UiPath (PATH) Q3 Earnings: What To Expect

Jabin Bastian /
2022/11/30 4:12 am EST

Automation software company UiPath (NYSE:PATH) will be reporting earnings tomorrow after market hours. Here's what investors should know.

Last quarter UiPath reported revenues of $242.2 million, up 23.8% year on year, beating analyst revenue expectations by 5%. It was a weaker quarter for the company, with revenue guidance for both the next quarter and the full year missing analysts' expectations.

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 15.9% year on year to $255.9 million, slowing down from the 49.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.01 per share.

UiPath Total Revenue

The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing five upwards revisions over the last thirty days. 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 6.15%.

Looking at UiPath'sĀ peers in the productivity software segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Five9 delivered top-line growth of 28.5% year on year, beating analyst estimates by 1.35% and 8x8 reported revenues up 23.6% year on year, exceeding estimates by 0.45%. Five9 traded down 5.10% on the results, and 8x8 was flat on the results. Read our full analysis of Five9's results here and 8x8's results here.

The whole sector has been hit hard on fears of higher interest rates, with stocks down on average 7.98% over the last month. UiPath is down 8.54% during the same time, and is heading into the earnings with analyst price target of $17.36, compared to share price of $11.77.

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.