UiPath Reports Second Quarter Fiscal 2023 Financial Results

ARR surpasses the $1 billion mark reaching $1.043 billion, an increase of 44 percent year-over-year driven by net new ARR of $66 million

UiPath, Inc. (NYSE: PATH), a leading enterprise automation software company, today announced financial results for its second quarter fiscal 2023 ended July 31, 2022.

“We are pleased to report that ARR surpassed $1 billion in the second quarter fiscal 2023 to reach $1.043 billion, achieving this important milestone in just seven years. I am proud of the Company we have built and our unwavering commitment to innovation including the upcoming platform release, 2022.10, which we will unveil at our user conference, FORWARD 5, later this month,” said Daniel Dines, UiPath Co-Founder and Co-Chief Executive Officer.

Robert Enslin, UiPath Co-Chief Executive Officer, added, “The market is evolving and UiPath is leading the way with our end-to-end platform that covers the full automation lifecycle. To capitalize on the significant opportunity in front of us we are strategically repositioning the Company to elevate customer conversations, sell business outcomes, and help organizations realize the transformational benefits of automation. We firmly believe these changes will position us for both growth and profitability.”

Second Quarter Fiscal 2023 Financial Highlights

  • Revenue of $242.2 million increased 24 percent year-over-year.
  • ARR of $1.043 billion increased 44 percent year-over-year.
  • Net new ARR of $66.2 million.
  • Dollar based net retention rate of 132 percent.
  • GAAP gross margin was 82 percent.
  • Non-GAAP gross margin was 84 percent.
  • Net cash used in operations was $23.7 million.
  • Non-GAAP adjusted free cash flow was negative $23.3 million.
  • Cash, cash equivalents, and marketable securities were $1.7 billion as of July 31, 2022.

Financial Outlook

“We delivered a solid second quarter fiscal 2023 despite increasing FX headwinds and macro uncertainty. While our global footprint is an asset to the business, it exposes us to foreign exchange and macroeconomic volatility which is reflected both in our fiscal second quarter results and our fiscal third quarter and full year 2023 financial outlook,” said Ashim Gupta, UiPath Chief Financial Officer. “Our go forward priority will be to balance investing for long-term growth while managing the business to consistently expand non-GAAP operating margin and deliver sustainable positive non-GAAP adjusted free cash flow in fiscal year 2024 and beyond. We look forward to sharing more detail during our upcoming Investor Day.”

For the third quarter fiscal 2023, UiPath expects:

  • Revenue in the range of $243 million to $245 million
  • ARR in the range of $1,091 million to $1,093 million as of October 31, 2022
  • Non-GAAP operating loss in the range of $(30) million to $(25) million

For the full year fiscal 2023, UiPath expects:

  • Revenue in the range of $1,002 million to $1,007 million
  • ARR in the range of $1,153 million to $1,158 million as of January 31, 2023
  • Non-GAAP operating loss of approximately $(15) million

Reconciliation of non-GAAP operating 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

  • Acquired Re:infer: Re:infer, a London-based natural language processing company for unstructured documents and communications, uses machine learning technology to mine context from communication messages and transform them into actionable data with speed and accuracy. Combining Re:infer with UiPath’s AI-powered automation capabilities will enable UiPath software robots to understand email context and semantics, online chats, and voice sessions to deliver superior customer service interactions.
  • Announced technology integrations with:
    • Snowflake to quickly help incorporate Snowflake data into UiPath automations. Future enhancements are expected to allow robots to collect data from virtually anywhere, validate and enrich the data, and then store it in Snowflake.
    • Workday to automate actions in other systems from Workday Business Processes. This integration, now available in the Workday Extend App Catalog, opens the door to use Workday and UiPath together to automate processes related to onboarding, job transitions, and hundreds of other HCM & Financials transactions.
  • Received industry recognition:
    • Named a Leader in the 2022 Gartner Magic Quadrant for Robotic Process Automation1 for the fourth consecutive year. In this report, UiPath was positioned highest for Ability to Execute and furthest for Completeness of Vision.
    • Named a Leader and a Star Performer in Everest Group’s PEAK® Matrix for Process Mining Technology Vendors for the third consecutive year. In this report, UiPath was recognized as a Star Performer, demonstrating the most year-over-year improvement on the PEAK Matrix®.
    • Named a 2022 Inc. Best Workplace for the third time. The Inc. Best Workplaces award evaluates fast-growing American companies that have created exceptional workplaces through vibrant cultures, employee engagement, and stellar benefits.
  • Appointed Brigette McInnis-Day as Chief People Officer: McInnis-Day is a former Google and SAP executive that brings more than two decades of enterprise software experience and will be responsible for ensuring that UiPath attracts, retains, and cultivates a diverse workforce to drive the business.
  • Announced the UiPath CIO Automation Council: UiPath and 17 customer CIOs will work together to accelerate automation maturity through sharing best practices; identify new business objectives and market needs for automation; and establish industry benchmarks and provide input to guide industry regulation.
  • Issued First Annual 2021 Impact Report: The 2021 Impact Report outlines UiPath’s commitment to four core pillars: Leveraging Automation for Good, Empowering People and Communities, Protecting our Environment, and Fostering Good Governance, and provides some information about the Company’s progress against key indicators.

