Announces Appointment of Chris Weber as Chief Business Officer
ARR of $925 million increased 59 percent year-over-year driven by record net new ARR of $107 million
UiPath, Inc. (NYSE: PATH), a leading enterprise automation software company, today announced financial results for its fourth quarter and full year fiscal 2022 ended January 31, 2022 and the appointment of Chris Weber as Chief Business Officer.
“The UiPath team delivered a strong finish to fiscal year 2022 with fourth quarter net new ARR reaching a record $107 million, an increase of 72 percent year-over-year. We believe this is a testament to our highly differentiated end-to-end platform,” said Daniel Dines, UiPath Co-Founder and Chief Executive Officer. “Our customers understand that automation is at the forefront of digital transformation and fundamental to driving efficiency, employee satisfaction, and strengthening customer relationships, all necessary to successfully navigate today’s complex operating environment and establish a sustainable competitive advantage.”
Ashim Gupta, UiPath Chief Financial Officer, added, “I am pleased with our fourth quarter fiscal year 2022 results. Net new ARR growth accelerated meaningfully driven by new customers and a best-in-class dollar based net retention rate of 145 percent as existing customers deployed more automations and adopted more capabilities across our platform. We delivered both positive non-GAAP operating margin and non-GAAP adjusted free cash flow in the fourth quarter of fiscal year 2022 and remain committed to balancing growth and profitability.”
Fourth Quarter Fiscal 2022 Financial Highlights
- Revenue of $289.7 million increased 39 percent year-over-year.
- ARR of $925.3 million increased 59 percent year-over-year.
- Net new ARR of $106.9 million increased 72 percent year-over-year.
- Dollar based net retention rate of 145 percent.
- GAAP gross margin was 86 percent.
- Non-GAAP gross margin was 88 percent.
- Net cash used in operations was $6.0 million.
- Non-GAAP adjusted free cash flow was $9.8 million.
- Cash, cash equivalents, and marketable securities were $1.9 billion as of January 31, 2022.
Full Year Fiscal 2022 Financial Highlights
- Revenue of $892.3 million increased 47 percent year-over-year.
- Net new ARR of $344.8 million increased 51 percent year-over-year.
- GAAP gross margin was 81 percent.
- Non-GAAP gross margin was 87 percent.
- Net cash used in operations was $55.0 million.
- Non-GAAP adjusted free cash flow was negative $21.5 million.
Leadership Changes
In a separate release issued today, UiPath announced the appointment of Chris Weber as Chief Business Officer. A former Microsoft executive with more than 25 years of enterprise software experience, Weber will be responsible for leading global go-to-market strategy and execution at UiPath, and will guide worldwide sales, services, and other go-to-market operations including its partner organization. UiPath also announced that Chief Revenue Officer Thomas Hansen is leaving the Company to pursue other opportunities. Hansen will remain with UiPath through the end of the first quarter fiscal 2023 to assist with the transition.
Financial Outlook
“We are saddened by the war and humanitarian crisis that is unfolding in Ukraine,” said Daniel Dines, UiPath Co-Founder and Chief Executive Officer. “We have built a global business that serves customers in more than 115 countries, including countries across eastern Europe and Russia. Looking ahead, we feel confident in our market leading position in automation and prospects for future growth at scale but believe it is prudent at this time to factor both our European exposure and go-to-market leadership transition into the financial outlook we are providing this afternoon.”
For the fiscal first quarter 2023, UiPath expects:
- Revenue in the range of $223 million to $225 million
- ARR in the range of $960 million to $965 million as of April 30, 2022
- Non-GAAP operating loss in the range of $(30) million to $(25) million
For the fiscal full year 2023, UiPath expects:
- Revenue in the range of $1,075 million to $1,085 million
- ARR in the range of $1,200 million to $1,210 million as of January 31, 2023
- Non-GAAP operating income in the range of $0 to $10 million
Reconciliation of non-GAAP operating income (loss) guidance to the most directly comparable GAAP measure is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and low visibility with respect to the charges excluded from this non-GAAP measure; in particular, the effects of stock-based compensation expense specific to equity compensation awards that are directly impacted by unpredictable fluctuations in our stock price. We expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future GAAP financial results.
Recent Business Highlights
- Surpassed $140 million in cloud ARR. In just over two years more than 3,800 UiPath customers have adopted cloud products, including 55 percent of new customers in the fourth quarter of fiscal 2022.
- Named a Leader in the IDC MarketScape: Worldwide Cloud Testing 2022 Vendor Assessment – Empowering Business Velocity.* The report, which includes UiPath for the first time among traditional software quality tools, examines cloud testing adoption trends and their influence on organizational success through the development of secure, high-quality software.
- Announced technology integrations with:
- Box, Inc.,the leading Content Cloud, which includes expanding integration with their native e-signature product, Box Sign, and plans to add Box Sign to UiPath Integration Service to help customers accelerate complex enterprise workstreams like contract processing, HR onboarding, and sales operations.
- MuleSoft,provider of the world’s #1 integration and API platform, to deliver a UiPath Orchestrator API connector for MuleSoft. This integration will make it easy to invoke or retrieve information from within an application and seamlessly integrate robots into the local software ecosystem.
- Accelerated the development and use of automation for societal impact by:
- Announcing a partnership with Coursera, one of the largest online learning platforms in the world, to offer best-in-class automation education courses from UiPath to the over 92 million registered learners on Coursera. The RPA Specialization and Step into RPA courses from UiPath on Coursera build comprehensive knowledge and professional-level skills in developing and deploying UiPath software robots.
- Partnering with global market intelligence firm IDC to launch a free interactive assessment tool that offers organizations a tailored response on how to automate for good.
- Honored for delivering world-class customer service with the Customer Relationship Management Institute’s NorthFace ScoreBoard Service Award℠, widely recognized as the most prestigious award for customer service excellence due to its unique customer-only vote criteria. UiPath received an overall Customer Satisfaction (CSAT) rating of 91% from its customers in 2021.
*IDC MarketScape: Worldwide Cloud Testing 2022 Vendor Assessment – Empowering Business Velocity (IDC # US47097221, March 2022)
Conference Call and Webcast
UiPath will host a conference call today, Wednesday, March 30, 2022, at 5:00 p.m. Eastern Time, to discuss the Company’s fourth quarter and full year fiscal 2022 financial results and guidance. To access this call, dial 1-201-689-8057 (domestic) or 1-877-407-8309 (international). The passcode is 13726262. A replay of this conference call will be available through April 13, 2022 at 1-201-612-7415 (domestic) or 1-877-660-6853 (international). The replay passcode is 13726262. A live webcast of this conference call will be available on the “Investor Relations” page of the UiPath’s website (https://ir.uipath.com), and a replay will be archived on the website as well.
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