UiPath, Inc 10-Q for FY2024 Q2

UiPath, Inc. (PATH)

10-Q 2023-09-07 For: 2023-07-31

Added on April 11, 2026

About this 10-Q

UiPath, Inc filed this 10-Q on September 7, 2023, covering the quarter ended July 31, 2023 (FY2024 Q2).

Headline figures

Quarter ended July 31, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $287.31M; up 18.6% from $242.22M a year earlier
Net loss: $60.36M; compared with a net loss of $120.38M a year earlier
Diluted EPS: -$0.11; compared with -$0.22 a year earlier

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Delaware			47-4333187
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)
One Vanderbilt Avenue, 60th Floor New York, New York			10017
(Address of principal executive offices)			(Zip Code)
Registrant’s telephone number, including area code: (844) 432-0455


		Page
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)	1
	Condensed Consolidated Balance Sheets	1
	Condensed Consolidated Statements of Operations	2
	Condensed Consolidated Statements of Comprehensive Loss	3
	Condensed Consolidated Statements of Stockholders’ Equity	4
	Condensed Consolidated Statements of Cash Flows	6
	Notes to Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	37
Item 4.	Controls and Procedures	37

PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	39
Item 1A.	Risk Factors	39
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	40
Item 3.	Defaults Upon Senior Securities	40
Item 4.	Mine Safety Disclosures	40
Item 5.	Other Information	40
Item 6.	Exhibits	41
Signatures		42


	As of
	July 31, 2023		January 31, 2023
ASSETS
Current assets
Cash and cash equivalents	$	1,093,898	$	1,402,119
Restricted cash	400		—
Marketable securities	735,670		354,774
Accounts receivable, net of allowance for credit losses of $1,128 and $2,698, respectively	226,327		374,217
Contract assets	80,602		69,260
Deferred contract acquisition costs	59,326		49,887
Prepaid expenses and other current assets	107,373		94,150
Total current assets	2,303,596		2,344,407
Marketable securities, non-current	—		2,942
Contract assets, non-current	5,021		6,523
Deferred contract acquisition costs, non-current	134,021		137,616
Property and equipment, net	24,679		29,045
Operating lease right-of-use assets	52,847		52,052
Intangible assets, net	19,244		23,010
Goodwill	90,051		88,010
Deferred tax asset	5,573		5,895
Other assets, non-current	35,108		45,706
Total assets	$	2,670,140	$	2,735,206
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	1,887	$	8,891
Accrued expenses and other current liabilities	64,404		76,645
Accrued compensation and employee benefits	67,836		142,582
Deferred revenue	384,015		398,334
Total current liabilities	518,142		626,452
Deferred revenue, non-current	103,780		121,697
Operating lease liabilities, non-current	56,699		56,442
Other liabilities, non-current	8,153		10,457
Total liabilities	686,774		815,048
Commitments and contingencies (Note 11)
Stockholders' equity
Preferred stock, $0.00001 par value per share, 20,000 shares authorized as of July 31, 2023 and January 31, 2023; 0 shares issued and outstanding as of July 31, 2023 and January 31, 2023	—		—
Class A common stock, $0.00001 par value per share, 2,000,000 shares authorized as of July 31, 2023 and January 31, 2023; 484,128 and 474,160 shares issued and outstanding as of July 31, 2023 and January 31, 2023, respectively	5		5
Class B common stock, $0.00001 par value per share, 115,741 shares authorized as of July 31, 2023 and January 31, 2023; 82,453 shares issued and outstanding as of July 31, 2023 and January 31, 2023	1		1
Additional paid-in capital	3,888,414		3,736,838
Accumulated other comprehensive income	11,506		7,612
Accumulated deficit	(1,916,560)		(1,824,298)
Total stockholders’ equity	1,983,366		1,920,158
Total liabilities and stockholders’ equity	$	2,670,140	$	2,735,206


