Form: 10-Q

Quarterly report pursuant to Section 13 or 15(d)

June 2, 2023

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
___________________________________________
FORM 10-Q
___________________________________________
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended April 30, 2023
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ________ to ________
Commission File Number: 001-40348
___________________________________________
UiPath Preferred Logo Orange.jpg
UiPath, Inc.
(Exact Name of Registrant as Specified in its Charter)
___________________________________________
Delaware 47-4333187
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
One Vanderbilt Avenue, 60th Floor
New York, New York
10017
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (844) 432-0455
___________________________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading
Symbol(s)
Name of each exchange on which registered
Class A common stock, par value
$0.00001 per share
PATH New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer Accelerated filer
Non-accelerated filer Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes      No  
As of May 30, 2023, the registrant had 478,709,485 shares of Class A common stock and 82,452,748 shares of Class B common stock, each with a par value of $0.00001 per share, outstanding.



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SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), about UiPath, Inc. and its consolidated subsidiaries (“UiPath,” the “Company,” “we,” “us,” or “our”) and our industry that involve substantial risks and uncertainties. All statements other than statements of historical fact contained in this Quarterly Report on Form 10-Q, including statements regarding our future results of operations or financial condition, business strategy, and plans and objectives of management for future operations, are forward-looking statements. In some cases, forward-looking statements can be identified because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “target,” “will,” or “would,” or the negative of these words or other similar terms or expressions. These forward-looking statements include, but are not limited to, statements concerning the following:
our expectations regarding our annualized renewal run-rate ("ARR"), revenue, expenses, and other operating results;
our ability to acquire new customers and successfully retain existing customers;
our ability to increase the number of users who access our platform and the number of automations built on our platform;
our ability to effectively manage our growth and achieve or maintain profitability;
future investments in our business, our anticipated capital expenditures, and our estimates regarding our capital requirements;
the costs and success of our marketing efforts and our ability to evolve and enhance our brand;
our growth strategies;
the estimated addressable market opportunity for our platform and for automation in general;
our reliance on key personnel and our ability to attract, integrate, and retain highly-qualified personnel and execute management transitions;
our ability to obtain, maintain, and enforce our intellectual property rights and any costs associated therewith;
the effect of global events, such as the Russian military operation in Ukraine, on our business, industry, and the global economy;
our ability to compete effectively with existing competitors and new market entrants; and
the size and growth rates of the markets in which we compete.
These forward-looking statements should not be unduly relied upon or regarded as predictions of future events. The forward-looking statements contained in this Quarterly Report on Form 10-Q are based on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, and operating results. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties, and other factors in the section titled "Risk Factors" and elsewhere in our Annual Report on Form 10-K for the fiscal year ended January 31, 2023 filed with the Securities and Exchange Commission ("SEC") on March 24, 2023 (the "2023 Form 10-K"). Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Quarterly Report on Form 10-Q. The results, events, and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events, or circumstances could differ materially from those described in the forward-looking statements.
In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject, based on information available to us as of the date of this Quarterly Report on Form 10-Q. While we believe such information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. Such statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements.
The forward-looking statements made in this Quarterly Report on Form 10-Q relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this Quarterly Report on Form 10-Q to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect new information or the occurrence of unanticipated events, except as required by law. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, or investments.


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PART I—FINANCIAL INFORMATION
Item 1. Financial Statements.
UiPath, Inc.
