UiPath Reports Second Quarter Fiscal 2023 Financial Results

NEW YORK, NY – September 6, 2022 – UiPath, Inc. (NYSE: PATH), a leading enterprise automation software company, today announced financial results for its second quarter fiscal 2023 ended July 31, 2022.

Second Quarter Fiscal 2023 Financial Highlights

•Revenue of $242.2 million increased 24 percent year-over-year.

•ARR of $1.043 billion increased 44 percent year-over-year.

•Net new ARR of $66.2 million.

•Dollar based net retention rate of 132 percent.

•GAAP gross margin was 82 percent.

•Non-GAAP gross margin was 84 percent.

•Net cash used in operations was $23.7 million.

•Non-GAAP adjusted free cash flow was negative $23.3 million.

•Cash, cash equivalents, and marketable securities were $1.7 billion as of July 31, 2022.

•Revenue in the range of $243 million to $245 million

•ARR in the range of $1,091 million to $1,093 million as of October 31, 2022

•Non-GAAP operating loss in the range of $(30) million to $(25) million

•Revenue in the range of $1,002 million to $1,007 million

•ARR in the range of $1,153 million to $1,158 million as of January 31, 2023

•Non-GAAP operating loss of approximately $(15) million

•Acquired Re:infer: Re:infer, a London-based natural language processing company for unstructured documents and communications, uses machine learning technology to mine context from communication messages and transform them into actionable data with speed and accuracy. Combining Re:infer with UiPath’s AI-powered automation capabilities will enable UiPath software robots to understand email context and semantics, online chats, and voice sessions to deliver superior customer service interactions.

•Announced technology integrations with:

◦Snowflake to quickly help incorporate Snowflake data into UiPath automations. Future enhancements are expected to allow robots to collect data from virtually anywhere, validate and enrich the data, and then store it in Snowflake.

◦Workday to automate actions in other systems from Workday Business Processes. This integration, now available in the Workday Extend App Catalog, opens the door to use Workday and UiPath together to automate processes related to onboarding, job transitions, and hundreds of other HCM & Financials transactions.    

•Received industry recognition:

◦Named a Leader in the 2022 Gartner Magic Quadrant for Robotic Process Automation1 for the fourth consecutive year. In this report, UiPath was positioned highest for Ability to Execute and furthest for Completeness of Vision.

◦Named a Leader and a Star Performer in Everest Group’s PEAK® Matrix for Process Mining Technology Vendors for the third consecutive year. In this report, UiPath was recognized as a Star Performer, demonstrating the most year-over-year improvement on the PEAK Matrix®.

◦Named a 2022 Inc. Best Workplace for the third time. The Inc. Best Workplaces award evaluates fast-growing American companies that have created exceptional workplaces through vibrant cultures, employee engagement, and stellar benefits.

•Appointed Brigette McInnis-Day as Chief People Officer: McInnis-Day is a former Google and SAP executive that brings more than two decades of enterprise software experience and will be responsible for ensuring that UiPath attracts, retains, and cultivates a diverse workforce to drive the business.

•Announced the UiPath CIO Automation Council: UiPath and 17 customer CIOs will work together to accelerate automation maturity through sharing best practices; identify new business objectives and market needs for automation; and establish industry benchmarks and provide input to guide industry regulation.

•Issued First Annual 2021 Impact Report: The 2021 Impact Report outlines UiPath’s commitment to four core pillars: Leveraging Automation for Good, Empowering People and Communities, Protecting our Environment, and Fostering Good Governance, and provides some information about the Company’s progress against key indicators.

1Gartner, “Magic Quadrant for Robotic Process Automation”, Saikat Ray, Arthur Villa, Paul Vincent, Keith Guttridge, Melanie Alexander, Andy Wang, 25 July, 2022

•stock-based compensation expense;

•amortization of acquired intangibles;

•employer payroll tax expense related to employee equity transactions;

•restructuring costs;

•charitable donation of Class A common stock; and

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

UiPath, Inc.
Condensed Consolidated Balance Sheets
in thousands
(unaudited)
						As of
						July 31, 2022						January 31, 2022
Assets
Current assets
Cash and cash equivalents						$	1,607,356					$	1,768,723
Marketable securities						114,188						96,417
Accounts receivable, net of allowance for doubtful accounts of $2,672 and $2,566, respectively						193,483						251,988
Contract assets						94,760						74,831
Deferred contract acquisition costs						35,259						29,926
Prepaid expenses and other current assets						63,430						55,416
Total current assets						2,108,476						2,277,301
Marketable securities, non-current						2,396						19,523
Contract assets, non-current						5,722						2,730
Deferred contract acquisition costs, non-current						106,654						100,224
Property and equipment, net						25,517						17,176
Operating lease right-of-use assets						44,074						48,953
Intangible assets, net						26,856						16,817
Goodwill						86,180						53,564
Deferred tax asset						7,995						10,628
Other assets, non-current						20,807						25,534
Total assets						$	2,434,677					$	2,572,450
Liabilities and stockholders' equity
Current liabilities
Accounts payable						$	12,122					$	11,515
Accrued expenses and other current liabilities						74,666						87,958
Accrued compensation and employee benefits						80,961						130,673
Deferred revenue						292,323						297,355
Total current liabilities						460,072						527,501
Deferred revenue, non-current						66,598						68,665
Operating lease liabilities, non-current						46,765						49,843
Other liabilities, non-current						11,693						4,524
Total liabilities						585,128						650,533
Commitments and contingencies
Stockholders' equity
Class A common stock						5						4
Class B common stock						1						1
Additional paid-in capital						3,577,278						3,406,959
Accumulated other comprehensive income						11,150						10,899
Accumulated deficit						(1,738,885)						(1,495,946)
Total stockholders’ equity						1,849,549						1,921,917
Total liabilities and stockholders’ equity						$	2,434,677					$	2,572,450

UiPath, Inc.
Reconciliation of GAAP Operating Cash Flow to Non-GAAP Adjusted Free Cash Flow
in thousands
(unaudited)
						Six Months Ended July 31,
						2022						2021
GAAP net cash used in operating activities						$	(76,621)					$	(23,523)
Purchases of property and equipment						(16,298)						(3,641)
Capitalization of software development costs						—						(771)
Cash paid for employer payroll taxes related to employee equity transactions						4,953						9,064
Net payments (receipts) of employee tax withholdings on stock option exercises						5,664						(4,726)
Cash paid for restructuring costs						5,196						—
Non-GAAP adjusted free cash flow						$	(77,106)					$	(23,597)