UiPath (NYSE:PATH) shares gained nearly 14% in the early session today after the enterprise automation software company delivered a robust third-quarter performance. Revenue increased by 24% year-over-year to $326 million, outperforming expectations by roughly $10 million. Further, EPS of $0.12 exceeded estimates by $0.05.
During the quarter, annualized recurring revenue (ARR) increased by 24% over the prior year period to $1.378 billion. In addition, the dollar-based net retention rate stood at 121%. The company generated a net cash flow from operations of $42 million in Q3. Its total cash balance at the end of the quarter stood at $1.8 billion.
As UiPath’s focus on digital transformation and introducing new AI-powered offerings continues to pay off, the company also provided a healthy outlook for the fourth quarter. It expects revenue in Q4 to hover between $381 million and $386 million. ARR, as of January 31, 2024, is anticipated to hover between $1.450 billion and $1.455 billion. Non-GAAP operating income for the quarter is seen landing at $78 million.
What is the Target Price for UiPath?
Overall, the Street has a Moderate Buy consensus rating on UiPath. After clocking a nearly 59% price gain over the past year, the average PATH price target of $20.08 implies the stock may be approaching fair valuation levels.
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