UiPath Delivers Top- And Bottom-Line Beat, Shares Slide: What's Going On?

UiPath Inc PATH shares are trading lower in Wednesday's after-hours session after the company reported first-quarter financial results. 

Q1 Results: UiPath said first-quarter revenue increased 18% year-over-year to $289.59 million, which beat estimates of $271.13 million, according to Benzinga Pro. The company reported quarterly earnings of 11 cents per share, which beat estimates of 2 cents per share. 

Annual recurring revenue reached $1.249 billion, up 28% year-over-year. Cash flow from operations came in at $67 million and free cash flow totaled $73 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," said Rob Enslin, co-CEO of UiPath.

Guidance: UiPath sees second-quarter revenue in the range of $279 million to $284 million versus estimates of $283.93 million. The company expects full fiscal-year 2024 revenue to be between $1.267 billion and 1.272 billion versus estimates of $1.25 billion. 

UiPath guided for second-quarter operating income of just $10 million, which could be why shares are seeing selling pressure in the face of the better-than-expected quarterly results. 

PATH Price Action: UiPath shares were down 8.69% after hours at $14.94 at the time of writing, according to Benzinga Pro.

This illustration was generated using artificial intelligence via MidJourney.