“We live in a world that is run by computers”. This statement is becoming more and more true by the minute. Automation is taking place in every industry with computer software under every nook. Companies are running amok for having the best in class automation systems. One such automation software platform provider is UiPath, Inc. (PATH).
PATH’s Price Movement Analysis
The leading enterprise automation software company made its debut almost a year ago in April 2021 with an IPO price of $56 a share. Since then, it has made reverse moves to reach a value of $24.99 per share as per the latest data.
In the after-hours session on March 30, 2022, PATH took a harsh hit of over 13.95%. This downward move comes from the company’s latest earnings report on the day. The company declared its earnings for Q4 and fiscal 2022 which ended on January 31, 2022, after the bell. While the earnings both surpassed estimates were overshadowed by a weak outlook shy of analysts’ expectations. Thus, the shares sank by a further 13.95% in the after-hours trading which followed a 7.5% drop in the regular session.
While still 32.67% down year to date, PATH has declined by 3.97% in the past five days.
Latest Quarterly Financials
The company reported nice revenue growth of a 39% rise in sales from year-earlier levels to $290 million in Q4 fiscal 2022. Analysts were expecting revenues of $284.3 million for the quarter. Moreover, the yearly sales also marked a significant improvement with YOY growth of 47%.
The annualized recurring revenue (ARR) reported much better growth of 59% YOY with the addition of a net new ARR of $106.9 million in just three months. Thus, a 72% YOY improvement in net new ARR was reported.
While analysts expect revenue of $247 million, the company’s Q1 fiscal 2023 forecast remained shy at $223-$225 million. A similar disappointment was seen for the ARR expectations as well with the company suggesting $960-$965 million and analysts expecting $968.2 million for the quarter.
Even the full fiscal 2023 guidance remained well below the expectations at $1.08-$1.09 billion in revenue. The expected ARR for the year is $1.2 billion. Comparatively, analysts forecast revenue of $1.26 billion and ARR of $968.2 million.
Additionally, the company also reported having appointed its first-ever Chief Business Officer. Chris Weber from Microsoft’s commercial team is expected to join the company on April 4, 2022, to fill the newly launched role.