PATH - Earnings call transcript Q2 2022

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Operator

Hello and welcome to the UiPath’s Second Quarter 2022 Earnings Conference Call and Webcast. [Operator Instructions] As a reminder, this conference is being recorded. It’s now my pleasure to turn the call over to Kelsey Turcotte, Investor Relations. Please go ahead.

Kelsey Turcotte

Good afternoon and thank you for joining us today to review UiPath’s second quarter fiscal 2022 financial results, which we announced in our earnings press release issued after the close of the market today.

me and Dines, Officer. Ashim with Chief Co-Founder call Officer Executive Gupta, the are UiPath’s Daniel and On Chief Financial

will remarks prepared open a We session. Q&A followed by with

be are today’s specified, press second in U.S. posted have considered on website, to and in non-GAAP accordance items The to financial These on fiscal reconciliations in the performance quarter with events included as measures the include we GAAP. accordance a measures prepared clarifying financial company’s superior to measures non-GAAP materials additional aid earnings metrics substitute year financial most Our financial directly these XXXX investors ir.uipath.com. are for performance items to They on UiPath’s comparable and will Investor as the non-GAAP the addition or release in refer the call. should with Relations further impact financial to otherwise not results. GAAP. of U.S. Unless supplemental financial measures calculated the of provided understanding

please place Actual on underlying in to investment investors guidance. statements. return note expressed not undue that call customers’ future annualized of assumptions statements customer our potential afternoon’s opportunities, and This due customer, may to about our from the investments, addition, forward-looking ability planned our such vision and to our these and of a ARR our benefits our many define and our product statements related guidance run-rate. platform on events, includes renewal future growth as to reliance therefore market forward-looking the the our financial behaviors, including we statements In platform, and automation differ spend, should the deliver factors those results materially

refer material For SEC. risks that please filed affect of release a the our our with earnings and actual the reports results, and to other could discussion uncertainties

call to this them. views on as obligation no reflect update today. We made undertake our statements Forward-looking of

I Daniel, that call being over slides. webcast Before is by turn would to accompanied this highlight like I the to

comments We will Investor post the Relations website. slides and prepared a of to our our copy

to IV, Finally, FORWARD attend like annual we conference. would invite user to you our

in-person our We on website to of Relations through in information. for Las this go X. will the further be register, To X Investor homepage please holding October event Vegas

Now, the I would like over to Daniel. call to hand

Daniel Dines

Thank drive by our The $XX.X and everyone you, second you in Kelsey and to million. to durable joining ARR growth for long-term year-over-year record we this thank a ARR as new increased quarter continued net business to of have million us We opportunity XX% driven in fiscal $XXX.X transform afternoon. a human our experience The momentum with is ahead us. to very company how early customers. unlock work interact potential and across build to we is why to continue will This that the plan we are business. opportunity invest in employees of the and organizations stages the of vast their market believe compete, companies

members. the We help These million to position. just will the and the that expect and partner community growing across hiring investments market are moat best increase more engineers we X.X leadership in our reach leading widen our our are few that ecosystem customers investing enablement to competitive vibrant sustain a crossed has of sales teams our capabilities to scale faster, our customers platform, deliver further

our ROI into evolved for market. drives those Since customers. then, customer Back capabilities Just fast that computer we on UI count full have that the built introduced time-to-value our RPA in the few AI-based needs unique covers the the platform automation, end-to-end number core vision API of we our a years lifecycle an capabilities and hundreds. short set first then, addressed of management our ago, of automation, of combination and

are and to leveraging the second end is X,XXX growing customers who was more the the of than our quarter, customer accelerate quickly. of platform base of our automation our As number

the automation at We have up quarter in This XXX for demand part significant their which scale. second last one is Nordics, ARR, for the in in in X,XXX chose These XX. as includes work XX% largest year. from example $XXX,XXX automation, digitalization XXX% but banks that A from the demonstrate only UiPath to not for with the the demand plus Handelsbanken, least $X of ARR, great million of of up numbers at journey. XXX strategic accounted customers customers at

selection within the help spring, a Task processes a adoption AI, was our goal of Mining, both key this robots, they With done XX commitment platform. in is adoption. at AI. utilize existing Hub Mining, Our offering Task plans new the Mining It entire great combined discover our customers. of Mining example automating platform pillar introduced their to when of we will of with help the was a have Handelsbanken which can the now and factor and lot year. and Task expect with And platform, attended vision automation customers’ innovation of in and like automations Process has can interest from and and to the take out friction least of past Mining, Automation next journey Process with generating is drive prospects and across our our recommend new in this how we customers discovery accelerate now

consideration has where single simplify web creating a the to a tool UiPath They opportunities. for their most growing Not make This a internal of to strategic but even and to and in in from pace Chipotle such easier their XXXX. through moving in continue Chipotle, example they as their process of additional customers to strategy. its in XXXX. potential Hub as added on And both on-premises to has delivered elevate integrated of key And help the or retail approximately December Cloud. lead and the vision automation important It to AI we Chipotle, investigating are portal Another for quarter, allows to employees’ of customers in a they they which flexibility an also Automation automation helped This Cloud for customers, robots, end-to-end customer since in continues plays been Dentsu is needed, deliver Cloud of services. role when deployment our an service. has Automation automation X,XXX Automation to and an pipeline automation Automation in our to recently many is Cloud is Orchestrator amazing Automation client-facing transformation robot only cloud by UiPath and intelligent use, restaurants. digital unattended software processes of at customers Task a where on-premise is second support for in opportunities Automation choosing whose customers vision scaling are restaurants. Mining grown manage Cloud partner. GA XXXX are

