UiPath (PATH) 7 Sep 222023 Q2 Earnings call transcript

Greetings. Welcome to the UiPath Second Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note that this conference is being recorded. the President to of turn Turcotte, host, now Vice Senior Investor will conference your over Kelsey I Relations.

You may begin.

Good us today market today. fiscal you issued after for UiPath's press of our thank which quarter the close in results, XXXX afternoon, second financial release announced earnings the to and review we joining

will and Ashim On the with Daniel are Executive turn me the Financial Gupta, over After Co-Chief Executive Chief Enslin, to discussion and questions. will Rob that, review Co-Chief Dines, guidance. Officer; start Officer. the call Ashim open Rob call Then we for then our Officer; UiPath and the provide Co-Founder Daniel. call and results will

third ir.uipath.com. plan our those growth and expressed supplemental afternoon's non-GAAP press and from should and to financial our and These forward-looking are XXXX. to earnings include efficiency in materially reliance fiscal many website, release drive operational for materials reconciliations. forward-looking the metrics includes financial GAAP ability This undue therefore, these statements discuss on to call. on to on fiscal results differ today's the not investors non-GAAP We posted about Our statements materials and year-end call statements. due quarter UiPath Relations Actual may factors, the place guidance Investor

with ended January our quarterly a to of the report report ended Form and annual XXXX, XX, XX-Q to actual on for risks period our year the SEC. please filed and material results, uncertainties for our For the on refer discussion filed SEC, XX, be with XXXX, our that quarterly could other the affect XX-K including reports Form July the

them. undertake to by slides. reflect to this as our on this of webcast update today. made accompanied no We would views being that highlight statements like is call obligation I Forward-looking

the Relations copy this immediately comments will Investor call. We slides our conclusion website of the and a prepared to our following of post

to plan you, that the Hotel XX:XX Day round our registration I'd tables to Venetian feature to reach on executive by hold FORWARD like in Please during to our conference starting turn lunch ir@uipath.com team. X at we the Rob, Vegas, over call XX, I with user will at an Time Las Before out inform Investor for September hosted Pacific a.m. Tuesday, details.

to call to like the I'd over Now hand Rob.

Thank Kelsey, joining Thank afternoon, and good you, everyone. us. you for

and part of an second are industries. Our now Smartsheet headwind in by despite a and the We serve of UiPath customers. sizes driven platform exceeded for Interactive, quarter. that ARR Clinic, of We choppy transformation more in $X.XXX increase like continue an to ARR the to year-over-year the ADT, all guidance of increasing totaling of the that UiPath, just macro a quarter Icertis, all million. end continues $X companies billion in across Mayo central our and XX% a few breadth of results $XX high companies in than crossed this mark, see second of invest XX,XXX environment. billion, which new organizations digital net Take-Two FX invested be Automation

provider automation. of is example power global the talent of a a relationship Our of acquisition leading with iCIMS, software, good

of organizations leave end-to-end since over provider That's will that I that capabilities. UiPath partners full and stories mind tasks Talent the all UiPath automation time. service the the dozens like they be future, enable platform of Cloud Cloud have Automation routine robots in to into joined During quarter, no I enterprise customers because business and a embrace to my embed customers and plan processes. we will and to moved beyond met they deployment. these their And the expanded looking we automation automate, to RPA UiPath the integration doubt iCIMS suite to Success

Switzerland, we its wider market by can a has significantly current needs do. AG years Driven another of efficient. their automation their PostFinance says automation Mining. for win with one reducing all the scope, the become Process efficient total that that a to platform and a search institution program journey than helping more future and UiPath in in them better in fulfill been for is in they competitor goal a the cost strategic and on to RPA ownership achieve financial their for it Our automation while PostFinance, determined more three with retail platform

opportunities, process kinds and enterprise of These is automation outcomes, and the which automating previously transformation a capital. endless Our platform the processes, value to not them redeploy allow have digital by disjointed improve them RPA we automated processes transformation. services, XXXX. executives, the global the of IT XXX of to improved discussion important goal. to requirements. allows true customer and holistic saving $X excellence, business, process their over across has of and Over tell cycle to A experience, employee million. for this C-suite is their our evolution me They've center over leader, since of view customers example outdated speed over, customer from from supply and executives is one finance, great only U.S.-based a bringing and shared technology is a of HR, power chain, UiPath companies but automation and redesign central platform their unlocking customer accelerated Digital trends, discover also increase approaches secular the most to reach that

