PATH - Earnings call transcript Q4 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings, and welcome to the UiPath Fourth Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note that this conference is being recorded. I will now turn the conference over to our host, Kelsey Turcotte of Investor Relations. you. Thank

begin. may You

Kelsey Turcotte

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

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

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

non-GAAP and UiPath materials with release press calculated financial measures of Investor include website, earnings posted measures the supplemental most Our on US the These Relations ir.uipath.com. reconciliations financial directly financial to are GAAP. comparable accordance in

expectations We prepared acceleration should fiscal from first year not place expectations in Actual today's including call. be quarter our in guidance GAAP. This net statements accordance will measures include or The should undue a metrics expressed and financial regarding for rate XXXX, and many as the forward-looking the year may these and to differ provided retention for with factors, forward-looking events, results substitute US measures regarding be future discussing on call statements about considered superior statements XXXX due afternoon's non-GAAP performance non-GAAP our a headwinds the our transformation, financial fiscal of the on regarding XXXX fiscal to investors and of statements. the those and dollar-based duration impact therefore, materially digital reliance financial ARR. of of not

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

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

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

our will Relations immediately post this website the Investor to our a comments call. the conclusion of of We following copy prepared and slides

call over hand to to Now, I'd Daniel. like the

Daniel Dines

Kelsey, and you, Thank everyone. good afternoon,

a discuss. lot to have We

a and I'll quick some what start review down highlights break and fourth products you followed guidance I'm our by some with into the of my from Chief partnerships. to sections. business, finish comments about new new going Officer. Business our with details I'll give So including quarter,

that, of Ukraine. want the in events unfolding any Before acknowledge I to

entire deeply the and has we prayers are saddened created. and country, by are been crisis with Our the that thoughts

colleagues For I'm understand was grew personal. the this under many are me, support, proud we extremely is I in Amidst in are of the up protect. when very refugees. UiPath Ukrainians region $X.X fighting the have opened so homes control, have of Romania, their to million this, Among I and team. across our freedoms all it doing, things communist we more the than still the donated to

International dollars also look and like We to platform made donations to Cross, ways for manage which automation of our have using available continue is millions Red automation of help. will we to organizations to

Turning our to product important marked meaningful year and milestones the growth. business. of position like market-leading leadership acknowledgment by We delivered XXXX IPO, industry analyst a very introductions, strong our fiscal

the us who and experience have laying leaders well, to executed help have We scale. foundation attractive

we XXXX increase record to will exceeded drove This million. Fourth mark new $XXX ARR XX% revenue. that in have ARR and grew the million, fiscal a net XX% reaching by $X expect ARR of $XXX year-over-year, total the an year-over-year. We end billion quarter of

and of levels Automation end-to-end growth adoption transformation our automation to at new unlock innovation, platform our of execution. reflects digital is critical broad-based and productivity. agility to continued Our and scale focused

land drive Our dollar-based of model best-in-class retention to XXX%. continues and expand net

perspective, least have ARR basis, accounted we the annual and of end product $XXX,XXX of had up for annual X,XXX that AG. on approximately accelerating in new in deliver XX,XXX includes broad prior As and deploying year. fourth customers, logos, suite From at of the driven of robots including these adoption Bechtel by industry results both XXX ARR, by are customers over million Auburn now from $X capabilities. up University, our This quarter, the ABM more We customers a XX% an customers XX%. software

automation key includes help than end-to-end us more platform differentiator for hours life cycle. with XXX,XXX has their accelerate automation hours transactions. Paychex them we adoption mining as test which Paychex. annually. is in bought intelligent identify Our production manual than another the This million XX have saved They expanding mining, more opportunities now capabilities operationalizing over to are XX help process for and workflows and and save automation XX,XXX customers

instantly We to closer expand We platform almost customers SaaS IT, and to offer options which UiPath brings cloud. infrastructure. unattended every resources to a SaaS our deployment robots without or robot hosted even in platform for product, a automation automation deploy already with allows us fully our continue cloud cloud robots, option

As with companies quarter customers Recipe cloud, of X,XXX with million than of Unlimited. than more includes our in $XXX end has more Snowflake the We the This new the cloud fourth in includes SaaS cloud and which hybrid over approximately just and logos quarter. of like years. two selecting quarter, to grown ended both deployments, XX% ARR the in

in expand continues all continues excited and we frictionless on compliance. and raises development our for focused cloud, automation automation May. are in to progress bar automation Our innovation and access next-gen faster security about XXXX.X to strengthen our the the our value, upcoming and the which time platform delivers UiPath leadership market release towards

UiPath like We a We experts, through and distribution as sell GSIs the range Micro. also like Finastra financial requires include automation which our decided of quarter to global new to software as sell-through These approximately ecosystem power to several continue well sell us expand organizations best-in-breed X,XXX broad enable and go-to-market automation with with Building a with capabilities partners. collaborations Ingram journey, the worldwide. their we go-to-market for a ended quarter, of ecosystem. including bring UK-based plans Finastra, has closed their to sell-with usage during financial to the global company expanded Deloitte, UiPath ISID. internal and partnerships, expand with institutions automation and

to partnership, to creators and automation cloud sell this build Fenestrae's of partners offerings allow phase and market. the first financial The we to platform secure leverage

with Additionally, customers. include their UiPath own to offerings, monetize expects will which in directly Fenestrae their capabilities they

integrator, a is Group, Japan's through is digital using environment. to companies ISID Many development to unique and system employment leading leading to platform, the the respond developing digital Japanese issue a this tightening technologies, resources human While to service offer wider to ISID are market. UiPath responding automation on Japanese based

