Form: 10-Q

Quarterly report pursuant to Section 13 or 15(d)

June 3, 2024

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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, 2024
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, 2024, the registrant had 490,324,835 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.



Table of Contents
Page



Table of Contents
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 revenue, annualized renewal run-rate ("ARR"), expenses, and other operating results;
our ability to effectively manage our growth and achieve or sustain profitability;
our ability to acquire new customers and successfully retain existing customers;
the ability of the UiPath Business Automation Platform to satisfy and adapt to customer demands and our ability to increase its adoption;
our ability to grow our platform and release new functionality in a timely manner;
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, including our CEO transition;
our ability to obtain, maintain, and enforce our intellectual property rights and any costs associated therewith;
the effect of significant events with macroeconomic impacts, including but not limited to military conflicts and other changes in geopolitical relationships and inflationary cost trends, on our business, industry, and the global economy;
our reliance on third-party providers of cloud-based infrastructure;
our ability to compete effectively with existing competitors and new market entrants, including new, potentially disruptive technologies;
the size and growth rates of the markets in which we compete; and
the price volatility of our Class A common stock.
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, 2024 filed with the Securities and Exchange Commission ("SEC") on March 27, 2024 (the "2024 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.


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
April 30,
2024
January 31,
2024
ASSETS
Current assets
Cash and cash equivalents $ 1,146,618  $ 1,061,678 
Restricted cash 438  438 
Marketable securities 788,920  818,145 
Accounts receivable, net of allowance for credit losses of $1,827 and $1,119, respectively
270,621  436,296 
Contract assets 88,146  84,197 
Deferred contract acquisition costs 76,309  74,678 
Prepaid expenses and other current assets 98,146  104,980 
Total current assets 2,469,198  2,580,412 
Marketable securities, non-current 962   
Contract assets, non-current 9,960  6,214 
Deferred contract acquisition costs, non-current 145,175  154,317 
Property and equipment, net 22,741  23,982 
Operating lease right-of-use assets 60,458  56,072 
Intangible assets, net 12,577  14,704 
Goodwill 88,384  89,026 
Deferred tax assets 3,900  4,678 
Other assets, non-current 31,621  25,353 
Total assets $ 2,844,976  $ 2,954,758 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 6,864  $ 3,447 
Accrued expenses and other current liabilities 84,793  83,997 
Accrued compensation and employee benefits 40,663  137,442 
Deferred revenue 465,216  486,805 
Total current liabilities 597,536  711,691 
Deferred revenue, non-current 150,934  161,027 
Operating lease liabilities, non-current 62,772  58,713 
Other liabilities, non-current 6,730  7,213 
Total liabilities 817,972  938,644 
Commitments and contingencies (Note 9)
Stockholders' equity
Preferred stock, $0.00001 par value per share, 20,000 shares authorized; none issued and outstanding
   
Class A common stock, $0.00001 par value per share, 2,000,000 shares authorized; 496,893 and 492,660 shares issued; 490,115 and 486,820 shares outstanding, respectively
5  5 
Class B common stock, $0.00001 par value per share, 115,741 shares authorized; 82,453 shares issued and outstanding
1  1 
Treasury stock, at cost, 6,778 and 5,840 shares, respectively
(124,620) (102,615)
Additional paid-in capital 4,089,795  4,024,079 
Accumulated other comprehensive income 4,740  8,825 
Accumulated deficit (1,942,917) (1,914,181)
Total stockholders’ equity 2,027,004  2,016,114 
Total liabilities and stockholders’ equity $ 2,844,976  $ 2,954,758 
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,
2024 2023
Revenue:
Licenses $ 140,128  $ 134,039 
Subscription services 185,131  146,352 
Professional services and other 9,853  9,197 
Total revenue 335,112  289,588 
Cost of revenue:
Licenses 2,601  2,547 
Subscription services 36,754  23,078 
Professional services and other 15,970  18,042 
Total cost of revenue 55,325  43,667 
Gross profit 279,787  245,921 
Operating expenses:
Sales and marketing 180,139  160,406 
Research and development 85,603  75,342 
General and administrative 63,510  56,584 
Total operating expenses 329,252  292,332 
Operating loss (49,465) (46,411)
Interest income 13,830  13,848 
Other income, net 10,679  4,294 
Loss before income taxes (24,956) (28,269)
Provision for income taxes 3,780  3,632 
Net loss $ (28,736) $ (31,901)
Net loss per share, basic and diluted $ (0.05) $ (0.06)
Weighted-average shares used in computing net loss per share, basic and diluted 569,925  557,878 
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,
2024 2023
Net loss $ (28,736) $ (31,901)
Other comprehensive (loss) income, net of tax:
Unrealized (loss) gain on available-for-sale marketable securities, net (511) 143 
Foreign currency translation adjustments (3,574) 2,319 
Other comprehensive (loss) income, net (4,085) 2,462 
Comprehensive loss $ (32,821) $ (29,439)
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 Treasury Stock Additional Paid-in Capital Accumulated Other Comprehensive Income (Loss) Accumulated Deficit Total Stockholders’ Equity
Class A Class B
Shares Amount Shares Amount Shares Amount Amount Amount Amount Amount
Balance as of January 31, 2024 492,660  $ 5  82,453  $ 1  (5,840) $ (102,615) $ 4,024,079  $ 8,825  $ (1,914,181) $ 2,016,114 
Issuance of common stock upon exercise of stock options 1,426  —  —  —  —  —  311  —  —  311 
Issuance of common stock upon settlement of restricted stock units 3,843  —  —  —  —  —  —  —  —  — 
Tax withholdings on settlement of restricted stock units (1,317) —  —  —  —  —  (29,944) —  —  (29,944)
Charitable donation of Class A common stock 281  —  —  —  —  —  6,564  —  —  6,564 
Repurchase of Class A Common Stock —  —  —  —  (938) (22,005) —  —  —  (22,005)
Stock-based compensation —  —  —  —  —  —  88,785  —  —  88,785 
Other comprehensive loss, net —  —  —  —  —  —  —  (4,085) —  (4,085)
Net loss —  —  —  —  —  —  —  —  (28,736) (28,736)
Balance as of April 30, 2024 496,893  $ 5  82,453  $ 1  (6,778) $ (124,620) $ 4,089,795  $ 4,740  $ (1,942,917) $ 2,027,004 

Common Stock Treasury Stock Additional Paid-in Capital Accumulated Other Comprehensive Income Accumulated Deficit Total Stockholders’ Equity
Class A Class B
