Form: 10-Q

Quarterly report pursuant to Section 13 or 15(d)

September 7, 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 July 31, 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 September 5, 2023, the registrant had 484,285,345 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 described in the section titled "Risk Factors" and elsewhere in this Quarterly Report on Form 10-Q, and 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


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law. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, or investments.


Table of Contents
PART I—FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited).
UiPath, Inc.
Condensed Consolidated Balance Sheets
Amounts in thousands except per share data
(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 asset 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 (Note 11)
Stockholders' equity
Preferred stock, $0.00001 par value per share, 20,000 shares authorized as of July 31, 2023 and January 31, 2023; 0 shares issued and outstanding as of July 31, 2023 and January 31, 2023
   
Class A common stock, $0.00001 par value per share, 2,000,000 shares authorized as of July 31, 2023 and January 31, 2023; 484,128 and 474,160 shares issued and outstanding as of July 31, 2023 and January 31, 2023, respectively
5  5 
Class B common stock, $0.00001 par value per share, 115,741 shares authorized as of July 31, 2023 and January 31, 2023; 82,453 shares issued and outstanding as of July 31, 2023 and January 31, 2023
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 
The accompanying notes are an integral part of these condensed consolidated financial statements.
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Table of Contents
UiPath, Inc.
Condensed Consolidated Statements of Operations
Amounts in thousands except per share data
(unaudited)
Three Months Ended July 31, Six Months Ended July 31,
2023 2022 2023 2022
Revenue:
Licenses $ 119,300  $ 103,696  $ 253,339  $ 220,700 
Subscription services 159,999  124,656  306,351  240,150 
Professional services and other 8,011  13,870  17,208  26,438 
Total revenue 287,310  242,222  576,898  487,288 
Cost of revenue:
Licenses 3,008  2,170  5,555  4,707 
Subscription services 26,777  22,326  49,855  43,371 
Professional services and other 19,202  20,080  37,244  41,514 
Total cost of revenue 48,987  44,576  92,654  89,592 
Gross profit 238,323  197,646  484,244  397,696 
Operating expenses:
Sales and marketing 169,725  181,547  330,131  371,329 
Research and development 86,606  67,849  161,948  136,539 
General and administrative 59,577  68,443  116,161  125,973 
Total operating expenses 315,908  317,839  608,240  633,841 
Operating loss (77,585) (120,193) (123,996) (236,145)
Interest income 13,582  4,505  27,430  5,496 
Other income (expense), net 7,472  (600) 11,766  (3,411)
Loss before income taxes (56,531) (116,288) (84,800) (234,060)
Provision for income taxes 3,830  4,090  7,462  8,879 
Net loss $ (60,361) $ (120,378) $ (92,262) $ (242,939)
Net loss per share attributable to common stockholders, basic and diluted $ (0.11) $ (0.22) $ (0.16) $ (0.45)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted 562,883  546,058  560,422  544,014 
The accompanying notes are an integral part of these condensed consolidated financial statements.
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Table of Contents
UiPath, Inc.
