UiPath Reports Second Quarter Fiscal 2023 Financial Results
UiPath, Inc. (NYSE: PATH) reported Q2 fiscal 2023 results, showcasing a milestone with ARR surpassing $1 billion, reaching $1.043 billion, up 44% year-over-year. Revenue also increased by 24% to $242.2 million. The net new ARR was $66.2 million, with a dollar-based net retention rate of 132%. Despite a non-GAAP operating loss of $(30) million to $(25) million projected for Q3, the company plans to balance long-term growth investments with operational adjustments. Financial outlook for full-year revenue is between $1.002 billion to $1.007 billion.
- ARR increased to $1.043 billion, a 44% year-over-year growth.
- Revenue rose to $242.2 million, marking a 24% year-over-year increase.
- Net new ARR of $66.2 million.
- Dollar-based net retention rate of 132%.
- Strong cash position with $1.7 billion in cash and equivalents.
- Expected non-GAAP operating loss of $(30) million to $(25) million for Q3.
- Anticipated non-GAAP operating loss of approximately $(15) million for full year 2023.
- Increasing foreign exchange headwinds and macroeconomic volatility impacting outlook.
ARR surpasses the
“We are pleased to report that ARR surpassed
Second Quarter Fiscal 2023 Financial Highlights
-
Revenue of
increased 24 percent year-over-year.$242.2 million -
ARR of
increased 44 percent year-over-year.$1.04 3 billion -
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
as of$1.7 billion 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
For the third quarter fiscal 2023,
-
Revenue in the range of
to$243 million $245 million -
ARR in the range of
to$1,091 million as of$1,093 million October 31, 2022 -
Non-GAAP operating loss in the range of
to$(30) million $(25) million
For the full year fiscal 2023,
-
Revenue in the range of
to$1,002 million $1,007 million -
ARR in the range of
to$1,153 million as of$1,158 million 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 enableUiPath 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.
-
Snowflake to quickly help incorporate Snowflake data into
-
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.
-
Named a Leader in the 2022 Gartner Magic Quadrant for Robotic Process Automation1 for the fourth consecutive year. In this report,
-
Appointed
Brigette McInnis-Day asChief People Officer : McInnis-Day is a formerGoogle and SAP executive that brings more than two decades of enterprise software experience and will be responsible for ensuring thatUiPath 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
About
Gartner Disclaimers
Gartner, Market Share Analysis: Robotic Process Automation, Worldwide, 2021, By
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
1Gartner, “Magic Quadrant for Robotic Process Automation”,
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
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
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
- 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.
|
||||||||||||||||
Condensed Consolidated Statements of Operations |
||||||||||||||||
in thousands, except per share data |
||||||||||||||||
(unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
|
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 |
|
|
||||||||
Condensed Consolidated Balance Sheets |
||||||||
in thousands |
||||||||
(unaudited) |
||||||||
|
|
|
|
|
||||
|
|
As of |
||||||
|
|
|
|
|
||||
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 |
|
|
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 |
|
|
|
|
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 |
|
|
||||||||
Condensed Consolidated Statements of Cash Flows |
||||||||
in thousands (unaudited) |
||||||||
|
|
Six Months Ended |
||||||
|
|
|
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 |
|
|
|
|
|
||||||||||||||||
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 |
|
Six Months Ended |
||||||||||||
|
|
|
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 |
% |
|
||||||||||||||||
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 |
|
Six Months Ended |
||||||||||||
|
|
|
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 |
% |
|
||||||||||||||||
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 |
|
Six Months Ended |
||||||||||||
|
|
|
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. |
|
||||||||
Reconciliation of GAAP Operating Cash Flow to Non-GAAP Adjusted Free Cash Flow |
||||||||
in thousands |
||||||||
(unaudited) |
||||||||
|
|
|
|
|
||||
|
|
Six Months Ended |
||||||
|
|
|
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 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220906005840/en/
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