Shares of UiPath experienced a significant surge after the company reported better-than-expected revenue and annual recurring revenue for the fiscal third quarter. The stock saw a remarkable 13% increase, reaching $22.33 in after-hours trading, following a slight decline of 0.6% at Thursday’s close. Overall, shares have risen by an impressive 55% so far this year.
The New York-based automation software company’s revenue exceeded predictions, rising by 24% to $326 million. Analysts polled by FactSet had expected a total of $315.6 million. Similarly, annual recurring revenue increased by 24% to $1.38 billion, surpassing both analysts’ expectations and the company’s own previous guidance of $1.36 billion.
Co-Chief Executive Rob Enslin highlighted the crucial role that automation software plays in digital transformations and the utilization of artificial intelligence.
UiPath’s loss for the quarter ended October 31 was reported at $31.5 million, or 6 cents per share. This showed significant improvement compared to the $57.7 million loss, or 10 cents per share, from the previous year. Analysts had expected a per-share loss of 10 cents.
In addition to the strong performance in Q3, UiPath raised its full-year guidance for annual recurring revenue to a range of $1.45 billion to $1.455 billion, up from the previous outlook of $1.432 billion to $1.437 billion.
Looking ahead, the company anticipates revenue between $381 million and $386 million for the fiscal fourth quarter. This surpasses analysts’ expectations, with FactSet reporting an average estimate of $382.8 million.
Overall, UiPath’s impressive Q3 results demonstrate its ability to deliver consistent growth and reinforce its position as a leader in the automation software market.