Condensed Consolidated Statements of Comprehensive Loss
Amounts in thousands
(unaudited)
Three Months Ended July 31, Six Months Ended July 31,
2023 2022 2023 2022
Net loss $ (60,361) $ (120,378) $ (92,262) $ (242,939)
Other comprehensive income (loss), net of tax:
Unrealized (loss) gain on available-for-sale marketable securities, net (161) 159  (18) (301)
Foreign currency translation adjustments 1,593  550  3,912  552 
Other comprehensive income, net 1,432  709  3,894  251 
Comprehensive loss $ (58,929) $ (119,669) $ (88,368) $ (242,688)
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 
Issuance of common stock upon exercise of stock options 1,824  —  —  —  2,717  —  —  2,717 
Issuance of common stock upon settlement of restricted stock units 5,026  —  —  —  —  —  —  — 
Tax withholdings on settlement of restricted stock units (1,676) —  —  —  (27,420) —  —  (27,420)
Issuance of common stock under employee stock purchase plan 832  —  —  —  9,313  —  —  9,313 
Stock-based compensation —  —  —  —  102,148  —  —  102,148 
Other comprehensive income, net —  —  —  —  —  1,432  —  1,432 
Net loss —  —  —  —  —  —  (60,361) (60,361)
Balance as of July 31, 2023 484,128 $ 5  82,453  $ 1  $ 3,888,414  $ 11,506  $ (1,916,560) $ 1,983,366 

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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 
Issuance of common stock upon exercise of stock options 1,418  —  —  —  1,878  —  —  1,878 
Issuance of common stock upon settlement of restricted stock units 3,183  1  —  —  —  —  —  1 
Tax withholdings on settlement of restricted stock units (1,040) —  —  —  (18,922) —  —  (18,922)
Charitable donation of Class A common stock 300  —  —  —  5,499  —  —  5,499 
Shares issued in connection with business acquisition 570  —  —  —  2,965  —  —  2,965 
Issuance of common stock under employee stock purchase plan 578  —  —  —  9,070  —  —  9,070 
Repurchase of unvested early exercised stock options (441) —  —  —  —  —  —  — 
Stock-based compensation —  —  —  —  88,533  —  —  88,533 
Other comprehensive income, net of tax —  —  —  —  —  709  —  709 
Net loss —  —  —  —  —  —  (120,378) (120,378)
Balance as of July 31, 2022 466,998  $ 5  82,453  $ 1  $ 3,577,278  $ 11,150  $ (1,738,885) $ 1,849,549 
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)
Six Months Ended July 31,
2023 2022
Cash flows from operating activities
Net loss $ (92,262) $ (242,939)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization 11,160  8,065 
Amortization of deferred contract acquisition costs 31,229  21,860 
Net amortization on marketable securities (10,745) 860 
Stock-based compensation expense 187,145  189,706 
Charitable donation of Class A common stock 4,215  5,499 
Amortization of operating lease right-of-use assets 6,299  4,597 
Provision for deferred income taxes (57) 1,505 
Abandonment and impairment charges   2,881 
Other non-cash charges (credits), net 965  (1,031)
Changes in operating assets and liabilities:
Accounts receivable 147,725  51,707 
Contract assets (9,455) (26,146)
Deferred contract acquisition costs (36,389) (39,572)
Prepaid expenses and other assets (6,679) (4,277)
Accounts payable (6,033) 2,759 
Accrued expenses and other liabilities (4,229) (14,507)
Accrued compensation and employee benefits (74,184) (45,042)
Operating lease liabilities, net (7,532) (2,422)
Deferred revenue (29,547) 9,876 
Net cash provided by (used in) operating activities 111,626  (76,621)
Cash flows from investing activities
Purchases of marketable securities (709,199) (45,600)
Maturities of marketable securities 338,644  47,433 
Purchases of property and equipment (2,876) (16,298)
Payments related to business acquisitions, net of cash acquired   (29,477)
Other investing, net 2,754  (507)
Net cash used in investing activities (370,677) (44,449)
Cash flows from financing activities
Proceeds from exercise of stock options 3,904  4,682 
Payments of tax withholdings on net settlement of equity awards (52,832) (38,717)
Net payments of tax withholdings on sell-to-cover equity award transactions (679) (10,132)
Proceeds from employee stock purchase plan contributions 9,643  8,507 
Payment of deferred consideration related to business acquisition (5,863)  
Repurchase of unvested early exercised stock options   (1,493)
Net cash used in financing activities (45,827) (37,153)
Effect of exchange rate changes (2,943) (3,144)
Net decrease in cash, cash equivalents, and restricted cash (307,821) (161,367)
Cash, cash equivalents and restricted cash - beginning of period 1,402,119  1,768,723 
Cash, cash equivalents and restricted cash - end of period $ 1,094,298  $ 1,607,356 
Supplemental disclosure of cash flow information
Cash paid for interest $ 413  $ 527 
Cash paid for income taxes 7,234  17,610 
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 
Value of shares issued in payment of business acquisitions   2,965 
Payable for marketable securities purchase   3,638 
Loan notes issued in connection with business acquisitions   11,433 
Tax withholdings on net settlement of restricted stock units, accrued but not yet paid 2,466  5,129 
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 AI-powered 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 six months ended July 31, 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 six months ended July 31, 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 July 31, 2023 and 2022, we recognized transaction losses of $0.6 million and $0.8 million, respectively. For the six months ended July 31, 2023 and 2022, we recognized transaction losses of $1.4 million and $2.2 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 July 31, 2023 and January 31, 2023, 95% and 98%, respectively, of our cash and cash equivalents were concentrated in the United States, European Union (“EU”) countries, and Japan.
