Summary
UiPath's first quarter fiscal 2022 results showed rapid top-line growth but a much wider GAAP loss. Revenue rose 64.6% to $186.2 million from $113.1 million. Gross profit increased 37.9% to $137.2 million. Gross margin fell to 73.7% from 87.9%. The operating loss widened to $236.0 million from $44.9 million. Operating margin was -126.7%, down from -39.7%. The net loss widened to $239.7 million from $52.8 million. Diluted EPS was -$1.11. Operating cash flow was negative $17.5 million, an improvement from negative $24.1 million. Capital expenditures were $2.2 million, up from $0.46 million. Deferred revenue, current portion, was $222.1 million. Remaining performance obligations were $463.9 million.
ARR was $652.6 million, up 64% year over year, with record net new ARR of $72 million. The company ended the quarter with over 8,500 customers. It had 1,105 customers with ARR of $100,000 or greater and 104 customers with ARR of $1 million or greater. Those groups accounted for 75% and 37% of revenue, respectively. A year earlier, UiPath had 693 customers with ARR of $100,000 or greater and 48 customers with ARR of $1 million or greater, accounting for 68% and 27% of revenue. The partner ecosystem included more than 4,000 systems integrators, value-added resellers, business consultants, technology partners, and public cloud vendors. Over 50 partners have earned UiPath Services Network certification. The UiPath Academic Alliance had partnered with more than 750 academic institutions globally and with seven Historically Black Colleges and Universities. About 30% of ARR growth came from new customers and about 70% came from existing customers. For revenue growth, about 35% was attributable to new customers and the remainder to existing customers.
UiPath completed its IPO in April 2021. The offering included 27,474,393 shares of Class A common stock at $56.00 per share. Of those, 13,000,000 shares were sold by UiPath and 14,474,393 shares were sold by selling stockholders. The company also acquired Cloud Elements in March 2021. It released UiPath Platform 21.4 with three new products and over 100 major customer-driven features. The company was recognized as a leader in The Forrester Wave: Robotic Process Automation, Q1 2021. The company had over 5,000 customers and partners registered for its 21.4 Release Show, and 15,000 developers were expected to join UiPath DevCon. UiPath also supported Oxygen for India with over $1 million in corporate and employee donations.
For the fiscal second quarter 2022, UiPath expects ARR of $702 million to $704 million and a non-GAAP operating loss of $(35) million to $(25) million. For the full fiscal year 2022, the company expects ARR of $850 million to $855 million. The company noted that a reconciliation of non-GAAP operating loss guidance to the most directly comparable GAAP measure is not available without unreasonable efforts. UiPath also announced a partial early lock-up release. The release applies to 30% of certain securities owned as of March 31, 2021 by selling stockholders, directors, certain executive officers, employees, former employees, and certain other stockholders. The remaining securities remain subject to lock-up restrictions.
The quarter's GAAP loss included significant stock-based compensation tied to the IPO. Non-GAAP operating income was $16.1 million, and non-GAAP net income was $11.7 million. Non-GAAP free cash flow was negative $20.1 million. Non-GAAP gross margin was 88%. Cash collections from customers were approximately 59% higher than during the three months ended April 30, 2020. The company faces risks including that its recent rapid growth may not be indicative of future growth, its limited operating history, its ability to manage growth, customer renewals, competition, general market conditions, reliance on third-party cloud infrastructure, and the COVID-19 pandemic. UiPath plans to continue investing in growth rather than optimize for near-term profitability or cash flow.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2022 | Q4 FY2021 | QoQ | Q1 FY2021 | YoY |
|---|---|---|---|---|---|
| Revenue | $186.2M | — | — | — | — |
| Gross profit | $137.2M | — | — | — | — |
| Gross margin | 73.7% | — | — | — | — |
| Research & development | $93.0M | — | — | — | — |
| Sales & marketing | $205.8M | — | — | — | — |
| General & administrative | $74.4M | — | — | — | — |
| Total operating expenses | $373.2M | — | — | — | — |
| Operating income (loss) | -$236.0M | — | — | — | — |
| Operating margin | -126.7% | — | — | — | — |
| Net income (loss) | -$239.7M | — | — | — | — |
| Net margin | -128.7% | — | — | — | — |
| Customers | 8,500 | — | — | — | — |
Risks
Operating loss widened to $236.0 million in FY2022 Q1 from $44.9 million in FY2021 Q1, and net loss widened to $239.7 million from $52.8 million. Gross margin decreased to 73.7% from 87.9%, and MD&A attributes the decline primarily to stock-based compensation recognized in connection with IPO-related RSU performance-based vesting.