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the believe an grow, first-mover That metrics technological a and customers. we evolve as we to can our how for leader, deliver we business. to a have considerable line our business need we expand manage automation value advantage. slowed said, top and And continue being while have we has to room We our our

growth positive free deliver flow cash long-term investing the year while fiscal priority beyond. in go-forward managing business non-GAAP XXXX margin, will expand Our consistently for the adjusted sustainable balance and to be operating to

we than has commitment over XX%, greater the long-term operating As not that our changed. margin objective our during said of to we expect and achieve non-GAAP IPO, - a to

Let achieve clear. me our to need market large stage. This is to we profitability targets. believe don't sacrifice I early be and growth

helping and customer customer the transformational to customers committed deliver. outcomes to Our realize they In includes benefits business we increase term, This repositioning UiPath, conversations, of Company outcomes love strategically and automation. the are the - the are evaluating velocity, short efficiency we selling and organizations elevating centricity.

around technology be We business integral To are strategic to have to is strategy. their there, we four the objectives. essential the gold opportunity delivering customers aligning standard that for automation get

to delight and that with and customers platform and our in our return increase the cloud. disruptive improve investing accelerate moat competitive leverage investment First, outcomes, on our capabilities innovative

is productivity. where up we to This coalescing take and advantage the includes business channels weeks. with motion few resonate and service our are our the we velocity FORWARD marketing energy need also needle. plan that like unveil platform increasing and that the most our new sales that XXXX.XX, building move simplifying a and the expect outcomes incredible spending distribution around can around and greatest really to elevate partners brand which return. C-suite, branding of strategic to costs, Second, set in partnerships ourselves This releases to X We at lower

rate the are level. next UiPath requires grows we diverse team our leadership. together Every Third, aligned at business experienced a bringing around to that driving

already as new leaders elevated and bench that pool have talent, sales of strength, internal We great attracting to announcement. is a by saw brand a having today's roles, great strong new you leadership

go-forward scale and strategy. leveraging our critical, committed sustain profitable to equally exercising core we are allocation. by resource growth and Finally, of a Profitability our is pillar disciplined

am reducing from are our I my firmly right account for objectives. the I'll in experience now turn to on the significant confident in strategy. Daniel. and And our macro FX confident strategy, and our our call a internal environment that we repositioning, believe, track profitability and achieve we forecast While to growth headwind, over the to near-term I our are am I

for were year the XXXX by Thanks, row, Gartner fourth Magic Rob. further in highest frequently in UiPath for vision. and a We automation execute And report research market completeness robotic leader the ability our about we positioned for to July, in as Quadrant for the process Gartner talk of positioning leadership.

have recognition. to gratified received this are We

growth in an expands to opportunity upcoming in named are is our new in from both a for customers understanding, win. We a as Process Matrix The year. XXXX is automation Group code Mining, UiPath's Process end automation and for At application RPA on-premise according new company continue Mining RPA for were for the we that UiPath Task of mining process Process XXXX.XX introduce leader only deployed their or Test important in our release, to in other customers cloud. Suite, consecutive and emerging key Task to Everest meaningful document UiPath Process tool in of Vendors for platform discover UiPath's driving capabilities we new offers low a Suite will the why Mining that to capabilities. customers vendor testing, is cycle, life platform And and capabilities breadth programs we when Test test June, the the scale PEAK and automation. complete for landscape, of platform technology value resiliently. hear the use our third Test Suite and the solution, customers And adoption the Technology market. including a the Mining helping opportunities

of learning natural call the Combining UI to plus of customers. now By platform, Finally, already mining, capabilities leverage about new for plus acquisition have accuracy, key with of believed and our which the like actionable unlocks to UBS, Re:infer. and success we Re:infer of communications technology we doing. we data and Re:infer combination AI the API transforming amounts are are customer information machine that the opportunities our is Farfetch and Paychex AI-powered to what speed really into our do excited processing with long can customers breadth massive unstructured language automation adding

we to call turn platform. of of hope to talk the Ashim are newest innovations many where our excited We at our elements unveil our all across provide to that, FORWARD quarter will to about XXXX.XX X exciting second announce functionality and over With there. release more see guidance. in our in We you detail platform very I'll results

