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UiPath stock rallies as results, outlook surpass Wall Street consensus

UiPath Inc. shares surged in the extended session Wednesday after the “software robot” provider reported a narrower-than-expected loss and forecast an outlook just above the Wall Street consensus.

UiPath
PATH,
-1.41%

shares rallied 8% after hours, following a 1.4% decline in the regular session to close at $16.83, well below its April 2021 IPO price of $56 a share. The stock price has fallen 79% over the past 12 months, while the S&P 500 index
SPX,
-0.75%

has declined 2.4%.

The company reported a first-quarter loss of $122.6 million, or 23 cents a share, compared with a loss of $239.7 million, or $1.11 a share, in the year-ago period. The adjusted loss, which excludes stock-based compensation expenses and other items, was 3 cents a share, versus net income of 2 cents a share in the year-ago period.

Revenue rose to $245.1 million from $186.2 million in the year-ago quarter, while the annualized renewal run rate, or ARR, surged 50% to $977.1 million from the year-ago period. ARR is a metric often used by software-as-a-service companies to show how much revenue the company can expect based on subscriptions.

Analysts surveyed by FactSet had forecast a loss of 6 cents a share on revenue of $225.3 million and ARR of $965 million.

Read: UiPath IPO: 5 things to know about the ‘software robots’ company valued at nearly $30 billion

“We price in local currency and with more than 50 percent of our business conducted outside of North America our results are subject to foreign exchange volatility,” said Ashim Gupta, UiPath’s chief financial officer, in a statement. “Accordingly, our full fiscal year 2023 guidance, which we are raising this afternoon, includes an FX headwind offset by growing momentum in the business. Looking ahead, there is a significant opportunity to continue to grow at scale while improving operational efficiency.”

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UiPath forecast second-quarter revenue of $229 million to $231 million and an ARR around $1.04 billion, and revenue around $1.09 billion and ARR of $1.22 billion to $1.23 billion for the year.

Analysts had estimated revenue of $228.9 million and ARR of $1.03 billion for the second quarter, and revenue of $1.08 billion and ARR of $1.21 billion for the year.

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