UiPath Reports Second Quarter Fiscal 2024 Financial Results
Revenue of $287 million increases 19 percent year-over-year
ARR of $1.308 billion increases 25 percent year-over-year
Cash flow from operations reaches $44 million and non-GAAP adjusted free cash flow reaches $47 million
Announces $500 million stock repurchase program
NEW YORK, NY – September 6, 2023 – UiPath, Inc. (NYSE: PATH), a leading enterprise automation software company, today announced financial results for its second quarter fiscal 2024 ended July 31, 2023.
“We delivered second quarter fiscal 2024 ARR growth of 25 percent while executing on our strategic initiatives and driving operational excellence across the company,” said Rob Enslin, UiPath Co-Chief Executive Officer. “I am energized by the excitement around our continuous investments in AI which are driving business outcomes for our customers. Looking to the second half of the year, momentum is building across the business as customers recognize the need for efficiency in the current operating environment and the long-term structural advantages of automation.”
Daniel Dines, UiPath Co-Founder and Co-Chief Executive Officer continued, “Harnessing the potential of AI is at the top of almost every executive’s agenda. Our automation platform enables customers to operationalize the promise of AI today with an integrated set of capabilities that combines our Specialized AI and governance with the creative power of Generative AI to unlock the almost limitless value this powerful combination creates.”
Second Quarter Fiscal 2024 Financial Highlights
•Revenue of $287.3 million increased 19 percent year-over-year.
•ARR of $1.308 billion increased 25 percent year-over-year.
•Net new ARR of $59.0 million.
•Dollar based net retention rate of 121 percent.
•GAAP gross margin was 83 percent.
•Non-GAAP gross margin was 86 percent.
•GAAP operating loss was $(77.6) million.
•Non-GAAP operating income was $30.1 million.
•Net cash flow from operations was $44.3 million.
•Non-GAAP adjusted free cash flow was $46.6 million.
•Cash, cash equivalents, and marketable securities were $1.8 billion as of July 31, 2023.
“I am pleased with the execution and discipline of our team as we continue to balance growth at scale with meaningful increases in profitability and cash flow,” said Ashim Gupta, UiPath Chief Financial Officer. “With more than $1.8 billion in cash, cash equivalents, and marketable securities, the UiPath Board of Directors has authorized a $500 million stock repurchase program, which underscores our confidence in the future and our commitment to building shareholder value.”
Stock Repurchase Program
UiPath, Inc. today announced that its Board of Directors has authorized the Company to repurchase up to an aggregate of $500 million of its Class A common stock in a manner deemed in the best interest of the Company and its stockholders, taking into account the economic cost and prevailing market conditions, including the relative trading prices and volumes of the Class A shares. The repurchases are expected to be executed from time to time, subject to general business and market conditions and other investment opportunities, through open market purchases or privately negotiated transactions, including through Rule 10b5-1 trading plans and under Rule 10b-18 of the Securities Exchange Act of 1934, as amended. The
stock repurchase program authorization expires on March 1, 2025, subject to modification by the Board of Directors in the future.
Financial Outlook
For the third quarter fiscal 2024, UiPath expects:
•Revenue in the range of $313 million to $318 million
•ARR in the range of $1.359 billion to $1.364 billion as of October 31, 2023
•Non-GAAP operating income of approximately $32 million
For the full year fiscal 2024, UiPath expects:
•Revenue in the range of $1.273 billion to $1.278 billion
•ARR in the range of $1.432 billion to $1.437 billion as of January 31, 2024
•Non-GAAP operating income of approximately $188 million
Reconciliation of non-GAAP operating income 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
•Announced General Availability of Generative AI and Specialized AI Offerings: These latest AI-powered automation features accelerate customers’ ability to discover, automate, and operate automations at scale through Generative AI and Specialized AI, including the general availability of OpenAI and Azure OpenAI connectors with support for GPT-4. The Company also introduced support for the Falcon Large Language Model (LLM) via its Amazon SageMaker connector, and the preview of the Google Vertex connector with support for PaLM 2.