Conference Call and Webcast

UiPath will host a conference call today, Tuesday, September 6, 2022, at 5:00 p.m. Eastern Time, to discuss the Company's second quarter fiscal 2023 financial results and guidance. To access this call, dial 1-201-689-8057 (domestic) or 1-877-407-8309 (international). The passcode is 13731222. A replay of this conference call will be available through September 20, 2022 at 1-201-612-7415 (domestic) or 1-877-660-6853 (international). The replay passcode is 13731222. 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.

About UiPath

UiPath has a vision to deliver the Fully Automated Enterprise™, one where companies use automation to unlock their greatest potential. UiPath offers an end-to-end platform for automation, combining the leading Robotic Process Automation (RPA) solution with a full suite of capabilities that enable every organization to rapidly scale digital business operations.

Gartner Disclaimers

Gartner, Market Share Analysis: Robotic Process Automation, Worldwide, 2021, By Varsha Mehta, Fabrizio Biscotti, Saikat Ray, Arthur Villa, Cathy Tornbohm, 6 June 2022

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® and Magic Quadrant™ are registered trademarks of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.

1Gartner, “Magic Quadrant for Robotic Process Automation”, Saikat Ray, Arthur Villa, Paul Vincent, Keith Guttridge, Melanie Alexander, Andy Wang, 25 July, 2022

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,” “projects,” "outlook," “seeks,” “should,” “will,” and variations of such words, 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 end 2023, our strategic plans, objectives and roadmap, the estimated addressable market opportunity for our platform, and statements regarding the growth of the automation market. 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 geo-political turmoil and macro-economic effects caused by the war in Ukraine, increasing inflationary cost pressures, and foreign exchange volatility; our recent rapid growth, which may not be indicative of our future growth; our limited operating history; our ability to successfully manage our growth; our ability and the ability of our platform to satisfy and adapt to customer demands; 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 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 impact that the continuing COVID-19 pandemic with an economic downturn could have on our or our customers’ businesses, financial condition, 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, 2022, filed with the SEC on April 4, 2022, 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 obligations assuming no increases or reductions in the subscriptions. ARR does not include the costs we may incur to obtain such subscription licenses or provide such maintenance and does not reflect any actual or anticipated reductions in invoiced value due to contract non-renewals or service cancellations other than for specific bad debt or disputed amounts. Additionally, though we use ARR as a forward-looking metric in the management of our business, it does not include invoiced amounts reported as perpetual licenses or professional services revenue in our consolidated statement of operations, and is not a forecast of future revenue, which can be impacted by contract start and end dates, duration, and renewal rates.

