UiPath Shares Jump After Q3 Earnings: 6 Analysts Weigh In

UiPath Inc PATH shares jumped in premarket trading on Friday, after the company reported its third-quarter results.

The results came during an exciting earnings season. Here are some key analyst takeaways from the earnings release.

BMO Capital Markets On UiPath

Analyst Keith Bachman maintained a Market Perform rating while raising the price target from $19 to $24.

“PATH delivered yet another solid quarter,” Bachman wrote in a note. Annual recurring revenue (ARR) grew by 24% to $1,378 million, “driven by strong enterprise deals this quarter with a record number of >$1M deals closed,” he added.

“We stay on the sidelines as we look for more conviction about growth potential and mix impact vs. potential GenAI headwinds,” the analyst stated.

RBC Capital Markets On UiPath

Analyst Matthew Hedberg reiterated a Sector Perform rating while lifting the price target from $19 to $24.

UiPath’s ARR growth showed “minimal deceleration” and revenue growth of 24% “accelerated nicely,” Hedberg said. “We think the efficiencies and ROI around automation continue to resonate with customers while the GTM changes over the last year are driving increased platform adoption,” he added.

“Momentum seems to be building into FY/25, which we believe could potentially show minimal deceleration,” the analyst further stated.

Mizuho Securities On UiPath

Analyst Siti Panigrahi reaffirmed a Neutral rating while raising the price target from $18 to $22.

“UiPath delivered strong FQ3 results, delivering a revenue beat and continued progress in improving profitability,” Panigrahi wrote in a note. The company achieved net new ARR growth of 4% year-on-year, after six quarters of declines, “although FX adjusted NRR was 123% vs. 125% in FQ2 and UiPath saw low-end customer churn,” he added.

“While we are encouraged by management's commentary around key customer wins, improving enterprise traction with GSI partnerships, and the AI opportunity, we await further progress in UiPath meaningfully re-accelerating its growth,” the analyst said.

Check out other analyst stock ratings.

Needham On UiPath

Analyst Scott Berg maintained a Buy rating while lifting the price target from $20 to $25.

UiPath reported strong revenue and earnings for the third quarter, Berg said. “While customer metrics were stable, the company's recent emphasis on platform deals appears to be benefiting sales productivity including a record number of 3Q $1mm+ ARR transactions in the quarter,” he added.

“Industry verticalization benefited sales execution, which we believe could drive ARPU higher as we have seen these tailored products typically command a premium price,” the analyst further stated.

Oppenheimer On UiPath

Analyst Brian Schwartz reiterated a Perform rating on the stock.

UiPath sustained strong bookings momentum and margin expansion, Schwartz said in a note. “Additionally, net retention is stabilizing, the increasing operating efficiency yielded another quarterly record for cash flow, and estimates are rising,” he added.

“On balance, most of the revenue upside in the F3Q came from licenses versus subscriptions, the customer metrics look soft from SMB headwinds, and guidance implies net new ARR will decline y/y next quarter as it faces a challenging comparison,” the analyst further mentioned.

KeyBanc Capital Markets On UiPath

Analyst Michael Turits reaffirmed a Sector Weight rating on the stock.

“Net new ARR increased CC to $69M from $67M a year ago,” Turits wrote. “Gross dollar retention remained high at 97%, but the low-end macro headwind seems to have impacted net customer adds,” he added.

“We're encouraged by more consistent execution, but retain caution LT around competitive challenges both vs. enterprise vendors like Microsoft Corp MSFT and ServiceNow NOW, and vs. best-of-breed vendors in key automation areas of low-code, process mining, and intelligent document processing, as well as around the opportunity but also incremental uncertainty regarding the net impact of generative AI,” the analyst further wrote.

PATH Price Action: Shares of UiPath rose by 24.77% to $24.68 Friday at publication.

Photo: Courtesy UiPath