Summary
UiPath closed fiscal 2022 with fourth-quarter revenue of $289.7 million, up 39.4% from the prior-year quarter. Full-year revenue reached $892.3 million, up 46.8%. The company ended the year with ARR of $925.3 million, up 59%, and record net new ARR of $106.9 million, up 72%. Dollar-based net retention was 145%. Customer count rose to over 10,100 at January 31, 2022 from over 7,900 a year earlier. Cloud ARR surpassed $140 million, and more than 3,800 customers had adopted cloud products, including 55% of new customers in the fourth quarter. CEO Daniel Dines called the quarter a strong finish and pointed to the end-to-end platform. CFO Ashim Gupta cited the net retention rate and said existing customers deployed more automations and adopted more capabilities across the platform.
The income statement showed the cost of that growth. Fourth-quarter gross profit was $248.5 million, up 32.4%. GAAP gross margin was 85.8%, down 4.5 points from the prior-year quarter. Operating loss was $50.9 million, a swing from operating income in the prior-year quarter. GAAP operating margin was negative 17.6%, down 24.6 points. Net loss was $63.1 million, also a swing from net income a year earlier. For the full year, GAAP gross margin was 81.1%, down 8.1 points. The operating loss widened to $500.9 million, and operating margin was negative 56.1%, down 38.0 points. The full-year net loss widened to $525.6 million, and diluted EPS was negative $1.16, a wider loss per share than the prior year. Non-GAAP results excluded stock-based compensation and other items. Non-GAAP operating income was $41.9 million in the fourth quarter and $73.8 million for the full year. Non-GAAP gross margin was 88% in the quarter and 87% for the full year.
Cash flow and backlog offered a mixed picture. Fourth-quarter operating cash flow was negative $6.0 million, down from positive operating cash flow a year earlier. Full-year operating cash flow was negative $55.0 million, down from positive operating cash flow in the prior year. Capital expenditures were $3.2 million in the quarter, up 227.8%, and $8.9 million for the full year, up 354.6%. Deferred revenue was $366.0 million, up 34.4% from the prior-year quarter. Remaining performance obligations were $682.8 million. On a non-GAAP basis, adjusted free cash flow was $9.8 million in the fourth quarter and negative $21.5 million for the full year. The MD&A said cash collections from customers were approximately 44% higher than in the prior year. The company ended the year with over 10,100 customers and more than 5,100 partners in its ecosystem.
The customer cohort data point to land-and-expand momentum. ARR growth of 59% was driven by new customers and existing customers. About 25% of the ARR growth rate came from new customers and 75% from existing customers, according to the MD&A. Customers with ARR greater than $1 million rose to 158 from 89. Customers with ARR greater than $100 thousand rose to 1,493 from 1,002. Those figures show that larger accounts are expanding, but they also raise the bar for future growth. The company is investing in sales, marketing, research and development, and its partner ecosystem to sustain that expansion.