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

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, capitalization of software development costs, 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. Non-GAAP financial measures are financial measures that are derived from the condensed consolidated financial statements, but that are not presented in accordance with generally accepted accounting principles in the United States (GAAP). We believe these non-GAAP financial measures provide investors with useful supplementary information in evaluating our performance. 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,

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Revenue:

 

 

 

 

 

 

 

 

Licenses

 

$

103,696

 

 

$

95,547

 

 

$

220,700

 

 

$

195,763

 

Subscription services

 

 

124,656

 

 

 

90,319

 

 

 

240,150

 

 

 

167,961

 

Professional services and other

 

 

13,870

 

 

 

9,655

 

 

 

26,438

 

 

 

18,014

 

Total revenue

 

 

242,222

 

 

 

195,521

 

 

 

487,288

 

 

 

381,738

 

Cost of revenue:

 

 

 

 

 

 

 

 

Licenses

 

 

2,170

 

 

 

2,434

 

 

 

4,707

 

 

 

4,888

 

Subscription services

 

 

22,326

 

 

 

12,238

 

 

 

43,371

 

 

 

26,417

 

Professional services and other

 

 

20,080

 

 

 

20,922

 

 

 

41,514

 

 

 

53,299

 

Total cost of revenue

 

 

44,576

 

 

 

35,594

 

 

 

89,592

 

 

 

84,604

 

Gross profit

 

 

197,646

 

 

 

159,927

 

 

 

397,696

 

 

 

297,134

 

Operating expenses:

 

 

 

 

 

 

 

 

Sales and marketing

 

 

181,547

 

 

 

144,268

 

 

 

371,329

 

 

 

350,019

 

Research and development

 

 

67,849

 

 

 

57,646

 

 

 

136,539

 

 

 

150,686

 

General and administrative

 

 

68,443

 

 

 

55,834

 

 

 

125,973

 

 

 

130,249

 

Total operating expenses

 

 

317,839

 

 

 

257,748

 

 

 

633,841

 

 

 

630,954

 

Operating loss

 

 

(120,193

)

 

 

(97,821

)

 

 

(236,145

)

 

 

(333,820

)

Interest income

 

 

4,505

 

 

 

766

 

 

 

5,496

 

 

 

1,707

 

Other expense, net

 

 

(600

)

 

 

(1,225

)

 

 

(3,411

)

 

 

(4,443

)

Loss before income taxes

 

 

(116,288

)

 

 

(98,280

)

 

 

(234,060

)

 

 

(336,556

)

Provision for income taxes

 

 

4,090

 

 

 

1,746

 

 

 

8,879

 

 

 

3,133

 

Net loss

 

$

(120,378

)

 

$

(100,026

)

 

$

(242,939

)

 

$

(339,689

)

Net loss per share attributable to common stockholders, basic and diluted

 

$

(0.22

)

 

$

(0.19

)

 

$

(0.45

)

 

$

(0.91

)

Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted

 

 

546,058

 

 

 

526,512

 

 

 

544,014

 

 

 

373,488

 

UiPath, Inc.

Condensed Consolidated Balance Sheets

in thousands

(unaudited)

 

 

 

 

 

 

 

As of

 

 

July 31, 2022

 

January 31, 2022

Assets

 

 

 

 

Current assets

 

 

 

 

Cash and cash equivalents

 

$

1,607,356

 

 

$

1,768,723

 

Marketable securities

 

 

114,188

 

 

 

96,417

 

Accounts receivable, net of allowance for doubtful accounts of $2,672 and $2,566, respectively

 

 

193,483

 

 

 

251,988

 

Contract assets

 

 

94,760

 

 

 

74,831

 

Deferred contract acquisition costs

 

 

35,259

 

 

 

29,926

 

Prepaid expenses and other current assets

 

 

63,430

 

 

 

55,416

 

Total current assets

 

 

2,108,476

 

 

 

2,277,301

 

Marketable securities, non-current

 

 

2,396

 

 

 

19,523

 

Contract assets, non-current

 

 

5,722

 

 

 

2,730

 

Deferred contract acquisition costs, non-current

 

 

106,654

 

 

 

100,224

 

Property and equipment, net

 

 

25,517

 

 

 

17,176

 

Operating lease right-of-use assets

 

 

44,074

 

 

 

48,953

 

Intangible assets, net

 

 

26,856

 

 

 

16,817

 

Goodwill

 

 

86,180

 

 

 

53,564

 

Deferred tax asset

 

 

7,995

 

 

 

10,628

 

Other assets, non-current

 

 

20,807

 

 

 

25,534

 

Total assets

 

$

2,434,677

 