Chris to growth. us is scale, He we genuine durable role UiPath and plays entrepreneurial building led I transform brings as for across and American Vice that continue to customer Microsoft during most the SMB who scaled to and for the his the orientation Hansen approach, would team over XX President contributions their Officer, joining lead also Weber, is over last Chief North long-term execution. that As this his thank Corporate and responsible transformation. Commercial we billions He two automation Nokia's into as in I a that years to to and go-to-market first has digital an market. are brings partnership multiple And a welcome also want offer like Thomas for transition. for and of businesses this recently assistance experience reentry sales the team. of driving go-to-market dollars marketing Corporate helped our years to Chris and strategy role, global having Business of to passion

just spent Europe, my this across afternoon. with our you want Romania on in I from and customers region. we the I where returned thoughts provided the give I weeks guidance Now two in employees time to

you Ukraine the and meaningful in includes business well in the impact and have both continent UK. customers we paused this been in firsthand, over having a where on has several years. across We is physical that employees and security in business. have a sense and can of This war Europe tell economic growing the I last the profound Russia,

also are reservations express interest uncertainty customers US hear political starting to We rates. both about and the rising in

assuming we prudent believe start continue. takes can leader, uncertainty to the are year, is transition short-term into in our will the seeing which guide first create we go-to-market disruption. it quarter also we decision the It As our fiscal account to

and a to scale profitability drive Our believe building is improve the a work powerful, financial opportunity strong it: we unlock had will as business. public believe summary, experience, first and is company. said we I've truly before, are employees I as multigenerational how model change potential. that and to our considerable to human durable company and we we continue a year growth close there In it

and XXXX Ashim fiscal digital forefront the and transformation ahead, is take will XXXX in results fiscal UiPath more Looking guidance. that, talk our is at our With quarter accelerating that fourth to evolution. detail about over of

Ashim Gupta

you, I the to team. and echo to Thank Thomas Daniel. to welcome your Chris thanks want

year-over-year. results started, be Before on note I will unless are I get all a otherwise growth indicated, that discussing non-GAAP basis and please rates

quarter new XX% net ARR continues million, ARR $XXX.X up and Full which quarter are $XXX pleased the the which totaled XX%, year We fourth our with We driven of of leadership. record by strong a the million, year million, XX%. grew time. and ended demonstrate $XXX.X mark increase $XXX.X new million market first for execution total results, off very capped of an exceeded fourth ARR milestone our with and to net

by strong Our were across driven results broad-based and performance demand across geographies. platform our

focused XXX% during rate of leader provider gross great US, and examples began XG, was a platform. of They process couple adopting the the of stickiness with net expansion UiPath UiPath in document on Wireless finance. journey which business dollar-based by Our retention the quarter. and continue underscore platform recently supply quarter ago. closed our the for of and rate XX% Cloud. retention T-Mobile entire automation Two Initially, T-Mobile their and to in Task have Mining, understanding of automation their Automation expanded chain use of a years Process

Process which tightly revenue market intends organization-wide development of to freeing launch and X,XXX process forward, To post-merger. are XXX scale, members enablement. on for Their delivered to hours have more automation, the saved, to to synergy savings customer experience, and over savings, Mining and has team to Africa's OpEx in next cap. more objectives, Vodacom Going achieve delivering frontline the largest program increasing their Vodacom, million employees expand focus linked drive experience, in deployed which unleash aggressively million further Task T-Mobile and telecom million by than unattended And step and revenue X.X velocity, also one today robots, $XX.X $X.X companies leverage discovery, software customer up their an citizen their to is innovation.

revenue to year-over-year a grew fourth numbers. the FX basis XXX XX% to revenue quarter growth. $XXX.X back approximately headwind basis, to On million. created point Fiscal an Turning

X revenue million. quarter to XX% Total we RPO For Fourth RPO $XXX. gross reflecting increase an million increased XX% the margin increased by and Fourth investments full seasonality XX%, by approximately basis revenue the non-GAAP X,XXX FX additions driven XX%, of expenses million. This gross was fiscal increase includes XXX of hosting. offset year points services primarily XX% with an ongoing cloud Fee was increased $XXX.X and headcount reported $XXX.X of The growth. was year-over-year. remaining quarter obligations expenses $XXX.X XX%. and ended software performance in million, year, margin headwind employees. to operating in we to

was to year XXXX. As expense. $XXX.X loss given included year ahead was hiring quarter GAAP million. Fourth income of million. Full we $XX.X to be Fourth fiscal million. operating million year $XX.X $X.X loss flow non-GAAP quarter operating Full was XXXX, adjusted our free income $XX.X million. quarter fiscal look $XX of non-GAAP we million cash measured Fourth non-GAAP was in stock-based operating operating year investments compensation expect GAAP