The selection of investments in marketable securities is governed by our investment policy. The policy aims to emphasize principles of safety and liquidity, with the overall objective of earning an attractive rate of return while limiting exposure to risk of loss and avoiding inappropriate concentrations. We use this policy to guide our investment decisions as it stipulates, among other things, a list of eligible investment types, minimum ratings and other restrictions for each type, and overall portfolio composition constraints.
With regard to accounts receivable, 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 and six months ended July 31, 2023 and 2022, no single customer accounted for 10% or more of our total revenue. As of July 31, 2023 and January 31, 2023, no single customer accounted for 10% or more of our accounts receivable.
Stock-Based Compensation
We recognize stock-based compensation expense in accordance with the provisions of Accounting Standards Codification ("ASC") 718, Compensation—Stock Compensation. ASC 718 requires the measurement and recognition of compensation expense for all stock-based awards made to employees, directors, and non-employees based on the grant date fair value of the awards.
The fair value of each stock option is determined using the Black-Scholes pricing model. The fair value of each restricted stock unit ("RSU") and restricted stock award ("RSA") is determined based on the fair value of our Class A common stock on the grant date. The fair value of each performance stock unit ("PSU") that is dependent on the satisfaction of a performance condition is also determined based on the fair value of our Class A common stock on the grant date.The fair value of shares under our employee stock purchase plan ("ESPP") is determined using the Black-Scholes pricing model.

Stock-based compensation expense is included in cost of revenue and operating expenses within our consolidated statements of operations based on the expense classification of the individual earning the award.

The fair value of awards with only service-based vesting conditions is recognized as expense over the requisite service period on a straight-line basis.

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UiPath, Inc.
Notes to Condensed Consolidated Financial Statements (Continued)
(unaudited)
For PSUs dependent on the satisfaction of a performance condition, compensation expense is recognized only when management believes it is probable that the performance condition will be achieved. Although total compensation expense recognized for these awards will ultimately equal the grant date fair value per share multiplied by the number of shares earned by the holder, changes in management's expectations can cause fluctuations in timing of expense over the life of these awards.

The fair value of ESPP shares is recognized over the relevant offering period on a straight-line basis.

With all award types, we account for forfeitures as they occur.
3. Revenue Recognition
Disaggregation of Revenue
The following tables summarize revenue by geographical region (dollars in thousands): 
Three Months Ended July 31,
2023 2022
Amount Percentage of
Revenue
Amount Percentage of
Revenue
Americas (1)
$ 139,718  49  % $ 120,977  50  %
Europe, Middle East, and Africa 81,009  28  % 69,521  29  %
Asia-Pacific (2)
66,583  23  % 51,724  21  %
Total revenue $ 287,310  100  % $ 242,222  100  %
(1)Revenue from the United States represented 44% and 45% of our total revenues for the three months ended July 31, 2023 and 2022, respectively.
(2)Revenue from Japan represented 10% and 9% of our total revenues for the three months ended July 31, 2023 and 2022, respectively.