 

$

2,572,450

 

 

 

 

 

 

Liabilities and stockholders' equity

 

 

 

 

Current liabilities

 

 

 

 

Accounts payable

 

$

12,122

 

 

$

11,515

 

Accrued expenses and other current liabilities

 

 

74,666

 

 

 

87,958

 

Accrued compensation and employee benefits

 

 

80,961

 

 

 

130,673

 

Deferred revenue

 

 

292,323

 

 

 

297,355

 

Total current liabilities

 

 

460,072

 

 

 

527,501

 

Deferred revenue, non-current

 

 

66,598

 

 

 

68,665

 

Operating lease liabilities, non-current

 

 

46,765

 

 

 

49,843

 

Other liabilities, non-current

 

 

11,693

 

 

 

4,524

 

Total liabilities

 

 

585,128

 

 

 

650,533

 

Commitments and contingencies

 

 

 

 

Stockholders' equity

 

 

 

 

Class A common stock

 

 

5

 

 

 

4

 

Class B common stock

 

 

1

 

 

 

1

 

Additional paid-in capital

 

 

3,577,278

 

 

 

3,406,959

 

Accumulated other comprehensive income

 

 

11,150

 

 

 

10,899

 

Accumulated deficit

 

 

(1,738,885

)

 

 

(1,495,946

)

Total stockholders’ equity

 

 

1,849,549

 

 

 

1,921,917

 

Total liabilities and stockholders’ equity

 

$

2,434,677

 

 

$

2,572,450

 

UiPath, Inc.

Condensed Consolidated Statements of Cash Flows

in thousands (unaudited)

 

 

Six Months Ended July 31,

 

 

 

2022

 

 

 

2021

 

Cash flows from operating activities

 

 

 

 

Net loss

 

$

(242,939

)

 

$

(339,689

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

Depreciation and amortization

 

 

8,065

 

 

 

6,966

 

Amortization of deferred contract acquisition costs

 

 

21,860

 

 

 

10,971

 

Net amortization of premium on marketable securities

 

 

860

 

 

 

867

 

Stock-based compensation expense

 

 

189,706

 

 

 

343,448

 

Charitable donation of Class A common stock

 

 

5,499

 

 

 

 

Amortization of operating lease right-of-use assets

 

 

4,597

 

 

 

3,580

 

Provision for deferred income taxes

 

 

1,505

 

 

 

(134

)

Impairment of long-lived assets

 

 

2,881

 

 

 

 

Other non-cash charges (credits), net1

 

 

(1,031

)

 

 

(526

)

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable

 

 

51,707

 

 

 

32,961

 

Contract assets

 

 

(26,146

)

 

 

(20,355

)

Deferred contract acquisition costs

 

 

(39,572

)

 

 

(44,946

)

Prepaid expenses and other assets

 

 

(4,277

)

 

 

(4,340

)

Accounts payable

 

 

2,759

 

 

 

(3,663

)

Accrued expense and other liabilities

 

 

(14,507

)

 

 

8,484

 

Accrued compensation and employee benefits

 

 

(45,042

)

 

 

(32,686

)

Operating lease liabilities, net

 

 

(2,422

)

 

 

(3,698

)

Deferred revenue

 

 

9,876

 

 

 

19,237

 

Net cash used in operating activities

 

 

(76,621

)

 

 

(23,523

)

Cash flows from investing activities

 

 

 

 

Purchases of marketable securities

 

 

(45,600

)

 

 

(94,157

)

Sales of marketable securities

 

 

 

 

 

89,383

 

Maturities of marketable securities

 

 

47,433

 

 

 

36,605

 

Purchases of property and equipment

 

 

(16,298

)

 

 

(3,641

)

Capitalization of software development costs

 

 

 

 

 

(771

)

Payments related to business acquisitions, net of cash acquired

 

 

(29,477

)

 

 

(5,498

)

Other investing, net

 

 

(507

)

 

 

 

Net cash (used in) provided by investing activities

 

 

(44,449

)

 

 

21,921

 

Cash flows from financing activities

 

 

 

 

Proceeds from initial public offering, net of underwriting discounts and commissions

 

 

 

 

 

692,369

 