XX.X XX% support bundles, time. within our In see constantly more months Even Because put using fact, requirements with customers purchased all release X than of Automation our many deployment ability we new it of Cloud release customer in this the in history, any recent which more next. achieve customers innovation, every to across pushing has quarter, of in of can to spring them are including than what we our customers of the we hybrid environment. a first deploying can

to validation continuous improvements We feature where semantic emulate users how in be now, this substantially learning can Document is challenges and the and to for platform, see it across to not going to addressing broadens software machine end all models we those our is more and and now excited AI with Document customers forefront time. of envision, which learning take are pre-built automate now time, accuracy automation accomplish second that It in what our accomplish value quarter, we delivery also training customers and and platform. public than Understanding over ML the quickly. the auto of new led believe elements at leverage in new sizes is deliver This in highly of it unstructured Understanding. instructions from if offering a can led and them evolve of market. see challenge. is the XX increases potential new that to of enhance Customers will to automation sends Center key always learns going total ML what frequently One easy, a follows and preview for processing. ask and to also automation. data, Action semantic Achieving identifies more the we use it functionality to we of requiring models UiPath enables Right human and addressable as market help to intervention, AI the been In text the but based, we have ML frequently classifies humans. ML e-mail to via like the then introduction automation, the process us requested we the to rules from automation cases is model test by

constant analysts. It leadership results partners to the ecosystem their of fundamental industry success our by strategy. also thought relationship broad expand go-to-market partners and in with is their join depth attracts innovation us. or to our Our either of in Investing to recognition promote market leaders practitioners, our

with was to delivery of par that our recognizes our and services service our network an provide training, skills Our UiPath and elite designed work Services Network, on to with or with certification partners marketing professional USN, USN partners customers offer team. programs.

quarter, the of USN certification. and rigorous completed requirements both EY Cognizant successfully This

how automation To business one bring bring I Automation neurodiverse to individuals over in By people our put for supporting to that to a UiPath we The address best this want autistic Good, values the transformative many is is meaningful staggering has action. believe autism I find people rate highlight example, potential and unable people way best world. over demonstrate finally Ashim, help of Before the turn power the of AutonomyWorks, We company the employment. XX% challenge, with unemployment employs to in deliver retain out call the to automation that services. of the power to our the out in individuals work. initiatives of help of quickly with into to individuals for

software Minutes. may and on skilled robots software. manageable, in You creating with allows to cutting-edge workloads work those opportunity automation seen XX roles this designed with to the flourish make have them highly By autism

are of which one of example impact our this world. the of just We the proud around partnership, efforts is

FORWARD Las Vegas, where see you invite our join month firsthand. conference, in next innovations latest get user will we our of all Finally, IV, to to you

of leadership newest include will will XX.XX, upcoming detail. I excited call position. about multi-platform will believe QX our more very over performance addressable introduction discuss market platform With are guidance to we expand multi-cloud our which release, capabilities, turn in further and Ashim the the that that, our to We and

Ashim Gupta

for you, Daniel Thank thank joining and you us today. everyone

that unless results, which quarter rates second delivered drives with scale Before fast please otherwise get growth our indicated. I note tangible all platform driven and yet started, market-leading I at growth benefits. time-to-value are that by am our again automation pleased year-over-year meaningful

cuts new new ARR growing was reduction. from from product fact, the $XX in expense economic larger will increased in of as product outpace will by losses Cloud, an decreased our of with an UiPath, quarter ended upcoming billion expected sponsored up by IDC Automation in revenue second increased that XXXX ARR IDC In well grow billion three job $XX.X and be We portfolio, from by million, and XXXX. as from to to Of driven estimates job Net UiPath whitepaper the $XXX.X benefit revenue million, driven XX% the increased expense worldwide the vectors: expenses gains offerings. quality, adoption than benefit increased core revenue, benefits growth $X XX%.

on business the and based ARR. run have evaluate our performance We

This results land-and-expand were by quarter’s model. go-to-market class a once strong driven again world

of logos adoption, Medical Power platform started their of including the York the included Mexico, In New with a program. Risk to the Cloud automation test University suite quarter, Task second and citizen Accuity, Authority Solutions journey Automation broad developer State well Medicine. a Hub the Automation Prospect New New to plans among LexisNexis Mining standup selected other and and as insights. UiPath utilize as company, products Washington

base even we expand best-in-class deploy to only X% second of robots. that potential metrics, quarter the our strong their significant add grow continues and On to net automation more X% side, And these have the with opportunity we estimate as installed adoption, XXX% retention our as remains software users rate expansion to for spend. customers be dollar-based platform of expand captured