Thank you, Daniel.

quarter competitive year-over-year. unless started, delivers outcomes FX otherwise in of Customers UiPath's business second indicated, discussing please note automation will on all understand headwinds delivered basis, environment. results a the and increasing automation get I more buying non-GAAP the that in are face that of the be measured and I a differentiation solid growth rates We meaningful a Before platform.

two customers multiyear of largest commitments which really were making to in deals nice to the our our is fact, see. platform, new quarter In

numbers. our Turning to

quarter with the billion, created XX%, million year-over-year headwind balance. a excluding quarters $X was retention as the ARR net Second retention On up is was environment, million. and sanctions, rate Dollar-based our previous retention net impact stronger and consistent for total $XX ROI. to in quarter best-in-class Russian are $XX new to net Consistent FX of new a of million driven the gross net Normalizing basis, ARR which the ARR macroeconomic is This dollar-based Dollar-based with platform, the approximately broader ARR was committed driving in FX Americas. XX%. $X.XXX totaled by XXX%. net customers an to retention metric meaningfully XXX%. was headwind dollar-based quantifiable

year-over-year. the contributing RPO than $XXX.X performance XXX. headwind, As and infrastructure million. was year-over-year million the million Current $XX ongoing while grew XX% for Remaining second business. for increased XX% grew XX% ARR the as FX scale obligations which to that was FX million. million $XXX in investments $XXX,XXX $XX XX% for to support an more customers in XX%, to X,XXX, Normalizing $XXX.X $X cloud customers million. end was Revenue XX% year-over-year increased to approximately grew year-over-year. accounting RPO of we to impact, an Total Normalizing XX% grew in impact, margin of the which revenue gross grew XX% approximately headwind, at quarter, over ARR year-over-year least year-over-year over reflecting

Software gross margin was XX%.

XX%. greater Looking ahead, gross expect we to margin than to be continue

of quarter. of compensation second increased XX%, we million operating expense. reflecting one stock-based benefit Second operating loss steps million from million loss of quarter the $XX.X million. included $XXX.X took of in expenses Non-GAAP month was GAAP $XX.X $XXX.X the only operating

$X.X billion non-GAAP quarter have adjusted cash we cash, free flow Second was securities, equivalents and $XX.X marketable cash negative no in debt. and million. And

guidance. Let turn to now me

the environment, we anticipate we macroeconomic choppy which continues First, fluctuate to in what given will see guide the which continue. we to pipeline,

as price FX we Second, including more outside is ARR our as in result, and half of we than both U.S., business and year. euro a increased yen. And the through currency, headwind is that for significantly local move the revenue a there has and material

said, Rob as forward, profitability is go-forward strategy. going a Lastly, our of core pillar

headwind our our in reduction our the the fiscal adjusted reflects year flow repositioning, to While free forecast in and of environment profitability goal are positive FX non-GAAP macroeconomic committed near-term internal achieving we top cash and of the line XXXX.

numbers. Turning to the

for headwind of we the in of fiscal First, quarter FX to an XXXX, million. ARR $X.XXX range incremental expect -- included billion, $X.XXX approximately third billion including $X

ARR exchange guidance. year-over-year Excluding impact, the the midpoint XX% is grow expected foreign of at to

We to $XX of incremental approximately $XXX $XXX expect million revenue FX the of including headwind in range an million. million,

the Excluding is expected year-over-year the guidance. impact, revenue foreign to midpoint XX% exchange of grow at

XXX We basic be expect approximately $XX shares second of non-GAAP of million, quarter expect third in timing operating the quarter million to incremental investments be million count to headwind of approximately quarter $X negative shifted the FX that negative And million. third loss share from and to range the we reflecting to outstanding. $XX the an

ARR year, FX approximately of headwind the we expect the including to $X.XXX an For $XX incremental of billion range billion, in full million. $X.XXX