Six Months Ended July 31,
2023 2022
Amount Percentage of
Revenue
Amount Percentage of
Revenue
Americas (1)
$ 263,170  46  % $ 235,128  48  %
Europe, Middle East, and Africa 177,940  31  % 139,124  29  %
Asia-Pacific (2)
135,788  23  % 113,036  23  %
Total revenue $ 576,898  100  % $ 487,288  100  %
(1)Revenue from the United States represented 41% and 44% of our total revenues for the six months ended July 31, 2023 and 2022, respectively.
(2)Revenue from Japan represented 11% and 11% of our total revenues for the six months ended July 31, 2023 and 2022, respectively.
Deferred Revenue
During the six months ended July 31, 2023 and 2022, we recognized $254.8 million and $201.9 million of revenue that was included in the deferred revenue balance as of January 31, 2023 and 2022, respectively.
Remaining Performance Obligations
Our remaining performance obligations are comprised of licenses, subscription services, and professional services and other revenue not yet delivered. As of July 31, 2023, the aggregate amount of the transaction price allocated to remaining performance obligations was $905.4 million, which consists of $487.8 million of billed consideration and $417.6 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.
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Table of Contents
UiPath, Inc.
Notes to Condensed Consolidated Financial Statements (Continued)
(unaudited)
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 $17.1 million and $11.1 million for the three months ended July 31, 2023 and 2022, respectively, and $31.2 million and $21.9 million for the six months ended July 31, 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 July 31, 2023
Amortized Cost Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated Fair Value
Commercial paper $ 61,740  $   $   $ 61,740 
Treasury bills and U.S. government securities (1)
555,966    (418) 555,548 
Corporate bonds 10,809    (39) 10,770 
Municipal bonds 1,751    (15) 1,736 
Agency bonds 106,034    (158) 105,876 
Total marketable securities $ 736,300  $   $ (630) $ 735,670 
(1) Treasury bills with both amortized cost and estimated fair value of $39.8 million are included in cash and cash equivalents due to their original maturity of three months or less.
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 July 31, 2023 and January 31, 2023, none and $2.9 million, respectively, of our marketable securities had remaining contractual maturities of one year or more.
As of July 31, 2023 and January 31, 2023, $3.0 million and $3.5 million, respectively, 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 July 31, 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 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.
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Table of Contents
UiPath, Inc.
Notes to Condensed Consolidated Financial Statements (Continued)
(unaudited)
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 July 31, 2023 and January 31, 2023 (in thousands): 
  As of July 31, 2023
  Level 1 Level 2 Total
Financial assets:      
Money market $ 528,156  $   $ 528,156 
Treasury bills 39,807    39,807 
Commercial paper   24,977  24,977 
Total cash equivalents 567,963  24,977  592,940 
Commercial paper   61,740  61,740 
Treasury bills and U.S. government securities 555,548    555,548 
Corporate bonds   10,770  10,770 
Municipal bonds   1,736  1,736 
Agency bonds 105,876    105,876 
Total marketable securities 661,424  74,246  735,670 
Total $ 1,229,387  $ 99,223  $ 1,328,610 
  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 July 31, 2023 or January 31, 2023.
6. Business Acquisition
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 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.
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Table of Contents
UiPath, Inc.
Notes to Condensed Consolidated Financial Statements (Continued)
(unaudited)
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 paid on July 29, 2023 (first anniversary of closing) 5,863 
Loan note to be paid on second anniversary of closing (included in accrued expenses and other current liabilities as of July 31, 2023)
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 July 31, 2023 (dollars in thousands): 
  Intangible Assets,
Gross
Accumulated
Amortization
Intangible
Assets,
Net
Weighted-
Average
Remaining
Useful Life
(in years)
Developed technology $ 29,194  $ (14,206) $ 14,988  3.2
Customer relationships 8,325  (4,985) 3,340  1.6
Trade names and trademarks 273  (251) 22  0.7
Other intangibles 1,231  (337) 894  7.3
Total $ 39,023  $ (19,779) $ 19,244 
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 July 31, 2023 and 2022 was $2.2 million and $1.3 million, respectively, and for the six months ended July 31, 2023 and 2022 was $4.3 million and $2.7 million, respectively.