Condensed Consolidated Balance Sheets
Amounts in thousands except per share data
(unaudited)
As of
April 30, 2023 January 31, 2023
ASSETS
Current assets
Cash and cash equivalents $ 1,311,576  $ 1,402,119 
Marketable securities 469,071  354,774 
Accounts receivable, net of allowance for credit losses of $1,017 and $2,698, respectively
233,307  374,217 
Contract assets 68,536  69,260 
Deferred contract acquisition costs 53,355  49,887 
Prepaid expenses and other current assets 121,429  94,150 
Total current assets 2,257,274  2,344,407 
Marketable securities, non-current 5,710  2,942 
Contract assets, non-current 6,930  6,523 
Deferred contract acquisition costs, non-current 136,571  137,616 
Property and equipment, net 26,911  29,045 
Operating lease right-of-use assets 52,275  52,052 
Intangible assets, net 21,167  23,010 
Goodwill 89,207  88,010 
Deferred tax asset 5,915  5,895 
Other assets, non-current 40,723  45,706 
Total assets $ 2,642,683  $ 2,735,206 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 5,734  $ 8,891 
Accrued expenses and other current liabilities 63,138  76,645 
Accrued compensation and employee benefits 48,622  142,582 
Deferred revenue 385,895  398,334 
Total current liabilities 503,389  626,452 
Deferred revenue, non-current 113,222  121,697 
Operating lease liabilities, non-current 56,564  56,442 
Other liabilities, non-current 13,971  10,457 
Total liabilities 687,146  815,048 
Commitments and contingencies (Note 11)
Stockholders' equity
Preferred stock, $0.00001 par value per share, 20,000 shares authorized as of April 30, 2023 and January 31, 2023; 0 shares issued and outstanding as of April 30, 2023 and January 31, 2023
   
Class A common stock, $0.00001 par value per share, 2,000,000 shares authorized as of April 30, 2023 and January 31, 2023; 478,122 and 474,160 shares issued and outstanding as of April 30, 2023 and January 31, 2023, respectively
5  5 
Class B common stock, $0.00001 par value per share, 115,741 shares authorized as of April 30, 2023 and January 31, 2023; 82,453 shares issued and outstanding as of April 30, 2023 and January 31, 2023
1  1 
Additional paid-in capital 3,801,656  3,736,838 
Accumulated other comprehensive income 10,074  7,612 
Accumulated deficit (1,856,199) (1,824,298)
Total stockholders’ equity 1,955,537  1,920,158 
Total liabilities and stockholders’ equity $ 2,642,683  $ 2,735,206 
The accompanying notes are an integral part of these condensed consolidated financial statements.
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UiPath, Inc.
Condensed Consolidated Statements of Operations
Amounts in thousands except per share data
(unaudited)
Three Months Ended April 30,
2023 2022
Revenue:
Licenses $ 134,039  $ 117,004 
Subscription services 146,352  115,494 
Professional services and other 9,197  12,568 
Total revenue 289,588  245,066 
Cost of revenue:
Licenses 2,547  2,537 
Subscription services 23,078  21,045 
Professional services and other 18,042  21,434 
Total cost of revenue 43,667  45,016 
Gross profit 245,921  200,050 
Operating expenses:
Sales and marketing 160,406  189,782 
Research and development 75,342  68,690 
General and administrative 56,584  57,530 
Total operating expenses 292,332  316,002 
Operating loss (46,411) (115,952)
Interest income 13,848  991 
Other income (expense), net 4,294  (2,811)
Loss before income taxes (28,269) (117,772)
Provision for income taxes 3,632  4,789 
Net loss $ (31,901) $ (122,561)
Net loss per share attributable to common stockholders, basic and diluted $ (0.06) $ (0.23)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted 557,878  541,902 
The accompanying notes are an integral part of these condensed consolidated financial statements.
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UiPath, Inc.
Condensed Consolidated Statements of Comprehensive Loss
Amounts in thousands
(unaudited)
Three Months Ended April 30,
2023 2022
Net loss $ (31,901) $ (122,561)
Other comprehensive income (loss), net of tax:
Unrealized gain (loss) on available-for-sale marketable securities, net 143  (460)
Foreign currency translation adjustments 2,319  2 
Other comprehensive income (loss), net 2,462  (458)
Comprehensive loss $ (29,439) $ (123,019)
The accompanying notes are an integral part of these condensed consolidated financial statements.
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UiPath, Inc.
