PATH - Earnings call transcript Q1 2023

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

Operator

Greetings. Welcome to the UiPath First Quarter 2023 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. to Senior conference Relations Vice like host, to for now Turcotte, Kelsey President would turn over the your UiPath. I of Investor may you begin. Kelsey,

Kelsey Turcotte

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

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

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

Our release on financial materials materials the reconciliations. supplemental UiPath to These GAAP earnings ir.uipath.com. and press are Investor posted Relations include non-GAAP website,

will We and and reliance our the non-GAAP XXXX. about impact therefore, call. second today's of expressed the financial those FedRAMP many the guidance materially operational quarter fiscal This efficiency fiscal should and for investors results ability not on these growth afternoon's factors, be authorization, may differ includes due from drive Actual statements undue discussing forward-looking call on to forward-looking our and statements. metrics statements in year-end to place

filed the January discussion our reports our Form period material quarterly our annual XX-Q filed the for April the Form on for and year could affect uncertainties of quarterly and the ended our refer actual report a For XXXX, XX-K fiscal SEC, including the to XX, with that be XXXX, results, ended please risks with to other report on SEC. XX,

is by as to today. them. to update highlight this statements like this Forward-looking our being slides. undertake We I made on accompanied obligation no reflect webcast of call would views that

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

the Day inform noon the Vegas be to September our information registration Daniel, save at the during date. XX Tuesday, will Time. our turn FORWARD Venetian Investor you XXXX Pacific call to forthcoming. Las starting Hotel I Before at user Invitations IV on be with will holding Conference we Please like I'd over in

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

Daniel Dines

have technology brought about experience best-in-class look optimistic approach, the we macro to to focused is and have help why has expect built global today, everyone. profitable leadership together afternoon, the that their you of exceeded million of the we guidance time, be thanking go-to-market and I'd At the work on million, environment. size We pleased UiPath. the which we we alignment grew that to next Thank we the revenue. experience a this size, the like net businesses start would for multiples foundation to at that XX% customer productivity macroeconomic end, customers an be growth reveal was year, existing drive To and will of results solution we prospects ahead, be current in team and in Thank result market outcomes. Russian starting reported our of segmentation, kind automation and as their the are chapter simplifying ARR sanctions. very tell late particularly our Europe, a leaves due ongoing quarter, ARR first us. that, joining improved. volatility, cross higher both for I'm Choppy ARR aspirations and this that areas is will with our upon business time. quarter hard we $XX same to knew choppy in turbulent you, their mark us $X And $X.X accounts of When good and expectations. situation This $XXX of provided and Kelsey, sustained sales in by typically dedication given which better to Net that during it and both year-over-year. UiPath March, long new a which long-term geopolitical term. scaled team a billion is us can environments million, team

dedicated increasing be where at had expansion enough organizational C-level bureaucracy while where our enterprise Business with and scaling on already Officer time, while better will Weber, complexity. Chris even key instilling presence through attention. We reach our emerging significant, our writing the to more deal cost opportunities higher teams, are new are execution, teams accounts is we rigor same to Chief the reducing executives operational which haven't effective and

on the as significant increasing. organizations is be to for continues opportunity many need and working amount market only Our of agility

we and win more the our have to confident win large of continue our of operating and the company ability direction create while team, depth the market, our and We the customers in platform. build leadership measurable to to in this continuing investment market. breadth leverage for on I felt return the given the never

Turning back quarter. the to

We including continue customers logos, Investment XX,XXX to across ending with industries, Virtua. new and see Savings Udemy Americas, broad April than more Bank, Datto, adoption Bridgestone Korea

selected API This the a [ph] over of $X customers ARR annual an least now integrations quarter which UiPath DocuSign, UiPath ARR. including with XXX X,XXX time like at UiPath logos power the on in this accounted for and that both workflow. value includes suite in accelerate wins automations Zalis competitive in new Service We to great combine have the $X,XXX million had new basis. annual UI in also single the to for test automation to Integration platform We and and customers

vision During to They initiative in a and achieving of XXXX vendor UiPath by our implementing have hear to document consistently of for December plan for understanding, end-to-end focused We cost and $XXX are automation lines in total remove of well platform, In focused and as the in million analyst global conversations are out see key platform, and as from future and Forrester competitor. times UiPath, XXXX, across a market. use recent February insurance received while standardize AI/ML suite differentiators phasing the the instrumental on us Forrester to XXXX the XX% corporate automation about and inquiries services citizen were while chose their platforms. the XXXX on customers innovation as between the and on important winning business RPA goal. automation test They entire inquiry that quarter, most spotlight to automation financial our next company up X.X scale a development.