Shares Amount 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 donations 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 
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,
2024 2023
Cash flows from operating activities
Net loss $ (28,736) $ (31,901)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization 4,902  5,616 
Amortization of deferred contract acquisition costs 18,467  14,072 
Net amortization on marketable securities (9,268) (4,097)
Stock-based compensation expense 88,727  85,048 
Charitable donation of Class A common stock 6,564  4,215 
Non-cash operating lease expense 3,476  3,071 
Provision for deferred income taxes 569  (267)
Other non-cash (credits) charges, net (966) 624 
Changes in operating assets and liabilities:
Accounts receivable 162,444  141,557 
Contract assets (7,645) 660 
Deferred contract acquisition costs (12,437) (15,499)
Prepaid expenses and other assets (803) (5,860)
Accounts payable 3,936  (2,130)
Accrued expenses and other liabilities (4,195) (10,547)
Accrued compensation and employee benefits (96,403) (93,390)
Operating lease liabilities, net (3,912) (2,946)
Deferred revenue (24,683) (20,885)
Net cash provided by operating activities 100,037  67,341 
Cash flows from investing activities
Purchases of marketable securities (323,137) (215,391)
Maturities of marketable securities 360,141  78,955 
Purchases of property and equipment (1,238) (1,870)
Other investing, net   2,754 
Net cash provided by (used in) investing activities 35,766  (135,552)
Cash flows from financing activities
Repurchases of Class A common stock (22,005)  
Proceeds from exercise of stock options 312  1,187 
Payments of tax withholdings on net settlement of equity awards (28,959) (25,902)
Net payments of tax withholdings on sell-to-cover equity award transactions   (645)
Proceeds from employee stock purchase plan contributions 4,916  4,730 
Net cash used in financing activities (45,736) (20,630)
Effect of exchange rate changes (5,127) (1,702)
Net increase (decrease) in cash, cash equivalents, and restricted cash 84,940  (90,543)
Cash, cash equivalents, and restricted cash - beginning of period
1,062,116  1,402,119 
Cash, cash equivalents, and restricted cash - end of period
$ 1,147,056  $ 1,311,576 
Supplemental disclosure of cash flow information
Cash paid for interest $ 45  $ 86 
Cash paid for income taxes 7,391  6,218 
Supplemental disclosure of non-cash investing and financing activities
Property and equipment purchases included in accounts payable 50  65 
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 4,304  1,996 
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 2024 Form 10-K. There have been no significant changes to such policies during the three months ended April 30, 2024.
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, 2024, which are included in the 2024 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, 2024 are not necessarily indicative of the results to be expected for the fiscal year ending January 31, 2025 or for any other future interim or annual period.
Fiscal Year
Our fiscal year ends on January 31. References to fiscal year 2025, for example, refer to the fiscal year ending January 31, 2025.
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, 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, 2024 and 2023, we recognized foreign currency transaction gains (losses) of $2.8 million and $(0.8) 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, 2024 and January 31, 2024, 95% and 91%, respectively, of our cash and cash equivalents were concentrated in the U.S., 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 months ended April 30, 2024 and 2023, no single customer accounted for 10% or more of our total revenue. As of April 30, 2024 and January 31, 2024, no single customer accounted for 10% or more of our accounts receivable.
Recently Issued Accounting Pronouncements
In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU No. 2023-07 is intended to improve reportable segments disclosures requirements, primarily through enhanced disclosures about significant segment expenses. ASU No. 2023-07 will be effective for us for annual periods beginning after December 15, 2023 and for interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. We are currently evaluating the impact of this pronouncement on our condensed consolidated financial statements.
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU No. 2023-09 will require additional tax disclosures, predominantly related to the effective income tax rate reconciliation and income taxes paid. ASU No. 2023-09 will be effective for us for annual periods beginning after December 15, 2024. Early adoption is permitted. We are currently evaluating the impact of this pronouncement on our condensed consolidated financial statements.
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UiPath, Inc.
Notes to Condensed Consolidated Financial Statements (Continued)
(unaudited)
3. Revenue Recognition
Disaggregation of Revenue
The following tables summarize revenue by geographical region (dollars in thousands): 
Three Months Ended April 30,
2024 2023
Amount Percentage of Revenue Amount Percentage of Revenue
Americas (1)
$ 153,111  46  % $ 123,452  43  %
Europe, Middle East, and Africa 104,627  31  % 96,931  33  %
Asia-Pacific (2)
77,374  23  % 69,205  24  %
Total revenue $ 335,112  100  % $ 289,588  100  %
(1)Revenue from the U.S. represented 42% and 38% of our total revenues for the three months ended April 30, 2024 and 2023, respectively.
(2)Revenue from Japan represented 13% and 13% of our total revenues for the three months ended April 30, 2024 and 2023, respectively.
Deferred Revenue
During the three months ended April 30, 2024 and 2023, we recognized $182.3 million and $150.6 million of revenue that was included in the deferred revenue balance as of January 31, 2024 and 2023, 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 April 30, 2024, the aggregate amount of the transaction price allocated to remaining performance obligations was $1,100.6 million, which consists of $616.2 million of billed consideration and $484.4 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 $18.5 million and $14.1 million for the three months ended April 30, 2024 and 2023, 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, 2024
Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value
Commercial paper $ 978  $   $   $ 978 
Treasury bills and U.S. government securities(1)
710,071    (506) 709,565 
Corporate bonds(2)
24,778    (60) 24,718 
Agency bonds 54,661    (40) 54,621 
Total marketable securities $ 790,488  $   $ (606) $ 789,882 
(1) Additional treasury bills with both amortized cost and estimated fair value of $19.8 million are included in cash and cash equivalents due to their original maturity of three months or less.
