UiPath Inc., an AI startup that experienced a volatile ride since its initial public offering in 2021, reported its quarterly results on Wednesday. While the company exceeded analyst expectations for both revenue and earnings, its guidance for future revenue growth was cautious, leading to a significant decline in Path's stock during extended trading.
For the fiscal first quarter, UiPath reported a net loss of $31.9 million, or 6 cents per share, compared to a net loss of $122.6 million, or 23 cents per share, in the same quarter last year. Adjusted earnings came in at 11 cents per share. The company's revenue showed improvement, increasing by 18% to $290 million from $245.1 million in the previous year.
Analysts surveyed had anticipated adjusted net earnings of 2 cents per share on revenue of $271 million on average, making UiPath's results more favorable than expected.
Rob Enslin, co-Chief Executive Officer of UiPath, expressed satisfaction with the company's first quarter results, highlighting the focus on driving growth at scale and increasing profitability. He emphasized the expansion of the operating margin and the consecutive quarter of increased cash flow.
However, UiPath's second-quarter revenue guidance of $279 million to $284 million fell at the lower end of FactSet's estimate of $284 million. This conservative guidance contributed to a 11% decline in Path's stock during extended trading on Wednesday.
Despite the recent decline, UiPath's shares have experienced a strong year, with a 28% increase thus far. The company has benefited from the hype surrounding AI, leading to a market valuation of approximately $8 billion, while the broader S&P 500 index has seen a 7% increase.
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