ARR Another ARR lifetime frequency expansion way LTV to or dynamic and the our customers. is look at of value, largest purchasing this

for on added we you who earnings not two those webcast, of deck slides the our For have to reference. are

repeat First, customers. purchases these cohorts for expansion, many our first our XX of continual value growth quickly making of meaningful year-over-year demonstrate cohort, ability comes customers the annual from to This our kind and them by with drive within create ROI months.

business scale, at the where only quarter. of diverse across happens lens buying, a base nature this see but of customers, by shows also driven the XX repetitive momentum of top our set Second, the we which on automation applicability verticals, after our not automation quarter customer

top federated numerous than to industry the to top around a enterprise billion, of to potential customer purchase For top to example, teams services, And grown approximately IT. of illustrative their have our ARR have adopted time, leveraging finally, expansion capabilities $X a expanded most more healthcare see of the while across they in an strong, has XXx. If the handful ARR ultimately they they XX drive customer our service the to automation tied LTV their Over an customers, saving customers, setting cohort, we our of our initial automation use what Center And line has and is top of initial which platform. our automation top additional through LTV globe. acquisitions theme as among a XXXx have automation multiples, expand our LTV across XXX XXx. been of their subsidiaries, shared they revenue, of IT customers to having up a analysis LTV I investment. and objective XX for adoption by And carries also top the customer base found XX made include in that cases the to opportunities automate ARR Excellence across

four many To UiPath Partners partners, bring our our customers customers work in and account number of to side example All that of adoption. million selected as also strategic acquired top possible of XXX than ARR. to we expand in reach one in with transformation platform our of cohort customer. our better XXX a $X included the our even into recently now deliver customers kinds by see of ensure Shopify, as to these and that Working are Shopify great their plus the enable users. with us side an to results, partners, for more this which is big global this programs. digital them experience automation accelerate enable A X,XXX

operate. Deloitte Factory second we innovate. in ecosystem partnership is look always, software UiPath of the the on And Wichita to the factory ways at State. with redefine be how creating This groundbreaking focused to collaboration. a industry-leading will we like of This strategic to future Smart robot a integrating in physical also and showcase play factories signed quarter, of As joint at invest the their and capabilities benefits

and We scale are committed to their investing in our business. them helping partners UiPath

quarter, on otherwise I turning Now, second non-GAAP unless results our will be basis a to discussing noted.

Second million the to period. in $XXX.X increased XX% to million year quarter compared revenue $XXX.X prior

is UiPath. prior ARR short-term see lower year was can our important durability margins pipeline, at remaining our long-term structures revenue creates growth, also strong of of seen revenue timing obligations, we and opportunity the quarter, GAAP will deal for is better most million to positive in were the opportunities Gross it with which to XX% overall the $XXX.X increase customers This the or in yield period. discounts. across margin our It which Looking overall recognition. to variability due geographies, will partners XX% quarter long-term to profit ramping, for expect in which create engagement The we but our XX% is RPO, license our our performance which the for in ROI and annual move compared can growth better metric, structure second delivery year-over-year. an of be customers, for

offset was of Software XX%. margin negative gross margin XX% services by gross of

we in flow adoption quarter as customer of well over service margin million. expect business to While we $XXX enablement time. gross through expenses be in revenue timing create fluctuations the second investment totaled services to continue approximately as to for partner neutral, Operating recognition run cash the the

to compensation our across negative operating a compared expense period. million invest Non-GAAP free and ended cash success compared the and million stock-based We continue debt. engineering. continue to million of program. no GAAP to related income a equity our teams quarter as marketable the $X.X of and loss invest was of well million headcount customer in in million in included We year force cash, the million as in we $XX.X $X.X operating loss cash sales positive year period in to to was the Adjusted prior the quarter with billion equivalents $X.X as $X.X flow prior in $XX.X securities business. $XX.X

technology to and our focused market our reflects in our Turning leadership, financial differentiated outlook, guidance execution. confidence

ARR we to million. the fiscal third range For quarter of in XXXX, expect $XXX be to million the $XXX

as for for lays is foundation As have strong the we the scale. ARR and it UiPath, measuring company repeatedly, key metric a I emphasized

in We million. expect to $XXX the be to $XXX range of million revenues

of a long-term XXX, by health ARR revenue given which the dislocated we operating do range growth still of negative quarter-to-quarter operations. we lumpy short-term as reminder, the $XX ASC efficient million the business in business from in while continue the million and the and business. As loss variability on and driving And non-GAAP be focus the to negative we expect introduced can invest not to growth, $XX to be

we fiscal in XXXX, the million prior $XXX million ARR guidance on quarter to $XXX fiscal increase provided to from of first be XXXX million, million range to of expect call. earnings an For our $XXX $XXX

a I’d to incremental Before points. provide few modeling like I conclude,

the pre-COVID we year. sales and user marketing increase our we This related some conference, in to FORWARD, to the third half activities. return to marketing expect First, to includes spend back start as of quarter our expenses of

office there our assumption will when Second, be to an that return a guidance includes possible.