	Three Months Ended July 31,				Six Months Ended July 31,
	2023		2022		2023		2022
Revenue:
Licenses	$	119,300	$	103,696	$	253,339	$	220,700
Subscription services	159,999		124,656		306,351		240,150
Professional services and other	8,011		13,870		17,208		26,438
Total revenue	287,310		242,222		576,898		487,288
Cost of revenue:
Licenses	3,008		2,170		5,555		4,707
Subscription services	26,777		22,326		49,855		43,371
Professional services and other	19,202		20,080		37,244		41,514
Total cost of revenue	48,987		44,576		92,654		89,592
Gross profit	238,323		197,646		484,244		397,696
Operating expenses:
Sales and marketing	169,725		181,547		330,131		371,329
Research and development	86,606		67,849		161,948		136,539
General and administrative	59,577		68,443		116,161		125,973
Total operating expenses	315,908		317,839		608,240		633,841
Operating loss	(77,585)		(120,193)		(123,996)		(236,145)
Interest income	13,582		4,505		27,430		5,496
Other income (expense), net	7,472		(600)		11,766		(3,411)
Loss before income taxes	(56,531)		(116,288)		(84,800)		(234,060)
Provision for income taxes	3,830		4,090		7,462		8,879
Net loss	$	(60,361)	$	(120,378)	$	(92,262)	$	(242,939)


Net loss per share attributable to common stockholders, basic and diluted	$	(0.11)	$	(0.22)	$	(0.16)	$	(0.45)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted	562,883		546,058		560,422		544,014


	Three Months Ended July 31,				Six Months Ended July 31,
	2023		2022		2023		2022
Net loss	$	(60,361)	$	(120,378)	$	(92,262)	$	(242,939)
Other comprehensive income (loss), net of tax:
Unrealized (loss) gain on available-for-sale marketable securities, net	(161)		159		(18)		(301)
Foreign currency translation adjustments	1,593		550		3,912		552
Other comprehensive income, net	1,432		709		3,894		251
Comprehensive loss	$	(58,929)	$	(119,669)	$	(88,368)	$	(242,688)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


		Common Stock						Additional Paid-in Capital		Accumulated Other Comprehensive Income		Accumulated Deficit		Total Stockholders’ Equity
	Class A			Class B
			Shares		Amount		Shares	Amount		Amount		Amount		Amount		Amount
Balance as of January 31, 2023			474,160		$	5	82,453	$	1	$	3,736,838	$	7,612	$	(1,824,298)	$	1,920,158
Issuance of common stock upon exercise of stock options			898		—		—	—		1,175		—		—		1,175

Issuance of common stock upon settlement of restricted stock units			4,246		—		—	—		—		—		—		—
Tax withholdings on settlement of restricted stock units			(1,463)		—		—	—		(25,697)		—		—		(25,697)
Charitable donation of Class A common stock			281		—		—	—		4,215		—		—		4,215
Stock-based compensation			—		—		—	—		85,125		—		—		85,125
Other comprehensive income, net			—		—		—	—		—		2,462		—		2,462
Net loss			—		—		—	—		—		—		(31,901)		(31,901)
Balance as of April 30, 2023			478,122		$	5	82,453	$	1	$	3,801,656	$	10,074	$	(1,856,199)	$	1,955,537
Issuance of common stock upon exercise of stock options			1,824		—		—	—		2,717		—		—		2,717

Issuance of common stock upon settlement of restricted stock units			5,026		—		—	—		—		—		—		—
Tax withholdings on settlement of restricted stock units			(1,676)		—		—	—		(27,420)		—		—		(27,420)
Issuance of common stock under employee stock purchase plan			832		—		—	—		9,313		—		—		9,313
Stock-based compensation			—		—		—	—		102,148		—		—		102,148
Other comprehensive income, net			—		—		—	—		—		1,432		—		1,432
Net loss			—		—		—	—		—		—		(60,361)		(60,361)
Balance as of July 31, 2023			484,128		$	5	82,453	$	1	$	3,888,414	$	11,506	$	(1,916,560)	$	1,983,366