in deployment VM unattended a automation general robots robot SaaS deliver most on to promise and that jobs make providing on-demand security robots options controls AI-powered and and templates developer and introduction in and cloud, we release. app tools streamline service, development our AI, and continue to new compliance expanded in our automation Forms A robots, to integration our test of understanding easier, similar citizen include with support like automation attended cloud that pool two and offerings, integration platform workflows on We XX.X, selected in document automation demand, access include, robots for serverless now for to cloud automation run capture, long-running recent in automation a created every faster platform with cloud station, few and upgrades expansion SOX, the cloud highlights automation of service Mac and scope support ready-to-go UiPath Linux. UiPath availability for of

meaningful in-process quarter, addressable sector space we we will federal achieved FedRAMP in increase status. market also authorization have During FedRAMP where presence. announced the a cloud already our automation public the

We than allows great overall cloud and All which global study in exchange, Cloud. between more cloud. recently journey of cloud customers introduced its automation continues case which model flexibility. for health to doubling that customer growth and to these our be momentum pricing build even continues provide points to year-over-year migration business, is new considerable care that On-Prem ARR a with hyper in automation to started the more cloud A with

road images map citizen websites, address document conversion, During rolling to this more while from leveraging vendor multiyear past program for document to source to out with understanding AI vision apply a expanded business reliably new quarter, internal to adoption. problems complex accelerate computer development they automation large-scale

go-to-market We easier ecosystem, also fast value. technical automations help our automation deploy realize to customers both quickly partner making and to partners and time continue expand as

side, the serve as On NCS customers. as go-to-market both to deploying generate leveraging well it are and like revenue platform our better their partners internally

automations a small automation integrations to a efficiently. to organizations Adobe Our Myndshft, to company productivity customers easier manner. And their we better Pacific, and individuals patient introducing secure automate prior and authorization and medical benefits reducing services their to the to provider and drive focused hundreds airSlate, leading empower create customers. transform for significant their Asia practice UiPath and a organization fast-growing to of a tasks of real-time within and create, fully services on to technology efficiencies. and more announced the of delivery document digitally faster, to to innovate businesses leading by manual NCS run Adobe's operational enterprise in automation workflow Sign expects end-to-end automated in a care automate enable processes help scale check faster operational technology automated document From to and with Acrobat technical deploy perspective,

of Before like right to I welcome executive co-CEO, were that I at be went in he over team our of would help Rob Enslin. the turn where that development customers. his his scale. of on commitment senior as employees at a to considerable Most ability the Google he increasingly President to to led several Rob, SAP the When lead I he recently to organizations, me Cloud, knew on met and skills series Based operational build His partner roots growth I'd roles. drove Ashim, call lead UiPath. to on thousand new

his and a for and for the While power over are share are passion Rob which to fit of it's few personality call the UiPath. perspective. minutes Rob's to great his his skills for automation, I'll turn experience important, a

Rob Enslin

by UiPath. opportunity just some on And I've success moat. over the will leader be I'm be on which company market at since Thanks, I've potential. watching also embrace focus exciting I've and UiPath's studied space, a time. first ML UiPath joined, all create in earnings automation, Daniel. server the to formally intangible been of been undermine will for the that that Daniel's two companies can It's AI impressed or competitive been that convinced platform, calls many It's weeks the is but I time. culture, and

team days my customers, impact. expect, the that customers meeting defined empower we to and back and to our develop the by and some society. what only most I've a can our give I of and to spent to build opportunity how you company is my have our where We also early being the employees, view on disruptive communities not starting would our form care technology have delivers our for but

can both growth back We business the months. will many look digging I Daniel. to I of have scale, And model. it turn and financial this efficiency. operational over the forward deeper into powerful coming drive a to you at and we meeting