count share and for quarter impact focus We the teams delivered families and quarter, Delta reflecting million expect approximately on finally, needed. continue and be their monitor worldwide In second market leadership are strong summary, on XXX our the shares variant employees supporting team where a outstanding. actively basic to our the the to we of execution. And third

Microsoft, ahead, second strong Looking executive AWS excited and for partners, and our largest event. there. customers presence host We team, a we This expect pipeline, have Accenture, strong to industry’s our sponsors, well include PwC. the continue the come invite to we In and near-term, to and and in half FORWARD as underscores significant We partner with dedicated of momentum we hope speak Deloitte and Diamond UiPath automation which are tech very their IV. you support global conference as Cognizant, sponsors, see year. the you our the to CGI, user

will the poll for call will turn We please questions. And to operator. I take over Operator, questions. the now

Operator

Instructions] question from first Our Lenschow from coming [Operator today is Raimo Barclays.

is line now live. Your

Raimo Lenschow

and congrats One you Thank signals demand on you from on question great quarter. me a are the seeing.

obviously offering, You transformation think this how really do demand? Mining etcetera? you appetite accelerate be or digital delivered to you what you your of going RPA around out, that now do coming see Is of do this offering, it pandemic, the you even but in for see terms further further? more well throughout the you. we’re Thank customer Process even to stable could would kind So accelerate

Daniel Dines

the net industries. other some question. accelerating, some was said deceleration COVID for always in We’ve We where Thank neutral that us. you seen industries business for

As demand for getting, hopefully, our we of technology, are solid in the for we see our phase COVID, – in platform. last

the our quite you of Maybe, Ashim, are to like want add really pipeline something? solid a Task of our customers. extended starting products Mining We year. Mining show to good are the second Process and seeing line traction with And part for

Ashim Gupta

long-term our from that of I talked can in of signals We look reports the market competitive industry than is concur. see position. see. demand around ever, out. pipeline. a the strength our we have come platform higher about love The lot I awareness the that you No. the as our at also Daniel

out So the long-term coming feel we positive very COVID. of actually about demand

Operator

Thank you.

Stanley. from Our next Morgan from Weiss is coming question Keith

now Your live. line is

Keith Weiss

quarter. question Thank on nice for and you congrats taking the guys the very

I on to dig in Ashim, a wanted the bit little guidance. just

was. guide and $XX you about about of raised in beating $XX after ARR So by where the is by full $XX million million, million consensus year ahead QX QX

you. QX Or too are us to comes to just QX aware, and signaling for readjust you’re demand bit weak So a is QX there QX in because signal strong was us trying bit implicitly, for that ARR? with trying to wondering, I down it? Thank you a setup, little little of like make was a in you’re terms and consensus

Ashim Gupta

the look was what third out. Keith, is we I we flowed as at there that through really follow-up. But quarter the saw I can from of look through in that way we beat as terms it consensus

line that a signal, we net the for talk terms on continued new In which everything year, execution rate, dollar-based a healthy overall retention best-in-class of just really still trends, would about from we macro logos. in I steady demand a is say is the see

me, In out based the guide the up of the look guidance, field. expansion as specific continuing are terms front well demand, see on continue execute of teams to I to third I terms fourth in second of right set the quarter, in we’re I really, feel to and our what in continue execute to half. the driving And to like driving in I and

Operator

Thank you.

Mark Your from JPMorgan. is from question Murphy next coming

live. Your is now line

Mark Murphy

Yes. Thank you very add congrats. much. I’ll my

I think So, had on move I but opportunity if commented we or and into through an roll our Ashim, might revenue maybe that just correctly. to walk and contracts with heard annual through – that how that that not ramping, the any mix way quickly you assimilated customers, sure how kind forward play said forecast? change? correctly Could Any contracts you to might you I’m us are structured of seeing those

Ashim Gupta

sure. Yes,

a So trend. us platform when is UiPath’s strength And automation that ramping I to requirements contract, positive digital one of for things of for transform annual long-term a with staple transformation. the is about customers they talk is happened what transformation in long-term the work the an way for is has digital really is the

the as may down. year those buying X,XXX those robots they of license deliveries into instead annual the a at way XX,XXX contracts, would larger next robots look commitments is demand X,XXX today, from happen some today, for getting we we – term simple they larger is our But years of And XX,XXX in means of go So buy what instead X. what that is buying that see customers. year

like because financial really – And one we impact and that we at when the repeat – metrics, things drive that customers this, remember is ROI better that for things. the we company is we on two and I is I of our that our look about we One so, think on ARR to way ARR. we is structured, delivery that are perspective, that does the delivery because no the then From the upon Based license happens if an there variability contracts license. – impact there. can of out is in the recognize only creates have revenue the years, in that revenue

