UiPath reported better-than-expected second quarter results and said its automation platform is gaining momentum.
The company, which is best known for its robotics process automation but has moved to become a broader platform, reported second quarter non-GAAP earnings of 9 cents a share with revenue of $287.3 million, up 18.6% from a year ago. Annual recurring revenue in the second quarter was up 25% from a year ago. The company reported a second quarter net loss of $60.36 million, or 11 cents a share.
Wall Street was looking for a second quarter non-GAAP profit of 3 cents a share.
As for the outlook, UiPath said revenue for the third quarter will be between $313 million to $318 million, which is higher than estimates of $315 million. For fiscal 2024, UiPath said revenue will be between $1.273 billion and $1.278 billion. That range was better than estimates of $1.27 billion.
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Rob Enslin, co-CEO of UiPath, said in the second half "momentum is building as customers recognize the need for efficiency in the current operating environment and the long-term structural advantages of automation."
Daniel Dines, co-CEO of UiPath, added that the company's automation platform aims to "operationalize the promise of AI."
UiPath also authorized a $500 million share repurchase program. The company ended the quarter with cash and equivalents of $1.8 billion.
The company has partnered with SAP to couple automation platforms and data sources. Both UiPath and SAP compete with Celonis as does Microsoft, which recently announced Power Automate Process Mining.
Enslin spoke at an investment conference in June and outlined the following:
- UiPath's sales effort to focus on industries and value are paying off. "Northstar is our value platform where we actually go into the order of how we really help companies drive super efficiencies and get significant benefits from the solution," he said.
- The company is incorporating generative AI into its automation platform. "We showcased a live demo in earnings of something we call Wingman, which is really using generative AI to actually produce automations on the fly basically," said Enslin.
- The SAP partnership is promising. Enslin said "we have engineers working together to build out the products and connectors specifically with SAP's Signavio product and how it fits into our solutions so that customers see it from a holistic point of view."