Expected future amortization expense related to intangible assets was as follows as of July 31, 2023 (in thousands):
  Amount
Remainder of year ending January 31, 2024 $ 4,372 
Year ending January 31,
2025 6,766 
2026 4,144 
2027 2,480 
2028 1,179 
Thereafter 303 
Total $ 19,244 
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UiPath, Inc.
Notes to Condensed Consolidated Financial Statements (Continued)
(unaudited)
Goodwill
Changes in the carrying amount of goodwill during the six months ended July 31, 2023 were as follows (in thousands):
  Carrying
Amount
Balance as of January 31, 2023 $ 88,010 
Effect of foreign currency translation 2,041 
Balance as of July 31, 2023 $ 90,051 
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 July 31, Six Months Ended July 31,
2023 2022 2023 2022
Operating lease cost $ 3,228  $ 2,736  $ 6,299  $ 5,495 
Short-term lease cost 1,320  1,535  2,620  3,043 
Variable lease cost 525  316  1,146  523 
Sublease income (1)
(533) (533) (1,065) (1,065)
Total $ 4,540  $ 4,054  $ 9,000  $ 7,996 
(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
July 31, 2023 January 31, 2023
Weighted-average remaining lease term (years) 11.5 12.1
Weighted-average discount rate 7.1  % 7.0  %
Future undiscounted lease payments for our operating lease liabilities as of July 31, 2023 were as follows (in thousands):
Amount
Remainder of year ending January 31, 2024
$ 5,393 
Year ending January 31,
2025 11,354 
2026 9,225 
2027 8,608 
2028 7,917 
Thereafter 48,965 
Total operating lease payments 91,462 
Less: imputed interest (28,422)
Total operating lease liabilities $ 63,040 
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UiPath, Inc.
Notes to Condensed Consolidated Financial Statements (Continued)
(unaudited)
As of July 31, 2023, we had non-cancellable commitments in the amount of $4.6 million related to operating leases of real estate facilities that have not yet commenced.
Current operating lease liabilities of $6.3 million and $7.0 million were included in accrued expenses and other current liabilities on our condensed consolidated balance sheets as of July 31, 2023 and January 31, 2023, respectively.
Supplemental cash flow information related to leases for the three and six months ended July 31, 2023 and 2022 was as follows (in thousands):
Three Months Ended July 31, Six Months Ended July 31,
2023 2022 2023 2022
Cash paid for amounts included in the measurement of operating lease liabilities $ 3,545  $ 1,493  $ 6,160  $ 3,557 
Operating lease ROU assets obtained in exchange for new operating lease liabilities 2,688  2,120  4,681  2,890 
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
July 31,
2023
January 31,
2023
Prepaid expenses and service credits $ 82,520  $ 67,794 
Other current assets 24,853  26,356 
Prepaid expenses and other current assets $ 107,373  $ 94,150 
Property and Equipment, Net
Property and equipment, net consisted of the following (in thousands):
As of
July 31,
2023
January 31,
2023
Computers and equipment $ 29,003  $ 28,450 
Leasehold improvements 21,843  19,622 
Furniture and fixtures 6,604  6,485 
Construction in progress 447  2,419 
Property and equipment, gross 57,897  56,976 
Less: accumulated depreciation (33,218) (27,931)
Property and equipment, net $ 24,679  $ 29,045 
Depreciation expense for the three months ended July 31, 2023 and 2022 was $2.8 million and $1.9 million, respectively. Depreciation expense for the six months ended July 31, 2023 and 2022 was $5.8 million and $3.8 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
July 31, 2023 January 31, 2023
Accrued expenses $ 12,188  $ 19,411 
Withholding tax from employee equity transactions 2,408  3,772 
Employee stock purchase plan withholdings 3,688  3,365 
Payroll taxes and other benefits payable 3,879  7,644 
Income tax payable 10,220  8,750 
Value-added taxes payable 2,567  6,381 
Operating lease liabilities, current 6,341  6,997 
Deferred consideration for business acquisition, current 5,570  5,863 
Other 17,543  14,462 
Accrued expenses and other current liabilities $ 64,404  $ 76,645 
10. Credit Facility