Condensed Consolidated Statements of Stockholders’ Equity
Amounts in thousands
(unaudited)

Common Stock Additional
Paid-in
Capital
Accumulated Other
Comprehensive Income
Accumulated
Deficit
Total
Stockholders’
Equity
Class A Class B
Shares Amount Shares Amount Amount Amount Amount Amount
Balance as of January 31, 2023 474,160  $ 5  82,453  $ 1  $ 3,736,838  $ 7,612  $ (1,824,298) $ 1,920,158 
Issuance of common stock upon exercise of stock options 898  —  —  —  1,175  —  —  1,175 
Issuance of common stock upon settlement of restricted stock units 4,246  —  —  —  —  —  —  — 
Tax withholdings on settlement of restricted stock units (1,463) —  —  —  (25,697) —  —  (25,697)
Charitable donation of Class A common stock 281  —  —  —  4,215  —  —  4,215 
Stock-based compensation —  —  —  —  85,125  —  —  85,125 
Other comprehensive income, net —  —  —  —  —  2,462  —  2,462 
Net loss —  —  —  —  —  —  (31,901) (31,901)
Balance as of April 30, 2023 478,122  $ 5  82,453  $ 1  $ 3,801,656  $ 10,074  $ (1,856,199) $ 1,955,537 

Common Stock Additional
Paid-in
Capital
Accumulated Other
Comprehensive Income (Loss)
Accumulated
Deficit
Total
Stockholders’
Equity
Class A Class B
Shares Amount Shares Amount Amount Amount Amount Amount
Balance as of January 31, 2022 458,773  $ 4  82,453  $ 1  $ 3,406,959  $ 10,899  $ (1,495,946) $ 1,921,917 
Issuance of common stock upon exercise of stock options 1,283  —  —  —  2,683  —  —  2,683 
Vesting of early exercised stock options —  —  —  —  1,355  —  —  1,355 
Issuance of common stock upon settlement of restricted stock units 3,499  —  —  —  —  —  —  — 
Tax withholdings on settlement of restricted stock units (1,125) —  —  —  (24,827) —  —  (24,827)
Stock-based compensation —  —  —  —  102,085  —  —  102,085 
Other comprehensive loss, net —  —  —  —  —  (458) —  (458)
Net loss —  —  —  —  —  —  (122,561) (122,561)
Balance as of April 30, 2022 462,430  $ 4  82,453  $ 1  $ 3,488,255  $ 10,441  $ (1,618,507) $ 1,880,194 
The accompanying notes are an integral part of these condensed consolidated financial statements.
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UiPath, Inc.
Condensed Consolidated Statements of Cash Flows
Amounts in thousands
(unaudited)
Three Months Ended April 30,
2023 2022
Cash flows from operating activities
Net loss $ (31,901) $ (122,561)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization 5,616  4,039 
Amortization of deferred contract acquisition costs 14,072  10,822 
Net amortization on marketable securities (4,097) 473 
Stock-based compensation expense 85,048  101,454 
Charitable donation of Class A common stock 4,215   
Amortization of operating lease right-of-use assets 3,071  2,759 
Provision for deferred income taxes (267) 1,594 
Other non-cash charges, net 624  2,849 
Changes in operating assets and liabilities:
Accounts receivable 141,557  76,864 
Contract assets 660  (18,523)
Deferred contract acquisition costs (15,499) (20,761)
Prepaid expenses and other assets (5,860) (5,231)
Accounts payable (2,130) 7,554 
Accrued expenses and other liabilities (10,547) (12,894)
Accrued compensation and employee benefits (93,390) (65,083)
Operating lease liabilities, net (2,946) (1,950)
Deferred revenue (20,885) (14,289)
Net cash provided by (used in) operating activities 67,341  (52,884)
Cash flows from investing activities
Purchases of marketable securities (215,391) (21,918)
Maturities of marketable securities 78,955  14,813 
Purchases of property and equipment (1,870) (9,692)
Other investing, net 2,754  1,100 
Net cash used in investing activities (135,552) (15,697)
Cash flows from financing activities
Proceeds from exercise of stock options 1,187  2,823 
Payments of tax withholdings on net settlement of equity awards (25,902) (17,329)
Net payments of tax withholdings on sell-to-cover equity award transactions (645) (10,037)
Proceeds from employee stock purchase plan contributions 4,730  6,356 
Net cash used in financing activities (20,630) (18,187)
Effect of exchange rate changes (1,702) (2,738)
Net decrease in cash and cash equivalents (90,543) (89,506)
Cash and cash equivalents - beginning of period 1,402,119  1,768,723 
Cash and cash equivalents - end of period $ 1,311,576  $ 1,679,217 
Supplemental disclosure of cash flow information
Cash paid for interest $ 86  $ 277 
Cash paid for income taxes 6,218  2,782 
Supplemental disclosure of non-cash investing and financing activities
Reduction in accrued expenses and other liabilities for vesting of early exercised stock options   1,355 
Property and equipment purchases included in accounts payable 65  779 
Receivable from maturities of marketable securities included in prepaid expense and other current assets 20,315   
Tax withholdings on net settlement of restricted stock units, accrued but not yet paid 1,996  7,599 
The accompanying notes are an integral part of these consolidated financial statements.