ARR the incremental XX% exchange impact, range guidance. in headwind year-over-year grow million. of to of FX $XX billion at midpoint Excluding to approximately is foreign including of an billion, the expected $X.XXX Revenue $X.XXX the

of is impact, FX the Excluding to $XX million. XX% at negative approximately $XX operating midpoint loss revenue million, including of grow Non-GAAP expected incremental approximately guidance. the foreign an exchange of headwind year-over-year

impact, Excluding year. million operating to be is for exchange the $XX fiscal non-GAAP full foreign the expected income

Now, the I'll Rob. back turn call to

dollar Crossing for customers is is company achievement, this am it billion big multibillion see to $X that is a Thanks, that I they ARR business. Ashim. as in this the their year first a confident how integral just milestone us. run but

strong a and decisions put growth making that have scale, we foundation to and on to track are We achieve us profitability.

and poll We'll September the in and more out the Our the meeting Operator, believe than during XX. potential weeks on operator. vision more our Company long-term many to the the we of coming strategy over for is enormous, our take I now you detail in turn and of ever. to look now laying please Investor to questions, I'll questions. Day over forward call

is Raimo Barclays. first from Please Lenschow Instructions] question. Our question your with with [Operator proceed

Thanks for kind why bit do you Ashim. when can where And period that, talked changes afterwards, a better you little click kind doing the second if -- like it talk impacted, think that the of double Rob. clarity, Can question Can bit in about, of how more the you you're strategic of you that negatively at extra get you it. that you doing and about you a there? on about the initiatives little you you're terms usually, just a then have you're for should evolving which is see moment? the And follow-up

you And at to you behave. you about March, kind know one would think the year, how call beginning you of back in the the customers some first were of and If -- pool, of macro uncertainties. the talked out renewal about the didn't

something bit Can else you just If Is there there the comments little still issue? think more? is today, you that a that the elaborate about is you additional same made happening?

Sure.

first, the question. for Raimo. Thanks Let me Yes. go

C-level in and of announced promising driving suite platform. Company, which business basically winner. internally as actually the very that digital We Company that, product continue into evolve to drive early automation talent. We we make America the incredible. reposition new the segment, well. a we signs sales We've position is progress emerging we've And in to we space. in is outcomes we sales, promoted the around aligning in seen that, in we're inside on happy order that some to As position move the platform sales we're to And our about talent and spoke enterprise we North combination to with need organization the And as how be just leader. absolutely some European the experienced are the the we that the automation do believe bringing and

at very, had confident So said, right in the we time, we pretty very Day clear strategy. layered this we are that out as terms. over And is Investor

Raimo, strong about very remind a the when think look, I'll to back you globally. everybody, our have foundation year, and And just the first guidance first, we then, of tracing

have that's actually we of the overall exposure view very So a there. good just

continues break Here's The and well euro. quarter right? environment, a has take we out the on see not that you as and net We what's FX there. still get parity retention retention see our yen rate, you do as We reflected. in in mean FX. of dollar-based we one when when to further, the macroeconomic worse strength in the Europe to down deteriorate, an I as level lot where the continued When as to net Japan rate different. to that see deteriorate the came progressed. Americas particular. we exposed And weakness asset -- that impact dollar-based of see

continue there. see We strength to

also which XX%. strong rates, retention about talked We net gross at we see

our in software is performing. So we confident very still feel renewable our around the value base that

So, pipeline. it we we we customers just the look listen we We saying. given -- look the are at the find provide We what guidance here. appropriate to to environment just our did And that activity. at

is Credit question Suisse. Phil Winslow with next proceed with your Please question. from Our

Just customers. wanted of can start to Rob, this. hearing you're with you from guidance terms focus in on what Maybe, the

the maybe what the lower any first or Any done seeing terms are sort what excluding just I be the a more follow-up had the whole as And have just would helpful. out? one in there for pushed compare And to also you half. sort deployments are of In Are of some sort deployments color getting in Daniel. they of that simply just the obviously, FX, of maybe -- net ARR change seeing you you shrinking from expectations, terms of of scope customers? new of

as would key a growth budget we're discussions longer, seen taking as lever add view as automation, I new comments, executives obviously, position in seeing companies, to to to able to definitely definitely be outcomes. Phil. Ashim's on for more. deal leaders, getting C-level but we've going engaged Thanks, we say that we those experienced And Yes. we're with

earlier discussion in as As we we North do on, really where of of that see (ph) positive starting signs see are I the the in America, said well. the] segment though, benefit, to [operating

starting expanding And with build them? end-to-end you Got there They're inorganically customers, trying and been is an to on investing it. suite organically technology to are obviously, portfolio. the that are starting talk to parts to more in to suite. carry what resonate? Is When really side, that this out resonate Daniel, of weight? then, you've particular, In starting your

