Summary
UiPath reported fiscal third quarter 2022 revenue of $220.8 million, up 50% year over year. ARR reached $818.4 million, an increase of 58%. Net new ARR was $91.9 million, up 42%. The customer base grew to more than 9,600, from over 7,800 a year earlier. UiPath also had 1,363 customers with ARR of $100 thousand or more and 135 customers with ARR of $1.0 million or more. Those two groups accounted for approximately 77% and 41% of revenue, respectively. Management said about 25% of ARR growth came from new customers and about 75% came from existing customers. For revenue growth in the quarter, approximately 31% came from new customers. The company also expanded its partner ecosystem to more than 4,900 global and regional system integrators, value-added resellers, and business consultants. UiPath hosted FORWARD IV with more than 90 customer and partner speakers.
Profitability moved in the opposite direction. Gross profit was $177.7 million, up 36.8%. Gross margin was 80.5%, down 7.7 percentage points from the prior-year quarter. Operating loss was $116.2 million, and the loss widened. Operating margin was -52.6%, down 9.9 percentage points. Net loss was $122.8 million, and the loss widened. Diluted EPS was -$0.23, a narrower loss than the prior-year quarter. The margin pressure came from higher personnel-related expenses, stock-based compensation, and employer payroll taxes, including costs tied to the satisfaction of IPO-related performance conditions. Non-GAAP gross margin was 85%, and non-GAAP operating income was $9.1 million.
Cash generation weakened. Operating cash flow was -$25.4 million, down 466.6% from the prior-year quarter. Non-GAAP adjusted free cash flow was negative $7.7 million. Capital expenditures were $2.1 million, up 416.9%. Deferred revenue was $253.12 million, and remaining performance obligations were $579.50 million. For the nine months ended October 31, 2021, revenue was $602.6 million, up 50.7%. Net loss for the nine months was $462.5 million, and the loss widened. Operating cash flow for the nine months was -$48.9 million, down 545.1%. Cash collections from customers were approximately 42% higher than in the nine months ended October 31, 2020.
Guidance points to continued growth. For the fiscal fourth quarter 2022, UiPath expects ARR in the range of $901 million to $903 million as of January 31, 2022 and non-GAAP operating income in the range of $10 million to $20 million. The outlook covers the fiscal fourth quarter 2022, not the full fiscal year. The company said a reconciliation of non-GAAP operating income guidance to the most directly comparable GAAP measure is not available without unreasonable efforts because of the high variability and low visibility of charges excluded from the non-GAAP measure, especially stock-based compensation tied to equity awards. UiPath also highlighted the general availability of UiPath 2021.10 and partnerships with PwC, Alteryx, CrowdStrike, Qlik, and Snowflake. Management said the innovation in UiPath 2021.10 and investments in teams and strategic partnerships should accelerate customer success and platform adoption.
Risks remain material. The company cited its recent rapid growth, which may not be indicative of future growth, its limited operating history, and its ability to manage growth. Other risks include dependence on existing customers to renew licenses and buy more, the competitive markets in which UiPath participates, general market, political, economic, and business conditions, reliance on third-party cloud infrastructure, and the potential impact of the COVID-19 pandemic. The company also flagged risks related to its ability to attract and retain customers, maintain and expand distribution channels, and adapt to customer demands. Stock-based compensation and related charges can create significant and unpredictable swings in future GAAP results. The company also noted that it expects travel and entertainment expenses to resume as it approaches fiscal year 2023.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2022 | Q2 FY2022 | QoQ | Q3 FY2021 | YoY |
|---|---|---|---|---|---|
| Revenue | $220.8M | $195.5M | +12.9% | — | — |
| Gross profit | $177.7M | $159.9M | +11.1% | — | — |
| Gross margin | 80.5% | 81.8% | -1.3 pp | — | — |
| Research & development | $61.6M | $57.6M | +6.8% | — | — |
| Sales & marketing | $172.9M | $144.3M | +19.9% | — | — |
| General & administrative | $59.5M | $55.8M | +6.6% | — | — |
| Total operating expenses | $294.0M | $257.7M | +14.1% | — | — |
| Operating income (loss) | -$116.2M | -$97.8M | -18.8% | — | — |
| Operating margin | -52.6% | -50.0% | -2.6 pp | — | — |
| Net income (loss) | -$122.8M | -$100.0M | -22.8% | — | — |
| Net margin | -55.6% | -51.2% | -4.5 pp | — | — |
| Diluted EPS | -$0.23 | -$0.19 | -$0.04 | — | — |
| Customers | 9,600 | 9,100 | +5.5% | — | — |
Risks
The filing states recent rapid growth may not be indicative of future growth and that ARR and revenue growth rates are expected to decline. ARR was $818.4 million at October 31, 2021, up 58%, while total revenue was up 49.9% for the quarter and up 50.7% for the nine months ended October 31, 2021.
