UiPath Inc (NYSE: PATH) reported market-beating results for its fiscal second quarter on Wednesday. Shares still opened 20% down on lowered future guidance.
UiPath Q2 financial highlights
Lost $120.4 million versus the year-ago $100 million
Per-share loss climbed from 19 cents to 22 cents
On an adjusted basis, loss was 2 cents per share
Revenue jumped 24% year-on-year to $242.2 million
Annual recurring revenue shot up 44% to $1.04 billion
Consensus was 11 cents loss on $230.7 million in revenue
Mizuho downgrades UiPath stock
Following the tech news, Mizuho downgraded the software and automation company to “neutral” and trimmed its price objective to $14 a share.
In the earnings press release, Co-CEO Robert Enslin said:
We’re strategically repositioning to elevate customer conversations, sell business outcomes, and help organisations realise the transformational benefits of automation. These changes will position us for both growth and profitability.
For the year, UiPath stock is now down about 75%.
UiPath stock slides on lowered guidance
For the full financial year, UiPath Inc now expects its revenue to fall between $1.002 billion and $1.007 billion. In comparison, experts had forecast $1.09 billion – in line with its previous estimate. CFO Ashim Gupta said:
Our global footprint exposes us to foreign exchange and macro volatility. Our go forward priority will be to balance investing for long-term growth while consistently expand non-GAAP operating margin and deliver sustainable positive non-GAAP adjusted free cash in fiscal 2024 and beyond.
UiPath ended the quarter with $1.70 billion worth of cash, equivalents, and marketable securities.
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