with being negative For cash fiscal have equivalents $X.X in And of our line flow we cash free we and adjusted of and is year, fiscal no for full delivered in objective stated $XX.X marketable flow non-GAAP billion securities neutral debt. cash cash, the year. roughly million. This the

and we view to realistic a now believe are in first quarter turn business we encapsulates me seeing of which full XXXX our year guidance, Let today. what fiscal

profile. the Our of Russia. a of Europe, from region and eastern European part our in XX% is beginning we roots and and which major business across growth an Romania are customers Approximately part in and the serve market, important is the focus in was the our of

on impact and local headwinds, given in the currency, strengthening growth price which guidance. FX recent Both of created have dollar. a also US our the direct profile has We

the of Russia, in business approximately For first included fiscal we million quarter. $XX the is in ARR, year of in impact a $X.X reduction which pausing be million XXXX, have which will

first current for $XX $XX at we for rates, million an year to $XX fiscal the the ARR to approximately full addition, of and approximately XXXX. million estimated In FX million million $X quarter headwind

to fiscal million million FX For $XX we approximately for to first quarter an revenue, million the expect headwind $XX of $XX XXXX. the for $XX full and million year

that current given environment in with We exist made prudent the transition. have of around pipeline, profile and the in also large risks assumptions factored leadership any the deals our sales

platform automation and importance operating desire also and to digital hear their our of XXXX customers into programs you the strong I our Our continued give our their to We their the expand is UiPath from differentiation pipeline growing and broadly. competitors. efforts framework. strategic from transformation insight to want

We profitability, over demonstrating which large growth investing in we and the last this are two growing committed and been balancing to years. while consistently market, have

Our financial to neutral we has positive non-GAAP healthy strong flow be unit and expect year. model cash economics cash to free and flow, this cost adjusted slightly

the to investors want Moving that which and should of manage believe run specifics business to focused. is to we be guidance, the I reinforce where ARR, we

guidance quarterly we operating modeling, year revenue and full are adding to income our non-GAAP For both full year cadence.

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

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

be negative to to of we basic first share million XXX And approximately be in range million. expect loss operating million non-GAAP expect $XX $XX the shares outstanding. count to negative quarter We

full For ARR year of billion $X.XX to expect be the the we fiscal billion. XXXX, range $X.X to in

We and expect non-GAAP range million we million. of of $XX in expect in range revenue billion, $X.XXX income be to $X $X.XXX to the operating billion be to to the

want guidance few you I and modeling assumptions a to with close, points. I Before leave

half First, sequentially to net expect full fiscal for first ARR grow comprise each the new XX% quarter. year, and year approximately to we new net ARR of

half revenue, quarter the second For first and each to first expect sequentially equally we grow split to between quarter thereafter. and revenue be

cloud the growth Second, our business. are extremely we pleased with of

to an estimated headwind offerings X% expect growth While our year revenue this growth SaaS a in net year. to full positive, be this we is

compensation year XXXX. amortizing of at Third, expenses we the sales started beginning fiscal

point operating margins fiscal XXXX. to fiscal full year Given last year, we headwind these was we the XXXX XXX-basis facing expenses, relative first in amortized non-GAAP a year are to

in sales our first bonus substantial quarter in we cash Finally, please commissions a fourth quarter, in corporate in which the note first the annual our result that outflow pay will quarter.

in with seasonal cash take quarter to patterns us look neutral the the you ahead I driven are be to opportunity pleased questions. with poll many potential the to of automation. confident in We we the In normal by we fourth transformational speaking now for the forward flow our expect for over weeks. and slightly be operator. summary, to non-GAAP of of will We questions, and to positive free the year. adjusted call please coming and fiscal turn are We'll and Operator, results,

Operator

from Instructions] Lenschow Raimo Barclays. question. our with And state [Operator question your comes Please first

Raimo Lenschow

the Thank on and you. Two year. quick questions from me congrats a strong end of

with a it's a is, Thank rates expect early point kind to The up I uncertainties we first assume of changes talk I model. closure because the but guidance little all like maybe your the the out did it rate second question you about to lower appreciate know just kind you new bit drove little Can closure the did leader thing go-to-market about So, of Was And and it, significant how then with it? changes would tough there. to -- would you bit a pipeline? that guidance? it's come I you talk there? you. we the have a is know it's on assume too

Daniel Dines

to Nice Raimo. you. hear from Hi

climate. leadership XX% normal uncertainty global have than accounted transition. In caused you by And the So, know, we and last sizable for And on we more the us. experienced looking seeing we all And guys kind are is deterioration it's we a know you Ukraine. of business are and we right war that always as guidance, in on have distractions in the of the month, now, in some of the of we front impact seeing Europe. Europe the in have business at guide what our macro-economical

where of stage leadership growth. folks thank last scale And the us proactively his leader And network He to to guide talent more the transition, is an inspirational in is I a what always the this the amazing in is well The billion has the he he Thomas leader, that we And business that again been executive to $X.X customers. opportunity leader. talent On can capable this great helped are for best than of and experience continue a has a I and as and first this And billion team He for Demand rest once an connected is to revenue. the will know my for bring exactly ARR all, taking that the two in is businesses really the us, beyond, here. less we we next is than from at here. solid while. really He's Chris contribution. today. in while, of and is that know believe stage to for to trying business scaling to stage today, I business years our of drive $X company, of are us growth.

