AI startup UiPath Inc., whose initial public offering fetched a market value of nearly $30 billion in 2021 only to get creamed before recently rebounding, reported quarterly results Wednesday that topped analyst revenue and earnings estimates but offered tepid revenue guidance.
Soft quarterly revenue guidance immediately sent Path’s stock PATH,
The company, which makes software that helps automate business tasks, reported a fiscal first-quarter net loss of $31.9 million, or 6 cents a share, compared with a net loss of $122.6 million, or 23 cents a share, in the year-ago quarter. Adjusted earnings were 11 cents a share.
Revenue improved 18%, to $290 million from $245.1 million a year ago.
Analysts surveyed by FactSet had expected on average adjusted net earnings of 2 cents a share on revenue of $271 million.
“First quarter fiscal 2024 results reflect our focus on driving growth at scale and increasing profitability as we meaningfully expanded our operating margin and increased cash flow for the second consecutive quarter,” Path co-Chief Executive Officer Rob Enslin said in a statement announcing the results.
However, Path’s second-quarter revenue guidance (between $279 million and $284 million) was at the low end of FactSet’s estimate of $284 million.
Shares of Path have soared 28% so far this year as the company has benefited from AI hype, pushing its market valuation to about $8 billion, while the broader S&P 500 index SPX,