UiPath Inc (NYSE:PATH) stock fell 3.88% (As on December 6, 11:23:05 AM UTC-4, Source: Google Finance) after the company beats estimates for the third quarter of FY 25. Annual recurring revenue (ARR) climbed 17% YoY to $1.607 billion, with net new ARR at $56 million. The dollar-based net retention rate was 113%. The Y0Y revenue and ARR growth slowed from the second quarter’s 10% and 19%, respectively.
Meanwhile, in October, UiPath announced its new vision and strategic direction centered on the next evolution of enterprise automation – agentic automation. UiPath is innovating customer automation journeys with agentic automation – a progressive leap from robotic process automation (RPA) that combines AI agents, robots, people, and models to deliver AI transformation enterprise-wide for end-to-end processes. As part of this new vision, UiPath announced a preview of Agent Builder, a tool for automation developers to build, evaluate, and publish enterprise agents that work cooperatively with robots on UiPath’s automation platform. UiPath further announced that the UiPath Platform is integrated with the SAP Build Process Automation solution and sold as one of the SAP Solution Extensions. UiPath also announced the integration of Anthropic’s large language model (LLM), Claude 3.5 Sonnet, to deliver new AI features in three key products, including UiPath Autopilot for Everyone, Clipboard AI, and a new medical record summarization solution. UiPath has announced a strategic partnership with Inflection AI to integrate the UiPath Platform with the new Inflection for Enterprise solution, allowing enterprises to achieve greater levels of operational efficiency and effectiveness without compromising trust and AI security options.
PATH in the third quarter of FY 25 has reported the adjusted earnings per share of 11 cents, beating the analysts’ estimates for the adjusted earnings per share of 7 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 9 percent to $354.65 billion in the third quarter of FY 25, beating the analysts’ estimates for revenue by 2.03%.
In fiscal year 2026, the company will focus on stabilizing net new ARR dollars while accelerating non-GAAP adjusted free cash flow growth rate.
UiPath guided to fourth-quarter revenue between $422 million and $427 million, with ARR in the range of $1.669 billion-$1.674 billion, as of Jan. 31, 2025. The consensus estimate calls for revenue of $423.85 million for the year. The company expects quarterly non-GAAP operating income of about $100 million and ARR expected to be in the range of $1.669 billion to $1.674 billion as of January 31, 2025.