Daniel Dines

in guidance. provide I'll and quarter Ashim over the Thanks, results to more Rob. to turn detail talk call our first about

Ashim Gupta

I Daniel. Rob you, want welcome also Thank to team. the to

a created on growth results a note Before ARR sanctions. I driven net $XX.X please new of $X.X FX up million quarter, million. ARR the indicated, We first year-over-year. XX%, million by in with the I that are will year-over-year On discussing an basis, ended started, and headwind quarter $X approximately and million, otherwise ARR non-GAAP all in get $XXX.X we of unless result be total wrote of down a as Russian rates basis,

retention of net the Russia dollar-based dollar-based was of ARR. the Net based of dollar net write-down reflects rate Our XXX% retention XX%. impact, XXX%, for rate quarter was retention Russia gross rate the

million. approximately grew First $XX headwind, year-over-year. XX% FX grew revenue $XXX.X to was impact, Normalizing quarter revenue an year-over-year for which XX% the million

vertical customer deals in We to one some first revenue our have to been our are the including of large take shape that the care which in pipeline seeing starting closed we first the quarter quarter, health upside. helped drive the with in that

performance RPO grew is impact, revenue first RPO which margin approximately XX% year-over-year seasonality Normalizing First million. the $XX was an headwind, reflecting Current increased XX%, Total increased quarter cloud XX% investment for infrastructure. in million. $XXX.X remaining obligations XX% $XXX to quarter FX and year-over-year. to million gross

XX%. was margin gross Software

cloud to business. continue hosting we cloud our and We scale services as invest in

employee First quarter talent annual increased and on million of in reward additions top operating by and XX% part long-term retention. employee we expenses our focus our $XXX.X merit headcount driven as cycle

operating million, loss of operating First Non-GAAP $XX.X GAAP compensation million. million loss of was $XXX.X stock-based $XXX quarter included expense.

cash flow $XX.X free adjusted non-GAAP was quarter First million. negative

on our pay bonus earnings we sales call, our fourth first we As commission corporate in last and quarter our mentioned the quarter. annual

be we year. the to cash securities $X.X be We equivalents seasonal and continue patterns and flow And cash, and positive to slightly to by to cash for normal no expect non-GAAP adjusted billion have debt. fiscal free in marketable neutral driven

me guidance. Let turn to now

global which than impacting We presence, volatility. recognize foreign issues talent. and the America, One markets access of perspectives US create geopolitical exchange a UiPath in diverse We strengths and headwind global continues outside our to and our price is local that gives currency XX% our and currency business. subject are our macroeconomic for business dollar with the results us are of of conducted to North more strengthening to

afternoon includes in the discussed we the the in growing incremental we by As contemplates an the March. to is end operating March, momentum did headwind we note headwind providing Please FX this business. current guidance are the offset FX of at environment and the numbers commentary

First, the FX of This XXXX, range $X.XXX for $X.XX to expect $X headwind. fiscal an quarter absorbing billion. ARR million includes second in we approximately billion

We expect million revenue FX of million. the an absorbing approximately This $XXX range million to $XXX $X headwind. in includes

million second shares to approximately in absorbing $XX $X share incremental negative million the basic $XX million be we be headwind. to We of negative an quarter includes expect non-GAAP to range million. outstanding. operating count And XXX FX expect loss approximately This

year absorbing incremental headwinds for revenue ARR and full and a our non-GAAP are our strong FX As of raising operating we quarter, margin. guide first result

in now $XX we $X.XX headwind FX to billion. ARR the ARR, includes billion This range absorbing million. of of expect For an $X.XXX approximately

we be in absorbing to revenue expect $X.XXX revenue, an includes billion For the FX $XX now headwind of approximately million. This of to range billion. $X.XXX

of and operating expect some continues in income, now through to pipeline deals and speed, comes billion operating remain $XX headwind to our progress of both be the take includes summary, operating on that increase centricity. In our sales mark, customer shape approximately efficiency range Crossing For and our absorbing an non-GAAP million. This and income million scale of leverage the $XX the million. realizing to further $X as drive strengthen we agility $XX laser-focused large short with non-GAAP to we FX the process. long-term

to flow in of second positive we efficiency line expect drive forward, Looking this top combination and growth the of cash the line half bottom year.