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UiPath, Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)

1. Organization and Description of Business
Description of Business
UiPath, Inc. (the “Company,” “we,” “us,” or “our”) was incorporated in Delaware in June 2015 and is headquartered in New York, New York. Our end-to-end automation platform, the UiPath Business Automation Platform, offers a robust set of capabilities that allows our customers to discover opportunities for automation, automate using a digital workforce that seamlessly collaborates with humans, and operate a mission critical automation program at scale.
2. Summary of Significant Accounting Policies
Our significant accounting policies are discussed in greater scope and detail in Note 2, Summary of Significant Accounting Policies, in the notes to consolidated financial statements included in the 2023 Form 10-K. There have been no significant changes to such policies during the three months ended April 30, 2023.
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable regulations of the SEC regarding interim financial reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP may be condensed or omitted. The accompanying unaudited condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the accompanying notes thereto for the fiscal year ended January 31, 2023, which are included in the 2023 Form 10-K.
The unaudited condensed consolidated financial statements have been prepared on the same basis as our audited consolidated financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, that are necessary for the fair presentation of our financial information. The unaudited condensed consolidated financial statements include the financial statements of UiPath, Inc. and its subsidiaries in which we hold a controlling financial interest. Intercompany transactions and accounts have been eliminated in consolidation.
The results of operations for the three months ended April 30, 2023 are not necessarily indicative of the results to be expected for the fiscal year ending January 31, 2024 or for any other future interim or annual period.
Fiscal Year
Our fiscal year ends on January 31. References to fiscal year 2024, for example, refer to the fiscal year ending January 31, 2024.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities at the balance sheet date and the amounts of revenue and expenses reported during the period. We evaluate estimates based on historical and anticipated results, trends, and various other assumptions. Such estimates include, but are not limited to, certain aspects of revenue recognition including changes in variable consideration, expected period of benefit for deferred contract acquisition costs, allowance for credit losses, fair value of financial assets and liabilities, fair value of acquired assets and assumed liabilities, useful lives of long-lived assets, capitalized software development costs, carrying value of operating lease right-of-use (“ROU”) assets and operating lease liabilities, incremental borrowing rates for operating leases, amount of stock-based compensation expense, timing and amount of contingencies, costs related to our restructuring actions, uncertain tax positions, and valuation allowance for deferred income taxes. Actual results could differ from these estimates and assumptions.
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UiPath, Inc.
Notes to Condensed Consolidated Financial Statements (Continued)
(unaudited)
Foreign Currency
The functional currency of our non-U.S. subsidiaries is the local currency. Asset and liability balances denominated in non-U.S. dollar currencies are translated into U.S. dollars using period-end exchange rates, while revenue and expenses are translated using average monthly exchange rates. Differences are included in stockholders’ equity as a component of accumulated other comprehensive income. Financial assets and liabilities denominated in currencies other than the functional currency are recorded at the exchange rate at the time of the transaction and subsequent gains and losses related to changes in the foreign currency are included in other income (expense), net in the condensed consolidated statements of operations. For the three months ended April 30, 2023 and 2022, we recognized transaction losses of $0.8 million and $1.4 million, respectively.
Concentration of Risks
Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash and cash equivalents, marketable securities, and accounts receivable. We maintain our cash balance at financial institutions that management believes are high-credit, quality financial institutions, where our deposits, at times, exceed Federal Deposit Insurance Corporation (“FDIC”) limits. As of April 30, 2023 and January 31, 2023, 97% and 98%, respectively, of our cash and cash equivalents were concentrated in the United States, European Union (“EU”) countries, and Japan.
