UiPath has reported fourth quarter revenue of $308.5m, exceeding expectations with an increase of seven percent year-on-year, and a full year fiscal 2023 revenue of $1.059bn increased 19 percent YoY. The strong results caused shares to leap 15 percent in after hours trading.
Annual recurring revenue (ARR) for Q4 was $1.204bn, an increase of 30 percent YoY, and beat expectations set from the company’s last set of results. Net new ARR brought $278.6m to the books and in the company earnings call, co-CEO Rob Enslin shared the firm now has a record 229 customers with $1m or more in ARR, and 1,785 customers with $100,000 or more.
Q4 GAAP gross margin was 85 percent, and 83 percent for the full year fiscal 2023.
Non-GAAP operating income for Q4 was $69.2m with a non-GAAP adjusted free cash flow of $101.2m. The company reported a GAAP operating loss of $45.1m for the quarter, bringing total losses for the fiscal year to $348.3m, however, this shows improvement from $525.5m for year prior.
As of January 31, cash, cash equivalents and marketable securities were $1.8bn.
The results also come with news that chief business officer, Chris Weber, will be leaving the firm as of April 30, and the firm announced co-CEO Enslin will assume responsibility of the go-to-market initiatives.
As the company enters 2024, new ‘foundation of innovation’ go-to-market initiatives are scheduled to drive further momentum and predicted revenue is in the range of $1.253 – $1.258bn for the full fiscal year. ARR is also projected to rise, with the range of $1.425 – $1.43bn as of January 31, 2024 estimated.
Co-CEO Daniel Dines also hinted at further at Clipboard AI and other AI innovations to come later this month at UiPath’s AI summit.
Ashim Gupta, UiPath chief financial officer, said: “I am pleased with our results and how the team brought the fiscal year to a close despite foreign exchange and macroeconomic headwinds in the fourth quarter of fiscal 2023.
“Our commitment to driving growth at scale, expanding operating margin and generating positive non-GAAP adjusted free cash flow is reflected in our full year fiscal 2024 outlook which implies a 350 basis point increase in non-GAAP operating margin and positive non-GAAP adjusted free cash flow for the fiscal year.”
Rob Enslin, co-CEO at UiPath said: “We delivered a very strong close to fiscal year 2023. Revenue outperformance and disciplined cost management resulted in a record fourth quarter. Executing a restructuring, driving efficiencies and streamlining our organization has increased our focus, enhanced business agility, and leaves us well positioned to continue to expand our market share.
“We enter fiscal year 2024 with the rollout of our new go-to-market initiatives on schedule and building momentum as both customers and partners see the positive impact our Business Automation Platform can have on their employees, customers and businesses.”
Daniel Dines, UiPath co-founder and co-CEO, said: “To maintain their competitive edge and increase operating agility, businesses need to do more without adding more.
“This is where the UiPath AI-powered Business Automation Platform plays a strategic, transformational role for organizations. By combing our leading Robotic Process Automation solution with a full suite of capabilities, UiPath empowers people to more easily and efficiently create better ways to operate, innovate, and drive business outcomes.”