Market News

UiPath (NYSE:PATH) Thrilled Investors With Strong Q4 Results

Story Highlights

UiPath stock gains on better-than-anticipated fiscal fourth-quarter results. The company expects its Fiscal Year 2024 revenues to increase year-over-year.

Shares of UiPath (NYSE:PATH) soared 13.4% in Wednesday’s extended trade after the company reported upbeat results for its fourth quarter of Fiscal Year 2023. Further, UiPath’s guidance exceeded Wall Street’s expectations.

The company provides a robotic process automation tool that enables users to automate various aspects of business processes.

Revenues increased 7% year-over-year to $308.5 million, surpassing analysts’ estimates of $269.6 million. Meanwhile, the company posted adjusted earnings of $0.15 per share, greater than the Street’s estimate of $0.01 per share. Also, it compared favorably with the $0.05 reported in the last year’s quarter.

The company’s annualized renewal run rate (ARR) rose 30% year-over-year to $1.2 billion. ARR is a key performance metric that reflects the company’s sales expectations based on subscriptions.

During the earnings call, UiPath’s Co-CEO, Rob Enslin, said that the company closed deals worth over $1 million in the reported quarter. Currently, the company has 229 customers that contribute more than $1 million in ARR, along with 1,785 customers that generate $100,000 or more in ARR.

The management is upbeat about its future performance. UiPath expects to report fiscal first-quarter revenue in the range of $270 million to $272 million, higher than the analyst estimates of $269.6 million. For the Fiscal Year 2024, the company forecasts revenue between $1.253 billion and $1.258 billion, versus the consensus estimate of $1.214 billion.

Is Path a Good Stock to Buy?

Growing demand for business automation, along with UiPath’s continued product excellence and ability to innovate, make a strong case for the company. Nevertheless, the impact of ChatGPT on UiPath’s business remains a concern.

Overall, Wall Street is cautiously optimistic about PATH stock. It has a Moderate Buy consensus rating based on two Buys and two Holds. The average price target of $18.88 implies 29% upside potential from the current level.


Tired of arriving late to the Big Returns Party?​
Most investors don’t have major gainers like TSLA or NVDA on their radar from the start.
The profusion of opinions on social media and financial blogs makes it impossible to distinguish between real growth potential and pure hype.
​​For the past decade, we have developed and perfected technology designed to help private investors, just like you, find the best opportunities, with the greatest upside potential, in any financial climate.​
Learn More