UiPath stock down 25% on Thursday: find out why

UiPath Inc stock (NYSE: PATH) is down 25% on Thursday after the robotic process automation software provider gave disappointing guidance for the future. Its Q4 results, however, topped Street estimates.

Key takeaways from UiPath Q4 earnings report

• Net loss stood at $63.1 million that translates to 12 cents per share.
• In the same quarter last year, it had posted $26.3 million in net income.
• Adjusted EPS came in at 5 cents versus the year-ago figure of 9 cents.
• Revenue noted a YoY growth of 39.5%, as per the earnings press release.
• Annualised renewal run rate jumped to $925.3 million; a 59% increase.
• FactSet consensus was for 3 cents of adjusted EPS, a 36% revenue growth, and $902.5 million in ARR.

Future outlook and executive changes

For the current quarter, UiPath forecasts revenue in the range of $223 million to $225 million on up to $965 million in annualised renewal run rate. In comparison, analysts had forecast $247 million in revenue on $968.2 million in ARR.

Its full-year guidance was also below the FactSet consensus. In the earnings press release, the New York-headquartered company also said Thomas Hanse – its Chief Revenue Officer will depart at the end of the current quarter.

Chris Weber was named the new Chief Business Officer. Weber has previously served at Microsoft. Since the start of the year, the stock has now lost 50%.