On October 30, 2020 and as amended, we entered into a $200.0 million senior secured revolving credit facility with a maturity date of October 30, 2023 (the “Credit Facility”) with HSBC Ventures USA Inc., Silicon Valley Bank, a division of First Citizens Bank & Trust Company (successor by purchase to the FDIC as receiver for Silicon Valley Bridge Bank, N.A. (as successor to Silicon Valley Bank)), Sumitomo Mitsui Banking Corporation, and Mizuho Bank, LTD (together, the "Lenders"). The Credit Facility contains certain customary covenants, including, but not limited to, those relating to additional indebtedness, liens, asset divestitures, and affiliate transactions.
As of July 31, 2023 and January 31, 2023, there were no amounts outstanding under the Credit Facility.
In September 2023, we and the Lenders terminated the Credit Facility prior to its original maturity date.
11. Commitments and Contingencies
Letters of Credit
We had a total of $3.6 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 July 31, 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 July 31, 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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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 5%. The workforce reduction aimed to simplify our go-to-market approach and improve sales productivity. In connection with these workforce reductions, we also ceased use of our office in Brooklyn, NY. On November 10, 2022, our board of directors approved further restructuring actions to reduce our global workforce across functions by an additional 6%.
For the six months ended July 31, 2023, we incurred $2.6 million of expense associated with employee termination benefits in connection with the completion of our restructuring actions.
The following table shows the total amount incurred, and the liability, which is recorded in accrued compensation and employee benefits in the condensed consolidated balance sheets, for restructuring-related employee termination benefits as of July 31, 2023 (in thousands):
Employee Termination Benefits
Accrued restructuring costs as of January 31, 2023 $ 3,889 
Restructuring costs incurred during the six months ended July 31, 2023 2,606 
Amount paid during the six months ended July 31, 2023 (4,792)
Accrued restructuring costs as of July 31, 2023 $ 1,703 
Defined Contribution Plans
We sponsor retirement plans for qualifying employees, including a 401(k) plan in the U.S. and defined contribution plans in certain other countries, to which we make matching contributions. Our total matching contributions to all defined contribution plans was $3.5 million and $3.7 million for the three months ended July 31, 2023 and 2022, respectively, and $9.1 million and $8.7 million for the six months ended July 31, 2023 and 2022, respectively.
Litigation
From time to time, we may be involved in lawsuits, claims, investigations, and proceedings, consisting of intellectual property, commercial, employment, and other matters, which arise in the ordinary course of business. In accordance with ASC 450, Contingencies, we make a provision for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated.
We are not presently a party to any litigation the outcome of which we believe, if determined adversely to us, would individually or taken together have a material adverse effect on our business, operating results, cash flows, or financial condition. We have determined that the existence of a material loss is neither probable nor reasonably possible.
Warranty
We warrant to customers that our platform will operate substantially in accordance with its specifications. Historically, no significant costs have been incurred related to product warranties. Based on such historical experience, the probability of incurring such costs in the future is deemed remote. As such, no accruals for product warranty costs have been made.
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Table of Contents
UiPath, Inc.
Notes to Condensed Consolidated Financial Statements (Continued)
(unaudited)
Non-Cancelable Purchase Obligations
In the normal course of business, we enter into non-cancelable purchase commitments with various parties, mainly for hosting services, software products and services, and credits toward purchase of products and services from strategic alliance partners.