The RPA and automation market is increasingly competitive, with named competitors including Microsoft, Appian, Automation Anywhere, Blue Prism, and others, and the filing warns that native cloud providers may enter at lower prices and open source alternatives may reduce paid adoption. Competitive pressure could result in pricing pressure and harm the company's ability to differentiate its platform.
A substantial portion of revenue and ARR comes from the top 10% of customers. As of April 30, 2021, 1,105 customers with ARR of $100 thousand or more accounted for 75% of revenue and 104 customers with ARR of $1.0 million or more accounted for 37% of revenue, so purchasing changes by these customers could disproportionately reduce revenue and ARR.
The company relies on channel partners for a substantial amount of revenue, and partner agreements are generally non-exclusive and do not prevent partners from working with competitors. Failure to expand or manage these distribution channels, or loss of a large channel partner, could reduce revenue and growth prospects.
The company depends on key executives and engineers with RPA, AI, and ML expertise, and competition for such personnel is intense. The filing notes several management team members have short tenure and that post-IPO equity awards may not be viewed as favorably, which could impair recruiting and retention.
The company and its independent registered public accounting firm identified a material weakness in internal control over financial reporting in the past. As a newly public company, any failure to maintain effective internal control over financial reporting could harm operations and increase compliance costs.
ARR grew 64% and revenue was up 64.6% for FY2022 Q1 versus the prior-year quarter, but the company expects growth rates to decline and warns recent rapid growth may not be indicative of future growth. Scaling internal systems, customer support, and sales capacity could strain operations if growth is not managed efficiently.
The company targets large enterprise and government customers, which involve longer sales cycles, more complex customer requirements, substantial upfront sales costs, and less predictability. As of April 30, 2021, customers with ARR of $1.0 million or more accounted for 37% of revenue, increasing exposure to delayed or reduced enterprise purchasing.
The ongoing COVID-19 pandemic and any related economic downturn could reduce IT spending, disrupt key industry events, and lengthen sales cycles. MD&A states travel and trade show expenses may resume in the second half of fiscal 2022, but the timing is uncertain and dependent on the pandemic trend.
The company has a history of operating losses, net cash used in operations of $17.5 million in FY2022 Q1, and net loss widened to $239.7 million in FY2022 Q1. It intends to continue investing heavily to grow rather than optimize for profitability or cash flow, and may need additional financing on unfavorable terms.
The company's net operating losses could be limited by Section 382 ownership changes identified in April 2017 and July 2020, and regulatory changes could cause NOLs to expire or be unavailable. This could increase future tax liability even if the company attains profitability.
The dual class structure concentrates voting control with CEO, Co-Founder, and Chairman Daniel Dines, who beneficially owned shares representing approximately 88% voting power as of April 30, 2021. This limits other stockholders' ability to influence important decisions and may make Class A common stock less attractive to certain investors or index funds.
The company relies on third-party providers of cloud-based infrastructure to host cloud-based products, and disruptions, capacity limits, or cyber-attacks could impede customer access and harm relationships. The filing notes this dependence may make performance harder to maintain as cloud adoption increases.
The company's operations are international in scope and it plans further geographic expansion, creating operational challenges including compliance and local sales execution. Failure to manage international growth could harm business and results.
The company has a $200.0 million senior secured revolving credit facility with covenants limiting additional indebtedness and other actions, and failure to comply could cause default and acceleration. As of April 30, 2021, there was no outstanding debt under the facility and the company was in compliance.
SaaS KPIs
All quarters →ARR
Net New ARR
Non-GAAP Operating Margin
Total customers
Summary, forecast, risks and KPIs are extracted from UiPath, Inc.'s SEC filings for Q1 FY2022 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.