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UiPath (PATH) To Report Earnings Tomorrow: Here Is What To Expect


Radek Strnad /
2022/03/29 7:41 am EDT
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Automation software company UiPath (NYSE:PATH) will be reporting earnings tomorrow afternoon. Here's what you need to know.

Last quarter UiPath reported revenues of $220.8 million, up 49.9% year on year, beating analyst revenue expectations by 5.53%. It was a strong quarter for the company, with an exceptional revenue growth and a solid beat of analyst estimates.

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 36.2% year on year to $283.2 million, slowing down from the 81% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.03 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 since going public on average by 6.95%.

Looking at UiPath's peers in the automation software segment, most of them have already reported Q4 earnings results, giving us a hint of what we can expect. ServiceNow (NYSE:NOW) delivered top-line growth of 29% year on year, beating analyst estimates by 0.6% and Appian (NASDAQ:APPN) reported revenues up 28.6% year on year, exceeding estimates by 10.1%. ServiceNow traded up 8.8% on the results, Appian was up 12.6%. Read our full analysis of ServiceNow's results here and Appian's results here.

The whole tech sector has been hit hard by fears of higher interest rates, with stocks down on average 2.07% over the last month. UiPath is down 13.8% during the same time, and is heading into the earnings with analyst price target of $57.2, compared to share price of $29.89.

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.