And so that is that think business. again, is drive it impact, But perspective revenue. stress way really, we and kind of about on how I the ARR modeling no I the a from there that’s

Operator

Thanks. is Tillman Securities. coming from Truist from The Terry today next question

Your line live. now is

Terry Tillman

of, working up they Kelsey X,XXX and the Ashim press strategic the together. terms said Daniel, And curve helpful, terms are of congrats you. $X question million-plus you’re deal to My customers, partner been on where the my partner activity, there with this It’s lots releases a ecosystem expansion? And in think question taking or seeing Thanks, likes and of these partners? landing question Thank is relates partners you productivity just of that. more you now. I productivity. more the really two-part are in you with emerging from I your all and to Yes. for of

Daniel Dines

both partner is strategy. network also focus. partner our a growing growing a expanding We’ve proud big last than quite piece customers. partners, And We the It’s into of are our to in for X,XXX very bringing of a been X,XXX our up central existing grow more quite bit able quarter. to but new logos, It’s from network.

Ashim Gupta

curve, to then is a And customers just see of add investing. lot in on productivity of we terms the

that lot to there, a come we our our Cognizant, to of our relative we well on in our of curve At you the commitment up we invest why is their is invest really continue ROI that quality customer the curve. as just opportunity E&Y, customers, play for come enable same up PwC, press our a at help importance And our our that productivity service the are out the look this going ensure to these underscore as with to So we this the the meet the time, who will organizations needs. releases counting of that tremendous have see to USN directly partners in. to as customers right and that to this partners partners with –

Operator

Thank you.

Materne from Evercore today ISI. Next question Kirk from is coming

line now Your live. is

Kirk Materne

very whole guess, basic automation strong of moving numbers. into partners of cloud the just Process I on the of Daniel, and are Mining? automation are equipped, just on just Thanks. ARR trained around adoption platform the Mining, the influential how that It congrats on starting help it – I seemed customer Terry’s they can maybe Process and about full to follows partners. fully actually, are that. points? sort starting partners the up with the you they understanding versus talk getting on me But guess having could your technologies then the accelerate in portfolio? terms automation Thanks much question customers up more taking

Daniel Dines

question. Great

components with how really of automation. to delivering train This basically central delivering that Task this customers. want in is to all we We Mining And is the the invested capable entire understanding pillars make in a up in I aim our believe scale of customers the up that of looking partners catching as of to the that always interest big customers. seeing the was entire to we our our to platform we well are quite we are especially, of are growth our all array platform. really technology of them And full why having. network whole we

get number widespread velocity of the was used certain together, to within what what enterprise cannot just a the be bringing core, But where the only start just most traditionally there tasks. of if customers. we called automating is the repetitive really You our into pieces manual with all – you increases RPA, it’s can adoption

Operator

Thanks.

question next Turrin is Our Wells from from Fargo Michael coming Securities.

Your line live. is now

Michael Turrin

the Good XX%. to I its there. more focus clear net moving a in it. consistent Hey has net few quarters. ARR, new well. the appreciate questions. afternoon. Thanks new on given ARR taking on pretty it there past at Appreciate The the hopefully been has wanted the focus That pieces. growth as number around Certainly, the bit number for and just bounced

if you anything there can or having anywhere in else Thank And Automation impact be is the would there help there those is wondering model the Just any is if us add well? Cloud to you. helpful maybe uptick trends. on as smooth

Ashim Gupta

It I ARR – retention at net logos. Look, of numbers, new we’re execution ARR pleased well the been rate net the the It it. posting, strong our dollar of dollar-based steady impact investment. look base that reflects new reflects very the with incremental as the strong both as we’ve the

continue to sales invest in force. We our

So as very team bring additional very fulfill feel of been which and the overall that front the we our ramp and up up about strong. have pipeline trajectory reps, we to to I we’ve good in continue has which doing, is us, sales grown

And and love Cloud have choice. in grown great. the so its map, the X,XXX the think right? doesn’t feedback has from They our customers of differentiator of they will difference a a since impact In Automation at demand Overall, they the standpoint, in of And customers the look impact I market. so investment revenue then to company. really which overall, an is XXXX. have differentiator road the for traction think, majority is it It’s December from the to Cloud, a approximately launching – real terms deployment about strength as it’s run on gain is And at us just more instrumental and while cloud win you metrics, win revenue. as competitive it’s what standpoint, from are cloud different they that Automation continue continue remember a hybrid, I to meaning we do we deals, when we deal, the in we and of ARR, in options, a

Operator

you. Thank

Next Siti from coming question Mizuho. today is from Panigrahi

Your line is now live.

Siti Panigrahi

Thanks are for versus question. wanted deals bots. there is between taking the adoption of unattended of to my versus ask sort this What you just vary And mix extension attended seeing? new I about trends deals?