•Delivered New AI-powered Features and Developer Experiences to Accelerate Automation Across All Knowledge Work: New platform features include powerful developer tools that extend options for both citizen developers and professional developers to put automation into practice faster with enhanced low-code tools, solution accelerators, and automated testing. Also announced preview of Clipboard AI™, our advanced AI tool specifically for non-technical knowledge workers that takes the waste out of copy-and-paste tasks.
•Received widespread industry recognition for platform capabilities, including document understanding, communications mining, process mining, and task mining:
◦Named a Leader and the only Star Performer in the Everest Group Intelligent Document Processing (IDP) Products report. This report analyzes AI technologies such as computer vision, natural language processing (NLP), and machine/deep learning to classify and extract information from structured, semi-structured, and unstructured documents. Everest Group commented: “UiPath’s acquisition of Re-infer has helped it improve its NLP capabilities for context understanding and communications mining, further contributing to its success.”
◦Named a Leader in Everest Group Process Mining Products PEAK Matrix® Assessment 2023 for the fourth consecutive year. “Investments in product innovation, enhanced integration with its automation suite, and strong YoY growth in its process mining client and revenue base have helped UiPath strengthen its position as a Leader on Everest Group’s Process Mining Products PEAK Matrix® 2023,” Everest Group said.
◦Named a Leader in Everest Group Task Mining Products PEAK Matrix® Assessment 2023 for the first time. The report states that UiPath is a top provider by task mining clients, and that UiPath has experienced 150% year-over-year growth in task mining clients.
◦Positioned by Gartner, Inc. as a Leader in the 2023 Gartner® Magic Quadrant™ for Robotic Process Automation1 research report. UiPath was named a Leader for the fifth year in a row, and in this report UiPath was positioned highest for Ability to Execute.
•Announced Partnership with Peraton to Expand Cloud-based Automation in U.S. Intelligence, Defense, and Federal Civilian Sectors: Peraton, a leading mission capability integrator and transformative enterprise IT provider, is partnering with UiPath to deliver the UiPath Business Automation Platform as a cloud-based managed service to high-security environments within U.S. intelligence, defense, and civilian agencies. The partnership will allow federal government customers to create and execute on automation strategies, drive mission agility, and orchestrate transformational impact for highly sensitive secure workloads.
•Released its Fiscal Year 2023 Impact Report: In this report, UiPath highlights its environmental, social, and governance (ESG) approach and shares the Company’s first materiality assessment, identifying the most relevant areas of impact on stakeholders. In addition, for the first time, the report includes a comprehensive greenhouse gas inventory of data across Scopes 1, 2, and 3 and introduces a commitment by UiPath to set corporate climate targets, in alignment with the Science-Based Target Initiative.
Conference Call and Webcast
UiPath will host a conference call today, Wednesday, September 6, 2023, at 5:00 p.m. Eastern Time, to discuss the Company's second quarter fiscal 2024 financial results and its guidance for the third quarter and full year fiscal 2024. To access this call, dial 1-201-689-8057 (domestic) or 1-877-407-8309 (international). The passcode is 13740527. A live webcast of this conference call will be available on the "Investor Relations" page of UiPath’s website (https://ir.uipath.com), and a replay will also be archived on the website for one year.
Gartner Disclaimers
1 Gartner, “Magic Quadrant for Robotic Process Automation”, Saikat Ray, Arthur Villa, Melanie Alexander, Andy Wang, Mukul Saha, Sachin Joshi, 2 August 2023
Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally, Magic Quadrant is a registered trademark of Gartner, Inc. and/or its affiliates and is used herein with permission. All rights reserved.