Guidance reflects both opportunity and uncertainty. For the fiscal first quarter 2023, UiPath expects revenue of $223 million to $225 million, ARR of $960 million to $965 million as of April 30, 2022, and non-GAAP operating loss of $(30) million to $(25) million. For the fiscal full year 2023, the company expects revenue of $1,075 million to $1,085 million, ARR of $1,200 million to $1,210 million as of January 31, 2023, and non-GAAP operating income of $0 to $10 million. Management said it factored European exposure and a go-to-market leadership transition into the outlook. The war in Ukraine and humanitarian crisis are cited risks. UiPath appointed Chris Weber as Chief Business Officer, and Chief Revenue Officer Thomas Hansen is leaving, though he will stay through the end of the first quarter of fiscal 2023 to help with the transition. Other risks include rapid growth that may not be indicative of future growth, a limited operating history, challenges managing growth, dependence on customer renewals, competition, and reliance on third-party cloud infrastructure.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2022 | Q3 FY2022 | QoQ | Q4 FY2021 | YoY |
|---|---|---|---|---|---|
| Revenue | $289.7M | $220.8M | +31.2% | — | — |
| Gross profit | $248.5M | $177.7M | +39.8% | — | — |
| Gross margin | 85.8% | 80.5% | +5.3 pp | — | — |
| Research & development | $64.4M | $61.6M | +4.6% | — | — |
| Sales & marketing | $174.8M | $172.9M | +1.1% | — | — |
| General & administrative | $60.2M | $59.5M | +1.3% | — | — |
| Total operating expenses | $299.4M | $294.0M | +1.9% | — | — |
| Operating income (loss) | -$50.9M | -$116.2M | +56.2% | — | — |
| Operating margin | -17.6% | -52.6% | +35.1 pp | — | — |
| Net income (loss) | -$63.1M | -$122.8M | +48.6% | — | — |
| Net margin | -21.8% | -55.6% | +33.8 pp | — | — |
| Diluted EPS | -$0.14 | -$0.23 | +$0.09 | — | — |
Risks
UiPath has operations in Russia, Belarus, and Ukraine and faces sanctions, export controls, and added compliance costs from Russia's military operation in Ukraine. The filing says reallocating technical employees located in Ukraine has delayed and may continue to delay product development, and conflict expansion to bordering countries such as Romania could harm business.
A limited number of customers represent a substantial portion of revenue and ARR, so purchasing decisions by top customers could disproportionately impact results. MD&A reports 158 customers with ARR greater than $1 million accounted for 43% of fiscal year revenue at January 31, 2022, up from 89 customers and 35% at January 31, 2021.
The RPA and automation market is increasingly competitive, with named rivals including Microsoft, Appian, Automation Anywhere, Blue Prism, Celonis, and others, plus potential native cloud and open source entrants. Pricing pressure and larger competitors with greater resources could reduce demand or force lower prices.
UiPath targets large enterprise and government customers, where sales cycles are longer, requirements are more complex, upfront sales costs are substantial, and deal timing is less predictable. Large customers may deploy on a limited basis but demand configuration, integration, and pricing negotiations without guaranteeing broad deployment.
Future growth depends on Daniel Dines and other key employees, many of whom have short tenure in current roles, and competition is intense for RPA, AI, and ML engineers and experienced sales professionals. The filing also notes post-IPO equity awards may not be perceived as favorably, harming recruiting and retention.
Recent rapid growth may not be indicative of future growth, and UiPath expects ARR and revenue growth rates to decline as the business matures or competition increases. Scaling infrastructure, internal systems, and customer support for a growing enterprise customer base may be expensive and difficult to execute.
MD&A attributes the fiscal 2022 gross margin decline to 81% from 89% primarily to stock-based compensation from satisfaction of IPO-related performance conditions, with total stock-based compensation expense of $515.6 million versus $86.2 million in fiscal 2021. This expense also drove large increases in sales and marketing, research and development, and general and administrative costs.
UiPath derives a substantial amount of revenue from channel partners whose agreements are generally non-exclusive and who may favor competitors or their own products. New strategic alliances include noncancelable commitments that, if not deployable, may materially and adversely impact gross margins, profitability, and financial results.
Unfavorable global economic conditions, reductions in IT spending, geopolitical turmoil, or COVID-19 disruptions could limit growth. The filing says these conditions could cause decreases in business investments, disrupt key industry events used to generate sales, and hurt results.
Cloud-based products rely on third-party hosting providers, and any capacity limitation, disruption, or cyber incident at those providers could impede onboarding or usage expansion and harm operations. UiPath does not control the infrastructure supporting these services.
The dual-class structure gives CEO, Co-Founder, and Chairman Daniel Dines approximately 87% voting power as of January 31, 2022, limiting other stockholders' ability to influence important decisions. The filing also notes potential index exclusion due to the dual-class structure and possible controlled company status.
SaaS KPIs
All quarters →Dollar-Based Net Retention Rate
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 Q4 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.