UiPath Reports Second Quarter Fiscal 2022 Financial Results | Financial Buzz

UiPath Reports Second Quarter Fiscal 2022 Financial Results

UiPath, Inc. (NYSE: PATH), a leading enterprise automation software company, today announced financial results for its second quarter fiscal 2022 ended July 31, 2021.

“We continued our very strong momentum in the second quarter of fiscal year 2022 with ARR growing 60 percent year-over-year to $726.5 million. Our results were driven by both new customer additions, ending the quarter with more than 9,100 customers, as well as robust expansion with existing customers, reflected in our best-in-class dollar-based net retention rate of 144 percent,” said Daniel Dines, UiPath Co-Founder and Chief Executive Officer. “The opportunity to unlock human potential is vast and we are in the very early stages of the automation market. We believe we have a long-term opportunity to drive durable growth and build a company that will transform how organizations compete, employees experience work, and companies interact with their customers.”

Ashim Gupta, UiPath Chief Financial Officer, added, “The team executed well this quarter as we continue to drive meaningful growth at scale. Our land and expand go-to-market model delivered record net new ARR, a testament to our competitive differentiation and the power of our platform to drive meaningful return on investment for our customers. Looking ahead, our priority is to continue to drive growth while exercising operational rigor, which will allow us to maintain our clear leadership position in this large and growing market.”

Second Quarter Fiscal 2022 Financial Highlights

  • ARR of $726.5 million as of July 31, 2021, increased 60 percent year-over-year.
  • Net new ARR of $73.9 million increased 33 percent year-over-year.
  • Revenue of $195.5 million increased 40 percent year-over-year.
  • GAAP gross margin was 82 percent.
  • Non-GAAP gross margin was 86 percent.
  • Net cash used in operations was $(6.0) million.
  • Non-GAAP adjusted free cash flow was $(3.5) million.
  • Cash, cash equivalents, and marketable securities of $1.9 billion as of July 31, 2021.

Recent Business Highlights

  • Named a Process Mining Leader in the Technology Vendor Landscape for the second consecutive year, according to Everest Group’s Process Mining Products PEAK Matrix® Assessment 2021. UiPath has also emerged as one of the four-Star Performers in this year’s assessment, demonstrating the most year over year improvement on the PEAK Matrix®.
  • Announced new integrations with Smartsheet (NYSE: SMAR), the enterprise platform for dynamic work, to make it easy for users to retrieve, update, and share data in Smartsheet. This means users are now able to automate the management of workflows in Smartsheet projects, reports, and sheets in a matter of minutes, saving hours of repetitive, manual work.
  • Expanded technology partner ecosystem to include SUSE, a leader in Linux and Kubernetes management, to provide additional deployment options for customers leveraging the UiPath platform. In addition, UiPath collaborated with Alteryx (NYSE: AYX), a strategic technology partner, which developed a UiPath Connector that makes it easy for users to trigger UiPath software robots directly from an Alteryx analytic automation workflow.
  • Completed SOC 2 Type 2 System and Organization Controls for UiPath Automation Cloud: This attestation, among the Company’s extensive list of security capabilities, provides assurance to UiPath global customers in highly-regulated industries who trust UiPath with their most sensitive data.
  • Joined TSANet (Technical Support Alliance Network), the industry’s largest vendor neutral support alliance, to fast track interactions with other vendors in resolving multi-party integration issues. As the first pure-play automation company to the TSANet ecosystem, UiPath will leverage other vendors’ engineering and customer success teams to ultimately reduce the resolution time for its mutual customers.
  • Expanded go-to-market partner ecosystem to help customers rapidly accelerate their digital transformation efforts. With a range of technology and industry solutions, UiPath added more than 300 new go-to-market partners in the quarter bringing the total partner ecosystem to more than 4,700 worldwide.
  • Announced UiPath community grew to more than 1.5 million members and launched three new features: Use case repository, UiPath community job board, and Community mentorship program. The UiPath Community connects customers, partners, freelancers, enthusiasts, and beginners to UiPath.