About UiPath
UiPath (NYSE: PATH) is on a mission to uplevel knowledge work so more people can work more creatively, collaboratively, and strategically. The AI-powered UiPath Business Automation Platform combines the leading robotic process automation (RPA) solution with a full suite of capabilities to understand, automate, and operate end-to-end processes, offering unprecedented time-to-value. For organizations that need to evolve to survive and thrive through increasingly changing times, UiPath is The Foundation of Innovation™. For more information, visit www.uipath.com.
Forward Looking Statements
Statements we make in this press release may include statements which are not historical facts and are considered forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995, which are usually identified by the use of words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “possible,” “projects,” “outlook,” “seeks,” “should,” “will,” and variations of such words or similar expressions, including the negatives of these words or similar expressions.
We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are making this statement for purposes of complying with those safe harbor provisions.
These forward-looking statements include, but are not limited to, statements regarding our guidance for the third fiscal quarter and fiscal year 2024, our strategic plans, objectives and roadmap, the estimated addressable market opportunity for our platform and statements regarding the growth of the enterprise automation market, the success of our platform and new releases, the success of our collaborations with third parties, our customers’ behaviors and potential automation spend and details of UiPath’s stock repurchase program. Accordingly, actual results could differ materially or such uncertainties could cause adverse effects on our results. Forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks include, but are not limited to, risks and uncertainties related to: the market, political, economic, and business conditions, including turmoil and macro-economic effects caused by geopolitical tensions and conflict, increasing inflationary cost trends, and foreign exchange volatility; volatility in credit and financial markets; our recent rapid growth, which may not be indicative of our future growth; our limited operating history; our ability to successfully manage our growth and achieve or maintain profitability; our ability and the ability of our platform and products to satisfy and adapt to customer demands, including our ability to continue to successfully develop, integrate and compete against competitors and new market entrants with artificial intelligence tools and capabilities; our dependency on our existing customers to renew their licenses and purchase additional licenses and products from us and our channel partners; our ability to attract and retain customers; the competitive markets in which we participate; our ability to maintain and expand our distribution channels; our ability to attract, retain and motivate our management and key employees, integrate new team members, and manage management transitions; our reliance on third-party providers of cloud-based infrastructure; the potential effects that regional or global pandemics could have on our or our customers’ businesses, financial conditions and future operating results; our failure to achieve our environmental, social and governance (ESG) goals; and the price volatility of our Class A common stock.
Further information on risks that could cause actual results to differ materially from our guidance can be found in our Annual Report on Form 10-K for the annual period ended January 31, 2023 filed with the SEC on March 24, 2023, and in our Quarterly Reports on Form 10-Q filed with the SEC, and other filings and reports that we may file from time to time with the SEC. Any forward-looking statements contained in this press release are based on assumptions that we believe to be reasonable as of this date. Except as required by law, we assume no obligation to update these forward-looking statements.
Key Performance Metric
Annualized Renewal Run-rate (ARR) is a key performance metric we use in managing our business because it illustrates our ability to acquire new subscription customers and to maintain and expand our relationships with existing subscription customers. We define ARR as annualized invoiced amounts per solution SKU from subscription licenses and maintenance and support obligations assuming no increases or reductions in customers’ subscriptions. ARR does not include the costs we may incur to obtain such subscription licenses or provide such maintenance and support, and does not reflect any actual or anticipated reductions in invoiced value due to contract non-renewals or service cancellations other than for specific reserves, for example those for credit losses or disputed amounts. ARR does not include invoiced amounts associated with perpetual licenses or professional services. ARR is not a forecast of future revenue, which can be impacted by contract start and end dates and duration. ARR should be viewed independently of revenue and deferred revenue as ARR is an operating metric and is not intended to replace these items.