We of are of the from distancing been rest pack. the ourselves for bullish for the We've the capable business year.

We -- overall, are undisputed all prospects. great in seeing are we really good automation. business the And the leaders

Ashim, you this. can add to

Ashim Gupta

Raimo, Yes, is assumptions of that I our directly. very quantifiable guidance we of terms half on had, just the guidance think, in

So make impacts. I just walk the want to down we sure

is decision pause to the a Russia. to that just businesses made are -- that from million So $XX have appropriate business. the it there. literally has of million then quantifiable is is that with our we accounting mentioned impact million that take now just the And that for Daniel the with of balance from Russia, on the fact $XX Russia script We the in $X.X a

is piece of FX. The second it

Daniel business sizable in number even we of impact the There's weakening, $XX about. We've just guidance us. also of seen subtract $XX quantified won Russia macro that and rolled balance XX off the not the for to see our The after includes climate, that a those in but a out our with deals look our rates. But we deals, euro significant FX to by a guidance and that. being million the Europe XX baked the as million between very current pipeline, mentioned. FX. has given uncertainty you've at large where in is XX there into We our they're FX the sense strong forward the remaining we're excited around we've we balance which which competition. And have So both just days, and Japan, that for and date, And for last you to incorporated there's is movement the XX yen. with with pipeline, that

Raimo Lenschow

Thank sense. Make Okay. you.

Operator

Next question Stanley. comes state question. from Keith Please Morgan with Weiss your

Keith Weiss

terms you, the basis, on And XXXX. for in the about the decline the this XX% doing tailing the side going million QX that doing in ARR, of guys you adjusted of response you hiring. weaker in the if XX% we to guide sort of slack forward sort that force? equation, about Thank line mentioned that the But expecting growth of wrap you're side? for the You we're sort margin through Maybe net And some basically can was up what a a taking more question. on juxtaposition sell kind if net us be and quarter demand? Raimo's period very to of of obviously, sales kind right, strong really the even slowing new is you preserving seeing walk the of operating that and OpEx QX. my heads bottom should on think the And in net how of assumes question, soak equation down kind around equation are so of ARR. of less of to sort If sort nice are there new new XX% math the through thinking we trying our $XX of of if -- year FY fiscal full side I'm or of an that ARR on side of

Daniel Dines

Thank you.

the for nice believe year. that We to would quarter. I words about your you we a all, of First had like solid thank

results. the with pleased really are We

the We to the are front in again, guiding the that of I the is we Going on of headwinds rest reiterate us. will assume year. will what continue that for guide, from

looking company. for We and to the balance always productivity the are growth the

prospect of the let are of free comment Our has business, to taking the and in we looking ARR I more longer cash for grow business we excess of -- will drive to our to term the Nothing flow of the account and the into margins. XX, on changed Ashim fundamentals business. Rule business in

Ashim Gupta

on prudent Yes, for to I talking normalize -- that, factor net me the mean, kind point very when that X% environment had start philosophy decline, that you and current -- about Keith, here. actually When of we guidance of which from talked about, in journey we believe the in is in that I also with in decline impact line guidance FX just stays the really the let Russia ARR. our you our of we -- the just new beginning that want with we with philosophy have XX% an the the

show of believe XXXX just scale, for crossing to that as of at for also both and the grow leverage can we're long-term. same investment not In now as of and of don't XXXX. is the we XXXX, continue that investment. it take us very balance that We our is company and that sales important confident capacity demonstrate size to right the be the the leadership important our force into profitably. market, the in characterize performance as characterize margin, we'll about And team. to field measured the invest of to it really but I At pleased able put the well something our billion, advantage to feel the time, terms the down, with we operating in are given hiring we the as And for our sense the just grow of we is slowing I'd $X

Keith Weiss

guys. Thank helpful. That’s it. Got you super

Operator

state Winslow Our Please with next Phil from question. Credit Suisse. question comes your

Phil Winslow

Congrats thanks on guys, question. year. strong my for close taking Hey a of the

dollar-based particularly ARR you I the But net of like kind DBNR seemed quarter new of in down of if of into new pointed strong growth accelerated sort customer and strong close out that growth, my actually break high. Just because year. was as was is as it actually, customer context net strongest question as retention well just the a new

I going about the guidance, of sort can the in you the sort of how guidance to customer another it new are guess are the and DBNR you maybe hearing of acquisition So, from way, unpack they're kind that you thinking going if it context this down just be or to to more customers one going of of customers just new plans, you follow-up. be are then pausing break forward acquire? just do think Maybe to is hard that way existing and

Ashim Gupta

-- our of that that control, to. of exchange. you at When in historically to split right? between within and that So put back XX what of I look historically is XX% that put us, terms foreign do kind realms can and XX% in that Russia would I Phil, -- expansion then you Yes. those are equates and obviously, the that impacts I a new we're beyond XX% logos, that context we've and is been which -- XX% two and continue math modeling, to

