income (Loss), and Margin

in thousands, except percentages and per share data

(unaudited)

Three Months Ended April 30,

2021

2020

Sales and Marketing

GAAP sales and marketing

$

205,751

$

90,931

Less: Stock-based compensation expense

119,293

1,853

Less: Amortization of acquired intangible assets

161

35

Less: Employer payroll tax expense related to employee equity transactions

315

Non-GAAP sales and marketing

$

85,982

$

89,043

Research and Development

GAAP research and development

$

93,040

$

26,729

Less: Stock-based compensation expense

65,616

1,816

Less: Amortization of acquired intangible assets

Less: Employer payroll tax expense related to employee equity transactions

Non-GAAP research and development

$

27,424

$

24,913

General and Administrative

GAAP general and administrative

$

74,415

$

26,676

Less: Stock-based compensation expense

40,781

4,149

Less: Amortization of acquired intangible assets

Less: Employer payroll tax expense related to employee equity transactions

Non-GAAP general and administrative

$

33,634

$

22,527

Operating Loss

GAAP operating loss

$

(235,999

)

$

(44,871

)

GAAP operating margin

(127

)%

(40

)%

Plus: Stock-based compensation expense

250,835

8,201

Plus: Amortization of acquired intangible assets

917

621

Plus: Employer payroll tax expense related to employee equity transactions

315

Non-GAAP operating income (loss)

$

16,068

$

(36,049

)

Non-GAAP operating margin

9

%

(32

)%

UiPath, Inc.

Reconciliation of GAAP Net Loss and GAAP Net Loss Per Share to Non-GAAP Net Income (Loss) and Non-GAAP Net Income (Loss) Per Share

in thousands, except percentages and per share data

(unaudited)

Three Months Ended April 30,

2021

2020

GAAP net loss

$

(239,663

)

$

(52,840

)

Plus: Stock-based compensation expense

250,835

8,201

Plus: Amortization of acquired intangible assets

917

621

Plus: Employer payroll tax expense related to employee equity transactions

315

Tax adjustments to add-backs (1)

(745

)

Non-GAAP net income (loss)

$

11,659

$

(44,018

)

GAAP net loss per share, basic and diluted

$

(1.11

)

$

(0.33

)

GAAP weighted average common shares outstanding, basic and diluted

215,352

159,003

Plus: Unweighted adjustment for conversion of preferred to common stock in connection with IPO

278,768

306,300

Plus: Unweighted adjustment for common stock issued in connection with IPO

11,831

13,000

Non-GAAP weighted average common shares outstanding, basic

505,951

478,303

Plus: Outstanding restricted stock units

30,278

Plus: Outstanding stock options

20,285

Plus: Unvested early exercised stock options

1,468

Plus: Unvested restricted stock awards

43

Non-GAAP weighted average common shares outstanding, diluted

558,025

478,303

Non-GAAP net income (loss) per share, basic

$

0.02

$

(0.09

)

Non-GAAP net income (loss) per share, diluted

$

0.02

$

(0.09

)

(1)

Calculated based on an estimated blended tax rate of 27%.

UiPath, Inc.

Reconciliation of GAAP Operating Cash Flow to Non-GAAP Free Cash Flow

in thousands, except percentages and per share data

(unaudited)

Three Months Ended April 30,

2021

2020

GAAP net cash used in operating activities

$

(17,522

)

$

(24,132

)

Plus: Purchases of property and equipment

(2,200

)

(460

)

Plus: Capitalization of software development costs

(410

)

Plus: Cash paid for employer payroll taxes related to employee equity transactions

Non-GAAP free cash flow

$

(20,132

)

$

(24,592

)

GAAP net cash provided by (used in) investing activities

$

10,873

$

(460

)

GAAP Net cash provided by financing activities

$

1,442,913

$

79,364

View source version on businesswire.com: https://www.businesswire.com/news/home/20210608006037/en/

Contacts

Investor Relations Contact
Kelsey Turcotte
Investor.relations@uipath.com
UiPath

Media Contact
Toni Iafrate
PR@uipath.com
UiPath