(2) Additional corporate bonds with both amortized cost and estimated fair value of $6.1 million are included in cash and cash equivalents due to their original maturity of three months or less.
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UiPath, Inc.
Notes to Condensed Consolidated Financial Statements (Continued)
(unaudited)
As of January 31, 2024
Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value
Treasury bills and U.S. government securities 641,263  29  (100) 641,192 
Corporate bonds 1,993    (2) 1,991 
Agency bonds 174,990    (28) 174,962 
Total marketable securities $ 818,246  $ 29  $ (130) $ 818,145 
As of April 30, 2024 and January 31, 2024, $1.0 million and none, respectively, of our marketable securities had remaining contractual maturities of one year or more.
As of April 30, 2024 and January 31, 2024, $3.1 million and $3.3 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 April 30, 2024 and January 31, 2024.
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.
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, 2024 and January 31, 2024 (in thousands): 
  As of April 30, 2024
  Level 1 Level 2 Total
Money market $ 499,276  $   $ 499,276 
Treasury bills 19,765    19,765 
Corporate bonds   6,065  6,065 
Total cash equivalents 519,041  6,065  525,106 
Commercial paper   978  978 
Treasury bills and U.S. government securities 709,565    709,565 
Corporate bonds   24,718  24,718 
Agency bonds 54,621    54,621 
Total marketable securities 764,186  25,696  789,882 
Total $ 1,283,227  $ 31,761  $ 1,314,988 
  As of January 31, 2024
  Level 1 Level 2 Total
Money market $ 509,053  $   $ 509,053 
Total cash equivalents 509,053    509,053 
Treasury bills and U.S. government securities 641,192    641,192 
Corporate bonds   1,991  1,991 
Agency bonds 174,962    174,962 
Total marketable securities 816,154  1,991  818,145 
Total $ 1,325,207  $ 1,991  $ 1,327,198 
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 and corporate 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
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UiPath, Inc.
Notes to Condensed Consolidated Financial Statements (Continued)
(unaudited)
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, 2024 or January 31, 2024.
6. Intangible Assets and Goodwill
Intangible Assets, Net
Acquired intangible assets, net consisted of the following as of April 30, 2024 (dollars in thousands): 
  Intangible Assets, Gross Accumulated Amortization
Intangible Assets, Net
Weighted-Average Remaining Useful Life (years)
Developed technology $ 28,572  $ (18,166) $ 10,406  2.6
Customer relationships 8,228  (6,829) 1,399  1.2
Trade names and trademarks 271  (271)   0.0
Other intangibles 1,231  (459) 772  6.9
Total $ 38,302  $ (25,725) $ 12,577 
Acquired intangible assets, net consisted of the following as of January 31, 2024 (dollars in thousands):
 
Intangible Assets, Gross
Accumulated Amortization Intangible Assets, Net
Weighted-Average Remaining Useful Life (years)
Developed technology $ 28,807  $ (16,881) $ 11,926  2.8
Customer relationships 8,266  (6,306) 1,960  1.3
Trade names and trademarks 272  (266) 6  0.2
Other intangibles 1,231  (419) 812  7.0
Total $ 38,576  $ (23,872) $ 14,704 
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, 2024 and 2023 was $2.0 million and $2.1 million, respectively.
Expected future amortization expense related to intangible assets was as follows as of April 30, 2024 (in thousands):
  Amount
Remainder of year ending January 31, 2025 $ 4,615 
Year ending January 31,
2026 4,079 
2027 2,428 
2028 1,153 
2029 101 
Thereafter 201 
Total $ 12,577 
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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, 2024 were as follows (in thousands):
  Carrying Amount
Balance as of January 31, 2024 $ 89,026 
Effect of foreign currency translation (642)
Balance as of April 30, 2024 $ 88,384 
7. Operating Leases
Our operating leases consist of real estate and vehicles and have remaining lease terms of one year to 14 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,
2024 2023
Operating lease cost $ 3,476  $ 3,071 
Short-term lease cost 1,123  1,300 
Variable lease cost 523  621 
Sublease income (1)
  (532)
Total $ 5,122  $ 4,460 
(1) Included in other income, 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,
2024
January 31,
2024
Weighted-average remaining lease term (years) 10.5 10.7
Weighted-average discount rate 7.2  % 7.1  %
Future undiscounted lease payments for our operating lease liabilities as of April 30, 2024 were as follows (in thousands):
Amount
Remainder of year ending January 31, 2025 $ 9,097 
Year ending January 31,
2026 12,110 
2027 11,875 
2028 10,444 
2029 7,137 
Thereafter 49,852 
Total operating lease payments 100,515 
Less: imputed interest (29,519)
Total operating lease liabilities $ 70,996 
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UiPath, Inc.
Notes to Condensed Consolidated Financial Statements (Continued)
(unaudited)
As of April 30, 2024, we had non-cancellable commitments in the amount of $26.3 million related to operating leases of real estate facilities that have not yet commenced.
Current operating lease liabilities of $8.2 million and $8.4 million were included in accrued expenses and other current liabilities on our condensed consolidated balance sheets as of April 30, 2024 and January 31, 2024, respectively.