please the please look coming September Las the we the poll As XXth We be forward and weeks. Operator, mentioned, many FORWARD will We'll of in take now questions. to speaking IV Investor conference. turn to that Day I will followed hosting by in for our Kelsey note over user Vegas, questions, on with call operator. you

Operator

conducting question from At Our with first your this Raimo Please question-and-answer Lenschow with time, [Operator proceed will session. is be Barclays. we question. Instructions] a

Raimo Lenschow

and the all more for The you congrats is, the thank Rob, new taking for for in shape. you, probably Hey, Ashim, best me role. is of and the I question had the around deals well, quarter all

about shape And this one investors this last think that the remember of you So of will were or play how you of questions because signing like of to quarter, people kind you lot you created people for kind the later. deals of talk in they first a macro as reported to need it was kind how not amongst terms out of deals.

of kind comments, couple about Ashim, You made that. a of

that can one. little Now more a you to speak bit

much can but You mentioned more deal, you it's care Thank again. the there? bit a health very that one you color little and us give congrats

Daniel Dines

Ashim this then I'm lot I've Look, and Hey, Europe in trip long you start Raimo, before a And and earnings give me And customers. question. Asia. call let a been I'll thank you talking the with let first, for of color. more

we seeing big kind seeing are in and a of interest for We evolution that – renewed maturity through deal our But automation the are macro pipe. on also overall, positive this – of key put the more navigate we the our to waters. lot one these automation to they become through in on And are customers and to economical turning efficient. pressure a way of more to easiest

to over Ashim, you.

Ashim Gupta

Yeah.

we the that, question war the XX, progressing our way – These of volatility. take the hitting reiterated our existed see uncertainty were the positive that Daniel about deals new And last realities question. gripping macro is with pipeline. was was we a we the inflation, for they what days Raimo, just pipeline. et Automation new cetera. We're was terms of And And customers deals. we It we're through as quarter weren't in XX of said, in our the think there no a stages shape. was later. see deals I as maturation all fact we important. thanks What losing talked denying

see our track moderated and guidance. of in on movement, confidence deals, had through So look we conversion have appropriately we more or we confidence pipeline deals as feel those really we've we and we reflected our we we and – it that the

Raimo Lenschow

very clear. It's Okay. Thank you.

Operator

question. proceed Bryan is question next your with from Our Bergin Cowen. with Please

Bryan Bergin

Thank Got Hi. Good here afternoon. you. a for question Rob.

the or just Rob, maybe So at about the you two just think and go-to-market can as you look function? step top your back as you one about business, of one talk priorities

Rob Enslin

Sure.

three observations, in, happening. and to I So, weeks that and economies, can so UiPath a play said in customers, I see Ashim role Daniel what these meaningful talking reiterate

sales. we're drive the and sales. we're get ecosystem digital We're going further to to key drive We're customer customers, on going Now channel digital get better those into to customer ensure higher we and adoption, that expand for satisfaction up returns actually going to focus to business. accounts going the

Kelsey Turcotte

please. question, Next

Operator

Thank you.

from Materne Please Our next ISI. question with proceed your with is Evercore Kirk question.

Kirk Materne

post. very question. much how congrats Rob of sales sort the on of Rob, going And some of Chris, you're wondering play on the was each big just are other under Daniel, try level higher drive that can guys that more to you partners do you with higher Thanks. going seeing of you're of interplaying or sort a partners sales something leveraging in those I forward? what deeper a are new I'm terms and was to wondering is could gives is in sales in two the things taking bit that, role and little the upsell lot Thanks also C-suite. the confidence making a you the you if there, changes just go I sure to for guys Hi. how And C-suite with

Rob Enslin

Sure.

And the logos on emphasis us our will to some new more will also drive put in focus help be more a way. changes emerging go-to-market. That will to We sector in more more customer-centric. efficient are believe us enterprise that we we looking get incremental

strategy enterprise the the to on partners on while more this we add. will top something GSIs focus sector. We more new focusing allow the think Maybe, strategy also will new emerging tail adoption focus partner and I believe key -- our Rob, more of accounts, is accounts. have the the to that strategy to the faster have you key to provide us long

Rob Enslin

and chain, just think CFO, very of can supply we the office the in I'll marketing be I the to, departments. head add leadership, relevant sales of HR

I big that's have actually because is where they where really that's think that. focus GSIs, together -- departments have we we'll add those strength -- to our value actually in some the solutions with they their and

So that's where we're going systems to the focus the integrated. big and for GSIs

Operator

Thank you.

