UiPath (PATH) delivered better-than-expected results in the second quarter of Fiscal Year 2022. Despite upbeat results, the company’s shares plunged more than 7% in the extended trading session on September 7.
UiPath offers an end-to-end platform for automation, which combines a leading Robotic Process Automation (RPA) solution, with a full suite of capabilities that enable every firm to rapidly scale digital business operations.
Adjusted earnings per share came in at $0.01, against the consensus estimated loss of $0.05. The company had posted an adjusted EPS of $0.03 in the same quarter last year. (See UiPath stock charts on TipRanks)
UiPath reported Q2 revenues of $195.5 million, up 40.3% from the year-ago quarter. Compared to the prior-year period, licenses revenue grew 20.2% to $95.5 million, and maintenance and support revenue increased 73.9% to $90.3 million.
The company reported an annualized renewal run-rate (ARR) of $726.5 million, up 60% year-over-year. Additionally, net new ARR climbed 33% to $73.9 million.
UiPath’s CFO, Ashim Gupta, said, “Looking ahead, our priority is to continue to drive growth while exercising operational rigor, which will allow us to maintain our clear leadership position in this large and growing market.”
Notably, for Fiscal Year 2022, UiPath expects to report ARR in the range of $876 million to $881 million.
Revenues in Q3 are expected to be in the range of $207 million to $209 million. Adjusted operating loss is expected to be between $30 million and $15 million. ARR is expected to be in the range of $796 million to $798 million, as of October 31, 2021.
Following the release, Oppenheimer analyst Brian Schwartz reiterated a Hold rating on UiPath.
The analyst said, “We are bullish on UiPath’s growth prospects in the RPA market, and believe management is doing a good job executing on the opportunity.”
The rest of the Street is cautiously optimistic about the stock, with a Moderate Buy consensus rating, based on four Buys, six Holds, and one Sell. The average UiPath price target of $74.90 implies 19.9% upside potential to current levels.
Related News:
Casey’s Posts Upbeat Q1 Results, Maintains Guidance
PayPal to Snap Up Paidy for $2.7B; Street Says Buy
Coupa Software Soars on Topping Q2 Expectations, Gives Guidance