Yes, very great that resonates in entire hi, Phil. the automation outcomes to to and process customers. outcomes. for measurable Look, I implementing say They automation find platform from would which finding delivering automation, opportunities our with well is very value play the where we for -- discovery, enterprise personal important

we We is a are transformation are a blocks digital in not seeing building application as makes but it's and new implementing And our sense traction new the are then automate for and it systems, Suite, delivering involved Test seeing which only testing testing labor people meaningful and testing end-to-end path lot it manual as into like, clear a systems, reuse of lot -- manual becoming, for with in automation. the testing RPA, to of also it's an implementation.

Please from proceed Morgan Keith Our Weiss question next Stanley. is your with with question.

for so get But FX customers, super attracting in level, is inflationary outside you the at given some hesitancy Sanjit a or high the Singh of spending more trying efficient. a with terms Keith. of a would Sanjit the need sort new you be This priority to automation given think of of environment, expand Rob, the that for to high of Keith. would their wanted customers to impact. is get sense This business

is done? sources the customers if less implementation And it an this of nature cycles? this fit the like? cycles does prioritizing or of that issues of the on on fit potentially Really bill, with basis. sales or in sells eval period? Or the process? about are alternatively, get deals so Is extremely sort lengthening there of the of that the hesitancy, about color competitive itself appreciate. Any payback assume to hesitancy -- lengthening you'd spending those I automation the projects ROI are it terms are if XX months payback, of sort But the that sort

in of at would question market in speed is here new. no to value. I'd what takes customers looking I've the is look executives UiPath's York bank, And to in that automation we they City automation. to evolving, the and spoken to broader are say platform transformation see organization. really their benefit There's it's and drive senior platform when into some the say utilize I the New is account financial

see and a longer. of that's at it, it. a true. drive it a as those to foresight, many little They in absolutely bit longer conversations are bit But we more taking are our we taking take bit look So, little decisions just little customers

definitely As and emerging is look with we help companies one that outcomes enterprise customers, build to value. their In digital the calculators the can drives drive absolutely at to only speed the segment, I'm business -- markets. the convinced this going is but these not ROI transformation, automation do, lower

We very and we're in very And that's we and to doing and are customers. product that acquire where relevant, very, customers, continue well acquire relevant. we segment, is still

I a And need will denser our to of we ability something at would the And we end that's market, as feel consumption on focus accounts. that time, I say, with So, well. to really on the largest to be able confident top focus that over we drive deliver.

maybe appreciate around context want thought. -- as Understood. some a get guidance. then I I to that just some And really the Ashim, follow-up,

Do continues on worse you you've that side or more business, conservative that being that's you Or as you look the So Americas? the the something seen to of July balance you've what some year? extrapolating sense, seems what just trend you've of has source implied through seeing of strength. the the that guide, than this the are like the August seen QX far? are thus In It are Americas assume in you strength been too? QX to a just you through and extrapolating seen

consistent guide like what the to today. mean, front very of way guide. see I us And we always in we We see we strength. we're we Americas No. with say,

in We have look we that a look our as of there. at and execution at we business as lot confidence our pipeline

I those and as exchange is, foreign continue that have impacted a terms guided announcements piece the And of to and we And the the be standpoint, other Rob we're we're Europe both really about said, are from and leadership a think macro in repositioning Asia out that outsized -- Company. of in. there. excited

company also so, the areas. certain just And we're itself as any natural for transition repositions accounting that's any in --

So, those are the two factors that really give context around our guidance.

