UiPath (PATH) Q3 Earnings Report Preview: What To Look For

Radek Strnad /
2023/11/29 2:01 am EST

Automation software company UiPath (NYSE:PATH) will be reporting earnings tomorrow afternoon. Here's what to expect.

Last quarter UiPath reported revenues of $287.3 million, up 18.6% year on year, beating analyst revenue expectations by 1.9%. It was a strong quarter for the company, with ARR (annual recurring revenue) roughly in line with estimates. Non-GAAP operating profit beat by a large magnitude, showing that expense leverage came in strong strong. We were also glad that its full-year guidance was raised across the board and came in higher than Wall Street's estimates, especially on non-GAAP operating profit.

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 20.1% year on year to $315.6 million, in line with the 19% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.07 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 5.4%.

Looking at UiPath's peers in the automation software segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. ServiceNow delivered top-line growth of 25% year on year, beating analyst estimates by 0.7% and Everbridge reported revenues up 2.5% year on year, exceeding estimates by 0.5%. ServiceNow traded up 5.9% on the results, and Everbridge was down 9.4%.

Read our full analysis of ServiceNow's results here and Everbridge's results here.

There has been positive sentiment among investors in the automation software segment, with the stocks up on average 11.8% over the last month. UiPath is up 23.6% during the same time, and is heading into the earnings with analyst price target of $20.1, compared to share price of $19.2.

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