Supplemental cash flow information related to leases for the three months ended April 30, 2024 and 2023 was as follows (in thousands):
Three Months Ended April 30,
2024 2023
Cash paid for amounts included in the measurement of operating lease liabilities $ 3,653  $ 2,615 
Operating lease ROU assets obtained in exchange for new operating lease liabilities 7,044  1,993 
8. 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,
2024
January 31,
2024
Prepaid expenses and service credits $ 76,695  $ 87,781 
Other current assets 21,451  17,199 
Prepaid expenses and other current assets $ 98,146  $ 104,980 
Property and Equipment, Net
Property and equipment, net consisted of the following (in thousands):
As of
April 30,
2024
January 31,
2024
Computers and equipment $ 23,706  $ 23,767 
Leasehold improvements 24,307  21,756 
Furniture and fixtures 6,708  6,640 
Construction in progress 2,720  4,560 
Other 631  632 
Property and equipment, gross 58,072  57,355 
Less: accumulated depreciation (35,331) (33,373)
Property and equipment, net $ 22,741  $ 23,982 
Depreciation expense for the three months ended April 30, 2024 and 2023 was $2.3 million and $3.0 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,
2024
January 31,
2024
Accrued expenses $ 22,256  $ 18,458 
Withholding tax from employee equity transactions 4,216  3,277 
Employee stock purchase plan withholdings 8,483  3,618 
Payroll taxes and other benefits payable 5,424  3,888 
Income taxes payable
6,833  7,140 
Value-added taxes payable 3,837  6,480 
Operating lease liabilities, current 8,224  8,357 
Loan note related to fiscal year 2023 acquisition of Re:Infer LTD (payable July 29, 2024) 5,570  5,570 
Rebates payable to partners 6,364  7,289 
Other
13,586  19,920 
Accrued expenses and other current liabilities $ 84,793  $ 83,997 
9. Commitments and Contingencies
Letters of Credit
We had a total of $2.8 million and $2.6 million in letters of credit outstanding in favor of certain landlords for office space as of April 30, 2024 and January 31, 2024, respectively. These letters of credit renew annually and expire on various dates through fiscal year 2026.
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, 2024 and January 31, 2024, 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.
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 $6.2 million and $5.6 million for the three months ended April 30, 2024 and 2023, 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.
UiPath and certain of its officers are currently parties to the following litigation matters:
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UiPath, Inc.
Notes to Condensed Consolidated Financial Statements (Continued)
(unaudited)
On September 6, 2023, a putative class action lawsuit was filed in the United States District Court for the Southern District of New York against UiPath, then Co-CEO Daniel Dines, and CFO Ashim Gupta, captioned In re UiPath, Inc. Securities Litigation (the "Securities Action"). The initial complaint asserted claims under Sections 10(b) and 20(a) of the Exchange Act, and alleged that defendants made material misstatements and omissions, including regarding UiPath’s competitive position and its financial results. On January 26, 2024, the lead plaintiff in the Securities Action filed an amended complaint, and on March 26, 2024, filed a further amended complaint, which alleges Securities Act claims under Sections 11 and 15 as well as Exchange Act claims under Section 10(b), Rule 10b-5, and Section 20(a). In support of the Securities Act claims, the plaintiff alleges material misstatements and omissions in UiPath’s April 2021 Registration Statement, including regarding UiPath’s competitive position and its financial results. The operative complaint is purportedly brought on behalf of a putative class of persons who purchased or otherwise acquired UiPath common stock between April 21, 2021 and September 27, 2022. It seeks unspecified monetary damages, costs and attorneys’ fees, and other unspecified relief as the Court deems appropriate. Defendants moved to dismiss the second amended complaint on April 23, 2024. Plaintiffs filed their opposition to defendants' motion to dismiss on May 21, 2024.
On November 30, 2023, a purported shareholder derivative lawsuit was filed in the United States District Court for the Eastern District of New York against UiPath, as nominal defendant, and then Co-CEO Daniel Dines, CFO Ashim Gupta, and several of UiPath’s current and former directors. The case is captioned Polilingua Limited v. Daniel Dines, et al. The lawsuit alleges that the individual defendants breached their fiduciary duties and committed other alleged misconduct in connection with the statements at issue in the Securities Action and by causing UiPath to repurchase shares at allegedly inflated prices. The plaintiff seeks unspecified damages and/or restitution on behalf of UiPath, as well as costs and attorneys’ fees and certain changes to UiPath’s corporate governance and internal controls. Similar cases were filed in the District of Delaware and in the Southern District of New York (together with Polilingua Limited v. Daniel Dines, et al, the "Derivative Litigations"). The Derivative Litigations are at an early stage; in each case the matter has been stayed, pending the outcome of the Court's decision on the defendants' motion to dismiss the Securities Action.
We have not recorded any accrual related to the aforementioned litigation matters as of April 30, 2024, as we believe a loss in these matters is neither probable nor estimable at this time.
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.
Other Matters
Our indirect tax positions are subject to audit in multiple jurisdictions globally, with a key focus on our largest operational territories, including the U.S., Romania, India, and the U.K. Our Romanian subsidiary was subjected to audits by the Agenția Națională de Administrare Fiscală ("ANAF") for value-added tax and corporate income tax for the periods January 2020 through January 2022 and January 2018 through January 2022, respectively, which were completed during the three months ended April 30, 2024. With regard to the value-added tax audit, an assessment has been issued; we disagree with this assessment and are in the process of appealing. We have not recorded any reserves related to this audit as of April 30, 2024 as it is not probable that a material loss has been incurred. For additional information regarding the corporate income tax audit, refer to Note 12, Income Taxes.
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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 April 30, 2024, 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, 2025 $ 66,202 
Year ending January 31,
2026 69,593 
2027 23,856 
2028 8,443 
2029 17 
Thereafter 1 
Total $ 168,112 
10. Stockholders’ Equity
Stock Repurchase Program
On September 1, 2023, our board of directors authorized a stock repurchase program, pursuant to which we may repurchase from time to time up to $500.0 million of our outstanding shares of Class A common stock. Repurchases under the program may be effected through open market purchases, privately-negotiated transactions, or otherwise in accordance with applicable federal securities laws, including through Rule 10b5-1 trading plans and under Rule 10b-18 of the Exchange Act. The timing and actual number of shares repurchased will depend on a variety of factors, including price, general business and market conditions, and alternate uses of capital. This authorization expires on March 1, 2025, subject to modification by the board of directors in the future.
During the three months ended April 30, 2024, we repurchased 0.9 million shares of our Class A common stock at an average price of $23.46 per share (inclusive of brokerage commission).