Payments of initial public offering costs

 

 

 

 

 

(3,734

)

Proceeds from issuance of convertible preferred stock

 

 

 

 

 

750,000

 

Payments of issuance costs for convertible preferred stock

 

 

 

 

 

(164

)

Proceeds from exercise of stock options

 

 

4,682

 

 

 

6,651

 

Payments of tax withholdings on net settlement of equity awards

 

 

(38,717

)

 

 

(9,554

)

Net (payments) receipts of tax withholdings on sell-to-cover equity award transactions

 

 

(10,132

)

 

 

9,483

 

Proceeds from employee stock purchase plan contributions

 

 

8,507

 

 

 

6,902

 

Repurchase of unvested early exercised stock options

 

 

(1,493

)

 

 

 

Net cash (used in) provided by financing activities

 

 

(37,153

)

 

 

1,451,953

 

Effect of exchange rate changes

 

 

(3,144

)

 

 

4,883

 

Net (decrease) increase in cash, cash equivalents, and restricted cash

 

 

(161,367

)

 

 

1,455,234

 

Cash, cash equivalents, and restricted cash - beginning of period

 

 

1,768,723

 

 

 

371,190

 

Cash, cash equivalents, and restricted cash - end of period

 

$

1,607,356

 

 

$

1,826,424

 

 

 

 

 

 

1 Prior period amounts have been combined to conform to current period presentation

 

 

 

 

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,

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Licenses

 

 

 

 

 

 

 

 

GAAP cost of licenses

 

$

2,170

 

 

$

2,434

 

 

$

4,707

 

 

$

4,888

 

Less: Amortization of acquired intangible assets

 

 

562

 

 

 

636

 

 

 

1,158

 

 

 

1,282

 

Non-GAAP cost of licenses

 

$

1,608

 

 

$

1,798

 

 

$

3,549

 

 

$

3,606

 

 

 

 

 

 

 

 

 

 

Subscription services

 

 

 

 

 

 

 

 

GAAP cost of subscription services

 

$

22,326

 

 

$

12,238

 

 

$

43,371

 

 

$

26,417

 

Less: Stock-based compensation expense

 

 

2,841

 

 

 

1,657

 

 

 

6,057

 

 

 

7,871

 

Less: Amortization of acquired intangible assets

 

 

330

 

 

 

330

 

 

 

660

 

 

 

440

 

Less: Employer payroll tax expense related to employee equity transactions

 

 

62

 

 

 

186

 

 

 

146

 

 

 

186

 

Less: Restructuring costs

 

 

137

 

 

 

 

 

 

137

 

 

 

 

Non-GAAP cost of subscription services

 

$

18,956

 

 

$

10,065

 

 

$

36,371

 

 

$

17,920

 

 

 

 

 

 

 

 

 

 

Professional services and other

 

 

 

 

 

 

 

 

GAAP cost of professional services and other

 

$

20,080

 

 

$

20,922

 

 

$

41,514

 

 

$

53,299

 

Less: Stock-based compensation expense

 

 

2,528

 

 

 

3,904

 

 

 

6,402

 

 

 

22,835

 

Less: Employer payroll tax expense related to employee equity transactions

 

 

62

 

 

 

1,079

 

 

 

141

 

 

 

1,079

 

Less: Restructuring costs

 

 

320

 

 

 

 

 

 

320

 

 

 

 

Non-GAAP cost of professional services and other

 

$

17,170

 

 

$

15,939

 

 

$

34,651

 

 

$

29,385

 

 

 

 

 

 

 

 

 

 

Gross profit and margin

 

 

 

 

 

 

 

 

GAAP gross profit

 

$

197,646

 

 

$

159,927

 

 

$

397,696

 

 

$

297,134

 

GAAP gross margin

 

 

82

%

 

 

82

%

 

 

82

%

 

 

78

%

Plus: Stock-based compensation expense

 

 

5,369

 

 

 

5,561

 

 

 

12,459

 

 

 

30,706

 

Plus: Amortization of acquired intangible assets

 

 

892

 

 

 

966

 

 

 

1,818

 

 

 

1,722

 

Plus: Employer payroll tax expense related to employee equity transactions

 

 

124

 

 

 

1,265

 

 

 

287

 

 

 

1,265

 

Plus: Restructuring costs

 

 

457

 

 

 

 

 

 

457

 

 

 

 

Non-GAAP gross profit

 

$

204,488

 

 

$

167,719

 

 

$

412,717

 

 

$

330,827

 

Non-GAAP gross margin

 

 

84

%

 

 

86

%

 

 

85

%

 

 

87

%

UiPath, Inc.

