Form: 8-K

Current report filing

December 1, 2022

Documents



UiPath Reports Third Quarter Fiscal 2023 Financial Results
ARR grew 36 percent year-over-year reaching $1.110 billion driven by net new ARR of $67 million
NEW YORK, NY – December 1, 2022 – UiPath, Inc. (NYSE: PATH), a leading enterprise automation software company, today announced financial results for its third quarter fiscal 2023 ended October 31, 2022.
“We are pleased with our third quarter fiscal 2023 results as ARR grew 36 percent year-over-year and we delivered meaningful non-GAAP operating margin expansion,” said Rob Enslin, UiPath Co-Chief Executive Officer. “Our new go-to-market initiatives are driving results and resonating with customers. We closed several notable third quarter deals using this value-selling approach and are widely engaged with both new and existing customers as we head into the last quarter of fiscal year 2023.”
“UiPath continues to be differentiated by our platform approach, which is at the core of our success,” said Daniel Dines, UiPath Co-Founder and Co-Chief Executive Officer. “Our latest release, 2022.10, further expands our competitive advantage with market-leading capabilities at every stage in the automation lifecycle, from discover to automate to operate. This cohesive approach makes it easier and faster for organizations to efficiently scale their automation programs and drive meaningful business outcomes.”
Third Quarter Fiscal 2023 Financial Highlights
•Revenue of $262.7 million increased 19 percent year-over-year.
•ARR of $1.110 billion increased 36 percent year-over-year.
•Net new ARR of $66.8 million.
•Dollar based net retention rate of 126 percent.
•GAAP gross margin was 84 percent.
•Non-GAAP gross margin was 86 percent.
•GAAP operating loss was $(67.0) million.
•Non-GAAP operating income was $18.0 million.
•Net cash used in operations was $27.3 million.
•Non-GAAP adjusted free cash flow was negative $24.1 million.
•Cash, cash equivalents, and marketable securities were $1.7 billion as of October 31, 2022.
“Non-GAAP operating income of $18 million for the quarter was the result of disciplined capital deployment and cost management. Our durable financial model and strong balance sheet give us the resources to continue to invest in long-term growth and drive a path to sustained profitability, both of which are core to our go-forward strategy,” said Ashim Gupta, UiPath Chief Financial Officer.


Financial Outlook
For the fourth quarter fiscal 2023, UiPath expects:
•Revenue in the range of $277 million to $279 million.
•ARR in the range of $1,174 million to $1,176 million as of January 31, 2023.
•Non-GAAP operating income of approximately $35 million.
Reconciliation of non-GAAP operating income 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, including, in particular, the effects of stock-based compensation expense specific to equity awards that are directly impacted by 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.
Recent Business Highlights
•Launched its latest platform updates to support app development, expand automation use cases: Announced at the UiPath FORWARD 5 global conference, the 22.10 release offers even more enhancements that allow businesses to automate more, automate faster and with less friction, expand user and builder bases, and operate it all more efficiently and effectively.
•Announced technology partnerships with:
◦Microsoft to build best-in-class automation experiences and integrations between the two strategic partners. Microsoft Azure is a preferred cloud platform for UiPath, including the UiPath Automation Cloud™, while UiPath is a preferred enterprise automation partner at Microsoft.
◦OutSystems, a global leader in high-performance application development, to combine the power of the UiPath Business Automation Platform with OutSystems high-performance low-code.
•Announced additional strategic collaborations with:
◦ManpowerGroup® (NYSE: MAN), a leading global workforce solutions company and long-term partner of UiPath, to expand and accelerate go-to-market workforce solutions in automation.
◦CGI (TSX: GIB.A) (NYSE: GIB), one of the largest independent IT and business consulting services firms in the world, to expand automation deployments among CGI clients via managed services.
◦qBotica to introduce Automation Cube, qBotica’s go-to-market UiPath managed services practice that offers customers advantages such as turnkey automation tailored to their industry and operations.
•Announced FHIR-enabled API automation to simplify integration and transform patient experiences in healthcare: Organizations can now use UiPath Integration Service with Fast Healthcare Interoperability Resource (FHIR)-enabled endpoints to orchestrate turnkey automations within Electronic Health Record systems meeting the Office of the National Coordinator for Health Information Technology Cures Act FHIR certification criteria – such as Epic and


