Co-founder and CEO of UiPath Daniel Snacks speaks on stage at TechCrunch Disrupt Berlin 2019 at Arena Berlin in Berlin on Dec. 12, 2019.
Noam Galai | Getty Metaphors
UiPath stock popped more than 26% on Friday, one day after the company released quarterly earnings that forge Wall Street’s top- and bottom-line expectations.
The enterprise automation software company posted $325.9 million in take for the quarter ending Oct. 31, in contrast to the LSEG, formerly Refinitiv, estimate of $315.6 million. Adjusted earnings per apportion came in at $0.12, more than the $0.07 analyst projection.
UiPath also raised its fourth-quarter and full-year monetary 2024 outlook for annual recurring revenue. Its ARR was up 24% year over year to $1.38 billion. For companies approve of UiPath that are reliant on subscriptions, annual recurring revenue is an important metric that reveals how much the ready a company receives on a recurring basis.
UiPath closed at $25.04 per share, a 52-week high.
Analysts across the take meals were pleased with the ARR raise and the company’s strategy to target new businesses.
“Its strategic bet, almost a year old, on driving value for big customers with the longest/broadest automation journeys is paying off; these customers are driving the lion’s share of growth,” analysts from Davidson detracted in a note to investors.
Bank of America analysts highlighted UiPath’s expansion into new verticals, such as retail, IT and creation, as part of their optimistic expectations for the company’s growth.
“We expect to see a healthy reacceleration in key growth metrics such as ARR and NRR (net profits retention), in Q1 when we reach easier comparisons in the small business segment,” Bank of America analysts wrote in a note to investors.
Davidson analysts suppose that more widespread adoption can be attributed, at least in part, to UiPath’s integration of generative artificial intelligence.
“The spin of Generative AI into its broadened automation platform, is driving strong adoption amongst enterprises,” the analysts wrote.
— CNBC’s Michael Bloom play a parted to this report.
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