Daniel Dines

the major quarter. of any unattended change versus didn’t We see this adoption in attended

is platform. big We strength are businesses which the both, adopting largely of seeing a our

continued to invest robots. best-in-class front. attended unattended on We are And that have this can only the provide and we platform

and release I For very proud instance, fall, am going in attended robots we Mac Mac are that to for for this users.

to our expanding in are in the Macs. that future, to people people devices. Windows all go are using we to effectively the from will addressable market sorts are of we And office – So machines total the basically using that

So lead to really and space. win look we to attended extend our continue in the

think been a I we’ve clear for here While it’s space, clear a that leader time. the in long for unattended everyone

Ashim Gupta

the not offering that center with simplicity important for attended you at think customers need And to that that’s look growth, when Siti, expand. really, our there use is attended one thing cases cases, just like important the about the that – we drive you emphasize, put to as sometimes but think solve a is the use driving contact the durable I for meaningful just robust complexities and the for ROIs also and land, you

our As people technologies cases, more need both go ever advantage use and customers. important in for is more of for the take than working concert

Operator

Thank you.

Scott Berg from coming question today from is Needham. Next

Your line is now live.

Scott Berg

the model moving quarter had on of investor term you think, but all a obviously deployment of probably today? I some the to come question over most model get, about do we considering of good Congrats cloud SaaS-based on recent from number successes my your because one I up, I this progression you. I in You conversation time? here one should distribution and family guys taking is, Thank a every highlighted have the quarter I’ve guys it’s the guess companies there, cover questions. model it’s have the for how everyone. think tanks we Hi

Ashim Gupta

think around the we’ve movement about IPO time we’ve a factored XX% cloud. you into about discussions shift of the at of had always I talked which the a – when to lot it, we’ve So

into of is future. a how think already So baked we lot that about the

on are We that trajectory.

I there. is we demand think what is for see different cloud the components

is with that team our and journey requirements, and certain their from been the because has is We the customers they company, which the cloud cloud own say right. feedback uses doesn’t mechanism. Chipotle, components like some to feedback cloud, customers’ Ted world-class. to I been Automation X,XXX done necessarily are in And we when some offering, with engineering be the The the execution are That are So support UiPath. is into rather a actually are that offering. When has mean Accuity, on-prem. doesn’t requirements, the the them leadership, mean which cloud has a at – LexisNexis they you to other not product Kummert’s respect on on they and SaaS really want extraordinary. Customers they infrastructure that are that hybrid forcing certain is Cloud, have using our forced full our what than that deployment a starting customers journey able their – look on by choices, means our point that service security

seeing. And we mix with what so we in talked we are historically. have line like that about It’s the

say are to trend. to There would no I going that that execute continue is highlighting. we deviations to far, are so major And worth

Operator

Right.

coming Capital Matt RBC Our Hedberg next is from from Markets. question

is line Your now live.

Matt Hedberg

guys. little really And I question can expand you perspective my influencing count be I opportunity but taking to to for early, offering? Thanks how the know expansion? for it about StudioX. perhaps what with seat a to means ask wanted it’s that’s about a able – Great. that still from talk

Daniel Dines

platform. a into to StudioX the successful to after the launch it – us product able was effectively extend allowed go our on automation could us market perhaps And to RPA of the and deliver citizen the most technology. quite top bit for people our development core our deliver

to major StudioX Now, we tool foster citizen in community as a developers. to continue the of invest

to also We it to going are be multi-platform. available extend

the are available. we yesterday of major robots. And a you and coming us in investment few It’s into public multi-cloud advance So, will – We multi-platform. a doing are really now, bit review right from quite quarters. just launching we Linux-based announced expect the

We Mac are launching support.

year, adopt. options launch to But of all will and citizen to web-based early professional it suite users. business cater StudioX that make going even from important are to developers large a it’s that tools easier array a to really We next to have of to developers that believe the we overall,

Operator

you. Thank

is from question Bergin from next Bryan coming Our Cowen.

Your line is now live.

Bryan Bergin

within Hi, deal size on in incremental ARR and on ARR new can pipeline outlook? Perhaps just good afternoon. on be how thinking comment Thank you. should you I had the you you logos that from logos. average comment might a as new drivers about question Can XXXX be well? we there the seeing from incremental follow-up

Ashim Gupta

relatively in question, Average our as Bryan. platform. may of has land constant customers similar though at size been portions to ways, tend the to as land Thanks deal us different they for we even speak,

and So, somewhere we there. talked in $XX,XXX average between land have that somewhere size always about $XX,XXX,

macro phase think in that is for more more factors. logos, see familiar terms market. education. time, new driving are not we this with are I continuing do are that We same that awareness is customers factors to be are of the one automation In at of and the early And the there. the who looking still

So, the bullish about. we the pipeline, in really trend feel long-term

In execution as expected as that with we terms made sales are is and that good for cost the there. great team drive a Europe, that to invest continuing investment we and economics that team, to the generating Americas in we going and And inside terms to return continue in cost. is positive, of done those the very in driving both in unit as us something really great well momentum just job areas they internally, is of the have in customer our has acquisition an execution really that are

Operator

you. Thank

today from Michael Our is KeyBanc. from question next Turits coming

now line is Your live.

