Shares of UiPath (NYSE:PATH) rallied nearly 9% in yesterday’s extended trade despite mixed results for the third quarter of Fiscal Year 2023. The company designs and develops robotic process automation software.
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Q3 revenues came in at $262.7 million, reflecting a jump of 19% year-over-year and beating analysts’ estimates by $249.7 million. The revenue growth can be attributed to the expanded customer base. Meanwhile, the company posted a loss of $0.10 per share, greater than the Street’s estimate of a loss of $0.05 per share.
As for the outlook, the management is upbeat about its Q4 performance. UiPath expects to report fourth-quarter revenue in the range of $277 million to $279 million, higher than the analyst estimates of $276.9 million.
In this regard, UiPath Co-Chief Executive Officer Rob Enslin noted, “Our new go-to-market initiatives are driving results and resonating with customers. We closed several notable third quarter deals using this value-selling approach and are widely engaged with both new and existing customers as we head into the last quarter of fiscal year 2023.”
Is UiPath a Buy or Sell Stock?
Shares of UiPath have been spiraling downward this year as the company’s performance continues to reflect slow revenue growth and a rising expense base. However, the robotic process automation industry is slowly picking up pace, and UiPath’s strong presence in the field is considered a positive factor.
Overall, the Street is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on seven Buys and 10 Holds. PATH’s average price target of $17.97 implies upside potential of 39.1% from current levels. Shares have declined 70.6% over the past year.
