Traders working at the New York Stock Exchange (NYSE), today, Wednesday, April 21, 2021.
Shares of UiPath fell 24% on Thursday morning after the enterprise automation software company reported weak outlook for the fiscal first quarter of 2023.
Here’s what UiPath reported Wednesday after the bell for its fiscal fourth quarter:
- Earnings: 5 cents vs. 3 cents expected, according to a Refinitiv survey of analysts
- Returned: $290 million vs. $283 million expected, according to Refinitiv
CEO Daniel Dines said in a statement referencing the war in Ukraine, “we feel confident in our market leading position in automation and prospects for future growth at scale but believe it is prudent at this time to factor both our European exposure and go-to- market leadership transition into the financial outlook we are providing this afternoon.”
Dines said UiPath operates in Russia and other countries in eastern Europe.
The company expects revenue for the first quarter to come in between $223 million and $225 million. Analysts had been anticipating Q1 revenue of around $236 million, according to Refinitiv. For the full fiscal year, the company now expects revenue in the range of $1.075 billion to $1.085 billion, while analysts had anticipated about $1.13 billion.
UiPath said in the release that “in particular, the effects of stock-based compensation expense specific to equity compensation awards that are directly impacted by unpredictable fluctuations in our stock price. We expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future GAAP financial results.”
UiPath announced in a separate release Wednesday that it’s appointed a new Chief Business Officer, former Microsoft executive Chris Weber. At the same time, he said Chief Revenue Officer Thomas Hansen would be leaving the company for other opportunities, though he would stay through the end of fiscal Q1 2023 to help with the transition.
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