UiPath Inc. ($PATH) Earnings (Q2 FY23)

 UiPath Inc. ($PATH) Earnings and Opinion:


UiPath is a company in the Technology sector and operates in the Software-Infrastructure industry. The company provides an end to end automation platform that offers a range of robotic process automation (RPA) solutions. UiPath was founded in 2005 and is currently headquartered in New York, New York. The company made its debut on the stock market in April of 2021.

UiPath Earnings Results:

  • Revenues of $242M beating expectations of $231M
  • Operating Income of -$10M beating expectations of -$55M
  • Adjusted EPS of -$0.02 beating expectations of -$0.11
  • Guidance missed estimates on all metrics
Opinion:
UiPath is moving about 15% lower, after reporting earnings after the closing bell yesterday. The stock had a solid earnings results from last quarter. The Revenues looked strong and profitability seemed to be coming near, after EPS and OI beats. The guidance is the main reason for the fall though. Although the guidance wasn't off by much, it was still a miss. Revenues look to be lower coming in, as well as ARR. They are deemed to be facing some currency problems currently, which is one of the main reasons of the guidance coming in lower. In bigger news, they partnered with Snowflake to launch data integration on the cloud. This will hopefully help improve their business in better ways. As far as valuation goes, the P/S ratio sits at 7.68, which is relatively high. Revenue growth looks to be continually growing, especially since the automation will hopefully become more popular in coming years. The current ratio is at 4.89, which is a comfortable position. Cash mightily outweighs debt with $1.79B in cash compared to $47.7M in debt. In my opinion, I think this stock may get down to single digits, as it continues its fall. However, their is high reward to go along with high risk in this one. I really like the growth outlook they have proposed, and I want to see them keep growing. I think RPA can become a super big business, especially for time management in companies. This business could play a very important role to production companies, in a couple years. I am long UiPath.


*Information from CMLVIZ, Yahoo Finance, Consensus Gurus

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