UiPath Stock (PATH): Why The Price Fell Today

By Amit Chowdhry ● Dec 9, 2021
  • The stock price of UiPath Inc (NYSE: PATH) fell 1.4% today. This is why it happened.

The stock price of UiPath Inc (NYSE: PATH) fell 1.4% today. The decrease comes as a surprise since the company beat earnings and revenue estimates for the third-quarter earnings report. It seems like investors were responding negatively to a deceleration in the company’s annual recurring revenue (ARR) growth for the quarter.

These are the Q3 fiscal 2022 financial highlights:

— ARR of $818.4 million increased 58% year-over-year.

— Net new ARR of $91.9 million increased 42% year-over-year.

— Revenue of $220.8 million increased 50% year-over-year.

— GAAP gross margin was 80%.

— Non-GAAP gross margin was 85%.

— Net cash used in operations was $25.4 million.

— Non-GAAP adjusted free cash flow was negative $7.7 million.

— Cash, cash equivalents, and marketable securities were $1.9 billion as of October 31, 2021.

While the 58% increase in ARR year-over-year is impressive, it is slightly lower than the previous quarters. For example, the ARR for Q2 2022 was a 60% increase year-over-year. And the ARR for Q1 2022 was a 64% increase year-over-year.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.