Dollar-based net retention rate represents the rate of net expansion of our ARR from existing customers over the preceding 12 months. We calculate dollar-based net retention rate as of a period end by starting with ARR from the cohort of all customers as of 12 months prior to such period end (Prior Period ARR). We then calculate the ARR from these same customers as of the current period end (Current Period ARR). Current Period ARR includes any expansion and is net of any contraction or attrition over the preceding 12 months but does not include ARR from new customers in the current period. We then divide total Current Period ARR by total Prior Period ARR to arrive at dollar-based net retention rate. Dollar-based net retention rate may fluctuate based on the customers that qualify to be included in the cohort used for calculation and may not reflect our actual performance.
Investors should not place undue reliance on ARR or dollar-based net retention rate as an indicator of future or expected results. Our presentation of these metrics may differ from similarly titled metrics presented by other companies and therefore comparability may be limited.
Non-GAAP Financial Measures
Non-GAAP financial measures are financial measures that are derived from the consolidated financial statements, but that are not presented in accordance with generally accepted accounting principles in the United States (GAAP). This earnings press release includes financial measures defined as non-GAAP financial measures by the SEC, including non-GAAP cost of licenses, non-GAAP cost of subscription services, non-GAAP cost of professional services and other, non-GAAP gross profit and margin, non-GAAP sales and marketing expenses, non-GAAP research and development expenses, non-GAAP general and administrative expenses, non-GAAP operating income (loss) and margin, and non-GAAP net income (loss) and non-GAAP net income (loss) per share. These non-GAAP financial measures exclude:
•stock-based compensation expense;
•amortization of acquired intangibles;
•employer payroll tax expense related to employee equity transactions;
•restructuring costs;
•charitable donation of Class A common stock; and
•in the case of non-GAAP net income (loss), tax adjustments associated with the add-back items, as applicable.
Additionally, this earnings release presents non-GAAP adjusted free cash flow, which is calculated by adjusting GAAP operating cash flows for the impact of purchases of property and equipment, cash paid for employer payroll taxes related to employee equity transactions, net payments/receipts of employee tax withholdings on stock option exercises, and cash paid for restructuring costs.
UiPath uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, by excluding the effects of special items that do not reflect the ordinary earnings of our operations, and as a supplement to GAAP measures. UiPath believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing its financial results with other companies in UiPath’s industry, many of which present similar non-GAAP financial measures to investors. Investors should consider these non-GAAP financial measures in addition to, and not as a substitute for, our financial performance measures prepared in accordance with GAAP. Further, our non-GAAP information may be different from the non-GAAP information provided by other companies. The information below provides a reconciliation of non-GAAP financial measures used in this press release to the most directly comparable GAAP financial measures. We encourage investors to consider our GAAP results alongside our supplemental non-GAAP measures, and to review the reconciliation between GAAP results and non-GAAP measures that is included at the end of this earnings press release. This earnings press release and any future releases containing such non-GAAP reconciliations can also be found on the Investor Relations page of UiPath’s website at https://ir.uipath.com.
UiPath, Inc.
Condensed Consolidated Statements of Operations
in thousands, except per share data
(unaudited)
Three Months Ended July 31,
Six Months Ended July 31,
2023
2022
2023
2022
Revenue:
Licenses
$
119,300
$
103,696
$
253,339
$
220,700
Subscription services
159,999
124,656
306,351
240,150
Professional services and other
8,011
13,870
17,208
26,438
Total revenue
287,310
242,222
576,898
487,288
Cost of revenue:
Licenses
3,008
2,170
5,555
4,707
Subscription services
26,777
22,326
49,855
43,371
Professional services and other
19,202
20,080
37,244
41,514
Total cost of revenue
48,987
44,576
92,654
89,592
Gross profit
238,323
197,646
484,244
397,696
Operating expenses:
Sales and marketing
169,725
181,547
330,131
371,329
Research and development
86,606
67,849
161,948
136,539
General and administrative
59,577
68,443
116,161
125,973
Total operating expenses
315,908
317,839
608,240
633,841
Operating loss
(77,585)
(120,193)
(123,996)
(236,145)
Interest income
13,582
4,505
27,430
5,496
Other income (expense), net
7,472
(600)
11,766
(3,411)
Loss before income taxes
(56,531)
(116,288)
(84,800)
(234,060)
Provision for income taxes
3,830
4,090
7,462
8,879
Net loss
$
(60,361)
$
(120,378)
$
(92,262)
$
(242,939)
Net loss per share attributable to common stockholders, basic and diluted
$
(0.11)
$
(0.22)
$
(0.16)
$
(0.45)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted
562,883
546,058
560,422
544,014
UiPath, Inc.
