UiPath (NYSE:PATH) shares are up nearly 5% in the pre-market session today after the enterprise automation software provider posted better-than-anticipated second-quarter numbers. Revenue rose 18.6% year-over-year to $287.3 million, outpacing estimates by $5.2 million. Furthermore, EPS of $0.09 landed past expectations by a wide margin of $0.05.
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In Q2, annualized recurring revenue (ARR) rose by 25% to $1.31 billion, and the dollar-based net retention rate stood at 121%. The company is witnessing robust business momentum and had a healthy cash pile of $1.8 billion at the end of the quarter. Moreover, UiPath has announced a share repurchase program worth $500 million.
Looking ahead to the full-year fiscal 2024, the company expects revenue to hover in the range of $1.273 billion and $1.278 billion, alongside $188 million in operating income. ARR for the year is anticipated between $1.432 billion and $1.437 billion.
Following the Q2 performance, Barclays analyst Raimo Lenschow has increased the price target on UiPath to $18 from $16 while maintaining a Hold rating. The analyst believes a weak sentiment going into the Q2 results could lead to a “potential short squeeze for UiPath shares” but noted that “questions remain on its new bookings and new logos.”
Overall, the Street has a consensus price target of $18 on UiPath, alongside a Hold consensus rating. Shares of the company have gained nearly 32% for the year so far.