Weiss Our Morgan next question. Keith proceed with Stanley. your with question is Please from

Keith Weiss

Excellent. Thank the we reorganization? with see question. going. sense the sort you Am it with you're sort this are of the trying than that And on of equation? risk the there's to the that on disruption I'm of aware and that coming potential the And kind a into of better of guys that is what board changes to you -- risk reading place? level side should guys correctly of Rob there that of put developing on doing that sales are be make change sure last that execution for that ascertain and is the typical guess, to taking sort of just I we I trying pipeline larger question, like sounds than carrying nice some like sales of expected. sales

Daniel Dines

help have stage. Chris where this company right really now scale Well, this we on why next to and at Rob into stage. brought to well the we is largely to officially execute prepare us consistently are and This grow we the

customer-centric, said So to my answer, enterprise I our we teams. be at in point, more this emerging scale previous as looking, are

regions. globalize also on We the to function consistent be more to be are capable to looking across

So that our act into between efficiency, trying it's go-to-market. consistency a we agility and are balancing bring to

I if you comment Rob, want to think more.

Rob Enslin

as I exactly think where I our Daniel focus that think, that's Keith, -- is. said,

Operator

Wells Michael your Fargo Securities. Please proceed is with question. question next Our with from Turrin

Michael Turrin

Thanks afternoon. Good there. question. Hey, taking for the

up what just in just last following around the question in focus outlook versus I on else to and terms Ashim, changed deals, the large wanted of on time. first

you're what You've referenced seeing guiding recently. most for

which So versus initially assumptions. upon any in large I like you maybe expand increased of you just just now things if were clear, you million those can called attention cloud, the in impacts to the be have you that in to ARR. were million referenced $XX deal guiding was had then headwinds when March? visibility And And think incremental to the $XX want you versus FX you what -- XQ,

moving to we pieces Just be best can. here Thank want crisp and given you. the as clear

Ashim Gupta

our we that's us. No, continue Great When we back what's at Yeah. in front sit of guide question. with guidance look our we guidance, and philosophy, great. we

think stated I you that correctly.

I our the and there. the to some think And top that we starting the – momentum handle and the of FX provided theme. let time guidance factor a FX yen a as relates guidance to is terms which talked of pleased with monitor very we So as our me start We about large provided. current environment, continue in – euro with fact themselves movement. the that that out that's and the deals that a we've there our that And digest. in that course, fact to was the just customers guidance as get to navigating takes we've the into are the are our pipeline We we're depreciate, and closely We deals.

remains course. the In changed, terms everything else say, of what strategically would business else I has with on

other cloud efficiencies our we also is customer – our we've company. the that's around opportunities increased remain and business continue in operating see one margin the strong. see I We're optimistic think why about areas metrics – the And of our the business. response we for very targets So to for cloud year. And we our

enterprises as Daniel talked realignment comments. the earlier some emerging the – in see both look we referenced we that we of opportunities As sales as about in

Kelsey Turcotte

that we be think it it When year. full it the commentary as to through about asked guidance – X% just is headwind I when incremental gave was we a This is FX, I headwind you expected about went call. to had clear. we And And also quarter an cloud Yeah. be at on the we want Kelsey. some to fourth

Ashim Gupta

that what we with XX is And not X% – quarter discussed That's incremental. with ago. first the consistent days

Kelsey Turcotte

Exactly.

Operator

with Our proceed JPMorgan. next with Please from Murphy is question. your Mark question

Mark Murphy

Yes. add congrats. And Thank you. I'll my

So May had while to back was signs showed softer, April month indicating has all we at could what with aligns that for growth that the some the UiPath new I'm few normal. experienced. are ARR software about have a optimistic the of And if the month curious, that you QX getting perhaps would Daniel, think how we've companies of trough net been of maybe year-over-year?