Condensed Consolidated Balance Sheets
in thousands
(unaudited)
As of
July 31, 2023
January 31, 2023
Assets
Current assets
Cash and cash equivalents
$
1,093,898
$
1,402,119
Restricted cash
400
—
Marketable securities
735,670
354,774
Accounts receivable, net of allowance for credit losses of $1,128 and $2,698, respectively
226,327
374,217
Contract assets
80,602
69,260
Deferred contract acquisition costs
59,326
49,887
Prepaid expenses and other current assets
107,373
94,150
Total current assets
2,303,596
2,344,407
Marketable securities, non-current
—
2,942
Contract assets, non-current
5,021
6,523
Deferred contract acquisition costs, non-current
134,021
137,616
Property and equipment, net
24,679
29,045
Operating lease right-of-use assets
52,847
52,052
Intangible assets, net
19,244
23,010
Goodwill
90,051
88,010
Deferred tax assets
5,573
5,895
Other assets, non-current
35,108
45,706
Total assets
$
2,670,140
$
2,735,206
Liabilities and stockholders' equity
Current liabilities
Accounts payable
$
1,887
$
8,891
Accrued expenses and other current liabilities
64,404
76,645
Accrued compensation and employee benefits
67,836
142,582
Deferred revenue
384,015
398,334
Total current liabilities
518,142
626,452
Deferred revenue, non-current
103,780
121,697
Operating lease liabilities, non-current
56,699
56,442
Other liabilities, non-current
8,153
10,457
Total liabilities
686,774
815,048
Commitments and contingencies
Stockholders' equity
Class A common stock
5
5
Class B common stock
1
1
Additional paid-in capital
3,888,414
3,736,838
Accumulated other comprehensive income
11,506
7,612
Accumulated deficit
(1,916,560)
(1,824,298)
Total stockholders’ equity
1,983,366
1,920,158
Total liabilities and stockholders’ equity
$
2,670,140
$
2,735,206
UiPath, Inc.
Condensed Consolidated Statements of Cash Flows
in thousands
(unaudited)
Six Months Ended July 31,
2023
2022
Cash flows from operating activities
Net loss
$
(92,262)
$
(242,939)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization
11,160
8,065
Amortization of deferred contract acquisition costs
31,229
21,860
Net amortization on marketable securities
(10,745)
860
Stock-based compensation expense
187,145
189,706
Charitable donation of Class A common stock
4,215
5,499
Amortization of operating lease right-of-use assets
6,299
4,597
Provision for deferred income taxes
(57)
1,505
Abandonment and impairment charges
—
2,881
Other non-cash charges (credits), net
965
(1,031)
Changes in operating assets and liabilities:
Accounts receivable
147,725
51,707
Contract assets
(9,455)
(26,146)
Deferred contract acquisition costs
(36,389)
(39,572)
Prepaid expenses and other assets
(6,679)
(4,277)
Accounts payable
(6,033)
2,759
Accrued expenses and other liabilities
(4,229)
(14,507)
Accrued compensation and employee benefits
(74,184)
(45,042)
Operating lease liabilities, net
(7,532)
(2,422)
Deferred revenue
(29,547)
9,876
Net cash provided by (used in) operating activities
111,626
(76,621)
Cash flows from investing activities
Purchases of marketable securities
(709,199)
(45,600)
Maturities of marketable securities
338,644
47,433
Purchases of property and equipment
(2,876)
(16,298)
Payments related to business acquisitions, net of cash acquired
—
(29,477)
Other investing, net
2,754
(507)
Net cash used in investing activities
(370,677)
(44,449)
Cash flows from financing activities
Proceeds from exercise of stock options
3,904
4,682
Payments of tax withholdings on net settlement of equity awards
(52,832)
(38,717)
Net payments of tax withholdings on sell-to-cover equity award transactions
(679)
(10,132)
Proceeds from employee stock purchase plan contributions
9,643
8,507
Payment of deferred consideration related to business acquisition
(5,863)
—
Repurchase of unvested early exercised stock options
—
(1,493)
Net cash used in financing activities
(45,827)
(37,153)
Effect of exchange rate changes
(2,943)
(3,144)
Net decrease in cash, cash equivalents, and restricted cash
(307,821)
(161,367)
Cash, cash equivalents, and restricted cash - beginning of period
1,402,119
1,768,723
Cash, cash equivalents, and restricted cash - end of period
$
1,094,298
$
1,607,356
UiPath, Inc.
