Shares of UiPath (NYSE: PATH) were down 18.8% after-hours as the enterprise automation software company slashed its growth outlook for Q3 and FY23.
UiPath cited rising currency exchange rate fluctuations and macro uncertainty as reasons for the lowered outlook. The company now expects Q3 revenues in the range of $243 million to $245 million while analysts had forecasted revenues of $269.6 million.
UiPath’s annualized renewal run rate(ARR) surpassed $1 billion in Q2 of FY23. The company now anticipates ARR to range between $1.09 and $1.093 billion in Q3. ARR is a metric that indicates the contribution of subscription revenues to the company’s overall revenues.
The company also rolled back its forecast for FY23 and now anticipates revenue between $1 billion and $1.01 billion versus its previous forecast in the range of $1.1 billion.
Is PATH a Good Stock to Buy?
Wall Street analysts continue to be bullish about PATH with a Strong Buy consensus rating based on six Buys and two Holds.
PATH’s average stock prediction of $30.13 implies 93.3% upside potential.
.