In on split terms much really just they're the hear this automation again, the the prudent timing we're expansion in obviously just we the and looking which, customers environment deals through the working as a What can moment. of aren't we the comment like talking versus creates just would around the the macro large themselves, leadership guidance, that going of new further of I kind I assume well what as as the is, really transition, of about, a logos. of talked program, reiterate, environment. other their assumption and kind of I same We're historical through is to just think this the as uncertainty profile Daniel pieces of the at at and kind about with -- deals, do pause want as

very customer of Our color we from can enthusiasm customers talked customers, base, Daniel give the in the that. that. some feel investing and to script over we still excited and can I other on turn I'll personally, areas, say and our Daniel T-Mobile it, it about around more we're comment like, are to about like, on like

Daniel Dines

a I that prospects. the customers, we remain -- operating a industry. we want It's good remind with on we bullish seeing the of I innings really -- this with we on you in big Yes. early -- partners. very very field It's is are of -- are there. momentum spend to in TAM. are our Demand time And our people. across The lot

Phil Winslow

year. wondering sort the course trend that about, excluding, on mean, you but just the talked obviously, terms off, Got of of you sales think and you of like a I course mean, if that of, over that trend up then from When of it. of been amortization of in wonder first this productivity. And uptick? could the what well, sort about, some just, driving of -- we've I impact the it has in the you slight sort year. the seems seen over talk productivity if just, could sales I comment

Daniel Dines

lot the that Well, sales Velocity, the driver we productivity, made past the investment sales focus main one bring on productivity in has years. of our company. team. velocity been It's really increased of of measuring performing field. in across a three driving net extremely put ARR over And it's the constantly really great to well. We want we new

So it's we on really one levers business. of our pull that driving hard the

Phil Winslow

guys. Great. Thanks,

Operator

Thank you.

Please, your question Bank comes state of next with from question. Sills Our America. Brad

Brad Sills

Great. wanted North taking my made some ask around the of to about US in America. Thanks, for guys, question. comments you I

from on being already region? in more Or region, based seeing was customers the just your forecast of your I just in on prudent guidance backing you're think that that were the you kind potential you're uncertainty. saying, a pause

Ashim Gupta

just I overall, any macro Brad, geography. is the I -- like, Yes, environment wouldn't we specific large to pin one think is, it deals. on

the seeing I uncertainty, front emphasize pipeline. see given we like we're what which not nothing is healthy of Of is transition, that accounted is, it Again, for, we've But out we've the the onshore anywhere. that course, we which also do pauses, a We environment. to everything see is is and is leadership just would to. see in Europe said one there. us

beginning, to right And philosophy we've so, the being think do we feel had the -- prudent with from is like that about it. way guidance our we

piece of of deals. The profile second the it is large the

like the So, things size, Automation of of is with get reworking are year. just duration I have. the be their terms customers internal through what kind that question the we're just budgets And of is The just commitments own board. we those the still of or that in think well to clarity kind that that we whether see across environment funded. more going are

way so, starting the we to And investors. the our inform year, this right feel is like

Brad Sills

And Ashim. Are more, please, can provide X% acceleration color to headwind. more in a one comments Thank understanding the the Thanks, could in interest you with on that may, cloud? SaaS And moving the customers there? seeing you Any any hearing you color cloud? on just if so impact? help your just providing Understood. you I business much. are you around RPA from What

Daniel Dines

is business our this first Cloud growing moment. at

We are into investing cloud. the heavily

cloud happy to business. our comment around I the hosted that, cloud. cloud – to go and the will deliver because entire will remind company. are we release in priority strategy very headwinds is for on accelerate product are achieve of let the We and further to are you more the hybrid the a with I We cloud cloud that robots then want cloud-first that revenue Ashim of first on into deployments. And on-prem the everything we transition.

Ashim Gupta

Yes.

on change cloud our to in million business. mentioned $XXX speak crossed so the we script, we've So, and

flexibility talked pleased trending of happy. say our return in cloud – of we're of customers, customers. we’re And So offering the ahead the investment, I we're strength and terms actually progress, that we’ve on really with provide the terms would and we're about even we our ahead that in given like with we’re adoption very

do we -- second we gives feel the of just good we're terms we've ARR. the about The modeling, a right thought very of of in we is, piece do I assumed cloud in revenue. is, to that that in want little of the emphasize bit of that ahead run moving to again we've are, to, quantification and where now where business headwind historically terms

why an is that started we of and guiding very that of looks has And disclosing is how the metric. so, the from reasons and on one cloud the impact normalizes that and terms in ARR -- beginning the for this

So, happy lastly, And maintained. progress. really the have the we're rates the margin numbers and actually with very overall

that and guided Within can continue. our basis, margin gross by So, guidance, would margin that our we're maintaining with And greater happy even a our than cloud, XX% be results execution cloud you we adoption. teams in product said the the see business. our the we've we with

Brad Sills

Daniel. and Ashim Thanks

Ashim Gupta

Brad. Thanks

Operator

Next from your state with Havemeyer Macquarie. question comes Please question. Fred