Reconciliation of GAAP Cost of Revenue, Gross Profit and Margin to Non-GAAP Cost of Revenue, Gross Profit and Margin
in thousands, except percentages
(unaudited)
Three Months Ended July 31,
Six Months Ended July 31,
2023
2022
2023
2022
GAAP cost of licenses
$
3,008
$
2,170
$
5,555
$
4,707
Less: Amortization of acquired intangible assets
851
562
1,687
1,158
Non-GAAP cost of licenses
$
2,157
$
1,608
$
3,868
$
3,549
GAAP cost of subscription services
$
26,777
$
22,326
$
49,855
$
43,371
Less: Stock-based compensation expense
3,809
2,841
6,987
6,057
Less: Amortization of acquired intangible assets
594
330
1,178
660
Less: Employer payroll tax expense related to employee equity transactions
85
62
175
146
Less: Restructuring costs
167
137
167
137
Non-GAAP cost of subscription services
$
22,122
$
18,956
$
41,348
$
36,371
GAAP cost of professional services and other
$
19,202
$
20,080
$
37,244
$
41,514
Less: Stock-based compensation expense
3,083
2,528
5,782
6,402
Less: Employer payroll tax expense related to employee equity transactions
68
62
139
141
Less: Restructuring costs
—
320
—
320
Non-GAAP cost of professional services and other
$
16,051
$
17,170
$
31,323
$
34,651
GAAP gross profit
$
238,323
$
197,646
$
484,244
$
397,696
GAAP gross margin
83
%
82
%
84
%
82
%
Plus: Stock-based compensation expense
6,892
5,369
12,769
12,459
Plus: Amortization of acquired intangible assets
1,445
892
2,865
1,818
Plus: Employer payroll tax expense related to employee equity transactions
153
124
314
287
Plus: Restructuring costs
167
457
167
457
Non-GAAP gross profit
$
246,980
$
204,488
$
500,359
$
412,717
Non-GAAP gross margin
86
%
84
%
87
%
85
%
UiPath, Inc.
