NEW YORK, NY – September 6, 2023 – UiPath, Inc. (NYSE: PATH), a leading enterprise automation software company, today announced financial results for its second quarter fiscal 2024 ended July 31, 2023.

Second Quarter Fiscal 2024 Financial Highlights

•Revenue of $287.3 million increased 19 percent year-over-year.

•ARR of $1.308 billion increased 25 percent year-over-year.

•Net new ARR of $59.0 million.

•Dollar based net retention rate of 121 percent.

•GAAP gross margin was 83 percent.

•Non-GAAP gross margin was 86 percent.

•GAAP operating loss was $(77.6) million.

•Non-GAAP operating income was $30.1 million.

•Net cash flow from operations was $44.3 million.

•Non-GAAP adjusted free cash flow was $46.6 million.

•Cash, cash equivalents, and marketable securities were $1.8 billion as of July 31, 2023.

•Revenue in the range of $313 million to $318 million

•ARR in the range of $1.359 billion to $1.364 billion as of October 31, 2023

•Non-GAAP operating income of approximately $32 million

•Revenue in the range of $1.273 billion to $1.278 billion

•ARR in the range of $1.432 billion to $1.437 billion as of January 31, 2024

•Non-GAAP operating income of approximately $188 million

•Announced General Availability of Generative AI and Specialized AI Offerings: These latest AI-powered automation features accelerate customers’ ability to discover, automate, and operate automations at scale through Generative AI and Specialized AI, including the general availability of OpenAI and Azure OpenAI connectors with support for GPT-4. The Company also introduced support for the Falcon Large Language Model (LLM) via its Amazon SageMaker connector, and the preview of the Google Vertex connector with support for PaLM 2.

•Delivered New AI-powered Features and Developer Experiences to Accelerate Automation Across All Knowledge Work: New platform features include powerful developer tools that extend options for both citizen developers and professional developers to put automation into practice faster with enhanced low-code tools, solution accelerators, and automated testing. Also announced preview of Clipboard AI™, our advanced AI tool specifically for non-technical knowledge workers that takes the waste out of copy-and-paste tasks.

•Received widespread industry recognition for platform capabilities, including document understanding, communications mining, process mining, and task mining:

◦Named a Leader and the only Star Performer in the Everest Group Intelligent Document Processing (IDP) Products report. This report analyzes AI technologies such as computer vision, natural language processing (NLP), and machine/deep learning to classify and extract information from structured, semi-structured, and unstructured documents. Everest Group commented: “UiPath’s acquisition of Re-infer has helped it improve its NLP capabilities for context understanding and communications mining, further contributing to its success.”

◦Named a Leader in Everest Group Process Mining Products PEAK Matrix® Assessment 2023 for the fourth consecutive year. “Investments in product innovation, enhanced integration with its automation suite, and strong YoY growth in its process mining client and revenue base have helped UiPath strengthen its position as a Leader on Everest Group’s Process Mining Products PEAK Matrix® 2023,” Everest Group said.

◦Named a Leader in Everest Group Task Mining Products PEAK Matrix® Assessment 2023 for the first time. The report states that UiPath is a top provider by task mining clients, and that UiPath has experienced 150% year-over-year growth in task mining clients.

◦Positioned by Gartner, Inc. as a Leader in the 2023 Gartner® Magic Quadrant™ for Robotic Process Automation1 research report. UiPath was named a Leader for the fifth year in a row, and in this report UiPath was positioned highest for Ability to Execute.

•Announced Partnership with Peraton to Expand Cloud-based Automation in U.S. Intelligence, Defense, and Federal Civilian Sectors: Peraton, a leading mission capability integrator and transformative enterprise IT provider, is partnering with UiPath to deliver the UiPath Business Automation Platform as a cloud-based managed service to high-security environments within U.S. intelligence, defense, and civilian agencies. The partnership will allow federal government customers to create and execute on automation strategies, drive mission agility, and orchestrate transformational impact for highly sensitive secure workloads.

•Released its Fiscal Year 2023 Impact Report: In this report, UiPath highlights its environmental, social, and governance (ESG) approach and shares the Company’s first materiality assessment, identifying the most relevant areas of impact on stakeholders. In addition, for the first time, the report includes a comprehensive greenhouse gas inventory of data across Scopes 1, 2, and 3 and introduces a commitment by UiPath to set corporate climate targets, in alignment with the Science-Based Target Initiative.

1 Gartner, “Magic Quadrant for Robotic Process Automation”, Saikat Ray, Arthur Villa, Melanie Alexander, Andy Wang, Mukul Saha, Sachin Joshi, 2 August 2023

•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, 2023						January 31, 2023
Assets
Current assets
Cash and cash equivalents						$	1,093,898					$	1,402,119
Restricted cash						400						—
Marketable securities						735,670						354,774
Accounts receivable, net of allowance for credit losses of $1,128 and $2,698, respectively						226,327						374,217
Contract assets						80,602						69,260
Deferred contract acquisition costs						59,326						49,887
Prepaid expenses and other current assets						107,373						94,150
Total current assets						2,303,596						2,344,407
Marketable securities, non-current						—						2,942
Contract assets, non-current						5,021						6,523
Deferred contract acquisition costs, non-current						134,021						137,616
Property and equipment, net						24,679						29,045
Operating lease right-of-use assets						52,847						52,052
Intangible assets, net						19,244						23,010
Goodwill						90,051						88,010
Deferred tax assets						5,573						5,895
Other assets, non-current						35,108						45,706
Total assets						$	2,670,140					$	2,735,206
Liabilities and stockholders' equity
Current liabilities
Accounts payable						$	1,887					$	8,891
Accrued expenses and other current liabilities						64,404						76,645
Accrued compensation and employee benefits						67,836						142,582
Deferred revenue						384,015						398,334
Total current liabilities						518,142						626,452
Deferred revenue, non-current						103,780						121,697
Operating lease liabilities, non-current						56,699						56,442
Other liabilities, non-current						8,153						10,457
Total liabilities						686,774						815,048
Commitments and contingencies
Stockholders' equity
Class A common stock						5						5
Class B common stock						1						1
Additional paid-in capital						3,888,414						3,736,838
Accumulated other comprehensive income						11,506						7,612
Accumulated deficit						(1,916,560)						(1,824,298)
Total stockholders’ equity						1,983,366						1,920,158
Total liabilities and stockholders’ equity						$	2,670,140					$	2,735,206

UiPath, Inc.
Reconciliation of GAAP Operating Cash Flow to Non-GAAP Adjusted Free Cash Flow
in thousands
(unaudited)
						Six Months Ended July 31,
						2023						2022
GAAP net cash provided by (used in) operating activities						$	111,626					$	(76,621)
Purchases of property and equipment						(2,876)						(16,298)
Cash paid for employer payroll taxes related to employee equity transactions						4,830						4,953
Net payments of employee tax withholdings on stock option exercises						924						5,664
Cash paid for restructuring costs						4,792						5,196
Non-GAAP adjusted free cash flow						$	119,296					$	(77,106)