UiPath Reports First Quarter Fiscal 2023 Financial Results

NEW YORK, NY – June 1, 2022 – UiPath, Inc. (NYSE: PATH), a leading enterprise automation software company, today announced financial results for its first quarter fiscal 2023 ended April 30, 2022.

First Quarter Fiscal 2023 Financial Highlights

•Revenue of $245.1 million increased 32 percent year-over-year.

•ARR of $977.1 million increased 50 percent year-over-year.

•Net new ARR of $51.8 million.

•Dollar based net retention rate of 138 percent.

•GAAP gross margin was 82 percent.

•Non-GAAP gross margin was 85 percent.

•Net cash used in operations was $52.9 million.

•Non-GAAP adjusted free cash flow was negative $53.8 million.

•Cash, cash equivalents, and marketable securities were $1.8 billion as of April 30, 2022.

•Revenue in the range of $229 million to $231 million

•ARR in the range of $1,040 million to $1,042 million as of July 31, 2022

•Non-GAAP operating loss in the range of $(60) million to $(55) million

•Revenue in the range of $1,085 million to $1,090 million

•ARR in the range of $1,220 million to $1,225 million as of January 31, 2023

•Non-GAAP operating income in the range of $10 to $15 million

•Appointed Robert Enslin as Co-Chief Executive Officer: Enslin, a former Google Cloud executive who brings more than 30 years of enterprise software experience, works alongside UiPath Co-Founder and Co-Chief Executive Officer Daniel Dines. The partnership of Dines and Enslin positions UiPath for its next phase of growth while building a company that reimagines how business is done.

•Launched next-gen UiPath Automation CloudTM to extend automation leadership in latest platform release: The new release provides enterprises with an even more comprehensive automation foundation to achieve fast and accurate outcomes. New SaaS robots – along with added features that simplify how developers create automations, uplevel security and governance, and expand access to automation to Mac – deepen the reach of automation in the enterprise.

•Announced technology integrations and partnerships with:

◦Adobe Document Services and Adobe Acrobat Sign, to help customers automate end-to-end document processes. Now, organizations have easy access to the best digital document experiences that drive productivity and scale in a secure manner.

◦Microsoft, to extend our partnership with Azure’s robust AI capabilities including the READ OCR container to provide additional language coverage with UiPath Document Understanding, specifically Chinese, Japanese, and Korean. This expansion will enable more global and regional customers to leverage Document Understanding to automate end-to-end document processing, from classification to data extraction and data entry.

◦Myndshft, a leading provider of automated prior authorization and real-time medical benefits check technology, to enable better patient care faster by reducing manual operational tasks and introducing significant operational efficiencies.

◦airSlate, a fast-growing workflow automation company, to empower individuals and small businesses to create, innovate, and automate to digitally transform their organizations to run faster, easier, and more efficiently.

•Announced additional strategic collaborations with:

◦Finastra, one of the world’s largest fintech companies, to launch a new Automation as a Service offering on the Finastra cloud that is designed to provide a managed service model for automation to Finastra’s thousands of bank, credit union, and financial institution customers.

◦NCS, a subsidiary of Singtel Group, and a leading technology services firm with presence in Asia Pacific. The joint go-to-market effort will bring the power of automation to both public and private enterprises from across industries, such as telecommunications, government, and financial services, particularly in high growth markets like Singapore, Australia, and Asia Pacific.

•Achieved In Process status from the Federal Risk and Authorization Management Program (FedRAMP): The UiPath designation at the Moderate Impact Level means the offering is on the path to FedRAMP authorization, which will bring more value to federal customers who want the ease and flexibility of a secure and compliant cloud-based automation platform.

•stock-based compensation expense;

•amortization of acquired intangibles;

•employer payroll tax expense related to employee equity transactions; and

•in the case of non-GAAP net income (loss), tax adjustments associated with the add-back items.

UiPath, Inc.
Condensed Consolidated Balance Sheets
in thousands
(unaudited)
						As of
						April 30, 2022						January 31, 2022
Assets
Current assets
Cash and cash equivalents						$	1,679,217					$	1,768,723
Marketable securities						114,749						96,417
Accounts receivable, net of allowance for doubtful accounts of $3,217 and $2,566, respectively						169,061						251,988
Contract assets						88,427						74,831
Deferred contract acquisition costs						32,492						29,926
Prepaid expenses and other current assets						61,072						55,416
Total current assets						2,145,018						2,277,301
Marketable securities, non-current						7,364						19,523
Contract assets, non-current						5,469						2,730
Deferred contract acquisition costs, non-current						103,520						100,224
Property and equipment, net						21,776						17,176
Operating lease right-of-use assets						44,895						48,953
Intangible assets, net						15,078						16,817
Goodwill						52,123						53,564
Deferred tax asset						8,170						10,628
Other assets, non-current						21,307						25,534
Total assets						$	2,424,720					$	2,572,450
Liabilities and stockholders' equity
Current liabilities
Accounts payable						$	17,442					$	11,515
Accrued expenses and other current liabilities						75,590						87,958
Accrued compensation and employee benefits						62,948						130,673
Deferred revenue						282,263						297,355
Total current liabilities						438,243						527,501
Deferred revenue, non-current						56,832						68,665
Operating lease liabilities, non-current						46,346						49,843
Other liabilities, non-current						3,105						4,524
Total liabilities						544,526						650,533
Commitments and contingencies
Stockholders' equity
Class A common stock						4						4
Class B common stock						1						1
Additional paid-in capital						3,488,255						3,406,959
Accumulated other comprehensive income						10,441						10,899
Accumulated deficit						(1,618,507)						(1,495,946)
Total stockholders’ equity						1,880,194						1,921,917
Total liabilities and stockholders’ equity						$	2,424,720					$	2,572,450

UiPath, Inc.
Reconciliation of GAAP Operating Cash Flow to Non-GAAP Adjusted Free Cash Flow
in thousands
(unaudited)
						Three Months Ended April 30,
						2022						2021
GAAP net cash used in operating activities						$	(52,884)					$	(17,522)
Purchases of property and equipment						(9,692)						(2,200)
Capitalization of software development costs						—						(410)
Cash paid for employer payroll taxes related to employee equity transactions						3,034						—
Net payments of employee tax withholdings on stock option exercises						5,757						—
Non-GAAP adjusted free cash flow						$	(53,785)					$	(20,132)