The RPA and automation market is increasingly competitive, with named competitors including Appian, Automation Anywhere, Blue Prism, Microsoft, NICE, and Pegasystems. Native cloud providers and open source alternatives may offer lower-cost or free automation, creating pricing pressure and risking market acceptance.
A limited number of customers represent a substantial portion of revenue and ARR, so reduced purchases or non-renewals by top customers could cause significant revenue decline. As of October 31, 2021, 1,363 customers with ARR of $100 thousand or more accounted for approximately 77% of revenue, and 135 customers with ARR of $1.0 million or more accounted for approximately 41%.
The company and its independent registered public accounting firm identified a material weakness in internal control over financial reporting in the past. Any failure to maintain effective internal control could harm the business and financial reporting.
The company has a history of operating losses, and net loss widened to $462.5 million for the nine months ended October 31, 2021 from $118.6 million in the prior-year period. It expects costs and expenses to increase and may not reach or maintain profitability.
The company derives a substantial amount of revenue from channel partners, and its agreements are generally non-exclusive with no prohibition on selling competing products. Loss of one or more larger channel partners or failure to expand distribution could harm revenue and growth prospects.
Success depends on key executives including Daniel Dines and other key employees, many of whom have short tenure, and competition for engineers experienced in RPA, AI, and ML is intense. Failure to attract or retain personnel would harm business and future growth prospects.
Unfavorable global economic conditions, reductions in IT spending, and the ongoing COVID-19 pandemic could limit growth and disrupt sales cycles, industry events, and customer spending. The company continues to have the majority of employees work remotely and has taken cost-saving measures.
The company targets large enterprise and government customers, which involve longer sales cycles, complex requirements, substantial upfront costs, and less predictability. Enterprise customers may evaluate and test solutions slowly and demand configuration and pricing negotiations before wide deployment.
Gross margin decreased to 80.5% for the quarter ended October 31, 2021 from 88.2% in the prior-year quarter, and to 78.8% for the nine months ended October 31, 2021 from 88.6% in the prior-year period, primarily due to higher stock-based compensation and personnel costs. This margin pressure may continue as public company costs and investments increase.
Operating cash flow turned negative, with net cash used in operating activities of $48.9 million for the nine months ended October 31, 2021 compared with net cash provided by operating activities of $11.0 million in the prior-year period. The company intends to continue investing heavily rather than optimize for profitability or cash flow in the near future.
The dual class structure concentrates voting control with CEO Daniel Dines, who beneficially owned approximately 88% voting power as of October 31, 2021. This limits other stockholders' ability to influence important decisions and may adversely affect the stock price.
SaaS KPIs
All quarters →ARR
Net New ARR
Non-GAAP Adjusted Free Cash Flow
Non-GAAP Gross Margin
Non-GAAP Operating Margin
Total customers
Summary, forecast, risks and KPIs are extracted from UiPath, Inc.'s SEC filings for Q3 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 2, 2026.