Our proceed next Murphy JPMorgan. question question. Mark is from with Please with your

it own the those three are ARR? Ashim, and those varying your other disaggregate reduction Into to or three? there for internal are mentioned think words, in the X% you across repositioning. about is equivalent I magnitudes those In FX, I think macro possible it's year. factors, had

one when that at I look you quantifiable I terms think most is that is in mean the is. -- Yes. the FX of where

we're and play there. both some million as internal at change those that's consensus And of to say of kind doing we give of terms our $XX we for as terms the at macro the just FX. so and that's in to you that, that prior look from $XX we it items, I The of guidance, versus -- the disaggregate. look look in really we at of that hard in million when other would as changes guidance, impact the

So, FX that, quantifiable, is I and the the macro Mark. -- provided

on guiding based more we today. pipeline The of that say, see other is two, front in us our I just would

does just Rob. I rates you wondering had those there's of automation equivalent what that today? could out for or the follow-up, quick stretching for of stand And environment then any us, across are Daniel Microsoft-only inside mix I'm if perhaps way environments. you're growth that multiple Microsoft environment entirely remind if versus run a the And kind Understood. that seeing

systems in well Microsoft most market big Well, for systems. multiple This And system traditionally, very entered the multiple platform mostly our similar processes systems. that between is of the continues multiple have an spend used is across This usually of enterprise application that application our and and -- strength that's works complex enterprise it's providers, a automation, automation have today, our actually customers it basically was recently. technology and difference technology.

that very the complete we platform offers only So, have I customers. am for that our differentiated end-to-end process an confident is automation that

is Please from Kirk ISI. proceed your next Evercore with with Our question Materne question.

I or seeing difference Are in others you vertical talk some at the this you're in of just with an of earlier having guess the organization. Rob, than the sales perspective? sort any the the thinking new of doing certain was about more of discussions industries environment will in are maybe can wondering, time? industry Or about on I rather from point a just you questions year? any at beginning coming be this the end sort you of all 'XX? towards of Anything changes positioned some the folks fiscal And in

Yes. question. Thanks, Kirk. Good

for and financial the than for So, say to more see of any impacting it's continue demand I much health others, care we're for sure. services, the them evolving the would at industry, say, sales environment for look organization in flight. I significant you would more say, wouldn't we manufacturing. I when geographical.

take distribution in to We're models. said, doing the driving emerging for We're at the significant density enterprise changes as for speed of But majority drives align in that. value brought around companies. have talent the good outcome feel the outcomes seeing graduate enterprise already at segment, at as Some we're things in and we -- we're automation what terms that uptick to looking we how our the business we to sure. into will with market place and beginning looking level. and the partners, The I new accounts of we're of year in about those

with with your question. Bergin Please question Cowen. from proceed is Our next Bryan

transition. just wanted cloud with headwind on to I the ask the associated revenue

was it think I four previously. points

I deployment and be And that the you about you're it that guess, worse takes can sense get how mix of revenue deployment puts And of further, that deliberate forward So should out a on first, potentially cloud caused we headwind as assumption? that go thinking year? progressing, to fiscal by we and give thinking this now us any any would then push change clients beyond helpful. expect in base to more just

Yes.

the previous second launch have modeled with of it's things Investor Bryan, change about that stays it there. those it for Cloud relatively of When at post the like moment we versus see in at very points discuss but longer-term robots track don't So four our launch any way this assumptions, significant we on Day, we'll we've are The forward, We our going our assumption think successful, but given. Automation don't the see we anything XX.X. assumptions the discussed half. consistent was and

a In gotten other difference change Smartsheet companies terms there. a take a great impact those to interested Cloud in more robots, capabilities. sum as revenue Automation of been Investor this and our Day, very can it no great how we there. about a iCIMS that well at robot in script, there talk To using It's up, of at already Automation we've like is headwind. And standpoint, advantage assumption. in no see Cloud companies partnership and emerging of We significant see they dozen that but there's there's the from which biggest other customers that as the We'll moment feedback. is mentioned terms

XQ NDBR here. can given for as further Any understanding just ARR XQ? you you color through FX and give in half back go And you've on the Okay.

