UiPath Stock Surges On Q3 Earnings, Company Continues To Invest In AI

UiPath Inc PATH shares are trading higher in Thursday's after-hours session following the company reporting better-than-expected financial results.

• Q3 Revenue: $325.92 million beat estimates of $315.55 million
• Q3 EPS: 12 cents beat estimates of 7 cents

Revenues were up 24% year-over-year. Annual recurring revenue was also up 24%. Cash flow from operations came in at $42 million, and adjusted free cash flow totaled $44 million. 

UiPath ended the quarter with $1.8 billion in cash, equivalents and marketable securities.

"My conversations with customers and partners validate the strategic role enterprise automation plays in digital transformation and I am excited about the investments we continue to make in AI to further extend our market leadership," said Rob Enslin, co-CEO of UiPath.

Outlook: UiPath expects fourth-quarter revenue to be in the range of $381 million to $386 million versus estimates of $383.02 million. The company anticipates adjusted operating income of approximately $78 million.

"Given the strength of our business model we expect to balance growth and profitability, while investing in the business to position UiPath for long-term success," said Ashim Gupta, CFO of UiPath.

See Also: Ulta Beauty Q3 Earnings Highlights: Comparable Sales Up 4.5%, Traffic Trends Remain Healthy, CFO Succession Plan And More

PATH Price Action: UiPath shares were up 11.9% after hours at $22.19 at the time of publication, according to Benzinga Pro.

Photo: courtesy of UiPath.