Reconciliation of GAAP Operating Expenses, Loss, and Margin to Non-GAAP Operating Expenses, (Loss) Income and Margin

in thousands, except percentages

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended July 31,

 

Six Months Ended July 31,

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Sales and Marketing

 

 

 

 

 

 

 

 

GAAP sales and marketing

 

$

181,547

 

 

$

144,268

 

 

$

371,329

 

 

$

350,019

 

Less: Stock-based compensation expense

 

 

35,889

 

 

 

41,006

 

 

 

86,647

 

 

 

160,299

 

Less: Amortization of acquired intangible assets

 

 

413

 

 

 

427

 

 

 

827

 

 

 

588

 

Less: Employer payroll tax expense related to employee equity transactions

 

 

1,202

 

 

 

8,364

 

 

 

2,629

 

 

 

8,679

 

Less: Restructuring costs

 

 

10,732

 

 

 

 

 

 

10,732

 

 

 

 

Non-GAAP sales and marketing

 

$

133,311

 

 

$

94,471

 

 

$

270,494

 

 

$

180,453

 

 

 

 

 

 

 

 

 

 

Research and Development

 

 

 

 

 

 

 

 

GAAP research and development

 

$

67,849

 

 

$

57,646

 

 

$

136,539

 

 

$

150,686

 

Less: Stock-based compensation expense

 

 

23,501

 

 

 

23,978

 

 

 

50,124

 

 

 

89,594

 

Less: Employer payroll tax expense related to employee equity transactions

 

 

320

 

 

 

325

 

 

 

801

 

 

 

325

 

Less: Restructuring costs

 

 

43

 

 

 

 

 

 

43

 

 

 

 

Non-GAAP research and development

 

$

43,985

 

 

$

33,343

 

 

$

85,571

 

 

$

60,767

 

 

 

 

 

 

 

 

 

 

General and Administrative

 

 

 

 

 

 

 

 

GAAP general and administrative

 

$

68,443

 

 

$

55,834

 

 

$

125,973

 

 

$

130,249

 

Less: Stock-based compensation expense

 

 

23,493

 

 

 

22,068

 

 

 

40,476

 

 

 

62,849

 

Less: Amortization of acquired intangible assets

 

 

46

 

 

 

 

 

 

92

 

 

 

 

Less: Employer payroll tax expense related to employee equity transactions

 

 

186

 

 

 

590

 

 

 

363

 

 

 

590

 

Less: Restructuring costs

 

 

802

 

 

 

 

 

 

802

 

 

 

 

Less: Charitable donation of Class A common stock

 

 

5,499

 

 

 

 

 

 

5,499

 

 

 

 

Non-GAAP general and administrative

 

$

38,417

 

 

$

33,176

 

 

$

78,741

 

 

$

66,810

 

 

 

 

 

 

 

 

 

 

Operating Loss

 

 

 

 

 

 

 

 

GAAP operating loss

 

$

(120,193

)

 

$

(97,821

)

 

$

(236,145

)

 

$

(333,820

)

GAAP operating margin

 

 

(50

) %

 

 

(50

) %

 

 

(48

) %

 

 

(87

) %

Plus: Stock-based compensation expense

 

 

88,252

 

 

 

92,613

 

 

 

189,706

 

 

 

343,448

 

Plus: Amortization of acquired intangible assets

 

 

1,351

 

 

 

1,393

 

 

 

2,737

 

 

 

2,310

 

Plus: Employer payroll tax expense related to employee equity transactions

 

 

1,832

 

 

 

10,544

 

 

 

4,080

 

 

 

10,859

 

Plus: Restructuring costs

 

 

12,034

 

 

 

 

 

 

12,034

 

 

 

 

Plus: Charitable donation of Class A common stock

 

 

5,499

 

 

 

 

 

 

5,499

 

 

 

 

Non-GAAP operating (loss) income

 

$

(11,225

)

 

$

6,729

 

 

$

(22,089

)

 

$

22,797

 

Non-GAAP operating margin

 

 

(5

) %

 

 

3

%

 

 

(5

) %

 

 

6

%

UiPath, Inc.