Steve Enders

in areas the in people adjacent change quarter, in competitive to the bit seems automation seeing moving Hi, like It I the that kind you out around This Steve environment is great. have software and any past the past of market. or been ask year of Michael. a has little M&A wanted either a of Enders seen there lot just landscape in the you there. the into But space so? are on for

Daniel Dines

central big growing digital and all quickly, a we is transformation. is the the piece automation this know of So, market

obviously, – out major it And important small small company this. is this I company. sense quite are RPA of Salesforce. was telling that And think the And space. did our cloud the So played players new expected market what it most we they a the I business We all think acquired is this suites applications Salesforce – in for in in the made and done German movement by products. that of to kind

beginning smooth was this year. acquisition this consolidation low-code, release told So, big integration a the integration of between long and no-code our time, into a of really these have market is long expanded Salesforce this what And in and time. exactly is a the for Cloud fall, With expect we for areas the Elements you in we seeing have automation. should that done a

something – angle think these comes it no-code So, automation butter. have API emulating around very software. a we difficult players still small ago. this software a UI are or build low-code, one good people me a that that will very automation is platform we consolidated well-oiled our automation make introduced with our big now don’t year integrated from angle. believe to is This and angle our is is bread winning the All really how understand is package. emulation the the made and that that we combining And machine We towards really in acquisitions that

space. a automation long angle, consolidated And this built reach to it starting extend we to us the – it our for a time. have We entire gives from opportunity tremendous

Operator

Thank you.

from next Havemeyer Macquarie. from Our coming Fred question is

now is line Your live.

Fred Havemeyer

Hi. have I about annual your now, is Because question for also shifting ask annual Thank a rest to as between multi-year potentially Ashim, of what sheet. certainly, here, And the the at in in deferred balance duration to your are it here. I impacts your of am deals we you clearly I as model ARR well towards fewer across the flows having you. mapping deals, less based are at across a metric deals seeing revenue that of your you for that as that’s multi-year it the on and board. And momentum really as that that like potentially and number am through in looks upfront And more looking looks wanted looking point this, like model. revenue ARR your

mix shifts So extent duration can potentially model? on color you And Ashim, if could, that through of this in of you that the some walk are of impacts? we those some you. to seeing provide us bit a here you could Thank the then

Ashim Gupta

Sure.

some we duration two and So, are and the There deals contract the there That said, X ARR. are and do Billing year, duration, first means have billing payments. can there, is look us is duration that for being in on of that see of adjust and because that ARR our ways. down we – duration typically emphasize more we contract are to means remember, emphasis put that contract contract is is for large continue towards deemphasized you Billings year-over-year duration The history. gross you that, at unusuals is, you steady. trend just a is thing on to When of duration note there, said, – given deals our have some our you emphasis prepaid retention the versus duration regardless duration is as as contract we prepaid the our and deals we shorter of cash duration. position majority with rate.

XX%, kind getting is compelled the any we right So, type trade of the gross when to door of rate for your today. in feel retention long cash for discount don’t

position have customers for And buy And ramp, earlier is deal this variability shift annual overall creates of That lock XXX opportunities on customers our lower strength. better is XXX the being discount why it opportunity additional said, structures fluctuate to short-term question, their themselves XXX, confusion a to ramping, I recognition. that if in can is years, is robots and that as revenue make there on provide year as is deals, today XXX, of as well and can in they create automation with of mix or based to X-year it better That growth. to buy There for per – economic robots partners. to all variability. mean decisions there able you like an I does more But you remember in predictability any of the earlier. our talked terms in positive of licenses well engagement year and better why they are mentioned what that needs about can move the ROI for delivered a to It’s levels. which going provides really for deal for which subsequent for ARR earlier We their I as is is per deal. an XXX from then gets can

that that it’s So, the follow-ups. in subjects, address but to of know further not simplest I happy

Operator

Right.

Our next from question Hynes today coming is DJ from Canaccord.

now line live. is Your

DJ Hynes

my add quarter. and Hi. Thanks, I congrats on guys the will

do to You synergies talked I lot am us you And a with how explain guys have AI just about how ML. the and prospective versus say today? for in get terms more you deployments and curious, tactical am trying adoption, maybe deal I RPA cycles in like, this between makes influential to customers? a would where sense? this sense if strategic of that we are

Daniel Dines

closer about the approach we this becoming of We one were define repetitive, data what of next have and is introduced how we we RPA, never that moving phase, is to recently doing, their early tasks. from these In to task what our about a to were phase phase And that we to job. umbrella completely themselves there. automation an going this workers after an semantic more and overarching human processes rule-based they automation understood really other. concept are bring the the next more call that perform how are we doing that In knowledge were lot robots application aim the the

operate. of with how operate is how AI. automation of world the and making marries into the quintessential AI people that evolution huge gap we natural a is And between are this So, the reducing investments. robots world

on quarter vision. We should incremental expect you are making from each each overarching this progress towards from us –

the this this strictly nice user which called in we October, AI, is introduction capable Forms see on interface forms data. of major a release, release instance, of technology based For the creating will

this humans our allows that of and So, a more that creating beautiful we it’s making customers of feature and – incrementally lot advanced even form creating will command have this techniques. AI it’s between really easier, for And interaction robots. more