Oracle Cerner – and a broader set of health IT systems that have voluntarily deployed FHIR endpoints.
•Received widespread industry recognition, including:
◦Honored as an RPA Leader for the sixth consecutive year and Star Performer in the Technology Provider Landscape, according to Everest Group’s Robotic Process Automation Products PEAK Matrix® Assessment 2022. This assessment analyzes the changing dynamics of the RPA landscape and assesses 23 technology providers across several key dimensions.
◦Named a Leader in the ISG Provider Lens™ Next-Gen ADM Solutions 2022 – Low-Code/No-Code Development Platforms report. The report recognizes UiPath as an innovation leader at the convergence of enterprise automation and low-code application development, and notes that “UiPath Apps is a top choice for customers looking to rapidly develop automation-powered applications.”
Conference Call and Webcast
UiPath will host a conference call today, Thursday, December 1, 2022, at 5:00 p.m. Eastern Time, to discuss the Company's third quarter fiscal 2023 financial results and guidance. To access this call, dial 1-201-689-8057 (domestic) or 1-877-407-8309 (international). The passcode is 13734091. A live webcast of this conference call will be available on the "Investor Relations" page of UiPath’s website (https://ir.uipath.com), and a replay will also be archived on the website for one year.
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, including the negatives of these 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 guidance for the fourth fiscal quarter and fiscal year end 2023, our strategic plans,


objectives and roadmap, the estimated addressable market opportunity for our platform and statements regarding the growth of the automation market. 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: the market, political, economic, and business conditions, including geopolitical turmoil and macro-economic effects caused by the war in Ukraine, increasing inflationary cost trends, and foreign exchange volatility; our recent rapid growth, which may not be indicative of our future growth; our limited operating history; our ability to successfully manage our growth; our ability and the ability of our platform to satisfy and adapt to customer demands; our dependency on our existing customers to renew their licenses and purchase additional licenses and products from us and our channel partners; our ability to attract and retain customers; the competitive markets in which we participate; our ability to maintain and expand our distribution channels; our ability to retain and motivate our management and key employees and integrate new team members and manage management transitions; our reliance on third-party providers of cloud-based infrastructure; the potential impact that the COVID-19 pandemic and an economic downturn could have on our or our customers’ businesses, financial condition, and future operating results; our failure to achieve our environmental, social and governance (ESG) goals; and the price volatility of our Class A common stock.
Further information on risks that could cause actual results to differ materially from our guidance can be found in our Annual Report on Form 10-K for the annual period ended January 31, 2022, filed with the SEC on April 4, 2022, in our Quarterly Reports on Form 10-Q filed with the SEC, and in other filings and reports that we may file from time to time with the SEC. 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
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 and support 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.


Dollar-based net retention rate represents the rate of net expansion of our ARR from existing customers over the preceding 12 months. We calculate dollar-based net retention rate as of a period end by starting with ARR from the cohort of all customers as of 12 months prior to such period end (Prior Period ARR). We then calculate the ARR from these same customers as of the current period end (Current Period ARR). Current Period ARR includes any expansion and is net of any contraction or attrition over the preceding 12 months but does not include ARR from new customers in the current period. We then divide total Current Period ARR by total Prior Period ARR to arrive at dollar-based net retention rate. Dollar-based net retention rate may fluctuate based on the customers that qualify to be included in the cohort used for calculation and may not reflect our actual performance.
Investors should not place undue reliance on ARR or dollar-based net retention rate as an indicator of future or expected results. Our presentation of these metrics may differ from similarly titled metrics presented by other companies and therefore comparability may be limited.
Non-GAAP Financial Measures
Non-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). This earnings press release includes financial measures defined as non-GAAP financial measures by the SEC, including non-GAAP cost of licenses, non-GAAP cost of subscription services, non-GAAP cost of professional services and other, non-GAAP gross profit and margin, non-GAAP sales and marketing expenses, non-GAAP research and development expenses, non-GAAP general and administrative expenses, non-GAAP operating income (loss) and margin, non-GAAP net income (loss), and non-GAAP net income (loss) per share. These non-GAAP financial measures exclude:
•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.
Additionally, this earnings release presents non-GAAP adjusted free cash flow, which is calculated by adjusting GAAP operating cash flows for the impact of purchases of property and equipment, capitalization of software development costs, cash paid for employer payroll taxes related to employee equity transactions, net payments/receipts of employee tax withholdings on stock option exercises, and cash paid for restructuring costs.
UiPath uses these non-GAAP financial measures internally in analyzing its financial results, and believes they are useful to investors, by excluding the effects of special