Daniel Dines

Well, we knew especially be choppy in the throughout that that for insurance deal just and the seeing accordingly. were quarter to positive that healthy news big QX April, is care quarter, We like the are instance, going a for guided we for on a into we with company, us have health May, we some momentum, are we the really a progressing quarter. tailwinds positive seeing as pipeline entire gave creation. And closed us deals

shaping the cautiously how are now. right about is business we So optimistic

Ashim Gupta

our would I to guidance. just point Mark, And

we you million at guided – I think $XX between when and look ARR. guided we it, to for million $XX

this think I speaks at of that moment. to trajectory So we the see what kind

where are this, a to high monitor that of able we like of we're in I in see continue speaks the trough now. at to be think trajectory guidance make right to our a any pace terms executing and kind environment. But we to sure at In execute we'll

Operator

question Turits next Michael question. is with with Please from Our proceed your KeyBanc.

Michael Turits

One some of were looks factors quarter. last decreasing there business. a couple deals that the and How questions, headwinds sector have those and the that a some nice were like of this about much two size trended of as pipeline the business around comments into was also On in quarter? and in stabilization prior public Hey, Europe. the you front, guys. made in very Thanks

Ashim Gupta

We as especially the commented actually the we the deals the are pipeline. terms deals a We've were duration quarter, adjusted those deals. those large And progressing conversion and in and of taking deals this uncertainty we've of those amount our about about talking in -- the of shape. second the of the size of half. guidance deals, optimism They're moderate reflect kind to through of

in In -- my the that public terms about of those anecdotes. and we specific we -- were any haven't make to giving Dan examples didn't like knowledge, were I -- we sector, comments Europe

We just our we're think our is also with the anecdotes executing continue this environment. we're given that pleased team with sales there. is And pressure climate understandable But in there Europe way around the is movement war in in and to the hear pipeline. I the pleased

Operator

Our next question from Mizuho. Siti with with your is Panigrahi proceed Please question.

Siti Panigrahi

taking for question. Thanks my

guys business and about pipeline. the talked You new

few Just excluding the and site, retention kind XXX% trough robots about wondering down in say on buying It's more XXX% on wondering call. the of a Russian DBNR more or your that in QX But you of of guys on quarters are now rate dollar-based we'll kind any on customer. can your mainly buying you like And there existing came to other impact from talked that terms trough? customers color the net that expansion versus see products automation cloud. is some this

Ashim Gupta

in It's I metric terms talked with dollar-based the both Look, continue when of our XXX% FX of still pleased rate. impact to at there. companies be you look that's we Russia, we're We think pleased -- about net reported. at a retention peer leading and

we're behavior, customer see $XXX,XXX-plus processes. we today. customers, the have continue platform that customer more of automate a that and our in million-plus We terms to and really same embracing the reflects customers about in buy to continue And feel to and around optimism number In $X increase the to customers customers opportunity seeing. continued optimistic $X million-plus larger what our continue More are platform.

we're And overall, than million, greater XX our a customers adoption of robust rate. new with are growth we added $X and you the compare at now shows where that customers pleased that's So of terms that. that year-over-year, kind nearing that in terms in of of We platform. XXX when

Operator

Canaccord. next proceed question DJ your Our with Please with from Hynes is question.

DJ Hynes

Hey, Congrats the question. in guys.

that to is do quick help And time the during the value stuff realize they're help return the current about a to environment. them on a in imagine of investment I What you customers big So think focus process? doing making? you how sales kind are

Daniel Dines

Well, you for turning sector, different a first automation suite to customers. would many they really become Board to I I public has all, of really are industries, priority automation priority, of C-level customers in point. our tell this to that like talk at

So them it's into adoption. with the momentum good accelerating seeing really a are a -- we helping

And focus renewed adoption. on a big we and XX.X the and the with the can pairing of the to getting have adoption. I accounts of adoption that Our enterprise, focus key GSIs big a our with some logos. release believe removing of I we mention our net accounts friction like can the also also on emerging our help accelerate on will is big the to new way that, cloud would – in also key

positive adoption overall, So our the we the signs really customer base. are seeing within accelerating on

Operator

Our is America. Brad your Bank next with Sills question proceed question. Please of with from

Brad Sills

and Thanks maybe or for the taking Daniel. cloud, business to have I acceleration see kind this willingness hearing in RPA a as see bit to market you play this move my cloud? within base a enterprise you are new cloud. Great. that towards the small the I gradually what kind large customers, as kind both of lower guys double-click of down Since wanted potentially question. release, they you from TCO to regard little put large do do as this an the on in with you broader of guess,

Daniel Dines

Well, I it's think both.