We extend differing levels of credit to customers based on creditworthiness, do not require collateral deposits, and when necessary maintain reserves for potential credit losses based upon the expected collectability of accounts receivable. We manage credit risk related to our customers by performing periodic evaluations of creditworthiness and applying other credit risk monitoring procedures.
Significant customers are those that represent 10% or more of our total revenue for the period or accounts receivable at the balance sheet date. For the three months ended April 30, 2023 and 2022, no single customer accounted for 10% or more of our total revenue. As of April 30, 2023 and January 31, 2023, no single customer accounted for 10% or more of our accounts receivable.
3. Revenue Recognition
Disaggregation of Revenue
The following tables summarize revenue by geographical region (dollars in thousands): 
Three Months Ended April 30,
2023 2022
Amount Percentage of
Revenue
Amount Percentage of
Revenue
Americas (1)
$ 123,452  43  % $ 114,151  47  %
Europe, Middle East, and Africa 96,931  33  % 69,603  28  %
Asia-Pacific (2)
69,205  24  % 61,312  25  %
Total revenue $ 289,588  100  % $ 245,066  100  %
(1)Revenue from the United States represented 38% and 42% of total revenue for the three months ended April 30, 2023 and 2022, respectively.
(2)Revenue from Japan represented 13% and 14% of total revenue for the three months ended April 30, 2023 and 2022, respectively.
Deferred Revenue
During the three months ended April 30, 2023 and 2022, we recognized $150.6 million and $124.9 million of revenue that was included in the deferred revenue balance as of January 31, 2023 and 2022, respectively.
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UiPath, Inc.
Notes to Condensed Consolidated Financial Statements (Continued)
(unaudited)
Remaining Performance Obligations
Our remaining performance obligations are comprised of licenses, subscription services, and professional services and other revenue not yet delivered. As of April 30, 2023, the aggregate amount of the transaction price allocated to remaining performance obligations was $903.9 million, which consists of $499.1 million of billed consideration and $404.8 million of unbilled consideration. We expect to recognize 62% of our remaining performance obligations as revenue over the next 12 months, and the remainder thereafter.
Deferred Contract Acquisition Costs
Our deferred contract acquisition costs are comprised of sales commissions that represent incremental costs to obtain customer contracts, and are determined based on sales compensation plans. Amortization of deferred contract acquisition costs was $14.1 million and $10.8 million for the three months ended April 30, 2023 and 2022, respectively, and is recorded in sales and marketing expense in the condensed consolidated statements of operations.
4. Marketable Securities
The following is a summary of our marketable securities (in thousands): 
As of April 30, 2023
Amortized Cost Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated Fair Value
Commercial paper $ 63,814  $   $   $ 63,814 
Treasury bills and U.S. government securities 370,011    (379) 369,632 
Corporate bonds 24,968    (35) 24,933 
Municipal bonds 3,767    (36) 3,731 
Agency bonds 12,697    (26) 12,671 
Total marketable securities $ 475,257  $   $ (476) $ 474,781 
As of January 31, 2023
Amortized Cost Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated Fair Value
Commercial paper $ 62,470  $   $   $ 62,470 
Treasury bills and U.S. government securities (1)
234,848    (308) 234,540 
Corporate bonds 46,684    (198) 46,486 
Municipal bonds 6,374    (66) 6,308 
Agency bonds 7,959    (47) 7,912 
Total marketable securities $ 358,335  $   $ (619) $ 357,716 
(1) Treasury bills with both amortized cost and estimated fair value of $10.0 million are included in cash and cash equivalents due to their original maturity of three months or less.
As of April 30, 2023 and January 31, 2023, respectively $5.7 million and $2.9 million of our marketable securities had remaining contractual maturities of one year or more, and the remainder had contractual maturities of less than one year.
As of April 30, 2023 and January 31, 2023, $2.8 million and $3.5 million of interest receivable was included in prepaid expenses and other current assets on the condensed consolidated balance sheets. We did not recognize an allowance for credit losses against interest receivable as of April 30, 2023 and January 31, 2023.
Unrealized losses during the periods presented are a result of changes in market conditions. We do not believe that any unrealized losses are attributable to credit-related factors based on our evaluation of available evidence. To determine whether a decline in value is related to credit loss, we evaluate, among other factors, the
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UiPath, Inc.