items that do not reflect the ordinary earnings of our operations, and as a supplement to GAAP measures. 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. 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 October 31, Nine Months Ended October 31,
2022 2021 2022 2021
Revenue:
Licenses $ 118,175  $ 111,608  $ 338,875  $ 307,371 
Subscription services 130,159  97,963  370,309  265,924 
Professional services and other 14,410  11,245  40,848  29,259 
Total revenue 262,744  220,816  750,032  602,554 
Cost of revenue:
Licenses 3,208  2,626  7,915  7,514 
Subscription services 20,578  15,659  63,949  42,076 
Professional services and other 18,982  24,815  60,496  78,114 
Total cost of revenue 42,768  43,100  132,360  127,704 
Gross profit 219,976  177,716  617,672  474,850 
Operating expenses:
Sales and marketing 156,469  172,906  527,798  522,925 
Research and development 67,341  61,559  203,880  212,245 
General and administrative 63,157  59,498  189,130  189,747 
Total operating expenses 286,967  293,963  920,808  924,917 
Operating loss (66,991) (116,247) (303,136) (450,067)
Interest income 9,561  899  15,057  2,606 
Other income (expense), net 888  (4,300) (2,523) (8,743)
Loss before income taxes (56,542) (119,648) (290,602) (456,204)
Provision for income taxes 1,182  3,139  10,061  6,272 
Net loss $ (57,724) $ (122,787) $ (300,663) $ (462,476)
Net loss per share attributable to common stockholders, basic and diluted $ (0.10) $ (0.23) $ (0.55) $ (1.08)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted 550,164  531,718  546,087  426,811 


UiPath, Inc.
Condensed Consolidated Balance Sheets
in thousands
(unaudited)
As of
October 31,
2022		 January 31,
2022
Assets
Current assets
Cash and cash equivalents $ 1,451,152  $ 1,768,723 
Marketable securities 225,605  96,417 
Accounts receivable, net of allowance for doubtful accounts of $3,279 and $2,566, respectively
 275,935  251,988 
Contract assets 91,551  74,831 
Deferred contract acquisition costs 40,168  29,926 
Prepaid expenses and other current assets 74,834  55,416 
Total current assets 2,159,245  2,277,301 
Marketable securities, non-current 2,920  19,523 
Contract assets, non-current 9,498  2,730 
Deferred contract acquisition costs, non-current 113,568  100,224 
Property and equipment, net 28,152  17,176 
Operating lease right-of-use assets 50,555  48,953 
Intangible assets, net 23,993  16,817 
Goodwill 83,844  53,564 
Deferred tax asset 7,657  10,628 
Other assets, non-current 32,252  25,534 
Total assets $ 2,511,684  $ 2,572,450 
Liabilities and stockholders' equity
Current liabilities
Accounts payable $ 11,253  $ 11,515 
Accrued expenses and other current liabilities 78,892  87,958 
Accrued compensation and employee benefits 98,086  130,673 
Deferred revenue 288,412  297,355 
Total current liabilities 476,643  527,501 
Deferred revenue, non-current 107,633  68,665 
Operating lease liabilities, non-current 55,085  49,843 
Other liabilities, non-current 12,499  4,524 
Total liabilities 651,860  650,533 
Commitments and contingencies
Stockholders' equity
Class A common stock 5  4 
Class B common stock 1  1 
Additional paid-in capital 3,649,474  3,406,959 
Accumulated other comprehensive income 6,953  10,899 
Accumulated deficit (1,796,609) (1,495,946)
Total stockholders’ equity 1,859,824  1,921,917 
Total liabilities and stockholders’ equity $ 2,511,684  $ 2,572,450 