Fred Havemeyer

significant in and your automation? Ashim and broadly, competition seeing in Congratulations your appreciate out terms much. any ServiceNow who are of the I the very are of ask, you're you changes QX. that's positioning certainly numbers others And thank Hey, or to Daniel more describing, considering more on strong you wanted guidance. and I what now that in -- RPA aggressively deals, customers are themselves appearing sorry in coming

Daniel Dines

We are competition. in not any the seeing increase really

On we less are competitive deals. the pressure seeing the contrary, in

are our of seeing various less players terms if -- major them. and in We competitors, we that less seeing are are are specialized business. -- we you really And we in the can interested traditional of the on so comment

we in Blue not really Microsoft we comment anywhere are entrants customers. Automation -- Prism replacing ServiceNow, And and you like seeing much. specifically, the are are them on that I many both are speaking we new -- if can We about and interested.

Ashim Gupta

I don't at win playing not. where where when to compared are -- see the are Microsoft we numbers difference and think not large basis, But they win players win has We no see our rate look where We of our playing. on really when even just lot. to it's some they're a you do, these look and important. between and continue then we analyze rates rates, And where them

trend really the we is feel in the us -- that Right player we're and team. dominant is see that as the from to continuing industry. a the of see data that I So now, continuing

Fred Havemeyer

I'll you Thank for the in one context. Okay. then another here. sneak And

and in but to already also can present challenges. ability durably $X ARR Your in $X scaling ARR scaling scale above is that new billion to billion-plus significant a above success,

made your tactical little is So more drive growth to organization that ARR or I'd that scale ability did billion you ask, in this go-to-market question you your sales something durably catalyze change, like in perhaps? leadership see to that a your that $X anything above

Daniel Dines

business this that we the at is catalyze the will change scale. believe No, that our one leadership

that expand. to profile some We customers. number convinced years are a numbers land up me this If data X give to XX% going for that we business points high in come. of and growth year, XXX this over improved to And you our want many to is by I stay customers at look we million, have

by total the year, to we for at new to X,XXX to customers. almost customers increased a of us many look X,XXX represent come. to XX% added great $XXX,XXX, our number for have business over They This customers. pipeline that customers we you grow years base If

on So one in growth retention that are land-and-expand given very profile, is of our best business, rate, our the profile. bullish we our net

Fred Havemeyer

Thank Great. you.

Operator

question comes your Scott Please state question. next Needham. from Berg with Our

Scott Berg

Is different do look what anything that you've in his guess do I what disruptions, CRO guess Hi, done start you on you But following my should be -- taking Thanks in before? than I for in that organization. some Daniel the maybe quarter. something the different addition on here congrats fourth Mr. want what know and I the makes is, and talked and from team, to you there as sales with potential like strong Weber him which transition? make expecting will questions. to off I the background sales guess particularly for might come we it experiences I sounds up about the are this Daniel,

Daniel Dines

people will the want before to the the to the bring tell we time company, be assume I Look, Thomas our I leader recognition has go-to-market a that help I to to potential in I I personally to partner passion great every leader you desire improve a company, and the think of partners bring that reignite new business. bring led quarters. believe new talent Chris. a that that the improve few in us for the to

really go-to-market. are passionate we So, about

talked partners will great we I the at make And like believe that looking improve performance. talent always to overall will the we and acquisition sales continue improve productivity. about, are ways We to with Chris, we and

Scott Berg

standard think think SaaS then time. talked relative it two that terms are any actually consistent, different? the we opportunity some sell? the it, in But on consuming to model? buy it's of two, maybe about how you in of that's And in same, One, contract of the they that that Thank think great you're how or customers the Asim, pricing of where kind Got headwind. Is X% space seeing see pricing differently acceleration you since you term that pricing SaaS or to And that seeing -- is we size? there. the for I year, transition parts is seeing product then this about or I you. for the over the should structure likely license helpful. Are about or software buying goes guess, most should what early you're

Ashim Gupta

is is differentiation In I the that big terms market. actually And list very that universal ensure this for in of by versus the have a pricing, call same. what we similar. think choice a pricing making stay of the values It's customer to pricing choice. We us we our our

component, margin that do we discounting we for a of ensure sold see are it. confident feel we've gross all. that are controls not we putting we terms -- now, obviously basis in In relative pressure to standards that a discipline, very appropriate meet We set from discount And a at the higher to to ourselves. where right that there about cost cost of goods the of is given

building allows It right? good. terms on of on and to we all the time a our in ramp excited the to it's terms and show are of down and a end. expect early, have Initial pipeline flowing. a are Features front faster Like automation, in which said, coming buying patterns, year report this and as metric cloud progress what And forward see, and are great weighing to throughout we good the continue flowing, In been not I customer expansion be that focus go with healthy driving very is them happy of continues customers the this of beyond. having COEs the with We're benefits just obviously supportive We signs cloud are early. platform. acceleration. a to customers still on we and it's out about the we'll Upgrades board.

Scott Berg

Great. my Thanks for taking questions.

