UiPath, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Operating Leases

Operating Leases

9 Months Ended

Oct. 31, 2021

Our operating leases consist of real estate and vehicles and have remaining lease terms of one year to 16 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.

On September 24, 2021, we entered into an agreement of lease for office space on the 60th floor of One Vanderbilt Avenue, New York, New York, to serve as our new corporate headquarters. The initial term of the lease extends through March 31, 2038. Annual rent of approximately $4.0 million is payable on a monthly basis beginning in March 2023, and is subject to escalation every five years thereafter.

Lease costs are presented below (in thousands):


	Three Months Ended October 31,				Nine Months Ended October 31,
	2021		2020		2021		2020
Operating lease cost	$	2,433	$	1,814	$	6,013	$	5,522
Short-term lease cost	1,133		1,744		2,989		7,888
Variable lease cost	139		50		413		609
Total	$	3,705	$	3,608	$	9,415	$	14,019

Weighted-average lease term and discount rate related to our operating lease right-of-use assets and lease liabilities were as follows:


	As of
	October 31, 2021		January 31, 2021
Weighted-average remaining lease term (years)	13.5		3.8
Weighted-average discount rate	6	%	8	%

Future undiscounted lease payments for our operating lease liabilities as of October 31, 2021 were as follows (in thousands):


	Amount
Remainder of year ending January 31, 2022	$	2,188
Year ending January 31,
2023	4,185
2024	9,838
2025	7,908
2026	5,667
Thereafter	54,084
Total operating lease payments	83,870
Less: imputed interest	(29,571)
Total operating lease liabilities	$	54,299

As of October 31, 2021, we had non-cancellable commitments in the amount of $0.8 million related to operating leases of real estate facilities that have not yet commenced.

Supplemental cash flow information related to leases for the three and nine months ended October 31, 2021 and 2020 was as follows (in thousands):


	Three Months Ended October 31,				Nine Months Ended October 31,
	2021		2020		2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Cash paid for operating leases	$	1,606	$	1,435	$	5,457	$	6,074

Non-cash activities:
Right-of-use assets obtained in exchange for new operating lease liabilities	$	33,492	$	—	$	35,082	$	76

Current operating lease liabilities of $3.1 million and $5.9 million were included in accrued expenses and other current liabilities on the Company’s condensed consolidated balance sheets as of October 31, 2021 and January 31, 2021, respectively.