UiPath, Inc.
Condensed Consolidated Statements of Cash Flows
in thousands (unaudited)
Nine Months Ended October 31,
2022 2021
Cash flows from operating activities
Net loss $ (300,663) $ (462,476)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization 12,993  10,697 
Amortization of deferred contract acquisition costs 37,967  19,904 
Net amortization of premium on marketable securities 501  1,391 
Stock-based compensation expense 270,797  438,551 
Charitable donation of Class A common stock 5,499  — 
Amortization of operating lease right-of-use assets 8,555  6,013 
Provision for deferred income taxes 1,171  (357)
Abandonment and impairment charges 2,881  — 
Other non-cash (credits) charges, net1
(1,714) 1,599 
Changes in operating assets and liabilities:
Accounts receivable (33,449) (27,028)
Contract assets (27,735) (29,994)
Deferred contract acquisition costs (69,657) (80,720)
Prepaid expenses and other assets (27,361) (2,295)
Accounts payable 2,414  17,549 
Accrued expense and other liabilities (13,785) 17,756 
Accrued compensation and employee benefits (26,096) (822)
Operating lease liabilities, net (488) (5,261)
Deferred revenue 54,232  46,544 
Net cash used in operating activities (103,938) (48,949)
Cash flows from investing activities
Purchases of marketable securities (204,311) (161,214)
Sales of marketable securities —  89,383 
Maturities of marketable securities 93,298  58,109 
Purchases of property and equipment (21,614) (5,719)
Capitalization of software development costs —  (2,950)
Payments related to business acquisitions, net of cash acquired (29,542) (5,498)
Other investing, net (507) (1,231)
Net cash used in investing activities (162,676) (29,120)
Cash flows from financing activities
Proceeds from exercise of stock options 7,605  9,687 
Payments of tax withholdings on net settlement of equity awards (53,300) (10,300)
Net (payments) receipts of tax withholdings on sell-to-cover equity award transactions (10,132) 20,418 
Proceeds from employee stock purchase plan contributions 13,525  13,766 
Repurchase of unvested early exercised stock options (1,493) — 
Proceeds from initial public offering, net of underwriting discounts and commissions —  692,369 
Payments of initial public offering costs —  (3,734)
Proceeds from issuance of convertible preferred stock —  750,000 
Payments of issuance costs for convertible preferred stock —  (164)
Net cash (used in) provided by financing activities (43,795) 1,472,042 
Effect of exchange rate changes (7,162) 11,254 
Net (decrease) increase in cash, cash equivalents, and restricted cash (317,571) 1,405,227 
Cash, cash equivalents, and restricted cash - beginning of period 1,768,723  371,190 
Cash, cash equivalents, and restricted cash - end of period $ 1,451,152  $ 1,776,417 
1 Prior period amounts have been combined to conform to current period presentation


UiPath, Inc.
Reconciliation of GAAP Cost of Revenue and Gross Profit to Non-GAAP Cost of Revenue and Gross Profit
in thousands, except percentages
(unaudited)
Three Months Ended October 31, Nine Months Ended October 31,
2022 2021 2022 2021
Licenses
GAAP cost of licenses $ 3,208  $ 2,626  $ 7,915  $ 7,514 
Less: Amortization of acquired intangible assets 777  628  1,935  1,910 
Non-GAAP cost of licenses $ 2,431  $ 1,998  $ 5,980  $ 5,604 
Subscription services
GAAP cost of subscription services $ 20,578  $ 15,659  $ 63,949  $ 42,076 
Less: Stock-based compensation expense 2,844  2,045  8,901  9,916 
Less: Amortization of acquired intangible assets 570  330  1,230  770 
Less: Employer payroll tax expense related to employee equity transactions 34  701  180  887 
Less: Restructuring costs —  —  137  — 
Non-GAAP cost of subscription services $ 17,130  $ 12,583  $ 53,501  $ 30,503 
Professional services and other
GAAP cost of professional services and other $ 18,982  $ 24,815  $ 60,496  $ 78,114 
Less: Stock-based compensation expense 2,557  4,305  8,959  27,140 
Less: Employer payroll tax expense related to employee equity transactions 26  2,527  167  3,606 
Less: Restructuring costs —  —  320  — 
Non-GAAP cost of professional services and other $ 16,399  $ 17,983  $ 51,050  $ 47,368 
Gross profit and margin
GAAP gross profit $ 219,976  $ 177,716  $ 617,672  $ 474,850 
GAAP gross margin 84  % 80  % 82  % 79  %
Plus: Stock-based compensation expense 5,401  6,350  17,860  37,056 
Plus: Amortization of acquired intangible assets 1,347  958  3,165  2,680 
Plus: Employer payroll tax expense related to employee equity transactions 60  3,228  347  4,493 
Plus: Restructuring costs —  —  457  — 
Non-GAAP gross profit $ 226,784  $ 188,252  $ 639,501  $ 519,079 
Non-GAAP gross margin 86  % 85  % 85  % 86  %