Notes to Condensed Consolidated Financial Statements (Continued)
(unaudited)
extent to which the fair value is less than the amortized cost basis and any adverse conditions specifically related to an issuer of a security or its industry.
5. Fair Value Measurement
The following tables present the fair value hierarchy of our financial assets measured at fair value on a recurring basis as of April 30, 2023 and January 31, 2023 (in thousands): 
  As of April 30, 2023
  Level 1 Level 2 Total
Financial assets:      
Money market $ 612,577  $   $ 612,577 
Corporate bonds   24,137  24,137 
Commercial paper   55,690  55,690 
Agency bonds 5,667    5,667 
Total cash equivalents 618,244  79,827  698,071 
Commercial paper   63,814  63,814 
Treasury bills and U.S. government securities 369,632    369,632 
Corporate bonds   24,933  24,933 
Municipal bonds   3,731  3,731 
Agency bonds 12,671    12,671 
Total marketable securities 382,303  92,478  474,781 
Total $ 1,000,547  $ 172,305  $ 1,172,852 
  As of January 31, 2023
  Level 1 Level 2 Total
Financial assets:      
Money market $ 319,801  $   $ 319,801 
Treasury bills 9,968    9,968 
Total cash equivalents 329,769    329,769 
Commercial paper   62,470  62,470 
Treasury bills and U.S. government securities 234,540    234,540 
Corporate bonds   46,486  46,486 
Municipal bonds   6,308  6,308 
Agency bonds 7,912    7,912 
Total marketable securities 242,452  115,264  357,716 
Total $ 572,221  $ 115,264  $ 687,485 
Our money market funds, treasury bills and U.S. government securities, and agency bonds are classified within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. We classify commercial paper, corporate bonds, and municipal bonds as Level 2 because they are valued using inputs other than quoted prices which are directly or indirectly observable in the market, including readily-available pricing sources for the identical underlying security which may not be actively traded. None of our financial instruments were classified in the Level 3 category as of April 30, 2023 or January 31, 2023.
6. Business Acquisitions
Re:infer
On July 29, 2022, we acquired all of the outstanding capital stock of Re:infer LTD. (“Re:infer”), a natural language processing company focused on unstructured documents and communications. Re:infer uses machine learning technology to mine context from communication messages and transform them into actionable data. With this acquisition, we gained technology and an experienced team which we believe will accelerate our technology
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UiPath, Inc.
Notes to Condensed Consolidated Financial Statements (Continued)
(unaudited)
roadmap, expand the breadth of our current AI-powered automation capabilities, and unlock new automation opportunities for our customers. The Re:infer acquisition was accounted for as a business combination.
The total purchase consideration for the acquisition of Re:infer was $44.6 million, consisting of the following (in thousands):
Cash paid at closing $ 30,117 
Fair value of Class A common stock issued at closing (0.2 million shares)
2,965 
Loan note to be paid on first anniversary of closing (included in accrued expenses and other current liabilities) 5,863 
Loan note to be paid on second anniversary of closing (included in other liabilities, non-current) 5,570 
Working capital adjustment 66 
Total $ 44,581 
At closing, we also issued an additional 0.4 million shares of Class A common stock that will be released to sellers in equal installments on the first, second, and third anniversaries of the closing date, subject to certain employment-related clawback provisions. The aggregate fair value of these shares totaled $7.6 million and will be expensed as compensation for post-acquisition services over the three years following the acquisition date.
The following table summarizes the fair values of the assets acquired and liabilities assumed as of the acquisition date (in thousands):
  July 29, 2022
Net tangible assets $ 300 
Intangible assets 13,100 
Goodwill 34,351 
Total assets acquired 47,751 
Deferred tax liabilities assumed (3,170)
Total $ 44,581 

The following table sets forth the identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition:
Fair Value
(in thousands)
Estimated Useful Life
(in years)
Developed technology $ 10,000  5.0
Customer relationships 3,100  3.0
Total $ 13,100 
The acquisition of Re:infer generated goodwill of $34.4 million representing expected synergies and acquired skilled workforce. None of this goodwill is deductible for tax purposes.