Financial Outlook

For the fiscal third quarter 2022, UiPath expects:

  • ARR in the range of $796 million and $798 million as of October 31, 2021
  • Revenue in the range of $207 million and $209 million
  • Non-GAAP operating loss in the range of $(30) million and $(15) million

For the fiscal full year 2022, UiPath expects:

  • ARR in the range of $876 million and $881 million as of January 31, 2022

Reconciliation of non-GAAP operating loss guidance to the most directly comparable GAAP measure is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and low visibility with respect to the charges excluded from this non-GAAP measure; in particular, the measures and effects of stock-based compensation expense specific to equity compensation awards that are directly impacted by unpredictable fluctuations in our stock price. We expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future GAAP financial results.

Conference Call and Webcast

UiPath will host a conference call today, Tuesday, September 7, 2021, at 5:00 p.m. Eastern Time, to discuss the Company’s fiscal second quarter 2022 financial results and guidance. To access this call, dial 1-201-689-8057 (domestic) or 1-877-407-8309 (international). The passcode is 13721284. A replay of this conference call will be available through September 21, 2021 at 1-201-612-7415 (domestic) or 1-877-660-6853 (international). The replay passcode is 13721284. A live webcast of this conference call will be available on the “Investor Relations” page of the Company’s website (https://ir.uipath.com), and a replay will be archived on the website as well.

About UiPath

UiPath has a vision to deliver the Fully Automated Enterprise™, one where companies use automation to unlock their greatest potential. UiPath offers an end-to-end platform for automation, combining the leading Robotic Process Automation (RPA) solution with a full suite of capabilities that enable every organization to rapidly scale digital business operations.

Forward Looking Statements

Statements we make in this press release may include statements which are not historical facts and are considered forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995, which are usually identified by the use of words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “outlook”, “seeks,” “should,” “will,” and variations of such words or similar expressions.

We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Securities Exchange Act and are making this statement for purposes of complying with those safe harbor provisions.

These forward-looking statements include, but are not limited to, statements regarding our financial guidance for the third fiscal quarter and full year fiscal 2022, our strategic plans or objectives, the estimated addressable market opportunity for our platform, the successful integration of new features into our platform, the success of our collaborations with third parties, and the ability of our platform to deliver our customers a return on investment. Accordingly, actual results could differ materially or such uncertainties could cause adverse effects on our results. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks include, but are not limited to, risks and uncertainties related to: (1) our recent rapid growth, which may not be indicative of our future growth; (2) our limited operating history; (3) our ability to successfully manage our growth; (4) our ability and the ability of our platform to satisfy and adapt to customer demands; (5) our dependency on our existing customers to renew their licenses and purchase additional licenses and products from us and our channel partners; (6) our ability to attract and retain customers; (7) the competitive markets in which we participate; (8) general market, political, economic, and business conditions; (9) our ability to maintain and expand our distribution channels; (10) our reliance on third-party providers of cloud-based infrastructure; and (11) the potential impact that the COVID-19 pandemic and any related economic downturn could have on our or our customers’ businesses, financial condition and results of operations.

Further information on risks that could cause actual results to differ materially from our guidance can be found in our Quarterly Report on Form 10-Q for the quarterly period ended April 30, 2021 filed with the SEC on June 9, 2021, and in our Quarterly Report on Form 10-Q that will be filed for the quarterly period ended July 31, 2021. Any forward-looking statements contained in this press release are based on assumptions that we believe to be reasonable as of this date. Except as required by law, we assume no obligation to update these forward-looking statements.

Key Performance Metric, Dollar-Based Net Retention Rate, and Non-GAAP Financial Measures

Annualized Renewal Run-rate (ARR) is a key performance metric we use in managing our business because it illustrates our ability to acquire new subscription customers and to maintain and expand our relationships with existing subscription customers. We define ARR as annualized invoiced amounts per solution SKU from subscription licenses and maintenance obligations assuming no increases or reductions in the subscriptions. ARR does not include the costs we may incur to obtain such subscription licenses or provide such maintenance and does not reflect any actual or anticipated reductions in invoiced value due to contract non-renewals or service cancellations other than for specific bad debt or disputed amounts. Additionally, though we use ARR as a forward-looking metric in the management of our business, it does not include invoiced amounts reported as perpetual licenses or professional services revenue in our consolidated statement of operations, and is not a forecast of future revenue, which can be impacted by contract start and end dates, duration, and renewal rates.