Operator

you. Thank

David question Canaccord. from with Next comes Please ahead. go Hynes

Luke Morison

for is DJ. this Luke on Hey, taking the for question. Thanks

your and of strategy their is the you backfilling say on Ukraine But your gave impact Ukraine. is detail you which or uncertainty geopolitical to So, maybe in your with employee base revenue the working, of could in share around Russia, seeing employees, how and impact good and they for are the expand what's Russia much responsibilities? you're

Daniel Dines

around small product Yes, contingency presence have we've that worked already a In Russia. Russia, significant have the around we have Ukraine, they and we on. In or and don't XX the plans have a we in team. developers, sales Ukraine areas in

the of than think Ukraine. really We we And I people capabilities in since helped development don't less our people. this we XX -- crisis, it's in have beginning any Russia.

donations. We all more was have $X.X the raised million. X:X matching company The than

the regard, have Ukrainians. base that a to in Romania. for homes because we in providing are We And we a position big help are in good

X,XXX border Romania, with Ukraine. almost a which in We have people has

Romania, of everybody to country But is have admit that is NATO. We feeling a -- the it's part the tension.

disrupt affect see can don't that So can -- any we potential conflict us.

Luke Morison

Excellent. Thank you.

Operator

you. Thank

Wolfe Please Next Strecker question your with comes state Backe question. Research. from

Strecker Backe

Hi. Thank my for taking you question.

Ashim, I just to way. to slightly want but a in go different back question, Keith's

you still your be stepping your you're As this business. investments into hiring said, But measured on based the back will up year. guidance,

three the you two this then, we high should and hiring, how level, about a investments are just the to next Thanks. years? can if from these not trajectory where And help be going dig So think us to reconcile margin in else over into, going?

Ashim Gupta

last question. the that going incorporated guidance, employees hired is of the of second get that. is year which expense year. expense load is we're we've and Yes. in Remember, half, kind annualized from into incorporated the looking of Thanks that at some this our full increase not for carryover when of into One you're is the to the that the a

the And other headwind change, then, second post-COVID that The number. impact you have out piece XXX of a into of point or sales a to we're a our is, is, a there's thankfully as three-point normalize commission going impact basis world. that accounting

the to to real a events. basis, a -- office just like to is, that's then we've When going we Getting have And which So on morale team, have the And XXX of that's as expenses, worth you points customers, getting able teams functioning, as boost global basis are increased a excited We the and feel we the expenses our just added productivity a in been other to always of post-COVID world. And investments I headwind. we're that levels XXX engaging we've getting marketing our to and and of going be then, culture. expense in for that of continue said, necessary we at look more that. lastly, basis our great way. around to about. our and is all be offices incorporated part it like the a to around out invest, do back has back -- to to a the the measured

still So hiring. we are

in We're invest to category. platform those our test going our automation are areas. our committed expanding. will term. it excited be but a further, in has And and about grow a leading Daniel at to You have the I'm talk we to this for about in sure Like, continue out growing to we P&E, come and look R&D and We're platform. release. is our great our long

term, our already about think rates expanding. would you say, been we've when margin I So long

internally look three And feel balance of like And the make scale, investments. stewards be We're we're good growth. reiterated, for to early the we're to have to look back trajectory about the profitability in it. are We've not and hurdle accelerate as going a it. measure going last right growing to shy continue. constantly on we that be going the If rates large said, capital a market. at we to We're being trajectory you and we of frankly, to five years, evaluate and we that and of going right that returns

Strecker Backe

Thank you.

Operator

comes with ahead. go Murphy Please question next Our JPMorgan. from Mark

Mark Murphy

Ukraine, case. well this spillover in outside just or Europe, if in whether actually pipeline or you are an seen There much. clarify perhaps softness of year. Thank Wondering really is across could very this just already and extra of kind dose slipping which you later specifically just any might fact, Yes. effects any performed March bookings in Europe have, you and of spread February conservatism

Just actually tangible you've really or anything seen yet not? wondering if

Daniel Dines

Yes. we there We've to Russia. are are have now public they Anecdotically you continuity tell funds that in and seen instances. help quite because that their I are looking operations companies the stopped governments Europe in Europe, business right can redirecting a at Many refuges in material already business.

tactical are where to looking delaying world. there are some face are customers So, and deals the the instances realities of

Ashim Gupta

I overall And then like in terms wouldn't of any conservatism. guidance, say just extract

We consistent. continue we're like to feel

philosophy. are year. we've when the We total for And and them impact that very our reflected quarter strong consistent pipeline, with we we guidance first both historical look and about in the deals at feel appropriately are big that

Mark Murphy

this and wondering category clarifying feel it's mean, them, be whether of for you wage I you've all kind feel potentially. and sort geopolitical fairly of you is they're inflation that's shortages, think spend have Are a thank as IT a unbelievable when prioritized resilient they of is indiscriminately kind pulling sensing do if like mean prop. I RPA a view I – that in value overcome IT going you some are with of point just think at that through guidance, of to they're -- our reflecting gyrations and do broad-based because pullback back or I'm kind when categories? your Ashim, on labor of you kind speaking trying they to got you to from you sort you're within -- that that. And are customers