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UiPath, Inc.
Notes to Condensed Consolidated Financial Statements (Continued)
(unaudited)
7. Intangible Assets and Goodwill
Intangible Assets, Net
Acquired intangible assets, net consisted of the following as of April 30, 2023 (dollars in thousands): 
  Intangible Assets,
Gross
Accumulated
Amortization
Intangible
Assets,
Net
Weighted-
Average
Remaining
Useful Life
(in years)
Developed technology $ 28,946  $ (12,705) $ 16,241  3.3
Customer relationships 8,249  (4,289) 3,960  1.8
Trade names and trademarks 273  (243) 30  0.9
Other intangibles 1,231  (295) 936  7.5
Total $ 38,699  $ (17,532) $ 21,167 
Acquired intangible assets, net consisted of the following as of January 31, 2023 (dollars in thousands):
  Intangible Assets,
Gross
Accumulated
Amortization
Intangible
Assets,
Net
Weighted-
Average
Remaining
Useful Life
(in years)
Developed technology $ 28,517  $ (11,095) $ 17,422  3.5
Customer relationships 8,174  (3,601) 4,573  2.0
Trade names and trademarks 272  (233) 39  1.2
Other intangibles 1,231  (255) 976  7.7
Total $ 38,194  $ (15,184) $ 23,010 
We record amortization expense associated with acquired developed technology in cost of licenses revenue and cost of subscription services revenue, trade names and trademarks in sales and marketing expense, customer relationships in sales and marketing expense, and other intangibles in general and administrative expense in the condensed consolidated statements of operations. Amortization of acquired intangible assets for the three months ended April 30, 2023 and 2022 was $2.1 million and $1.4 million, respectively.
Expected future amortization expense related to intangible assets was as follows as of April 30, 2023 (in thousands):
  Amount
Remainder of year ending January 31, 2024 $ 6,502 
Year ending January 31,
2025 6,692 
2026 4,084 
2027 2,432 
2028 1,155 
Thereafter 302 
Total $ 21,167 
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UiPath, Inc.
Notes to Condensed Consolidated Financial Statements (Continued)
(unaudited)
Goodwill
Changes in the carrying amount of goodwill during the three months ended April 30, 2023 were as follows (in thousands):
  Carrying
Amount
Balance as of January 31, 2023 $ 88,010 
Effect of foreign currency translation 1,197 
Balance as of April 30, 2023 $ 89,207 
8. Operating Leases
Our operating leases consist of real estate and vehicles and have remaining lease terms of one year to 15 years. For purposes of calculating operating lease liabilities, lease terms may be deemed to include options to extend the lease when it is reasonably certain that we will exercise those options. Our operating lease arrangements do not contain any material restrictive covenants or residual value guarantees.
Lease costs are presented below (in thousands):
Three Months Ended April 30,
2023 2022
Operating lease cost $ 3,071  $ 2,759 
Short-term lease cost 1,300  1,508 
Variable lease cost 621  207 
Sublease income (1)
(532) (532)
Total $ 4,460  $ 3,942 
(1) Included in other income (expense), net in the condensed consolidated statements of operations.
The following table represents the weighted-average remaining lease term and discount rate as of the periods presented:
As of
April 30, 2023 January 31, 2023
Weighted-average remaining lease term (years) 11.8 12.1
Weighted-average discount rate 7.1  % 7.0  %
Future undiscounted lease payments for our operating lease liabilities as of April 30, 2023 were as follows (in thousands):
Amount
Remainder of year ending January 31, 2024
$ 10,008 
Year ending January 31,
2025 10,215 
2026 8,473 
2027 7,957 
2028 7,759 
Thereafter 48,625 
Total operating lease payments 93,037 
Less: imputed interest (29,220)
Total operating lease liabilities $ 63,817 
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UiPath, Inc.
Notes to Condensed Consolidated Financial Statements (Continued)
(unaudited)
As of April 30, 2023, we had non-cancellable commitments in the amount of $4.9 million related to operating leases of real estate facilities that have not yet commenced.
Current operating lease liabilities of $7.3 million and $7.0 million were included in accrued expenses and other current liabilities on our condensed consolidated balance sheets as of April 30, 2023 and January 31, 2023, respectively.