Dollar-based net retention rate represents the rate of net expansion of our ARR from existing customers over the preceding 12 months. We calculate dollar-based net retention rate as of a period end by starting with ARR from the cohort of all customers as of 12 months prior to such period end (Prior Period ARR). We then calculate the ARR from these same customers as of the current period end (Current Period ARR). Current Period ARR includes any expansion and is net of any contraction or attrition over the preceding 12 months but does not include ARR from new customers in the current period. We then divide total Current Period ARR by total Prior Period ARR to arrive at dollar-based net retention rate. Dollar-based net retention rate may fluctuate based on the customers that qualify to be included in the cohort used for calculation and may not reflect our actual performance.

Investors should not place undue reliance on ARR or dollar-based net retention rate as an indicator of future or expected results. Our presentation of ARR and dollar-based net retention rate may differ from similarly titled metrics presented by other companies and therefore comparability may be limited.

This earnings press release includes financial measures defined as non-GAAP financial measures by the SEC, including non-GAAP cost of revenue, non-GAAP gross profit and margin, non-GAAP operating expenses, non-GAAP operating income (loss) and margin, non-GAAP net income (loss) and non-GAAP net income (loss) per share, and non-GAAP adjusted free cash flow. These non-GAAP financial measures exclude:

  • stock-based compensation expense;
  • amortization of acquired intangibles;
  • employer payroll tax expense related to employee equity transactions;
  • in the case of non-GAAP net income (loss), undistributed earnings attributable to participating securities and tax adjustments associated with the add-back items; and
  • in the case of non-GAAP adjusted free cash flow, purchases of property and equipment, capitalization of software development costs, cash paid for employer payroll taxes related to employee equity transactions, and net receipts of employee tax withholdings on stock option exercises.

UiPath uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating UiPath’s ongoing operational performance. UiPath believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing its financial results with other companies in UiPath’s industry, many of which present similar non-GAAP financial measures to investors. Non-GAAP financial measures are financial measures that are derived from the consolidated financial statements, but that are not presented in accordance with generally accepted accounting principles in the United States (GAAP). We believe these non-GAAP financial measures provide investors with useful supplementary information in evaluating our performance. Investors should consider these non-GAAP financial measures in addition to, and not as a substitute for, our financial performance measures prepared in accordance with GAAP. Further, our non-GAAP information may be different from the non-GAAP information provided by other companies. The information below provides a reconciliation of non-GAAP financial measures used in this press release to the most directly comparable GAAP financial measures. We encourage investors to consider our GAAP results alongside our supplemental non-GAAP measures, and to review the reconciliation between GAAP results and non-GAAP measures that is included at the end of this earnings press release. This earnings press release and any future releases containing such non-GAAP reconciliations can also be found on the Investor Relations page of UiPath’s website at https://ir.uipath.com.

UiPath, Inc.

Condensed Consolidated Statements of Operations

in thousands, except per share data

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

July 31,

 

Six Months Ended

July 31,

 

 

2021

 

2020

 

2021

 

2020

Revenue:

 

 

 

 

 

 

 

 

Licenses

 

$

95,547

 

 

$

79,513

 

 

$

195,763

 

 

$

143,272

 

Maintenance and support

 

90,319

 

 

51,932

 

 

167,961

 

 

95,128

 

Services and other

 

9,655

 

 

7,931

 

 

18,014

 

 

14,079

 

Total revenue

 

195,521

 

 

139,376

 

 

381,738

 

 

252,479

 

Cost of revenue:

 

 

 

 

 

 

 

 

Licenses

 

2,434

 

 

1,636

 

 

4,888

 

 

3,053

 

Maintenance and support

 

12,238

 

 

5,501

 

 

26,417

 

 

11,044

 

Services and other

 

20,922

 

 

7,561

 

 

53,299

 

 

14,239

 

Total cost of revenue

 

35,594

 

 

14,698

 

 

84,604

 

 

28,336

 

Gross profit

 

159,927

 

 

124,678

 

 

297,134

 

 

224,143

 

Operating expenses:

 

 

 

 

 

 

 

 

Sales and marketing

 

144,268

 

 

90,331

 

 

350,019

 

 

181,262

 

Research and development

 

57,646

 

 

26,541

 

 

150,686

 

 

53,270

 

General and administrative

 

55,834

 

 

24,834

 

 

130,249

 

 

51,510

 

Total operating expenses

 

257,748

 

 

141,706

 

 

630,954

 

 

286,042

 

Operating loss

 

(97,821

)

 

(17,028

)

 

(333,820

)

 

(61,899

)