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. We contributed 0.3 million shares of our Class A common stock during the three months ended April 30, 2024 and 0.3 million shares of our Class A common stock during the three months ended April 30, 2023 to a donor-advised fund in connection with our Pledge 1% commitment. The aggregate fair values of the shares on the respective contribution dates of $6.6 million and $4.2 million were recorded within general and administrative expense in the condensed consolidated statements of operations for the three months ended April 30, 2024 and 2023, respectively.
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UiPath, Inc.
Notes to Condensed Consolidated Financial Statements (Continued)
(unaudited)
Accumulated Other Comprehensive Income
For the three months ended April 30, 2024 and 2023, changes in the components of accumulated other comprehensive income were as follows (in thousands):
Foreign Currency Translation Adjustments Unrealized Loss on Marketable Securities
Accumulated Other Comprehensive Income
Balance as of January 31, 2024 $ 8,925  $ (100) $ 8,825 
Other comprehensive loss, net of tax (3,574) (511) (4,085)
Balance as of April 30, 2024 $ 5,351  $ (611) $ 4,740 

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, net of tax 2,319  143  2,462 
Balance as of April 30, 2023 $ 10,550  $ (476) $ 10,074 
11. Equity Incentive Plans and Stock-Based Compensation
2021 Stock Plan
In April 2021, prior to and in connection with our initial public offering ("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, RSAs, RSUs, PSUs, and other forms of awards. As of April 30, 2024, we have reserved 202.2 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 April 30, 2024, the ESPP authorizes the issuance of 27.2 million shares of our Class A common stock under purchase rights granted to our employees. 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 the offering period, and (b) 85% of the fair market value of our Class A common stock on the corresponding purchase date.
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UiPath, Inc.
Notes to Condensed Consolidated Financial Statements (Continued)
(unaudited)
Stock Options
Stock option activity during the three months ended April 30, 2024 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, 2024 11,080  $ 3.49  7.8 $ 216,010 
Granted 1,670  $ 0.10 
Exercised (1,428) $ 0.22 
Forfeited (40) $ 0.10 
Outstanding as of April 30, 2024 11,282  $ 3.41  8.0 $ 175,549 
Vested and exercisable as of April 30, 2024 4,779  $ 5.09  6.8 $ 66,332 
The weighted-average grant date fair value of stock options granted during the three months ended April 30, 2024 was $21.26 per share. The intrinsic value of stock options exercised during the three months ended April 30, 2024 was $31.4 million.
Unrecognized compensation expense associated with unvested stock options granted and outstanding as of April 30, 2024 was approximately $122.5 million, which is to be recognized over a weighted-average remaining period of 2.2 years.
Restricted Stock Units
RSU activity during the three months ended April 30, 2024 was as follows:
RSUs
(in thousands)
Weighted-Average Grant Date Fair Value Per Share
Unvested as of January 31, 2024 31,272  $ 19.89 
Granted 9,479  $ 21.45 
Vested (3,843) $ 21.22 
Forfeited (1,497) $ 20.76 
Unvested as of April 30, 2024 35,411  $ 20.13 
The fair value of RSUs released during the three months ended April 30, 2024 was $87.4 million.
As of April 30, 2024, total unrecognized compensation expense related to unvested RSUs was approximately $661.6 million, which is to be recognized over a weighted-average remaining period of 2.4 years.
Employee Stock Purchase Plan Awards
As of April 30, 2024, total unrecognized compensation expense related to the ESPP was approximately $0.9 million, which is to be recognized over a weighted-average remaining period of 0.1 years.
Stock-Based Compensation Associated with Business Acquisition
At the closing of the acquisition of Re:infer LTD 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
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UiPath, Inc.
Notes to Condensed Consolidated Financial Statements (Continued)
(unaudited)
April 30, 2024, total unrecognized compensation expense related to these shares was $3.2 million, which is to be recognized over a weighted-average remaining period of 1.3 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 April 30,
2024 2023
Cost of subscription services revenue $ 4,276  $ 3,178 
Cost of professional services and other revenue 2,470  2,699 
Sales and marketing 36,216  33,123 
Research and development 29,142  24,773 
General and administrative 16,623  21,275 
Total $ 88,727  $ 85,048 
12. Income Taxes
Our tax provision for interim periods is determined using an estimated annual effective tax rate, adjusted for discrete items arising in the applicable quarter. In each quarter, we update the estimated annual effective tax rate and make a year-to-date adjustment to the provision. The estimated annual effective tax rate is subject to significant volatility due to several factors, including our ability to accurately predict the proportion of our pretax income in multiple jurisdictions and certain book-tax differences.
We had a provision for income taxes of $3.8 million, reflecting an effective tax rate of (15.1)%, and $3.6 million, reflecting an effective tax rate of (12.8)%, for the three months ended April 30, 2024 and 2023, respectively. For the three months ended April 30, 2024 and 2023, our effective tax rate differed from the U.S. federal statutory rate primarily as a result of not recognizing deferred tax assets ("DTAs") for losses due to a full valuation allowance (as discussed below) and due to tax rate differences between the U.S. and foreign countries.
The realization of tax benefits of net DTAs is dependent upon future levels of taxable income of an appropriate character in the periods the items are expected to be deductible or taxable. Based on the available objective evidence during the three months ended April 30, 2024, we believe it is more likely than not that the tax benefits of DTAs associated with the U.S., Romania, and the U.K. will not be realized. Accordingly, we have recorded a full valuation allowance against U.S., Romania, and U.K. DTAs. We intend to maintain each of these full valuation allowances until sufficient positive evidence exists to support a reversal of, or decrease in, the valuation allowance.
