What To Expect From UiPath’s (PATH) Q1 Earnings

Radek Strnad /
2022/05/31 7:04 am EDT
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Automation software company UiPath (NYSE:PATH) will be announcing earnings results tomorrow after market close. Here's what you need to know.

Last quarter UiPath reported revenues of $289.6 million, up 39.3% year on year, beating analyst revenue expectations by 2.27%. It was a weaker quarter for the company, with the guidance for both the next quarter and the full year missing 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 20.9% year on year to $225.3 million, slowing down from the 64.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.06 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 5.78%.

Looking at UiPath's peers in the automation software segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. ServiceNow reported revenues up 26.6% year on year, exceeding estimates by 1.34%. ServiceNow traded up 4.4% on the results. Read our full analysis of ServiceNow's results here.

Tech stocks have had a rocky start in 2022 and software stocks have not been spared, with share price down on average 10.9% over the last month. UiPath is down 2.53% during the same time, and is heading into the earnings with analyst price target of $32.97, compared to share price of $18.1.

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.