Interest income

 

766

 

 

77

 

 

1,707

 

 

607

 

Other (expense) income, net

 

(1,225

)

 

24,010

 

 

(4,443

)

 

16,173

 

(Loss) income before income taxes

 

(98,280

)

 

7,059

 

 

(336,556

)

 

(45,119

)

Provision for income taxes

 

1,746

 

 

2,072

 

 

3,133

 

 

2,734

 

Net (loss) income

 

$

(100,026

)

 

$

4,987

 

 

$

(339,689

)

 

$

(47,853

)

Undistributed earnings attributable to participating securities

 

 

 

4,987

 

 

 

 

 

Net loss attributable to common stockholders, basic and diluted

 

$

(100,026

)

 

$

 

 

$

(339,689

)

 

$

(47,853

)

Net loss per share attributable to common stockholders, basic and diluted

 

$

(0.19

)

 

$

 

 

$

(0.91

)

 

$

(0.30

)

Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted

 

526,512

 

 

162,914

 

 

373,488

 

 

160,980

 

UiPath, Inc.

Condensed Consolidated Balance Sheets

in thousands

(unaudited)

 

 

 

 

 

 

 

As of

 

 

July 31,

2021

 

January 31,

2021

Assets

 

 

 

 

Current assets

 

 

 

 

Cash and cash equivalents

 

$

1,826,424

 

 

$

357,690

 

Restricted cash, current

 

 

 

7,000

 

Marketable securities

 

70,140

 

 

102,828

 

Accounts receivable, net of allowance for doubtful accounts of $2,158 and $2,879, respectively

 

138,945

 

 

172,286

 

Contract assets, current

 

53,555

 

 

34,221

 

Deferred contract acquisition costs, current

 

18,142

 

 

10,653

 

Prepaid expenses and other current assets

 

51,886

 

 

49,752

 

Total current assets

 

2,159,092

 

 

734,430

 

Restricted cash, non-current

 

 

 

6,500

 

Contract assets, non-current

 

2,537

 

 

2,085

 

Deferred contract acquisition costs, non-current

 

58,289

 

 

32,553

 

Property and equipment, net

 

14,728

 

 

14,822

 

Operating lease right-of-use assets

 

16,302

 

 

17,260

 

Intangible assets, net

 

18,866

 

 

10,191

 

Goodwill

 

55,193

 

 

28,059

 

Deferred tax asset, non-current

 

7,927

 

 

8,118

 

Other assets, non-current

 

14,947

 

 

12,443

 

Total assets

 

$

2,347,881

 

 

$

866,461

 

 

 

 

 

 

Liabilities, Convertible Preferred Stock, and Stockholders’ Equity (Deficit)

 

 

 

 

Current liabilities

 

 

 

 

Accounts payable

 

$

2,874

 

 

$

6,682

 

Accrued expenses and other current liabilities

 

60,558

 

 

36,660

 

Accrued compensation and employee benefits

 

75,628

 

 

110,736

 

Deferred revenues, current

 

235,484

 

 

211,078

 

Total current liabilities

 

374,544

 

 

365,156

 

Deferred revenues, non-current

 

54,465

 

 

61,325

 

Operating lease liabilities, non-current

 

12,328

 

 

14,152

 

Other liabilities, non-current

 

7,591

 

 

7,564

 

Total liabilities

 

448,928

 

 

448,197

 

Commitments and contingencies

 

 

 

 

Convertible preferred stock

 

 

 

1,221,968

 

Stockholders’ equity (deficit)

 

 

 

 

Preferred stock

 

 

 

 

Class A common stock

 

4

 

 

1

 

Class B common stock

 

1

 

 

1

 

Additional paid-in capital

 

3,213,595

 

 

179,175

 

Accumulated other comprehensive loss

 

(4,598

)

 

(12,521

)

Accumulated deficit

 

(1,310,049

)

 

(970,360

)

Total stockholders’ equity (deficit)

 

1,898,953

 

 

(803,704

)

Total liabilities, convertible preferred stock, and stockholders’ equity (deficit)

 

$

2,347,881

 

 

$

866,461

 

UiPath, Inc.