As of April 30, 2024, we had gross unrecognized tax benefits totaling $2.3 million related to income taxes, which would impact the effective tax rate if recognized. Of this amount, the total liability pertaining to uncertain tax positions was $0.5 million, excluding interest and penalties, which are accounted for as a component of our income tax provision. Our tax positions are subject to income tax audits in multiple tax jurisdictions globally, with a currently open audit in India, and we believe that we have provided adequate reserves for our income tax uncertainties in all open tax years. Our Romanian subsidiary was subjected to a corporate income tax audit by ANAF for the period from January 2018 through January 2022, which was completed during the three months ended April 30, 2024. Certain deductions have been disallowed, resulting in a proposed reduction of net operating loss carryforwards of approximately $66.7 million. We are in the process of appealing this disallowance. In addition, we have engaged in two bilateral transfer pricing negotiations for our transfer pricing model, one between the U.S. and Romania, and one between Japan and Romania. These negotiations are still underway and the authorities are in the process of determining the cost sharing allocations between the respective countries. At this time, we do not expect any significant changes in the next fiscal quarter based on the current positions undertaken by us.
In 2023, Romania adopted an alternative minimum tax that is applicable to all corporate taxpayers, including those reporting a net loss, for tax years commencing after January 1, 2024. As this tax is based on gross receipts,
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UiPath, Inc.
Notes to Condensed Consolidated Financial Statements (Continued)
(unaudited)
associated expense is included in operating expenses in our condensed consolidated statements of operations, and is not accounted for as income taxes.
13. Net Loss Per Share
The following table sets forth the computation of basic and diluted net loss per share for the periods presented (in thousands except per share amounts):
Three Months Ended April 30,
2024 2023
Class A Class B Class A Class B
Numerator:
Net loss $ (24,579) $ (4,157) $ (27,186) $ (4,715)
Denominator:
Weighted-average shares used in computing net loss per share, basic and diluted 487,472  82,453  475,425  82,453 
Net loss per share, basic and diluted $ (0.05) $ (0.05) $ (0.06) $ (0.06)
Anti-dilutive common stock equivalents excluded from the computation of diluted net loss per share were as follows (in thousands):
Three Months Ended April 30,
2024 2023
Class A Class B Class A Class B
Unvested RSUs 32,230    37,351   
Outstanding stock options 10,946    13,883   
Shares subject to repurchase from RSAs and early exercised stock options 28    63   
Shares issuable under ESPP 690    897   
Returnable shares issued in connection with business acquisition 274    427   
Total
44,168    52,621   
14. Subsequent Events
On May 3, 2024, we agreed to invest approximately $35.2 million, split between cash investment for equity and purchase of convertible bonds, in an initial seed round in H.AI (the “H company”), a France-based global foundation model and agentic artificial intelligence ("AI") company.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q and our audited consolidated financial statements and the related notes and the discussion under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for the fiscal year ended January 31, 2024 included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on March 27, 2024 (the "2024 Form 10-K"). This discussion, particularly information with respect to our future results of operations or financial condition, business strategy and plans and objectives of management for future operations, includes forward-looking statements that involve risks and uncertainties as described under the heading “Special Note Regarding Forward-Looking Statements” in this Quarterly Report on Form 10-Q. You should review the disclosure under the heading "Risk Factors" in this Quarterly Report on Form 10-Q and under Part I, Item 1A, "Risk Factors," in the 2024 Form 10-K for discussion of important factors that could cause our actual results to differ materially from those anticipated in these forward-looking statements.
Overview
First established in a Bucharest, Romania apartment in 2005, UiPath was incorporated in Delaware in 2015 as a company principally focused on building and managing automations and developing computer vision technology, which remains the foundation of our platform today. Since that time, we have evolved from our beginnings in robotic process automation ("RPA") into an end-to-end AI-powered Business Automation Platform through development and acquisitions, have launched new products, and have expanded our operations across the globe. Our vision is to enable automation across all knowledge work to accelerate human achievement.
The UiPath Business Automation Platform is The Foundation of Innovation™. We provide our customers with a robust set of capabilities that allow them to discover opportunities for automation, automate using a digital workforce that seamlessly collaborates with humans, and operate a mission critical automation program at scale. Our platform enables customers to integrate AI with automation, enabling automation to take action based on learning and experience. It enables employees to quickly build automations for both existing and new processes and to automate a vast array of actions including, but not limited to, logging into applications, extracting information from documents, moving folders, filling in forms, reading emails, and updating information fields and databases. The ability of our platform to replicate steps performed by humans in executing business processes drives operational efficiencies and enables companies to deliver on key digital initiatives with greater speed, agility, and accuracy.
AI-powered automation is here, and its momentum is continuing to grow as organizations around the world begin to understand the combined power of automation and AI to drive efficiency and business outcomes. We aspire to be the defining business automation platform, advancing the evolution of automation and AI as a way of working and a catalyst for continuous reinvention.
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Business Highlights for the Three Months Ended April 30, 2024:
Revenue of $335.1 million increased 16% year-over-year.
ARR of $1,507.7 million increased 21% year-over-year.
Gross margin was 83% for the three months ended April 30, 2024, compared to 85% for the three months ended April 30, 2023.
Cash flow from operations was $100.0 million for the three months ended April 30, 2024, compared to $67.3 million for the three months ended April 30, 2023.
Cash and cash equivalents, restricted cash, and marketable securities were $1,936.9 million as of April 30, 2024, compared to $1,880.3 million as of January 31, 2024.
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Macroeconomic Environment
As a corporation with a global presence, we are subject to risks and uncertainties caused by significant events with macroeconomic impacts, including, but not limited to, the impact of changes in geopolitical relationships, rising inflation and interest rates, monetary policy changes, and foreign currency fluctuations. Additionally, these macroeconomic impacts have generally disrupted the operations of our customers, prospective customers, and partners.
Internationally, we price our platform in currencies that may not be the functional currency. Accordingly, the heightened volatility of global markets has exposed us and will continue to expose us to foreign currency fluctuations, which may impact demand for our platform, our near-term results, the comparability of results to prior periods, and our ability to predict future results.
Further, cash, cash equivalents, and marketable securities represent a significant portion of our total assets, and the return on our cash, cash equivalents, and marketable securities is sensitive to changes in interest rates. Volatility in the interest rate environment may impact the amount of interest and other income reported on our condensed consolidated statements of operations, the comparability of these amounts to prior periods, and our ability to predict future profitability.
We continuously monitor the direct and indirect impacts of these circumstances on our business and financial results, as well as the overall global economy and geopolitical landscape.
