UiPath Targets AI-Powered Growth Reacceleration as ARR Hits $1.94B

UiPath reported improving financial momentum: ARR reached $1.938 billion, up 12.5%, while revenue rose 13%. The company posted its third consecutive quarter of GAAP profitability, expects full-year GAAP profitability, and is generating more than $400 million in free cash flow. The company is targeting growth reacceleration through AI-powered orchestration. UiPath is expanding beyond traditional RPA with its platform, Maestro orchestration product, AI capabilities and vertical solutions; 18 of its 20 largest recent deals included broader AI-related platform capabilities. UiPath is broadening its commercial strategy through subscription, consumption and potentially outcome-based pricing, while supporting cloud, hybrid and on-premise deployments. Management expects internal product development to remain the priority but will consider selective acquisitions for technology or vertical expertise.

UiPath Chief Operating Officer Ashim Gupta said the company is focused on stabilizing growth and positioning its automation platform for reacceleration as enterprises expand their use of artificial intelligence, orchestration and process automation. Speaking at the Citi Global TMT Conference, Gupta discussed his transition away from the chief financial officer role, recent financial results, the company’s platform strategy and its approach to pricing and deployment options. Hitesh Ramani, UiPath’s former chief accounting officer and deputy CFO, recently succeeded Gupta as CFO.

Gupta said UiPath delivered its sixth consecutive quarter of beating and raising against consensus expectations. He cited annual recurring revenue of $1.938 billion, up 12.5%, while revenue rose 13%. Stock-based compensation declined 42%, and the company reported GAAP profitability for a third consecutive quarter, he said.

He added that UiPath expects to be GAAP profitable for the full year and is generating more than $400 million in free cash flow. “A stable quarter in an unstable time is a good quarter,” Gupta said, arguing that the company had countered expectations of continued deceleration. He noted that net dollar retention increased to 109% from 106% at the end of the prior year.

Gupta said UiPath’s larger customers remain the primary engine of growth. Customers contributing more than $1 million rose 21%, he said, while expansion among customers generating more than $100,000 was also improving. The company has more than 2,000 customers above the $100,000 threshold and is approaching 400 customers with more than $1 million in annual spending, according to Gupta.

While he said UiPath is not satisfied with 12.5% ARR growth, Gupta said the company believes it has “stemmed the deceleration” and is planning to reaccelerate growth through its platform strategy, vertical products and testing offerings.

Gupta described UiPath’s evolution from a robotic process automation company into a broader business automation and transformation provider. He said 18 of the company’s 20 largest deals during the latest quarter included broader platform ca...