		Common Stock						Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Accumulated Deficit		Total Stockholders’ Equity
	Class A			Class B
			Shares		Amount		Shares	Amount		Amount		Amount		Amount		Amount
Balance as of January 31, 2022			458,773		$	4	82,453	$	1	$	3,406,959	$	10,899	$	(1,495,946)	$	1,921,917
Issuance of common stock upon exercise of stock options			1,283		—		—	—		2,683		—		—		2,683
Vesting of early exercised stock options			—		—		—	—		1,355		—		—		1,355
Issuance of common stock upon settlement of restricted stock units			3,499		—		—	—		—		—		—		—
Tax withholdings on settlement of restricted stock units			(1,125)		—		—	—		(24,827)		—		—		(24,827)
Stock-based compensation			—		—		—	—		102,085		—		—		102,085
Other comprehensive loss, net			—		—		—	—		—		(458)		—		(458)
Net loss			—		—		—	—		—		—		(122,561)		(122,561)
Balance as of April 30, 2022			462,430		$	4	82,453	$	1	$	3,488,255	$	10,441	$	(1,618,507)	$	1,880,194
Issuance of common stock upon exercise of stock options			1,418		—		—	—		1,878		—		—		1,878

Issuance of common stock upon settlement of restricted stock units			3,183		1		—	—		—		—		—		1
Tax withholdings on settlement of restricted stock units			(1,040)		—		—	—		(18,922)		—		—		(18,922)
Charitable donation of Class A common stock			300		—		—	—		5,499		—		—		5,499
Shares issued in connection with business acquisition			570		—		—	—		2,965		—		—		2,965
Issuance of common stock under employee stock purchase plan			578		—		—	—		9,070		—		—		9,070
Repurchase of unvested early exercised stock options			(441)		—		—	—		—		—		—		—
Stock-based compensation			—		—		—	—		88,533		—		—		88,533
Other comprehensive income, net of tax			—		—		—	—		—		709		—		709
Net loss			—		—		—	—		—		—		(120,378)		(120,378)
Balance as of July 31, 2022			466,998		$	5	82,453	$	1	$	3,577,278	$	11,150	$	(1,738,885)	$	1,849,549


	As of July 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Commercial paper	$	61,740	$	—	$	—	$	61,740
Treasury bills and U.S. government securities (1)	555,966		—		(418)		555,548
Corporate bonds	10,809		—		(39)		10,770
Municipal bonds	1,751		—		(15)		1,736
Agency bonds	106,034		—		(158)		105,876
Total marketable securities	$	736,300	$	—	$	(630)	$	735,670
(1) Treasury bills with both amortized cost and estimated fair value of $39.8 million are included in cash and cash equivalents due to their original maturity of three months or less.


	As of January 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Commercial paper	$	62,470	$	—	$	—	$	62,470
Treasury bills and U.S. government securities (1)	234,848		—		(308)		234,540
Corporate bonds	46,684		—		(198)		46,486
Municipal bonds	6,374		—		(66)		6,308
Agency bonds	7,959		—		(47)		7,912
Total marketable securities	$	358,335	$	—	$	(619)	$	357,716
(1) Treasury bills with both amortized cost and estimated fair value of $10.0 million are included in cash and cash equivalents due to their original maturity of three months or less.


	As of July 31, 2023
	Level 1		Level 2		Total
Financial assets:
Money market	$	528,156	$	—	$	528,156
Treasury bills	39,807		—		39,807
Commercial paper	—		24,977		24,977

Total cash equivalents	567,963		24,977		592,940
Commercial paper	—		61,740		61,740
Treasury bills and U.S. government securities	555,548		—		555,548
Corporate bonds	—		10,770		10,770
Municipal bonds	—		1,736		1,736
Agency bonds	105,876		—		105,876
Total marketable securities	661,424		74,246		735,670
Total	$	1,229,387	$	99,223	$	1,328,610


Cash paid at closing	$	30,117
Fair value of Class A common stock issued at closing (0.2 million shares)	2,965
Loan note paid on July 29, 2023 (first anniversary of closing)	5,863
Loan note to be paid on second anniversary of closing (included in accrued expenses and other current liabilities as of July 31, 2023)	5,570
Working capital adjustment	66
Total	$	44,581