Condensed Consolidated Statements of Cash Flows

in thousands (unaudited)

 

 

Six Months Ended

July 31,

 

 

2021

 

2020

Cash flows from operating activities

 

 

 

 

Net loss

 

$

(339,689

)

 

$

(47,853

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

Depreciation and amortization

 

6,966

 

 

6,264

 

Amortization of deferred contract acquisition costs

 

10,971

 

 

18,991

 

Amortization of deferred loan cost

 

133

 

 

 

Net amortization of premium on marketable securities

 

867

 

 

 

Stock-based compensation expense

 

343,448

 

 

17,030

 

Non-cash operating lease costs

 

3,580

 

 

3,708

 

(Benefit from) provision for bad debt

 

(659

)

 

247

 

Deferred income taxes

 

(134

)

 

(10

)

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable

 

32,961

 

 

(17,740

)

Contract assets

 

(20,355

)

 

(13,955

)

Deferred contract acquisition costs

 

(44,946

)

 

(18,516

)

Prepaid expenses and other assets

 

(4,340

)

 

2,326

 

Accounts payable

 

(3,663

)

 

1,414

 

Accrued expense and other liabilities

 

8,484

 

 

4,127

 

Accrued compensation and employee benefits

 

(32,686

)

 

7,192

 

Operating lease liabilities, net

 

(3,698

)

 

(4,097

)

Deferred revenue

 

19,237

 

 

44,934

 

Net cash (used in) provided by operating activities

 

(23,523

)

 

4,062

 

Cash flows from investing activities

 

 

 

 

Purchases of marketable securities

 

(94,157

)

 

 

Sales of marketable securities

 

89,383

 

 

 

Maturities of marketable securities

 

36,605

 

 

 

Purchases of property and equipment

 

(3,641

)

 

(587

)

Capitalization of software development costs

 

(771

)

 

 

Payment related to business acquisition, net of cash acquired

 

(5,498

)

 

(1,000

)

Net cash provided by (used in) investing activities

 

21,921

 

 

(1,587

)

Cash flows from financing activities

 

 

 

 

Proceeds from initial public offering, net of underwriting discounts and commissions

 

692,369

 

 

 

Payments of initial public offering costs

 

(3,734

)

 

 

Proceeds from issuance of convertible preferred stock

 

750,000

 

 

225,903

 

Payments of issuance costs for convertible preferred stock

 

(164

)

 

(324

)

Proceeds from exercise of stock options

 

6,651

 

 

2,719

 

Payments of tax withholdings on net settlement of equity awards

 

(9,554

)

 

 

Net receipts of tax withholdings on sell-to-cover equity award transactions

 

9,483

 

 

 

Proceeds from employee stock purchase plan contributions

 

6,902

 

 

 

Proceeds from credit facility

 

 

 

78,587

 

Repayment of credit facility

 

 

 

(78,587

)

Net cash provided by financing activities

 

1,451,953

 

 

228,298

 

Effect of exchange rates

 

4,883

 

 

(14,067

)

Net increase in cash, cash equivalents, and restricted stock

 

1,455,234

 

 

216,706

 

Cash, cash equivalents and restricted cash – beginning of period

 

371,190

 

 

234,131

 

Cash, cash equivalents and restricted cash – end of period

 

$

1,826,424

 

 

$

450,837

 

UiPath, Inc.

Reconciliation of GAAP Cost of Revenue, Gross Profit and Margin to Non-GAAP Cost of Revenue, Gross Profit and Margin

in thousands, except percentages

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

July 31,

 

Six Months Ended

July 31,

 

 

2021

 

2020

 

2021

 

2020

Licenses

 

 

 

 

 

 

 

 

GAAP cost of licenses

 

$

2,434

 

 

$

1,636

 

 

$

4,888

 

 

$

3,053

 

Less: Stock-based compensation expense

 

 

 

 

 

 

 

 

Less: Amortization of acquired intangible assets

 

636

 

 

617

 

 

1,282

 

 

1,203

 

Less: Employer payroll tax expense related to employee equity transactions

 

 

 

 

 

 

 

 

Non-GAAP cost of licenses

 

$

1,798

 

 

$

1,019

 

 

$

3,606

 

 

$

1,850

 

 

 

 

 

 

 

 

 

 

Maintenance and Support

 

 

 

 

 

 

 

 

GAAP cost of maintenance and support

 

$

12,238

 

 

$

5,501

 

 

$

26,417

 

 

$

11,044

 

Less: Stock-based compensation expense

 

1,657

 

 

141

 

 

7,871

 

