UiPath Reports 9% Revenue Growth to $354.7 Million in Q3 2024

UiPath, Inc. reported a revenue of $354.7 million for the third quarter ended October 31, 2024, marking a 9% increase from $325.9 million in the same period last year. For the nine months ending October 31, 2024, total revenue reached $1.006 billion, an 11% rise compared to $902.8 million for the corresponding period in 2023. The company's annualized renewal run-rate (ARR) also saw significant growth, increasing 17% year-over-year to $1.607 billion. Despite the revenue growth, UiPath recorded a net loss of $10.7 million for the quarter, a reduction from a loss of $31.5 million in the prior year, and a year-to-date net loss of $125.5 million, slightly higher than the $123.8 million loss reported for the same period last year.

The company experienced a notable shift in its revenue composition, with subscription services revenue increasing by 24% year-over-year to $206.9 million, while licenses revenue decreased by 7% to $137.2 million. This transition reflects UiPath's ongoing strategy to enhance its subscription offerings and adapt to changing market demands. The gross margin for the quarter was 82%, down from 85% in the previous year, attributed to increased costs associated with subscription services, including third-party hosting and personnel expenses.

In terms of operational metrics, UiPath's customer base continued to expand, with 302 customers generating an ARR of $1 million or more, representing 49% of current period revenue. The company also reported a dollar-based net retention rate of 113%, down from 121% a year earlier, indicating a slight decline in revenue growth from existing customers. The total employee headcount as of October 31, 2024, was not disclosed, but the company has been actively managing its workforce through restructuring efforts aimed at streamlining operations and prioritizing investments in artificial intelligence.

Strategically, UiPath has been focusing on enhancing its product offerings and expanding its market presence. The company has initiated a stock repurchase program, authorizing the buyback of up to $1 billion of its Class A common stock, with $381.4 million utilized for repurchases in the nine months ended October 31, 2024. Additionally, the company has been investing in AI capabilities, which it views as critical for future growth. However, the macroeconomic environment, including geopolitical tensions and inflationary pressures, continues to pose risks to its operations and financial performance.

Looking ahead, UiPath anticipates continued revenue growth driven by its subscription services and ongoing investments in product innovation. The company remains committed to managing its operating expenses effectively while navigating the challenges posed by the evolving market landscape. The outlook for the remainder of fiscal 2025 suggests a focus on enhancing customer satisfaction and expanding its global footprint, although the company acknowledges the uncertainties associated with macroeconomic conditions and competitive pressures.