Earnings To Watch: UiPath (PATH) Reports Q2 Results Tomorrow

Adam Hejl /
2022/09/05 5:20 am EDT

Automation software company UiPath (NYSE:PATH) will be announcing earnings results tomorrow after market hours. Here's what to look for.

Last quarter UiPath reported revenues of $245 million, up 31.6% year on year, beating analyst revenue expectations by 8.76%. It was a mixed quarter for the company, with an impressive beat of analyst estimates but a decline in gross margin.

Is UiPath buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting UiPath's revenue to grow 17.9% year on year to $230.6 million, slowing down from the 40.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.11 per share.

UiPath Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 6.37%.

Looking at UiPath's peers in the productivity software segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. ServiceNow delivered top-line growth of 24.3% year on year, missing analyst estimates by 0.62% and RingCentral reported revenues up 28.3% year on year, exceeding estimates by 1.01%. ServiceNow traded down 6.41% on the results, and RingCentral traded up 8.67%. Read our full analysis of ServiceNow's results here and RingCentral's results here.

The whole tech sector has been facing a sell-off since late last year, with stocks down on average 14.3% over the last month. UiPath is down 27% during the same time, and is heading into the earnings with analyst price target of $28.45, compared to share price of $16.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.