UiPath stock opened 20% down on Wednesday: find out why

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UiPath Inc (NYSE: PATH) reported market-beating results for its fiscal second quarter on Wednesday. Shares still opened 20% down on lowered future guidance.

UiPath Q2 financial highlights

Lost $120.4 million versus the year-ago $100 million
Per-share loss climbed from 19 cents to 22 cents
On an adjusted basis, loss was 2 cents per share
Revenue jumped 24% year-on-year to $242.2 million
Annual recurring revenue shot up 44% to $1.04 billion
Consensus was 11 cents loss on $230.7 million in revenue

Mizuho downgrades UiPath stock

Following the tech news, Mizuho downgraded the software and automation company to “neutral” and trimmed its price objective to $14 a share. Analyst Siti Panigrahi wrote:

We expect shares to remain range-bound near-term as UiPath’s strategy to focus more on enterprise will take time to play out, especially in an uncertain macro environment with strong exposure to Europe and competitive threats from ServiceNow and Microsoft.

For the year, UiPath stock is now down about 75%.

UiPath stock slides on lowered guidance

For the full financial year, UiPath Inc now expects its revenue to fall between $1.002 billion and $1.007 billion. In comparison, experts had forecast $1.09 billion – in line with its previous estimate. In the earnings press release, CFO Ashim Gupta said:

Our global footprint exposes us to foreign exchange and macro volatility. Our go forward priority will be to balance investing for long-term growth while consistently expand non-GAAP operating margin and deliver sustainable positive non-GAAP adjusted free cash in fiscal 2024 and beyond.

UiPath ended the quarter with $1.70 billion worth of cash, equivalents, and marketable securities.

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