Reconciliation of GAAP Operating Expenses, Loss, and Margin to Non-GAAP Operating Expenses, Income (Loss) and Margin
in thousands, except percentages
(unaudited)
Three Months Ended July 31,
Six Months Ended July 31,
2023
2022
2023
2022
GAAP sales and marketing
$
169,725
$
181,547
$
330,131
$
371,329
Less: Stock-based compensation expense
39,007
35,889
72,130
86,647
Less: Amortization of acquired intangible assets
681
413
1,352
827
Less: Employer payroll tax expense related to employee equity transactions
501
1,202
1,725
2,629
Less: Restructuring costs
1,087
10,732
1,316
10,732
Non-GAAP sales and marketing
$
128,449
$
133,311
$
253,608
$
270,494
GAAP research and development
$
86,606
$
67,849
$
161,948
$
136,539
Less: Stock-based compensation expense
33,071
23,501
57,844
50,124
Less: Employer payroll tax expense related to employee equity transactions
584
320
1,185
801
Less: Restructuring costs
109
43
394
43
Non-GAAP research and development
$
52,842
$
43,985
$
102,525
$
85,571
GAAP general and administrative
$
59,577
$
68,443
$
116,161
$
125,973
Less: Stock-based compensation expense
23,127
23,493
44,402
40,476
Less: Amortization of acquired intangible assets
41
46
82
92
Less: Employer payroll tax expense related to employee equity transactions
491
186
869
363
Less: Restructuring costs
354
802
729
802
Less: Charitable donation of Class A common stock
—
5,499
4,215
5,499
Non-GAAP general and administrative
$
35,564
$
38,417
$
65,864
$
78,741
GAAP operating loss
$
(77,585)
$
(120,193)
$
(123,996)
$
(236,145)
GAAP operating margin
(27)
%
(50)
%
(21)
%
(48)
%
Plus: Stock-based compensation expense
102,097
88,252
187,145
189,706
Plus: Amortization of acquired intangible assets
2,167
1,351
4,299
2,737
Plus: Employer payroll tax expense related to employee equity transactions
1,729
1,832
4,093
4,080
Plus: Restructuring costs
1,717
12,034
2,606
12,034
Plus: Charitable donation of Class A common stock
—
5,499
4,215
5,499
Non-GAAP operating income (loss)
$
30,125
$
(11,225)
$
78,362
$
(22,089)
Non-GAAP operating margin
10
%
(5)
%
14
%
(5)
%
UiPath, Inc.
Reconciliation of GAAP Net Loss and GAAP Net Loss Per Share to Non-GAAP Net Income (loss) and Non-GAAP Net Income (loss) Per Share
in thousands, except per share data
(unaudited)
Three Months Ended July 31,
Six Months Ended July 31,
2023
2022
2023
2022
GAAP net loss attributable to common stockholders
$
(60,361)
$
(120,378)
$
(92,262)
$
(242,939)
Plus: Stock-based compensation expense
102,097
88,252
187,145
189,706
Plus: Amortization of acquired intangible assets
2,167
1,351
4,299
2,737
Plus: Employer payroll tax expense related to employee equity transactions
1,729
1,832
4,093
4,080
Plus: Restructuring costs
1,717
12,034
2,606
12,034
Plus: Charitable donation of Class A common stock
—
5,499
4,215
5,499
Tax adjustments to add-backs
1,640
—
2,682
—
Non-GAAP net income (loss)
$
48,989
$
(11,410)
$
112,778
$
(28,883)
GAAP net loss per share, basic and diluted
$
(0.11)
$
(0.22)
$
(0.16)
$
(0.45)
GAAP weighted average common shares outstanding, basic and diluted
562,883
546,058
560,422
544,014
Non-GAAP weighted average common shares outstanding, basic
562,883
546,058
560,422
544,014
Plus: Dilutive potential common shares from outstanding equity awards
11,580
—
12,145
—
Non-GAAP weighted average common shares outstanding, diluted
574,463
546,058
572,567
544,014
Non-GAAP net income (loss) per share, basic
$
0.09
$
(0.02)
$
0.20
$
(0.05)
Non-GAAP net income (loss) per share, diluted
$
0.09
$
(0.02)
$
0.20
$
(0.05)
UiPath, Inc.
Reconciliation of GAAP Operating Cash Flow to Non-GAAP Adjusted Free Cash Flow
in thousands
(unaudited)
Six Months Ended July 31,
2023
2022
GAAP net cash provided by (used in) operating activities
$
111,626
$
(76,621)
Purchases of property and equipment
(2,876)
(16,298)
Cash paid for employer payroll taxes related to employee equity transactions
4,830
4,953
Net payments of employee tax withholdings on stock option exercises