UiPath, Inc.
Reconciliation of GAAP Operating Expenses and Loss to Non-GAAP Operating Expenses and Income (Loss)
in thousands, except percentages
(unaudited)
Three Months Ended October 31, Nine Months Ended October 31,
2022 2021 2022 2021
Sales and Marketing
GAAP sales and marketing $ 156,469  $ 172,906  $ 527,798  $ 522,925 
Less: Stock-based compensation expense 30,763  41,823  117,410  202,122 
Less: Amortization of acquired intangible assets 659  405  1,486  993 
Less: Employer payroll tax expense related to employee equity transactions 416  23,839  3,045  32,518 
Less: Restructuring costs 511  —  11,243  — 
Non-GAAP sales and marketing $ 124,120  $ 106,839  $ 394,614  $ 287,292 
Research and Development
GAAP research and development $ 67,341  $ 61,559  $ 203,880  $ 212,245 
Less: Stock-based compensation expense 23,435  24,866  73,559  114,460 
Less: Employer payroll tax expense related to employee equity transactions 170  1,312  971  1,637 
Less: Restructuring costs —  —  43  — 
Non-GAAP research and development $ 43,736  $ 35,381  $ 129,307  $ 96,148 
General and Administrative
GAAP general and administrative $ 63,157  $ 59,498  $ 189,130  $ 189,747 
Less: Stock-based compensation expense 21,492  22,064  61,968  84,913 
Less: Amortization of acquired intangible assets 44  44  136  44 
Less: Employer payroll tax expense related to employee equity transactions 123  455  486  1,045 
Less: Restructuring costs 580  —  1,382  — 
Less: Charitable donation of Class A common stock —  —  5,499  — 
Non-GAAP general and administrative $ 40,918  $ 36,935  $ 119,659  $ 103,745 
Operating Loss
GAAP operating loss $ (66,991) $ (116,247) $ (303,136) $ (450,067)
GAAP operating margin (25) % (53) % (40) % (75) %
Plus: Stock-based compensation expense 81,091  95,103  270,797  438,551 
Plus: Amortization of acquired intangible assets 2,050  1,407  4,787  3,717 
Plus: Employer payroll tax expense related to employee equity transactions 769  28,834  4,849  39,693 
Plus: Restructuring costs 1,091  —  13,125  — 
Plus: Charitable donation of Class A common stock —  —  5,499  — 
Non-GAAP operating income (loss) $ 18,010  $ 9,097  $ (4,079) $ 31,894 
Non-GAAP operating margin 7  % 4  % (1) % 5  %



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 per share data
(unaudited)
Three Months Ended October 31, Nine Months Ended October 31,
2022 2021 2022 2021
GAAP net loss $ (57,724) $ (122,787) $ (300,663) $ (462,476)
Plus: Stock-based compensation expense 81,091  95,103  270,797  438,551 
Plus: Amortization of acquired intangible assets 2,050  1,407  4,787  3,717 
Plus: Employer payroll tax expense related to employee equity transactions 769  28,834  4,849  39,693 
Plus: Restructuring costs 1,091  —  13,125  — 
Plus: Charitable donation of Class A common stock —  —  5,499  — 
Tax adjustments to add-backs1
(609) (462) (609) (1,545)
Non-GAAP net income (loss) $ 26,668  $ 2,095  $ (2,215) $ 17,940 
GAAP net loss per share, basic and diluted $ (0.10) $ (0.23) $ (0.55) $ (1.08)
GAAP weighted average common shares outstanding, basic and diluted 550,164  531,718  546,087  426,811 
Plus: Unweighted adjustment for conversion of preferred to common stock in connection with IPO —  —  —  90,880 
Plus: Unweighted adjustment for common stock issued in connection with IPO —  —  —  3,857 
Non-GAAP weighted average common shares outstanding, basic 550,164  531,718  546,087  521,548 
Plus: Dilutive potential common shares from outstanding equity awards 10,331  28,192  —  37,806 
Non-GAAP weighted average common shares outstanding, diluted 560,495  559,910  546,087  559,354 
Non-GAAP net income (loss) per share, basic $ 0.05  $ 0.00  $ 0.00  $ 0.03 
Non-GAAP net income (loss) per share, diluted $ 0.05  $ 0.00  $ 0.00  $ 0.03 
1 Estimated using blended annual effective tax rate and net operating losses available to offset.



UiPath, Inc.
Reconciliation of GAAP Operating Cash Flow to Non-GAAP Adjusted Free Cash Flow
in thousands
(unaudited)
Nine Months Ended October 31,
2022 2021
GAAP net cash used in operating activities $ (103,938) $ (48,949)
Purchases of property and equipment (21,614) (5,719)
Capitalization of software development costs —  (2,950)
Cash paid for employer payroll taxes related to employee equity transactions 6,399  34,623 
Net payments (receipts) of employee tax withholdings on stock option exercises 6,370  (8,272)
Cash paid for restructuring costs 11,585  — 
Non-GAAP adjusted free cash flow $ (101,198) $ (31,267)

Investor Relations Contact
Kelsey Turcotte
Investor.relations@uipath.com
UiPath
Media Contact
Toni Iafrate
PR@uipath.com
UiPath