As of July 31, 2023, we had outstanding non-cancelable purchase obligations with a term of 12 months or longer as follows (in thousands):
Amount
Remainder of year ending January 31, 2024 $ 33,578 
Year ending January 31,
2025 99,928 
2026 56,633 
2027 20,332 
2028 8,245 
Thereafter  
Total $ 218,716 
12. Stockholders’ Equity
Charitable Donations of Class A Common Stock
We have reserved 2.8 million shares of our Class A common stock to fund our social impact and environmental, social, and governance initiatives. During the six months ended July 31, 2023, we contributed 0.3 million shares of our Class A common stock to a donor-advised fund in connection with our Pledge 1% commitment. The aggregate fair value of the shares on the contribution date of $4.2 million was recorded within general and administrative expense in the condensed consolidated statements of operations.
Accumulated Other Comprehensive Income (Loss)
For the six months ended July 31, 2023 and 2022, changes in the components of accumulated other comprehensive income (loss) were as follows (in thousands):
Foreign Currency Translation Adjustments Unrealized Gain (Loss) on Marketable Securities Accumulated Other Comprehensive Income
Balance as of January 31, 2023 $ 8,231  $ (619) $ 7,612 
Other comprehensive income (loss), net of tax 3,912  (18) 3,894 
Balance as of July 31, 2023 $ 12,143  $ (637) $ 11,506 

Foreign Currency Translation Adjustments Unrealized Loss on Marketable Securities Accumulated Other Comprehensive Income (Loss)
Balance as of January 31, 2022 $ 11,234  $ (335) $ 10,899 
Other comprehensive income (loss), net of tax 552  (301) 251 
Balance as of July 31, 2022 $ 11,786  $ (636) $ 11,150 
13. Equity Incentive Plans and Stock-Based Compensation
2021 Stock Plan
In April 2021, prior to and in connection with the IPO, we adopted our 2021 Equity Incentive Plan (the "2021 Plan"), which provides for grants of incentive stock options, nonstatutory stock options, stock appreciation rights,
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UiPath, Inc.
Notes to Condensed Consolidated Financial Statements (Continued)
(unaudited)
RSAs, RSUs, PSUs, and other forms of awards. As of July 31, 2023, we have reserved 173.7 million shares of our Class A common stock to be issued under the 2021 Plan. The number of shares of our Class A common stock reserved for issuance under the 2021 Plan will automatically increase on February 1 of each year for a period of ten years, which began on February 1, 2022 and continues through February 1, 2031, in an amount equal to (1) 5% of the total number of shares of our common stock (both Class A and Class B) outstanding on the preceding January 31, or (2) a lesser number of shares determined by our board of directors no later than the February 1 increase.
2021 Employee Stock Purchase Plan
In April 2021, prior to and in connection with the IPO, we adopted our 2021 Employee Stock Purchase Plan (the “ESPP”). As of July 31, 2023, the ESPP authorizes the issuance of 21.5 million shares of our Class A common stock under purchase rights granted to our employees or to employees of any of our designated affiliates. The number of shares of our Class A common stock reserved for issuance will automatically increase on February 1 of each year for a period of ten years, which began on February 1, 2022 and continues through February 1, 2031, by the lesser of (1) 1% of the total number of shares of our common stock (both Class A and Class B) outstanding on the preceding January 31; and (2) 15.5 million shares, except before the date of any such increase, our board of directors may determine that such increase will be less than the amount set forth by (1) and (2) above. The ESPP allows participants to purchase shares at the lesser of (a) 85% of the fair market value of our Class A common stock as of the commencement of each offering period, and (b) 85% of the fair market value of our Class A common stock on the corresponding purchase date.