Key Performance Metric
We monitor annualized renewal run-rate ("ARR") to help us measure and evaluate the effectiveness of our operations.
ARR is the key performance metric we use in managing our business because it illustrates our ability to acquire new subscription customers and to maintain and expand our relationships with existing subscription customers. We define ARR as annualized invoiced amounts per solution SKU from subscription licenses and maintenance and support obligations assuming no increases or reductions in customers' subscriptions. ARR does not include the costs we may incur to obtain such subscription licenses or provide such maintenance and support, and does not reflect any actual or anticipated reductions in invoiced value due to contract non-renewals or service cancellations other than for certain reserves, for example those for credit losses or disputed amounts. At April 30, 2024 and 2023, our ARR was $1,507.7 million and $1,248.9 million, respectively, representing a growth rate of 21%. Approximately 16% of this growth was due to new customers and 84% to existing customers. Our dollar-based net retention rate, which represents the net expansion of ARR from existing customers over the preceding 12 months, was 118% and 122% as of April 30, 2024 and 2023, respectively. We calculate dollar-based net retention rate as of a period end by starting with the ARR from the cohort of all customers as of 12 months prior to such period end ("Prior Period ARR"). We then calculate the ARR from these same customers as of the current period end ("Current Period ARR"). Current Period ARR includes any expansion and is net of contraction or attrition over the last 12 months, but does not include ARR from new customers in the current period. We then divide the total Current Period ARR by the total Prior Period ARR to arrive at the point-in-time dollar-based net retention rate.
Our ARR may fluctuate as a result of a number of factors, including customers’ satisfaction or dissatisfaction with our platform, pricing, competitive offerings, economic conditions, overall changes in our customers’ spending levels, and our ability to successfully execute on our strategic goals. ARR should be viewed independently of revenue and deferred revenue as ARR is an operating metric and is not intended to be combined with or to replace these items. For clarity, we use annualized invoiced amounts per solution SKU rather than revenue calculated in accordance with U.S. GAAP to calculate our ARR. Our invoiced amounts are not matched to transfer of control of the performance obligations associated with the underlying subscription licenses and maintenance and support obligations. This can result in timing differences between our GAAP revenue and ARR calculations. Generally speaking, our ARR calculation simply takes our invoiced amounts per solution SKU under a subscription license or maintenance agreement and divides that amount by the invoice term and multiplies by 365 days to derive the annualized value. In contrast, for our revenue calculated in accordance with GAAP, subscription licenses revenue derived from the sale of term-based licenses hosted on-premises is recognized at the point in time when the customer is able to use and benefit from our software, which is generally upon delivery to the customer or upon the commencement of the renewal term, and maintenance, support, and SaaS revenue is recognized ratably over the term of the arrangement. ARR is not a forecast of future revenue. Unlike ARR, future revenue can be impacted by contract start and end dates and duration. The timing of recognition of ARR is determined by contract billing structure, whereas billing structure will neither accelerate nor delay recognition of future revenue. For example, in a
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multi-year contract invoiced upfront, ARR is the annualized invoiced amount per solution SKU related to the final year of the contract assuming no reserve is applied, whereas revenue is determined by total contract value and timing of satisfaction of the underlying performance obligations. ARR does not include invoiced amounts associated with perpetual licenses or professional services. Investors should not place undue reliance on ARR as an indicator of our future or expected results. Moreover, our presentation of ARR may differ from similarly titled metrics presented by other companies and may not be comparable to such other metrics.
A summary of ARR-related data at April 30, 2024 and 2023 is as follows:
At April 30,
2024 2023
(dollars in thousands)
ARR $ 1,507,730  $ 1,248,883 
Incremental ARR (1)
258,847  271,816 
Customers with ARR ≥ $1 million:
Number of customers 288  240 
Percent of current period revenue 48  % 45  %
Customers with ARR ≥ $100 thousand:
Number of customers 2,092  1,858 
Percent of current period revenue 85  % 82  %
Dollar-based net retention rate 118  % 122  %
(1) For the twelve months ended April 30, 2024 and 2023, respectively
Components of Results of Operations
Revenue
We derive revenue from the sale of: (1) software licenses for use of our proprietary software and related maintenance and support; (2) the right to access certain software products we host (i.e., SaaS); and (3) professional services.
We have a unified commercial offering for software products with both on-premise and cloud deployment options that allows customers the choice of either deployment option throughout the term of the contract. These Flex Offerings are comprised of three types of performance obligations: term license, maintenance and support, and SaaS.
Licenses
Our term licenses (typically sold as a portion of Flex Offerings) provide customers the right to use software for a specified period of time. Revenue for licenses is recognized at the point in time at which the customer is able to use and benefit from the software, which is generally upon delivery to the customer or upon commencement of the renewal term. As licenses revenue is recognized at a point in time, any shift in contract start dates and duration, for example due to lengthening sales cycles and increased deal scrutiny, will have a direct impact on our licenses revenue.
Subscription Services
We generate subscription services revenue through the provision of: (1) maintenance and support services, which include technical support and unspecified updates and upgrades on a when-and-if-available basis for our licenses, and (2) SaaS products (typically sold as a portion of Flex Offerings). Maintenance and support and SaaS products represent stand-ready obligations for which revenue is recognized ratably over the term of the arrangements.
Professional Services and Other
Professional services and other revenue consists of fees associated with professional services for process automation, customer education, and training services. Our professional services contracts are structured on a time and materials or fixed price basis, and the related revenue is recognized as the services are rendered.
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Cost of Revenue
Licenses
Cost of licenses revenue consists of all direct costs to deliver our licenses to customers, amortization of software development costs related to our licenses, and amortization of acquired developed technology.