But past segment. now on to them for certain mid the in I'm very of more of companies, bullish development. have number large and cloud completely the very switch opportunity we of a that We the on-prem mentioned right

make robots. business first GA call time hosted To We IT this adoption. launched certain of with faster can And the extent, automation program. they in the a line them in robots independent for an the are developing cloud. in have the the automation a of into We progressing cloud release that

speed – would integration bit new previously will of I So use open will robots a serverless different adoption that the type – newly kind can released this combining technology. into of function that cases in we up newly RPA API mid-market. quite API different call that vendors, completely our to required the entire Also, mention like with

So is progress the overall, the it's – very well. in going cloud

impressive very timing in just address product, week they world-class the product spent team Bellevue have really now them, We to build. a last It's with a right great mid-market. good

Operator

Research. is with from question Please next Alex your proceed question. with Zukin Our Wolf

Alex Zukin

for the Hey, guys. taking Thanks question.

is us large Is figure So you've feeling previously kind strategic? of, of the confidence where I all and now a maybe deals your of out – are were got pipeline in to that back the who the confidence stemming that that, sitting that I here, incremental the greater into it trying are are we're that out, guess change Is from? positive think, all. new anticipated? some the the really a net currency into close initiatives basis rates that perspective is faster a on on is Because ARR place they're a to flat, year general? from going you're guide materialize surprise now for think in you than sales that Is it which of for to constant initially maybe I putting the the pipeline

something think, least backdrop me, for perspective, So we're the touching I confidence reading maybe the think macro at just where in headlines on I stands that's a that all that incremental of same out. from

Ashim Gupta

hear to Alex, your good So, voice.

think macro acknowledged I early recognize it. is the we impact first and

think emphasize. that's really I to important

of we So ahead we were how things. terms looking at in in were a ways, some step

terms of guide our In our confidence, in always to what's is us. guidance of front

which So through. has we talked overall, like the quarter. consistent. in for first our We they in felt our We never uncertainty isn't of look moving pipeline. been We've things pipeline about that in expressed of strength We've and at our us, out felt coming an how the were even and this just the were of pipeline confidence pipeline. timing just

As we've on that been and our sales are reflect gives what taking, we those several able us shape what movement through we seen movement pipeline that a of is to look and at guidance. increased they we've confidence and process in of their conversion have today, our the deals

many In addition, macro continues level. of other the when to big. you from to and many be continues just Like to hear our market invested markets. the the sentiment our automation our continues at a be a in priority areas, in in company We've feel TAM be field,

also with is point Those good to a to to us we're -- factors are our be terms feel we that execute. led that And able of bottom the So of raise our focus. line, of connection continue kind -- customer allow then to guidance our that in the very us about

well. while efficiency, So we've both and reflected like crossed $X guide as execute that and grow we we can billion, feel we our in

Daniel Dines

renewed And executive I in confidence add the like team. our to would

I Chris our lot think and shops a team. Rob leading of are to

to again, people would really to by positive every that seeing like talking are We meeting, reenergized teams. are our And coming this discussion. me, response we are I'm I having, from the our discussions mention all not customers but only

we were a it's environment better two ago. than seeing overall, months So

Operator

Our from Truist. question. proceed your with Tillman with next is question Please Terry

Unidentified Analyst

Connor Hey, team. Thanks for question. taking is Terry. This the for on

automation me, environment? a lot transformational maybe in funds you're automation at budgets seeing customer is faring for So with companies. There's a long-term macro Thanks. to choppy greater into just invest internal how that in

