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

Kayode Omotosho /
2023/03/14 4:34 am EDT

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

Last quarter UiPath reported revenues of $262.7 million, up 19% year on year, beating analyst revenue expectations by 2.66%. It was a decent quarter for the company, with a meaningful improvement 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 decline 3.8% year on year to $278.7 million, a further deceleration on the 39.4% year-over-year decrease 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 5.65%.

Looking at UiPath's peers in the productivity software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Asana delivered top-line growth of 34.2% year on year, beating analyst estimates by 3.52% and DocuSign reported revenues up 13.6% year on year, exceeding estimates by 3.14%. Asana traded down 1.66% on the results, DocuSign was up 2.66%. Read our full analysis of Asana's results here and DocuSign's results here.

The whole tech sector has been facing a sell-off since late last year and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 9.95% over the last month. UiPath is down 6.23% during the same time, and is heading into the earnings with analyst price target of $17.5, compared to share price of $14.44.

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.