Subscription Services
Cost of subscription services revenue primarily consists of personnel-related expenses of our customer support and technical support teams, including salaries and bonuses, stock-based compensation expense, and employee benefit costs. Cost of subscription services revenue also includes third-party consulting services, hosting costs related to our SaaS products, amortization of acquired developed technology and capitalized software development costs related to SaaS products, depreciation, and allocated overhead. Overhead is allocated based on applicable headcount. We recognize these expenses as they are incurred. We expect cost of subscription services revenue to continue to increase in absolute dollars for the foreseeable future as our SaaS business grows. In the future, we expect further expansion of our cloud-based deployments. As sales of SaaS products become a larger percentage of our total revenue, we expect our gross margin to be impacted by increased hosting fees and cloud infrastructure costs.
Professional Services and Other
Cost of professional services and other revenue primarily consists of personnel-related expenses of our professional services team, including salaries and bonuses, stock-based compensation expense, and employee benefit costs. Cost of professional services and other revenue also includes expenses related to subcontracted third-party services, depreciation, and allocated overhead. We recognize these expenses as they are incurred. We expect cost of professional services and other revenue to increase in absolute dollars for the foreseeable future.
Operating Expenses
Our operating expenses consist of sales and marketing, research and development, and general and administrative expenses. Personnel-related expenses are the most significant component of operating expenses and consist of salaries and bonuses, stock-based compensation expense, and employee benefit costs. Operating expenses also include allocated overhead.
Sales and Marketing
Sales and marketing expenses consist primarily of personnel-related expenses associated with our sales and marketing teams and related sales support teams, including salaries and bonuses, stock-based compensation expense, and employee benefit costs. Sales and marketing expenses also include sales and partner commissions, marketing event costs, advertising costs, travel, trade shows, other marketing materials, and allocated overhead. We expect that over the longer term our sales and marketing expenses will decrease as a percentage of revenue, although this percentage may fluctuate from period to period due to timing and extent of expenses.
Research and Development
Research and development expenses consist primarily of personnel-related expenses, including salaries and bonuses, stock-based compensation expense, and employee benefits costs, for our research and development employees, and allocated overhead. Research and development costs are expensed as incurred, with the exception of certain software development costs which are eligible for capitalization. We expect that our research and development expenses will increase in absolute dollars for the foreseeable future as we continue to invest in efforts to develop new technology and enhance the functionality and capabilities of our existing products and platform infrastructure. Our research and development expenses may fluctuate as a percentage of revenue from period to period due to the timing and extent of expenses.
General and Administrative
General and administrative expenses consist primarily of personnel-related expenses, including salaries and bonuses, stock-based compensation expense, and employee benefits costs, associated with our finance, legal, human resources, compliance, and other administrative teams, as well as accounting and legal professional services fees, other corporate-related expenses, and allocated overhead. We expect that over the longer term our
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general and administrative expenses will decrease as a percentage of revenue, although this percentage may fluctuate from period to period due to timing and extent of expenses.
Interest Income
Interest income consists of interest earned on our cash and cash equivalents and marketable securities.
Other Income, Net
Other income, net primarily consists of foreign exchange gains and losses. Other income, net also includes amortization of discounts and premiums on marketable securities.
Provision For Income Taxes
Provision for income taxes consists of U.S. federal and state income taxes and income taxes in foreign jurisdictions in which we conduct business. We currently maintain a full valuation allowance on our U.S. federal and state, Romanian, and U.K. DTAs, as we have concluded that it is more likely than not that these DTAs will not be realized. Our effective tax rate is affected by tax rates in foreign jurisdictions and the relative amounts of income we earn in those jurisdictions, as well as by non-deductible expenses as permanent differences, and by changes in our valuation allowances.
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Results of Operations
The following tables set forth selected condensed consolidated statement of operations data and such data as a percentage of total revenue for each of the periods indicated:
  Three Months Ended April 30,
  2024 2023
  (in thousands)
Revenue:
Licenses $ 140,128  $ 134,039 
Subscription services 185,131  146,352 
Professional services and other 9,853  9,197 
Total revenue 335,112  289,588 
Cost of revenue:
Licenses (1)
2,601  2,547 
Subscription services (1)(2)(3)
36,754  23,078 
Professional services and other (2)(3)
15,970  18,042 
Total cost of revenue 55,325  43,667 
Gross profit 279,787  245,921 
Operating expenses:
Sales and marketing (1)(2)(3)(4)
180,139  160,406 
Research and development (2)(3)(4)
85,603  75,342 
General and administrative (1)(2)(3)(4)
63,510  56,584 
Total operating expenses 329,252  292,332 
Operating loss (49,465) (46,411)
Interest income 13,830  13,848 
Other income, net 10,679  4,294 
Loss before income taxes (24,956) (28,269)
Provision for income taxes 3,780  3,632 
Net loss $ (28,736) $ (31,901)
(1) Includes amortization of acquired intangible assets as follows:
Cost of licenses revenue $ 844  $ 836 
Cost of subscription services revenue 593  584 
Sales and marketing 552  671 
General and administrative 39  41 
Total amortization of acquired intangible assets $ 2,028  $ 2,132 
(2) Includes stock-based compensation expense as follows:
Cost of subscription services revenue $ 4,276  $ 3,178 
Cost of professional services and other revenue 2,470  2,699 
Sales and marketing 36,216  33,123 
Research and development 29,142  24,773 
General and administrative 16,623  21,275 
Total stock-based compensation expense $ 88,727  $ 85,048 
(3) Includes employer payroll tax expense related to equity transactions as follows:
Cost of subscription services revenue $ 177  $ 90 
Cost of professional services and other revenue 66  71 
Sales and marketing 1,223  1,224 
Research and development 630  601 
General and administrative 415  378 
Total employer payroll tax expense related to equity transactions $ 2,511  $ 2,364 
(4) Includes restructuring expense as follows:
Sales and marketing $ —  $ 229 
Research and development —  285 
General and administrative —  375 
Total restructuring expense $ —  $ 889 
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  Three Months Ended April 30,
  2024 2023
  (as a percentage of revenue)
Revenue:
Licenses 42  % 46  %
Subscription services 55  % 51  %
Professional services and other % %
Total revenue 100  % 100  %
Cost of revenue:
Licenses % %
Subscription services 11  % %
Professional services and other % %
Total cost of revenue 17  %