	July 29, 2022
Net tangible assets	$	300
Intangible assets	13,100
Goodwill	34,351
Total assets acquired	47,751
Deferred tax liabilities assumed	(3,170)
Total	$	44,581


	Fair Value (in thousands)		Estimated Useful Life (in years)
Developed technology	$	10,000	5.0
Customer relationships	3,100		3.0
Total	$	13,100


	Three Months Ended July 31,
	2023				2022
	Amount		Percentage of Revenue		Amount		Percentage of Revenue
Americas (1)	$	139,718	49	%	$	120,977	50	%
Europe, Middle East, and Africa	81,009		28	%	69,521		29	%
Asia-Pacific (2)	66,583		23	%	51,724		21	%
Total revenue	$	287,310	100	%	$	242,222	100	%


	Six Months Ended July 31,
	2023				2022
	Amount		Percentage of Revenue		Amount		Percentage of Revenue
Americas (1)	$	263,170	46	%	$	235,128	48	%
Europe, Middle East, and Africa	177,940		31	%	139,124		29	%
Asia-Pacific (2)	135,788		23	%	113,036		23	%
Total revenue	$	576,898	100	%	$	487,288	100	%


	Intangible Assets, Gross		Accumulated Amortization		Intangible Assets, Net		Weighted- Average Remaining Useful Life (in years)
Developed technology	$	29,194	$	(14,206)	$	14,988	3.2
Customer relationships	8,325		(4,985)		3,340		1.6
Trade names and trademarks	273		(251)		22		0.7
Other intangibles	1,231		(337)		894		7.3
Total	$	39,023	$	(19,779)	$	19,244


	Intangible Assets, Gross		Accumulated Amortization		Intangible Assets, Net		Weighted- Average Remaining Useful Life (in years)
Developed technology	$	28,517	$	(11,095)	$	17,422	3.5
Customer relationships	8,174		(3,601)		4,573		2.0
Trade names and trademarks	272		(233)		39		1.2
Other intangibles	1,231		(255)		976		7.7
Total	$	38,194	$	(15,184)	$	23,010


	Amount
Remainder of year ending January 31, 2024	$	4,372
Year ending January 31,
2025	6,766
2026	4,144
2027	2,480
2028	1,179
Thereafter	303
Total	$	19,244


	Carrying Amount
Balance as of January 31, 2023	$	88,010

Effect of foreign currency translation	2,041
Balance as of July 31, 2023	$	90,051


	As of
	July 31, 2023		January 31, 2023
Weighted-average remaining lease term (years)	11.5		12.1
Weighted-average discount rate	7.1	%	7.0	%


	Amount
Remainder of year ending January 31, 2024	$	5,393
Year ending January 31,
2025	11,354
2026	9,225
2027	8,608
2028	7,917
Thereafter	48,965
Total operating lease payments	91,462
Less: imputed interest	(28,422)
Total operating lease liabilities	$	63,040


	Employee Termination Benefits
Accrued restructuring costs as of January 31, 2023	$	3,889
Restructuring costs incurred during the six months ended July 31, 2023	2,606
Amount paid during the six months ended July 31, 2023	(4,792)
Accrued restructuring costs as of July 31, 2023	$	1,703


	Amount
Remainder of year ending January 31, 2024	$	33,578
Year ending January 31,
2025	99,928
2026	56,633
2027	20,332
2028	8,245
Thereafter	—
Total	$	218,716


	Foreign Currency Translation Adjustments		Unrealized Gain (Loss) on Marketable Securities		Accumulated Other Comprehensive Income
Balance as of January 31, 2023	$	8,231	$	(619)	$	7,612
Other comprehensive income (loss), net of tax	3,912		(18)		3,894
Balance as of July 31, 2023	$	12,143	$	(637)	$	11,506


	Foreign Currency Translation Adjustments		Unrealized Loss on Marketable Securities		Accumulated Other Comprehensive Income (Loss)
Balance as of January 31, 2022	$	11,234	$	(335)	$	10,899
Other comprehensive income (loss), net of tax	552		(301)		251
Balance as of July 31, 2022	$	11,786	$	(636)	$	11,150


