UiPath’s Q3 24 shows higher revenue as automation meets “inflection”

Rob Enslin, UiPath

UiPath has announced its third quarter financial results for fiscal 2024, demonstrating significant growth in both revenue and ARR, driven by customer growth and the team’s execution.

For the quarter that ended October 31, 2023, the RPA firm’s revenue grew 24 percent to $326m, while ARR was also up 24 percent to $1.378bn, spurred by third-quarter net new ARR of $70m.

Rob Enslin, UiPath’s co-CEO said that the third quarter results were another proof point of its commitment to delivering strong top-line growth with expanding profitability and non-GAAP adjusted free cash flow.

“I am pleased with our strong third quarter results with ARR growing 24 percent year-over-year (YoY) to $1.378bn, driven by the team’s execution and the transformational results we deliver,” said Enslin. “My conversations with customers and partners validate the strategic role enterprise automation plays in digital transformation and I am excited about the investments we continue to make in AI to further extend our market leadership.”

At the beginning of this fiscal year, the company pivoted its go-to-market resources towards organizations that have a meaningful runway to invest in enterprise automation over the long-term. Enslin explained that this investment has significantly increased the company’s presence in the C-suite and has helped raise its profile with partners of all sizes.

FX-adjusted dollar-based net retention for the quarter was 123 percent and UiPath closed a record number of third-quarter deals over $1m in ARR. Customers with $1m or more in ARR grew 31 percent to 264, while customers with $100,000 or more in ARR increased to 1,974.

Daniel Dines, co-founder and co-CEO of UiPath, also said during the earnings call: “The automation market is at an inflection point, and as the market leading tool that enables organizations to derive actionable value from AI, we believe this is a huge opportunity for UiPath.”

The company ended the quarter with 10,865 customers with some highlights including Veterans Affairs, Coast Guard, the IRS, the Department of Homeland Security and the United States Department of Agriculture, as well as new logos like New Relic, Smile Doctors, Beacon Health System and MidWestOne Financial Group.

The team also shared observations that momentum continues in financial services and healthcare where automation delivers considerable value, including one of the top 25 customers, a large non-profit health system in the US. 

Looking ahead into the fiscal fourth quarter 2024, UiPath expects revenue in the range of $381m-$386m, ARR in the range of $1.450bn-$1.455bn and, finally, fiscal year 2024 non-GAAP adjusted free cash flow of more than $250m.