Stock Options
Stock option activity during the six months ended July 31, 2023 was as follows:
Stock
Options
(in thousands)
Weighted-
Average Exercise
Price
Weighted-Average
Remaining
Contractual
Life (years)
Aggregate
Intrinsic Value
(in thousands)
Outstanding as of January 31, 2023 13,898  $ 3.32  7.7 $ 169,324 
Granted 2,614  $ 0.10 
Exercised (2,722) $ 1.43 
Forfeited (205) $ 0.82 
Outstanding as of July 31, 2023 13,585  $ 3.11  7.7 $ 203,300 
Vested and exercisable as of July 31, 2023 5,763  $ 3.61  6.0 $ 83,392 
The weighted-average grant date fair value of stock options granted during the six months ended July 31, 2023 was $16.62 per share. The intrinsic value of stock options exercised during the six months ended July 31, 2023 was $42.2 million.
Unrecognized compensation expense associated with unvested stock options granted and outstanding as of July 31, 2023, was $129.8 million, which is to be recognized over a weighted-average remaining period of 2.5 years.
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UiPath, Inc.
Notes to Condensed Consolidated Financial Statements (Continued)
(unaudited)
Restricted Stock Units
RSU activity during the six months ended July 31, 2023 was as follows:
RSUs (in thousands) Weighted-Average Grant
Date Fair Value Per Share
Unvested as of January 31, 2023 36,785  $ 22.48 
Granted 15,620  $ 16.60 
Vested (9,133) $ 20.89 
Forfeited (5,013) $ 23.71 
Unvested as of July 31, 2023 38,259  $ 20.30 
The vesting date fair value of RSUs that vested during the six months ended July 31, 2023 was $157.0 million.
As of July 31, 2023, total unrecognized compensation expense related to unvested RSUs was approximately $693.1 million, which is to be recognized over a weighted-average remaining period of 2.6 years.
Restricted Stock Awards
In September 2020, we issued approximately 0.1 million RSAs to a member of our board of directors at a grant date fair value of $33.22 per share, totaling $4.0 million. Such RSAs vest monthly over four years from the grant date. The unvested shares are subject to a repurchase right held by us. As of July 31, 2023, total unrecognized compensation expense related to unvested RSAs was $1.1 million and will be recognized over the remaining vesting period of 1.1 years.
Performance Stock Units
On July 31, 2023, we granted approximately 0.1 million PSUs at a grant date fair value of $18.08 per share. The PSUs are subject to performance conditions related to the achievement of certain individual and Company targets for fiscal year 2024, and the number of shares earned will ultimately be 0%, 100%, or 200% of the base number of PSUs awarded. To the extent that they are earned, these PSUs will vest on April 1, 2024.
Employee Stock Purchase Plan Awards
During the six months ended July 31, 2023, 0.8 million shares were purchased under the ESPP at $11.19 per share. As of July 31, 2023, total unrecognized compensation expense related to the ESPP was approximately $2.5 million, which is to be recognized over a weighted-average remaining period of 0.4 years.
Stock-Based Compensation Associated with Business Acquisition
At the closing of the acquisition of Re:infer on July 29, 2022, we issued 0.4 million shares of Class A common stock (outside of the 2021 Plan) to be released to certain employee sellers in equal installments on the first, second, and third anniversaries of the closing date, subject to employment-related clawback provisions. As of July 31, 2023,
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UiPath, Inc.
Notes to Condensed Consolidated Financial Statements (Continued)
(unaudited)
total unrecognized compensation expense related to these shares was $5.1 million, which is to be recognized over a weighted-average remaining period of 2.0 years.
Stock-Based Compensation Expense
Stock-based compensation expense is classified in the condensed consolidated statements of operations as follows (in thousands):
Three Months Ended July 31, Six Months Ended July 31,
2023 2022 2023 2022
Cost of subscription services revenue $ 3,809  $ 2,841  $ 6,987  $ 6,057 
Cost of professional services and other revenue 3,083  2,528  5,782  6,402 
Sales and marketing 39,007  35,889  72,130  86,647 
Research and development 33,071  23,501