Reconciliation of GAAP Net Loss and GAAP Net Loss Per Share to Non-GAAP Net (Loss) Income and Non-GAAP Net (Loss) Income Per Share

in thousands, except per share data

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended July 31,

 

Six Months Ended July 31,

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

GAAP net loss

 

$

(120,378

)

 

$

(100,026

)

 

$

(242,939

)

 

$

(339,689

)

Plus: Stock-based compensation expense

 

 

88,252

 

 

 

92,613

 

 

 

189,706

 

 

 

343,448

 

Plus: Amortization of acquired intangible assets

 

 

1,351

 

 

 

1,393

 

 

 

2,737

 

 

 

2,310

 

Plus: Employer payroll tax expense related to employee equity transactions

 

 

1,832

 

 

 

10,544

 

 

 

4,080

 

 

 

10,859

 

Plus: Restructuring costs

 

 

12,034

 

 

 

 

 

 

12,034

 

 

 

 

Plus: Charitable donation of Class A common stock

 

 

5,499

 

 

 

 

 

 

5,499

 

 

 

 

Tax adjustments to add-backs1

 

 

 

 

 

(338

)

 

 

 

 

 

(1,083

)

Non-GAAP net (loss) income

 

$

(11,410

)

 

$

4,186

 

 

$

(28,883

)

 

$

15,845

 

 

 

 

 

 

 

 

 

 

GAAP net loss per share, basic and diluted

 

$

(0.22

)

 

$

(0.19

)

 

$

(0.45

)

 

$

(0.91

)

GAAP weighted average common shares outstanding, basic and diluted

 

 

546,058

 

 

 

526,512

 

 

 

544,014

 

 

 

373,488

 

Plus: Unweighted adjustment for conversion of preferred to common stock in connection with IPO

 

 

 

 

 

 

 

 

 

 

 

137,073

 

Plus: Unweighted adjustment for common stock issued in connection with IPO

 

 

 

 

 

 

 

 

 

 

 

5,818

 

Non-GAAP weighted average common shares outstanding, basic

 

 

546,058

 

 

 

526,512

 

 

 

544,014

 

 

 

516,379

 

Plus: Dilutive potential common shares from outstanding equity awards

 

 

 

 

 

33,619

 

 

 

 

 

 

42,692

 

Non-GAAP weighted average common shares outstanding, diluted

 

 

546,058

 

 

 

560,131

 

 

 

544,014

 

 

 

559,071

 

Non-GAAP net (loss) income per share, basic

 

$

(0.02

)

 

$

0.01

 

 

$

(0.05

)

 

$

0.03

 

Non-GAAP net (loss) income per share, diluted

 

$

(0.02

)

 

$

0.01

 

 

$

(0.05

)

 

$

0.03

 

1 Estimated using blended annual effective tax rate and net operating losses available to offset.

UiPath, Inc.

Reconciliation of GAAP Operating Cash Flow to Non-GAAP Adjusted Free Cash Flow

in thousands

(unaudited)

 

 

 

 

 

 

 

Six Months Ended July 31,

 

 

 

2022

 

 

 

2021

 

GAAP net cash used in operating activities

 

$

(76,621

)

 

$

(23,523

)

Purchases of property and equipment

 

 

(16,298

)

 

 

(3,641

)

Capitalization of software development costs

 

 

 

 

 

(771

)

Cash paid for employer payroll taxes related to employee equity transactions

 

 

4,953

 

 

 

9,064

 

Net payments (receipts) of employee tax withholdings on stock option exercises

 

 

5,664

 

 

 

(4,726

)

Cash paid for restructuring costs

 

 

5,196

 

 

 

 

Non-GAAP adjusted free cash flow

 

$

(77,106

)

 

$

(23,597

)

 

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