UiPath’s second-quarter results beat analysts’ revenue growth expectations – but have left investors questioning the value of the RPA leader’s AI bet.
UiPath’s revenue of $287m increased 19 percent year-on-year while cash flow from operations reached $44m. Non-GAAP adjusted free cash flow meanwhile peaked at $47m.
Amid ongoing balance sheet optimism, co-CEO Rob Enslin announced UiPath will buy back up to $500m in shares, which Ashim Gupta, UiPath chief financial officer com, said “underscores [their] confidence in the future and [the] commitment to building shareholder value”.
Explaining the reason behind the bold decision, Enslin said: “In summary, we delivered another solid quarter of execution against a variable economic backdrop. We are starting to see the benefits from the go-to-market changes we implemented two quarters ago, and we’ll continue to exercise expense discipline while investing to extend our market leadership.”
While the quarterly announcements sparked shares to rise, there have been questions regarding UiPath’s greater bet on AI technology. Asked in its quarterly call how the company expects to articulate AI success monetarily and if they are going to be able to specifically call out the actual tailwind or benefit to growth from GenAI anytime soon, Enslin said:
“We’ll continue to look at how we benefit from GenAI. And I believe we are already showcasing how it’s impacting our results as part of our strategy, and I think that’ll continue.
“As we continue to drive…the value creation that customers are receiving [and] get more and more referenced customers, I think we’ll scale as we speak more in the boardroom and we bring the SIs to the floor.”
In a range of company highlights in the quarter, UiPath elevated its automation platform with its latest AI-fueled updates and the newly announced Project Wingman enabling users to create RPA-style automations from simple natural language prompts.
The company also recently unveiled AI-powered automation features that accelerate customers’ ability to discover, automate and operate automation at scale through generative AI and specialized AI as the UiPath Business Automation Platform added more offerings.
UiPath also teamed up with SaaS security platform, Reco, to enable UiPath to increase security in the company’s SaaS collaboration platforms, also harnessing the power of AI to provide context around sensitive data.