Summary
UiPath began fiscal 2023 with revenue of $245.1 million in the first quarter, up 31.6% from the prior-year quarter. The company sells automation software in more than 100 countries, and management tied the top-line growth to broad demand for automation and a land-and-expand model. Annualized revenue run rate reached $977.1 million at April 30, 2022, up 50% from $652.6 million a year earlier. Net new ARR was $51.8 million. The dollar-based net retention rate was 138%, down from 145%, which still indicates meaningful expansion within existing accounts. UiPath launched its 2022.4 platform in the quarter, adding SaaS robots and expanded cloud capabilities. It also announced partnerships and integrations with Adobe Document Services, Adobe Acrobat Sign, Microsoft, airSlate, Finastra, and NCS.
Gross profit was $200.05 million, up 45.8% from the prior-year quarter. Gross margin reached 81.6%, up from the prior-year quarter. Operating loss was $115.95 million, and the loss narrowed from the prior-year quarter. Net loss was $122.56 million, and diluted EPS was negative $0.23. Both measures improved from the prior-year quarter. Operating margin was negative 47.3%, up from the prior-year quarter. The improvement in GAAP profitability was helped by lower stock-based compensation expense after IPO-related performance conditions were satisfied in the prior-year period. The company still reported an operating loss and a net loss for the quarter.
The installed base kept growing. UiPath had more than 10,300 customers at April 30, 2022, up from more than 8,500 a year earlier. Customers with ARR greater than $1 million totaled 168, up from 104, and they represented 40% of current period revenue, up from 37%. Customers with ARR greater than $100 thousand totaled 1,574, up from 1,105, and they accounted for 79% of current period revenue, up from 75%. Incremental ARR was $324.5 million. About 22% of the ARR growth rate came from new customers, while about 78% came from existing customers. The net retention rate of 138% was lower than the 145% reported a year earlier, a sign that expansion remained solid but slowed.
Cash generation was weaker. Operating cash flow was negative $52.9 million, down from the prior-year quarter. Capital expenditures were $9.69 million, up from the prior-year quarter. Non-GAAP adjusted free cash flow was negative $53.8 million. Current deferred revenue was $282.26 million, up 27.1% from the prior-year quarter, and remaining performance obligations were $675.60 million, up 45.6%. Management attributed the operating cash outflow to bonus payments and other operating expenditures, partially offset by cash collections. The balance sheet had no outstanding debt under the $200.0 million credit facility as of April 30, 2022.
Guidance points to a second quarter with ARR of $1,040 million to $1,042 million as of July 31, 2022 and a non-GAAP operating loss of $(60) million to $(55) million. For the full fiscal year 2023, management guided to ARR of $1,220 million to $1,225 million as of January 31, 2023 and non-GAAP operating income of $10 million to $15 million. The company raised its full-year guidance and said the outlook includes an FX headwind offset by growing momentum. UiPath noted that more than 50% of its business is outside North America, which exposes results to foreign exchange volatility. Risks include the war in Ukraine, foreign currency headwinds, inflation, supply chain constraints, an economic downturn, competition, reliance on third-party cloud infrastructure, and the need to retain and motivate management and key employees.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2023 | Q4 FY2022 | QoQ | Q1 FY2022 | YoY |
|---|---|---|---|---|---|
| Revenue | $245.1M | $289.7M | -15.4% | $186.2M | +31.6% |
| Gross profit | $200.1M | $248.5M | -19.5% | $137.2M | +45.8% |
| Gross margin | 81.6% | 85.8% | -4.2 pp | 73.7% | +7.9 pp |
| Research & development | $68.7M | $64.4M | +6.6% | $93.0M | -26.2% |
| Sales & marketing | $189.8M | $174.8M | +8.6% | $205.8M | -7.8% |
| General & administrative | $57.5M | $60.2M | -4.5% | $74.4M | -22.7% |
| Total operating expenses | $316.0M | $299.4M | +5.5% | $373.2M | -15.3% |
| Operating income (loss) | -$116.0M | -$50.9M | -127.9% | -$236.0M | +50.9% |
| Operating margin | -47.3% | -17.6% | -29.8 pp | -126.7% | +79.4 pp |
| Net income (loss) | -$122.6M | -$63.1M | -94.2% | -$239.7M | +48.9% |
| Net margin | -50.0% | -21.8% | -28.2 pp | -128.7% | +78.7 pp |
| Diluted EPS | -$0.23 | -$0.14 | -$0.09 | — | — |
| Customers | 10,300 | — | — | 8,500 | +21.2% |
Risks
The filing expands on dependence on executive officers and key employees, noting many management team members have short tenure, including Robert Enslin, Co-Chief Executive Officer, who joined in May 2022, and Chris Weber, Chief Business Officer, who joined in April 2022. Competition is intense for engineers experienced in RPA, AI, and ML and for experienced sales professionals.
Operations in Russia, Belarus, and Ukraine are subject to sanctions, export controls, and additional compliance and operational costs from the war in Ukraine. The filing warns that prolonged unrest or expanded conflict, including into Romania, could harm product development and business outlook.
Unfavorable global economic conditions, inflation, U.S. Federal Reserve rate increases, and reduced IT spending could limit growth. The filing notes competitors may lower prices and that disruption to key industry events could hurt sales pipeline and new customer generation.
MD&A reports dollar-based net retention rate was 138% at April 30, 2022 compared with 145% at April 30, 2021, and states ARR may fluctuate due to customer satisfaction, pricing, competitive offerings, economic conditions, or changes in customer spending levels.
MD&A reports net cash used in operating activities was $52.9 million for the three months ended April 30, 2022 compared with $17.5 million for the three months ended April 30, 2021, and net loss was $122.6 million. The company may need additional equity or debt financing and may not be able to raise it on acceptable terms.
SaaS KPIs
All quarters →Dollar-Based Net Retention Rate
ARR
Net New ARR
Non-GAAP Adjusted Free Cash Flow
Non-GAAP Gross Margin
Total customers
GAAP Gross Margin
Cash, Cash Equivalents, and Marketable Securities
Summary, forecast, risks and KPIs are extracted from UiPath, Inc.'s SEC filings for Q1 FY2023 (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.