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UiPath Inc. shares dropped in the extended session Wednesday after the “software robot” provider’s weaker-than-expected outlook overshadowed a beat of Wall Street’s quarterly results estimates.
UiPath
PATH,
shares sank more than 20% after hours, following a 7.5% drop in the regular session to close at $29.04, or 48% below their April 2021 IPO price of $56 a share.
The company forecast revenue of $223 million to $225 million and an annualized renewal run rate (ARR) of $960 million to $965 million for the first quarter, while analysts surveyed by FactSet expect revenue of $247 million and ARR of $968.2 million. ARR is a metric often used by software-as-a-service companies to show how much revenue the company can expect based on subscriptions.
For the year, UiPath expects revenue of $1.08 billion to $1.09 billion and ARR of $1.2 billion to $1.21 billion, while analysts forecast revenue of $1.26 billion and ARR of $968.2 million.
Additionally, UiPath said that Chief Revenue Officer Thomas Hansen was leaving the company but would stay on until the end of the first quarter. The company also appointed Chris Weber, a former Microsoft Corp.
MSFT,
executive, to the position of Chief Business Officer.
The company reported a fourth-quarter loss of $63.1 million, or 12 cents a share, versus net income of $26.3 million in the year-ago period. Adjusted earnings, which exclude stock-based compensation expenses and other items, were 5 cents a share, compared with 9 cents a share in the year-ago period.
Read: UiPath IPO: 5 things to know about the ‘software robots’ company valued at nearly $30 billion
Revenue rose to $289.7 million from $207.9 million in the year-ago quarter. The company’s ARR rose 59% to $925.3 million from a year ago.
Analysts had estimated earnings of 3 cents a share on revenue of $283 million and an ARR of $902.5 million, based on UiPath’s forecast revenue of $281 million to $283 million and ARR of $901 million to $903 million for the fourth quarter.
