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Key Takeaways
- UiPath’s current-quarter revenue outlook missed estimates, and shares of the enterprise automation and AI software provider sank Thursday.
- The lower-than-expected guidance offset the company’s fourth-quarter earnings and revenue beat, with UiPath posting its first profit.
- UiPath’s annual recurring revenue was up 22% from a year ago.
UiPath (PATH) shares gave up early gains and sank over 6% in intraday trading Thursday as the artificial intelligence (AI) software provider and Google partner’s weaker-than-expected guidance offset strong results.
UiPath predicted current-quarter revenue of $330 million to $335 million, missing analyst projections. The full-year revenue outlook of $1.555 billion to $1.560 billion exceeded forecasts.
The company posted its first profit as a publicly traded company in the fourth quarter, with operating income of $15.1 million. Adjusted earnings per share (EPS) came in at 22 cents, and revenue was up 31% from a year ago to $405.3 million. Both were above estimates.
UiPath noted that annual recurring revenue (ARR) jumped 22% to $1.46 billion, with net new ARR at $86 million.
CEO Rob Enslin said the company had a “strong close to the fiscal year,” driven by demand for its Business Automation Platform.
CFO Ashim Gupta said that the company’s 2025 guidance reflected “typical seasonal patterns in the business as well as our plans to strategically invest.”
Shares of UiPath were down 6.7% at $22.76 as of 12:45 p.m. ET Thursday but have gained about 58% over the past year.
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