Supplemental cash flow information related to leases for the three months ended April 30, 2023 and 2022 was as follows (in thousands):
Three Months Ended April 30,
2023 2022
Cash paid for amounts included in the measurement of operating lease liabilities $ 2,615  $ 2,064 
Operating lease ROU assets obtained in exchange for new operating lease liabilities 1,993  770 
9. Condensed Consolidated Balance Sheet Components
Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consisted of the following (in thousands):
As of
April 30, 2023 January 31, 2023
Prepaid expenses and service credits $ 77,600  $ 67,794 
Other current assets 43,829  26,356 
Prepaid expenses and other current assets $ 121,429  $ 94,150 
Property and Equipment, Net
Property and equipment, net consisted of the following (in thousands):
As of
April 30, 2023 January 31, 2023
Computers and equipment $ 28,847  $ 28,450 
Leasehold improvements 21,505  19,622 
Furniture and fixtures 6,495  6,485 
Construction in progress 572  2,419 
Property and equipment, gross 57,419  56,976 
Less: accumulated depreciation (30,508) (27,931)
Property and equipment, net $ 26,911  $ 29,045 
Depreciation expense for the three months ended April 30, 2023 and 2022 was $3.0 million and $1.9 million, respectively.
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UiPath, Inc.
Notes to Condensed Consolidated Financial Statements (Continued)
(unaudited)
Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consisted of the following (in thousands):
As of
April 30, 2023 January 31, 2023
Accrued expenses $ 14,089  $ 19,411 
Withholding tax from employee equity transactions 2,132  3,772 
Employee stock purchase plan withholdings 8,121  3,365 
Payroll taxes and other benefits payable 4,106  7,644 
Income tax payable 6,317  8,750 
Value-added taxes payable 3,528  6,381 
Operating lease liabilities, current 7,253  6,997 
Deferred consideration for business acquisition, current 5,863  5,863 
Other 11,729  14,462 
Accrued expenses and other current liabilities $ 63,138  $ 76,645 
10. Credit Facility
On October 30, 2020, we entered into a $200.0 million senior secured revolving credit facility (the “Credit Facility”) with HSBC Ventures USA Inc., Silicon Valley Bridge Bank, N.A. (as successor to Silicon Valley Bank), Sumitomo Mitsui Banking Corporation, and Mizuho Bank, LTD, maturing October 30, 2023. The Credit Facility contains certain customary covenants, including, but not limited to, those relating to additional indebtedness, liens, asset divestitures, and affiliate transactions. We may use the proceeds of future borrowings under the Credit Facility for refinancing other indebtedness, working capital, capital expenditures and other general corporate purposes, including permitted business acquisitions. Our obligations under the Credit Facility are secured by substantially all of our assets, except for our intellectual property.
As of April 30, 2023 and January 31, 2023, there were no amounts outstanding under the Credit Facility.
11. Commitments and Contingencies
Letters of Credit
We had a total of $5.6 million and $4.3 million in letters of credit outstanding in favor of certain landlords for office space and for credit line facilities as of April 30, 2023 and January 31, 2023, respectively. These letters of credit renew annually and expire on various dates through fiscal year 2025.
Indemnification
In the ordinary course of business, we may provide indemnification of varying scope and terms to customers, vendors, directors, and officers with respect to certain matters, including, but not limited to, losses arising out of our breach of such agreements, services to be provided by us, or from intellectual property infringement claims made by third parties.
These indemnification provisions may survive termination of the underlying agreement and the potential amount of future payments we could be required to make under these indemnification provisions may not be subject to maximum loss clauses. The maximum potential amount of future payments we could be required to make under these indemnification provisions is indeterminable. As of April 30, 2023 and January 31, 2023, we have not accrued a liability for these indemnification arrangements because the likelihood of incurring a payment obligation, if any, in connection with these indemnification arrangements was remote.
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Table of Contents
UiPath, Inc.
Notes to Condensed Consolidated Financial Statements (Continued)
(unaudited)
Restructuring
On June 24, 2022, our board of directors approved restructuring actions to manage our operating expenses by reducing our global workforce by approximately