UiPath Inc. (NYSE: PATH) will report its fiscal Q2 2022 financial results for the period ending June 31, 2021, on September 7, 2021, once the market closes.
What to look for
The company is likely to report softer than anticipated revenue for Q2 2022, partially offset by gains from several multi-year agreements, the automation Centre of Excellence, and strength in the software robots. Since 2019 automation Centre of excellence has generated over 300,000 hours of increasing capacity. Rising expenses are likely to weigh on the bottom line as the company will likely post a loss relative to a profit of $0.02 per share a year ago.
Earnings: Stockearnings’ Estimated EPS for UiPath for fiscal Q2 2022 is a loss of $0.06 per share. Historical EPS performance shows that in the last 12 quarters, the company has beat estimates 0 times and missed estimates once (100%). In the first quarter of 2022, the company had a loss of $0.08 per share.
Revenue: The company had a solid start to the year, with fiscal Q1 2022 ARR growing 64% YoY to $653 million, reflecting UiPath’s strong position in Enterprise software automation. Revenue in Q1 2022 was up 65% to $186.2 million. For the fiscal Q2 2022, the company expects AAR to be between $702 million and $704 million, with revenue ranging from $180 million to $185 million. The non-GAAP loss will be between $35 million and $25 million. UiPath expects the full fiscal year 2022 ARR of between $850 million and $855 million.
Stock movement: Since the last earnings release, UiPath’s stock price has lost 16.6%, dropping from $76 to $63.37 per share. Following the earnings release, the company's shares have been DOWN eight times over the last 12 quarters. Therefore, the Historical price reaction suggests a 66% chance the share price will be DOWN following Q2 2022 earnings release. According to Stockearning’s algorithm, the predicted first-day move of the share price after releasing earnings is 5%, while the predicted share price move after the seventh day is 7%.
What analysts are saying
Recently Summit Insights analyst Srini Nandury started coverage in UiPath with a “Sell” rating and a price target of $40. Nandury said that UiPath is a leader in the Robotic Process Automation category, and its market ascendency has been impressive. However, the analysts noted that intensifying competition and Microsoft’s emergence could be a considerable threat. Most importantly, other players such as SAP, IBM, and Salesforce are also integrating automation into their platforms.
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