 

226

 

Less: Amortization of acquired intangible assets

 

330

 

 

 

 

440

 

 

 

Less: Employer payroll tax expense related to employee equity transactions

 

186

 

 

 

 

186

 

 

 

Non-GAAP cost of maintenance and support

 

$

10,065

 

 

$

5,360

 

 

$

17,920

 

 

$

10,818

 

 

 

 

 

 

 

 

 

 

Services and Other

 

 

 

 

 

 

 

 

GAAP cost of services and other

 

$

20,922

 

 

$

7,561

 

 

$

53,299

 

 

$

14,239

 

Less: Stock-based compensation expense

 

3,904

 

 

499

 

 

22,835

 

 

797

 

Less: Amortization of acquired intangible assets

 

 

 

 

 

 

 

 

Less: Employer payroll tax expense related to employee equity transactions

 

1,079

 

 

 

 

1,079

 

 

 

Non-GAAP cost of services and other

 

$

15,939

 

 

$

7,062

 

 

$

29,385

 

 

$

13,442

 

 

 

 

 

 

 

 

 

 

Gross Profit and Margin

 

 

 

 

 

 

 

 

GAAP gross profit

 

$

159,927

 

 

$

124,678

 

 

$

297,134

 

 

$

224,143

 

GAAP gross margin

 

82

%

 

89

%

 

78

%

 

89

%

Plus: Stock-based compensation expense

 

5,561

 

 

640

 

 

30,706

 

 

1,023

 

Plus: Amortization of acquired intangible assets

 

966

 

 

617

 

 

1,722

 

 

1,203

 

Plus: Employer payroll tax expense related to employee equity transactions

 

1,265

 

 

 

 

1,265

 

 

 

Non-GAAP gross profit

 

$

167,719

 

 

$

125,935

 

 

$

330,827

 

 

$

226,369

 

Non-GAAP gross margin

 

86

%

 

90

%

 

87

%

 

90

%

UiPath, Inc.

Reconciliation of GAAP Operating Expenses, Loss, and Margin to Non-GAAP Operating Expenses, Income (Loss) and Margin

in thousands, except percentages

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

July 31,

 

Six Months Ended

July 31,

 

 

2021

 

2020

 

2021

 

2020

Sales and Marketing

 

 

 

 

 

 

 

 

GAAP sales and marketing

 

$

144,268

 

 

$

90,331

 

 

$

350,019

 

 

$

181,262

 

Less: Stock-based compensation expense

 

41,006

 

 

3,775

 

 

160,299

 

 

5,628

 

Less: Amortization of acquired intangible assets

 

427

 

 

18

 

 

588

 

 

53

 

Less: Employer payroll tax expense related to employee equity transactions

 

8,364

 

 

 

 

8,679

 

 

 

Non-GAAP sales and marketing

 

$

94,471

 

 

$

86,538

 

 

$

180,453

 

 

$

175,581

 

 

 

 

 

 

 

 

 

 

Research and Development

 

 

 

 

 

 

 

 

GAAP research and development

 

$

57,646

 

 

$

26,541

 

 

$

150,686

 

 

$

53,270

 

Less: Stock-based compensation expense

 

23,978

 

 

2,811

 

 

89,594

 

 

4,627

 

Less: Amortization of acquired intangible assets

 

 

 

 

 

 

 

 

Less: Employer payroll tax expense related to employee equity transactions

 

325

 

 

 

 

325

 

 

 

Non-GAAP research and development

 

$

33,343

 

 

$

23,730

 

 

$

60,767

 

 

$

48,643

 

 

 

 

 

 

 

 

 

 

General and Administrative

 

 

 

 

 

 

 

 

GAAP general and administrative

 

$

55,834

 

 

$

24,834

 

 

$

130,249

 

 

$

51,510

 

Less: Stock-based compensation expense

 

22,068

 

 

1,603

 

 

62,849

 

 

5,752

 

Less: Amortization of acquired intangible assets

 

 

 

 

 

 

 

 

Less: Employer payroll tax expense related to employee equity transactions

 

590

 

 

 

 

590

 

 

 

Non-GAAP general and administrative

 

$

33,176

 

 

$

23,231

 

 

$

66,810

 

 

$

45,758

 

 

 

 

 

 

 

 

 

 

Operating Loss

 

 

 

 

 

 

 

 

GAAP operating loss

 