Ashim Gupta

these This customers -- actually it I an important remain in actually affirmation more financial pipeline. to innovating. deals our customers. didn't to in I sense customers our answer got in we've our Yes, We as why that's of are an the continues -- eight but talk day be to automation just an in today digital Use They're one industries. transformation, of together. C our we expand continue the million-plus be advisory just expanding. met the level. spent boards we cases a the of affirmative of in entire $XXX,XXX-plus metric see $X One with about, of our continues within that would cornerstone that is does part something

than customers up program. in customer greater you So, last we know, brought strong be $XXX,XXX, a XX% to part year, minds bases crossed of our a that really that’s really our X,XXX strong, continues automation

the nothing we reflects beyond minds. the really on feel deal the in environment. that specifically, Our just guidance our There's macro that large given prudence

Mark Murphy

Yes.

pretty a that finish want have probably -- very the wise it what number. actually thing echo a to new be do said. doing. And to to Probably Is I others a year spectacular net ARR Okay. with

congrats that. So on

Ashim Gupta

you. Thank

Operator

Steve next comes SMBC. Please your Our with from question. Koenig question state

Steve Koenig

here. I and once. both questions. Daniel have ask Hi, me thanks two them I'll in team, for fitting at

one is little kind and a of a an of one So maybe more challenge. opportunity is

QX. you a look the They're and not XXX $XX And challenge question, So I'm motivating little is in million. when employees. in million here. an seeing toss of a think And I'll your firsthand broader opportunity obviously how expansions largest base? at about at part customers comp Fortune then you expansions, your what's $X maybe the maybe driving type Stock-based doing just do largest second more the important of out

comp ability talent? going forward? stock-based congrats on related retain and stock much that great do how very Your also way And to does to think is that, about attract your price down. affect you how QX. And and the Thanks

Daniel Dines

is Thank value seen and We a our And proves are these it's at learned trend. is adoption. think adoption address I menial expansion technology for the there. yet. Star our we tasks. our like a is secular us repetitive cloud when really tasks And prospects. really not of IPO. a Look, one long day terms our North only is of largest number solid. on think out the bullish in They huge are at can And the There described customers. automated this the you, of that Even is same And a -- yes, Steve. the stays Yes. in SMBC, -- we SMBC by we've -- deploying lot indeed, we prop that we

demand. We in are not softness customer seeing

all the On my meetings is energized. -- are the there. seeing with from it's this got contrary, field, People the I really is -- pool

Ashim Gupta

strategy a stock-based our continue we compensation. around to we really -- a drives And charges, Daniel progressive have be and then us on --

are and look in hiring people's the belief our employee platform numbers continue the the durability -- The in they're about base our entire is base. the of lives widely from at I and and strength our -- our many that excited to and of relevancy growth us. year show believed in so prospects think employee last excitement to market front the is is we not something across and

we're that look we In any to percentage would not a that That as early stock-based the an is we area get go productivity able attracting maturity. X% we're terms terms again, feel a to at of and sales required the company, dilution that to And we and forecast -- as -- in are the of sacrifice comfortable all this. do look we're that to at that do. we stay in be as forward. where compensation, to X% numbers team in we provide the within we to don't very of a see talent that deliver committed have of to normal with, on you We stages see the range, building

Daniel Dines

we've of years, that best stock-based one dilution very good are we And compensation. in there. the of on say, I'd own add the managing company our metrics, over the I been, would like in out to terms Based

So, this incentivize is definitely, we have our to room if for people continue required.

Steve Koenig

Great. color. Well, thanks guys. Appreciate the

Operator

you. Thank

Tillman Terry ahead. go Securities. Please comes from question Truist Next with

Terry Tillman

but Most all my still answered, actually have questions I do have been some.

adding could activity So maybe you're if seems like. But of it's I'm really ones. momentum, is share it partner incremental I where you curious what whether seeing more two last about impressive. is quick you're or ISVs. partners, The mean traction thousands

talked about Linux-based you SIs VARs my question, seeing think the ARR I the Are I'll any of influencing? or and of it kind your think lot seemingly be throw along offering? now. in or one those out the of Paychex you market automation then uniqueness And with really of are just or might a Daniel, further Linux What bots. those having I there second lifting ads?

Daniel Dines

is us In in our seeing of one terms the becoming ones one We customers of growth bring But investment it's the partners, business solid segments. Accenture, the The for are instance, largest partner. for the we most partners. GSIs. made the our paying that of that significant off. we -- across largest PwC, are obviously, and relationship instance, all it's

anecdote, their driving a relationship them are that business and Blue of they recently an are with with terminating they as We announced Prism. lot

as with us what they their component we automation is look, building of the on in offering. that that So, we our the are And Linux-based terms the have basically offering, serverless cards partner. container-based are what cloud-based call own core in will focusing basis, That that we robots is is drive SaaS the completely the in adoption drive robots business of our the cloud. Linux of large, economy will a on And us robots a hosting required and to long-term scale the provide

Operator

floor our closing today. I'll the ends to back turn that gentlemen, and management now ladies for And session for remarks. Q&A

Daniel Dines

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

Operator

concludes parties This conference. you. All may Thank Have disconnect. evening. great today's a

UiPath (PATH) 30 Mar 222022 Q4 Earnings call transcript