	Stock Options (in thousands)	Weighted- Average Exercise Price		Weighted-Average Remaining Contractual Life (years)	Aggregate Intrinsic Value (in thousands)
Outstanding as of January 31, 2023	13,898	$	3.32	7.7	$	169,324
Granted	2,614	$	0.10
Exercised	(2,722)	$	1.43
Forfeited	(205)	$	0.82
Outstanding as of July 31, 2023	13,585	$	3.11	7.7	$	203,300

Vested and exercisable as of July 31, 2023	5,763	$	3.61	6.0	$	83,392


	RSUs (in thousands)	Weighted-Average Grant Date Fair Value Per Share
Unvested as of January 31, 2023	36,785	$	22.48
Granted	15,620	$	16.60
Vested	(9,133)	$	20.89
Forfeited	(5,013)	$	23.71
Unvested as of July 31, 2023	38,259	$	20.30


	At July 31,
	2023			2022
	(dollars in thousands)
ARR	$	1,307,904		$	1,043,286
Incremental ARR (1)	264,618			316,819

Customers with ARR ≥ $1 million:
Number of customers	254			190
Percent of current period revenue	43		%	40		%
Customers with ARR ≥ $100 thousand:
Number of customers	1,930			1,660
Percent of current period revenue	81		%	80		%

Dollar-based net retention rate	121		%	132		%
(1) For the twelve months ended July 31, 2023 and 2022, respectively


Cost of subscription services revenue	594		330		1,178		660
Sales and marketing	681		413		1,352		827
General and administrative	41		46		82		92
Total amortization of acquired intangible assets	$	2,167	$	1,351	$	4,299	$	2,737

(2) Includes stock-based compensation expense as follows:
Cost of subscription services revenue	$	3,809	$	2,841	$	6,987	$	6,057
Cost of professional services and other revenue	3,083		2,528		5,782		6,402
Sales and marketing	39,007		35,889		72,130		86,647
Research and development	33,071		23,501		57,844		50,124
General and administrative	23,127		23,493		44,402		40,476
Total stock-based compensation expense	$	102,097	$	88,252	$	187,145	$	189,706

(3) Includes employer payroll tax expense related to equity transactions as follows:
Cost of subscription services revenue	$	85	$	62	$	175	$	146
Cost of professional services and other revenue	68		62		139		141
Sales and marketing	501		1,202		1,725		2,629
Research and development	584		320		1,185		801
General and administrative	491		186		869		363
Total employer payroll tax expense related to equity transactions	$	1,729	$	1,832	$	4,093	$	4,080

(4) Includes restructuring expense as follows:
Cost of subscription services revenue	$	167	$	137	$	167	$	137
Cost of professional services and other revenue	—		320		—		320
Sales and marketing	1,087		10,732		$	1,316	10,732
Research and development	109		43		394		43
General and administrative	354		802		729		802
Total restructuring expense	$	1,717	$	12,034	$	2,606	$	12,034


Exhibit Number						Description
31.1						Certification of Co-Chief Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2						Certification of Co-Chief Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.3						Certification of Chief Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1^						Certification of Co-Chief Executive Officers and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.SCH						XBRL Taxonomy Extension Schema Document
101.CAL						XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF						XBRL Taxonomy Extension Definition Linkbase Document
101.LAB						XBRL Taxonomy Extension Label Linkbase Document
101.PRE						XBRL Taxonomy Extension Presentation Linkbase Document
104						Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

^						The certification furnished in Exhibit 32.1 hereto is deemed to accompany this Quarterly Report on Form 10-Q and is not deemed "filed" for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act, irrespective of any general incorporation language contained in such filing.


	UiPath, Inc.

Date: September 7, 2023	By:	/s/ Ashim Gupta
		Ashim Gupta
		Chief Financial Officer (Principal Financial Officer)


Date: September 7, 2023	By:	/s/ Daniel Dines
		Daniel Dines
		Co-Chief Executive Officer, Co-Founder, and Chairman


Date: September 7, 2023	By:	/s/ Robert Enslin
		Robert Enslin
		Co-Chief Executive Officer