UiPath stock opened 20% down on Wednesday: find out why

UiPath Inc (NYSE: PATH) reported market-beating results for its fiscal second quarter on Wednesday. Shares still opened 20% down on lowered future guidance.

UiPath Q2 financial highlights

• Lost $120.4 million versus the year-ago $100 million
• Per-share loss climbed from 19 cents to 22 cents
• On an adjusted basis, loss was 2 cents per share
• Revenue jumped 24% year-on-year to $242.2 million
• Annual recurring revenue shot up 44% to $1.04 billion
• Consensus was 11 cents loss on $230.7 million in revenue

Mizuho downgrades UiPath stock

Following the tech news, Mizuho downgraded the software and automation company to “neutral” and trimmed its price objective to $14 a share. Analyst Siti Panigrahi wrote:

For the year, UiPath stock is now down about 75%.

UiPath stock slides on lowered guidance

For the full financial year, UiPath Inc now expects its revenue to fall between $1.002 billion and $1.007 billion. In comparison, experts had forecast $1.09 billion – in line with its previous estimate. In the earnings press release, CFO Ashim Gupta said:

UiPath ended the quarter with $1.70 billion worth of cash, equivalents, and marketable securities.