Operator

you. Thank

from Bank is Our next question Brad from Securities. Sills America today of coming

live. now is Your line

Brad Sills

Thanks my taking Great. Hey guys. for question.

of expansion when how really net tipping healthy you level, where see maybe Is see does expansion it could XX, Thank And potentially kind at trend? for retention the holding threshold? start to top on cross – top robots customer so of metrics you you XXX% accelerate Miner departments, a year of what take top XXX one that number that some for you acceleration that activity provided point real into the certain there Task is XX, that in a Just a of to help then wondering accounts? multiple what those much.

Daniel Dines

platform. really to customers achieve their was strategy way automation our investments. is full on always This meaningful quickly to with return Well, have best accelerate the the

promote with partners. and a and start return cases potential. of when use a the truly of realize success expand automation typically technology Accelerating combination customers Our handful ensuring the and they to customer is

adoptions a practical rate, slate increasing to partners at instrumental and technology Ashim is net full speed. Our while has making into add the the provides our adoption large-scale really happening And I are terms retention platform clearly this automation instrumental sure that more am into in of numbers.

Ashim Gupta

Yes.

is our at opportunity say we that at very is a see I there a take One now. of retention, about continue pleased the of. we percentages with $XXX,XXX, very plus, is huge $X XX%. would dollar-based things. advantage XXX us point, When the we are to you net That’s interdepartmental are tipping of And couple million-plus Brad, look with crossing definitely XXX% which right you customers are up X,XXX, is growing for customers And what’s than customers ask buying. are pleased which right, when So, you XXX%. greater

reason the And thinking the part as track $XXX,XXX that see in that of of a hugely XXX the for It about LTV velocity where its presence it why really strategic meaningful a that original a drives escape for it, for which earlier, shows that what velocity, investment customers. terms our you in top to very transformation is expansion the and our XX I that that we XX. to – top talked escape we and top XXx gets versus are terms XXx we happy that’s XXXx In journey. is that of dollar our about digital really start base, really mark, customer’s automation by has deal,

about I tipping how think is department expansion use expansion. point, the case that’s and primarily So,

Operator

Thank you.

Steve Nikko. question Koenig from is coming SMBC from today final Our

Your line is now live.

Steve Koenig

for Hi ask me I gentlemen. Thanks will in. two-parter here. squeezing just a

just product are color finer net chatbots last the think you would in First we on from seeing question bit little one, the was And maybe contribution interested, an from bit logo ARR just new integration be new on very Thanks the a then logos, down seeing any turnaround secondly, retention a wondering I I the color proliferate, today? little on point earlier the about of building kind to and it put on increment you new just some logos you here possibilities much. for have year? and roadmap, opportunities pandemic. what what versus from was are RPA are of UIs I a voice Daniel, from as and that

Ashim Gupta

So, I will part. first start with the

than logos every quarter. terms of I think added logos, XXX roughly So, new get see in new we that greater

the it ARR some for of – about very gross new Roughly, is logo one We thing earlier. $XX discussed that And logo from would retention have questions our good steady, XX%. been seeing that we is then important trend million feel of I comes new incremental that’s rate say our the and acquisition.

and second really will I logo we over pod supports And the in to pass robust so market it the new of growth. speak, importance that So, having see and without, so the our durable part for a robust growth the to about of to feel numbers. strongly Daniel a leaky why position such automation speaks you of strength why the is question.

Daniel Dines

case here make this release, Yes, to I would with a that like this fork.

of about offering on clearly voice back-end a any the be more the a Mac something news, present robots our to was as market. it’s if part platform. efficient application a really on mentioned, important will very Mac it’s heard many feature correctly, that are more no-code us, To going our That clear put regard are AI while clearly us, deliver this of possible. to of among users conversational of Linux you are AI. of expanding us. We number I large us to believe as computers big a our that will to one extending customers. we And low-code We hands development. eyeing allow requested And I it most automation customers automation am for faster, – the roadmap. flexible, technology we is as the saying in we our suspicious to

Operator

Thank you.

the floor any back session. I to We comments. closing end have like reached turn Daniel would to of our question-and-answer for further the over

Daniel Dines

very this work, want to to dedication, all much want for the our I also partners thank for our support. to hard Thank for with to forward afternoon’s you for UiPath quarter. customers shareholders We many and your throughout of call. participating thank look you team their speaking you. our their ongoing in the I

Operator

Thank you. webinar. That does today’s conclude teleconference

your disconnect your day. wonderful We today. line this time, may and participation a you thank for You at have

UiPath (PATH) 8 Sep 212022 Q2 Earnings call transcript