$

(97,821

)

 

$

(17,028

)

 

$

(333,820

)

 

$

(61,899

)

GAAP operating margin

 

(50

)%

 

(12

)%

 

(87

)%

 

(25

)%

Plus: Stock-based compensation expense

 

92,613

 

 

8,829

 

 

343,448

 

 

17,030

 

Plus: Amortization of acquired intangible assets

 

1,393

 

 

635

 

 

2,310

 

 

1,256

 

Plus: Employer payroll tax expense related to employee equity transactions

 

10,544

 

 

 

 

10,859

 

 

 

Non-GAAP operating income (loss)

 

$

6,729

 

 

$

(7,564

)

 

$

22,797

 

 

$

(43,613

)

Non-GAAP operating margin

 

3

%

 

(5

)%

 

6

%

 

(17

)%

UiPath, Inc.

Reconciliation of GAAP Net Loss and GAAP Net Loss Per Share to Non-GAAP Net Income (Loss) and Non-GAAP Net Income (Loss) Per Share

in thousands, except per share data

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

July 31,

 

Six Months Ended

July 31,

 

 

2021

 

2020

 

2021

 

2020

GAAP net loss attributable to common stockholders

 

$

(100,026

)

 

$

 

 

$

(339,689

)

 

$

(47,853

)

Plus: Undistributed earnings attributable to participating securities

 

 

 

4,987

 

 

 

 

 

Plus: Stock-based compensation expense

 

92,613

 

 

8,829

 

 

343,448

 

 

17,030

 

Plus: Amortization of acquired intangible assets

 

1,393

 

 

635

 

 

2,310

 

 

1,256

 

Plus: Employer payroll tax expense related to employee equity transactions

 

10,544

 

 

 

 

10,859

 

 

 

Tax adjustments to add-backs (1)

 

(338

)

 

 

 

(1,083

)

 

 

Non-GAAP net income (loss)

 

$

4,186

 

 

$

14,451

 

 

$

15,845

 

 

$

(29,567

)

 

 

 

 

 

 

 

 

 

GAAP net loss per share, basic and diluted

 

$

(0.19

)

 

$

 

 

$

(0.91

)

 

$

(0.30

)

GAAP weighted average common shares outstanding, basic and diluted

 

526,512

 

 

162,914

 

 

373,488

 

 

160,980

 

Plus: Unweighted adjustment for conversion of preferred to common stock in connection with IPO

 

 

 

306,300

 

 

137,073

 

 

306,300

 

Plus: Unweighted adjustment for common stock issued in connection with IPO

 

 

 

13,000

 

 

5,818

 

 

13,000

 

Non-GAAP weighted average common shares outstanding, basic

 

526,512

 

 

482,214

 

 

516,379

 

 

480,280

 

Plus: Dilutive potential common shares from outstanding equity awards

 

33,619

 

 

59,090

 

 

42,692

 

 

 

Non-GAAP weighted average common shares outstanding, diluted

 

560,131

 

 

541,304

 

 

559,071

 

 

480,280

 

Non-GAAP net income (loss) per share, basic

 

$

0.01

 

 

$

0.03

 

 

$

0.03

 

 

$

(0.06

)

Non-GAAP net income (loss) per share, diluted

 

$

0.01

 

 

$

0.03

 

 

$

0.03

 

 

$

(0.06

)

(1) Estimated using blended annual effective tax rate and net operating losses available to offset.

UiPath, Inc.

Reconciliation of GAAP Operating Cash Flow to Non-GAAP Adjusted Free Cash Flow

in thousands

(unaudited)

 

 

 

 

 

 

 

Six Months Ended

July 31,

 

 

2021

 

2020

GAAP net cash (used in) provided by operating activities

 

$

(23,523

)

 

$

4,062

 

Purchases of property and equipment

 

(3,641

)

 

(587

)

Capitalization of software development costs

 

(771

)

 

 

Cash paid for employer payroll taxes related to employee equity transactions

 

9,064

 

 

 

Net receipts of employee tax withholdings on stock option exercises

 

(4,726

)

 

 

Non-GAAP adjusted free cash flow

 

$

(23,597

)

 

$

3,475

 

 

Contacts

Investor Relations

Kelsey Turcotte

Investor.relations@uipath.com

UiPath

Media

Toni Iafrate

PR@uipath.com

UiPath

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