Ashim Gupta

with discussions I accelerating. digital is CFOs, only could tell not away. It's from going you, transformation Just

there. XX% again, now. -- many felt greater up is think see period like I inflation, to be automation. to shortage us, customers, I transformation fact pipeline to we've XX% digital of has be And than than of budgets that like think crossed we the that we're always share allocated to to positioned that those could continue $XXX,XXX $X,XXX our the tailwinds And see year-over-year. of our allocated be to And allow well just moving $X the to labor our up moved and take a That for and greater budgets strength secular for right in have speaks has in year-over-year. budget with of able is customers -- our that customers you million our

Operator

is Our Fred question. from with next question Macquarie. with Havemeyer proceed Please your

Fred Havemeyer

year the start strong and Thank you the here. to Hey. on congratulations

in about been macro many environment. ways we've the I think all different asking

last way any Europe to on there So slightly Europe your Eastern we just kind performing? are one. that there's I'll a And how ask try Europe, to with ask, to seeing. talked different were quarter, some you And – about think I respect slowness certainly, wanted in I both of or within is versus pipeline segments it business, in terms to Western or context really of how a give within your differentiate of

Daniel Dines

– Well, shaping. Eastern on this level. the Europe between I of our disclose, seeing in I a Europe Western telling anecdotically, first am the don't and think, at I'm in deal difference big regional point of business you, not all, we terms But

want anything? add to you if Ashim,

Ashim Gupta

I with Daniel. No, agree you,

of I recognized think and but Western no we've area the Russia accounted in and Europe distinction Eastern our in terms of the doing the besides, pause specifically business most is between accounting Russia. that definitely environments, on challenging of and of for course, the

Kelsey Turcotte

Great.

please. Next question,

Operator

your Our Please Winslow with next question Credit from with is proceed Suisse. question. Phil

Phil Winslow

wanted you've is from all my the automation start. to on, it, to the couple a that in differentiate capture guys. have process What on resonate Congrats solutions functions of task those front-end be I iterations journey. unique sort would then the of color had question. sort suite those customers focus here, front the end mining, the Hi, feed log mining, taking now any strong of Just down starting out more full mean, for and automation of hearing a sort call you I of there to are you're the you? Thanks of journey integrated helpful. task UiPath obviously,

Daniel Dines

task very internally you faster products our than performing – process are positive at mining customers products our very part platform much are our I tell that our businesses. of well, growth can Phil, core manner. really receiving and are growth we in rate Hey, call and mining what end-to-end our a And growing

– point. one this is So and data

use actually our pipeline Another core is one this helping drive the cases for white more are automation spaces into automation. around

really we So entire in platform. particular, across process mining on made adoption the And technology. solid overall, – positive we some the are progress on seeing

it releasing much are It's scalable. the in more cloud. We

We releasing lot are a more connectors.

address our we what – are having our the the most discovery we are of trying in process with to needs customers pillar. So of

Operator

Please with Research. proceed Ari question next Our is Cleveland from Terjanian with your question.

Ari Terjanian

to bit on on could the I was customers of in vertical the either what start more taking coming Congrats by in hoping and for Hi. to a table, little terms types provide of color seeing you the year. you're geography. are that the Thanks question. pipeline the

the year? Are the pipeline patterns big seeing you're care for first mentioned any in the health customers in in Thanks. rest terms of the there types quarter. of deal the of You that

Ashim Gupta

the relevant single to very automation that's is from beginning, vertical. Like something every

sector insurance financial those Of banking care, our course, the our in in and health financial, largest presence in two the are areas.

be But We there. we think no, I both governments. our those really across It's So pipeline. it local have broad-based, continue right? to see

small have enterprises. We

We have Fortune enterprises, large XXX.

see breadth our platform. in latest continues including and product platform our Continuing, and to interest especially adoption more show all and our across competitors, are that our Our flanking as releases and of the have those strength replacing pipeline customers deals also more and our across expansion and seeing are of we of the we segments.

no mentioned. say the our about across So I would pattern major -- very verticals that We than good different history. I is and I it with verticals wouldn't focus that feel

Operator

will We remarks. reached now And the closing call the to have end session. over the management of turn question-and-answer I for

Daniel Dines

I this throughout want afternoon's participating Thank quarter. forward to look many of you you. with much in very the you for to thank all call. speaking We

Operator

conference, you for concludes today's disconnect your this lines Thank time. and participation. may at This your you

UiPath (PATH) 1 Jun 222023 Q1 Earnings call transcript