UiPath stock jumps 10% after Q3 results beat expectations

UiPath, the first Romanian company listed on Wall Street, announced revenues of USD 262.7 mln in the third quarter (Q3) of 2022, which led to a 10% jump in the company’s stock price.

The revenues level, up 19% from the same quarter last year, beat expectations and led UiPath stock to a price of USD 14.25 per share, still a considerable distance from its IPO price of USD 56 or its peak of almost USD 80.

The annual recurring revenue (ARR) also jumped 36% YoY to USD 1.11 bln, which was more than the USD 1.093 bln that management had hoped for. The ARR is a metric often used by software-as-a-service companies to show how much revenue the company can expect based on subscriptions.

Losses in Q3 also dropped from last year, reaching USD 0.10 per share, down from USD 0.23 in 2021.

Despite beating expectations in Q3, the company’s future still looks unsure to many analysts. “Its fourth-quarter guidance looks a little light. Management expects to generate Q4 revenue of USD 279 million at best, which would be almost a 4% year-over-year decline. Moreover, UiPath management thinks it will increase its ARR by USD 66 million in Q4. For perspective, its ARR increased by USD 66.8 million in Q3,” according to one analysis published by The Motley Fool.

While UiPath management is hopeful that Q4 will be better than Q3 in terms of new deals, analysts recommend patience.

(Photo source: UiPath Facebook page)