FX we as two headwind two Europe Yes, the reaccelerate and retention, Right impact point feel the macro we when we on and net the are largest and basis dollar-based have really, -- reposition XXX from stabilizes. the those that in you largest FX of that is a is there. I mentioned, retention just Japan really Like confidence have as Company do net those it, mean deceleration had dollar-based disaggregate geographies. I now, the We that rate. to pressures

with BofA Securities. Brad from your Please is proceed question. question next Sills with Our

about Wanted versus to land expand. ask

deals, Company I of installed years think ago, was was the understanding that a expansion more towards the pivoted such that couple base there that opportunity.

see go base been opportunity can You that Is here? potentially still of Or holding with plans here. drive installed net to growth one retention dollar-based range kind nicely kind any there in back continue this expansion you land do within focus to XX-plus towards on see has deals? more the of to the

question. great Bryan, Yes,

to drive the definitely deals. opportunity we So see expansion

companies, that for relevant to we very is becomes platform automation would how enterprise the want -- automation do the it. As

segment we want And expand. looking it how top have of terms the a there. that in customers accounts a provide to and also also propensity drive key to in model We can density at in we're they really see

the and drive looking terms efficiency company how of that a a company, acquiring they actually So we at in segmentation promoting with we're consumption. density do ensuring model have full an and

if And may, please. I then more, one Understood.

platform map things you and moat. mentioned some of build the capabilities differentiate to think that the Just potential are the bolstering What upon of that that in that are the road competitive behind UiPath? the do continue to here you

So and to hand I'll over start Daniel.

and probably last very a the couple test met to we companies, they doing message, talk Just technology. having branding I've visiting ability way, that been bit details is and have in a to on tours, I connect three to through months nobody in discovery think, the how right, in spent that the RPA fulfill That Asia, of unique connect has and And times, to to customers XX-plus end-to-end platform a ML C-suite, the be Europe to going process and will Daniel then to when about partners incredible. the insights an you that can then understanding, world the little we and into I've have company. operate from a can AI tell it else I ability market

Yes.

a by understanding AI and and completed document machine there. progress only processes. on succeeded to vast based This is adding no-code processes are our we in So, that platform we a steady array combining that automate that automation. and is low-code, learning, tremendously foray to learn. API-based in We with platform the are UI-based automation new important We making of single easy deliver existing platform is it the

platform. are building world-class We a

acquired have with two in cloud three we part Test Mining done tasks of the Mining, the hub data We Process the on technology, desktop discover the Capture, number Mining. helping years in in -- level We've in is on unparalleled Mining, ago. are the automation closing and technology, gap suite both our that that discovery fastest the and Plus, at number the one Task Process system harvesting clear are lock processes customers and our the level. of Process the combines replatforming

the user. smoothly steady end the all integrating for making in components platform of the are progress unified We a on experience single delivered

Our Tillman proceed question Terry Truist your with question. next is with from Securities. Please

There's just of Go-to-market been on. Company. repositioning a number Rob, first guess, kind for you're questions that of about question strategic I the focused excellence you. the of

metric the to the had side you impact, If look, new ARR? the coming do the months, over Company Can key biggest the just fold? time given next XX customers to this where at so thinking the it far lot what actually trying though, something. to you more Is a enterprise your on you had Ashim. biggest and just I enterprise just XX see have into I'm to sales the with your And for mover. pick those a of three existing for customers? areas? I'm understand Can you then Or to digital needle missing maybe kind apart question up add expansion ahead

way that on so scale both talking enterprise the determine look enterprise activity, how words, need we automation other companies need into we we're a scale a emerging actually When to customers. at selling Then these reposition products is drive level We companies. through about that. enterprise to we level enterprise Yes. to driving theme where that's as activity. do great segment In acquire new to

do we have So, to both.

We to have continue acquire companies. to

as to these we We we so we companies have And expand. make dense that accelerate the provide to we when propensity where need is, coverage the can understand them of and to which understand have expansion to know well. that the propensity part certain

this. And of we're partners leaning we're on in space efficiency. at looking to us help So, also that this drive level our

play. It's multiple it's just plays. So one Terry, not

well done at acquisition. I think we've the really

it, these very, companies to Day to applies makes this everybody that truly Investor organization sales our folks. as understand And it clearly over creating well out also and that scaled. will digital looking very see become All packages a really -- to our evolve can selling a that to we across automation so to at the we're is to and understand think what how position time. you for and it We're very speed will to sales solution value. lay easier I play how good have pieces evolve unique for enterprise we coming drives very, And board. opportunity that at very business we'll together

just it. And Thanks, Rob. Got follow-up a Ashim. for

about operating profitability talked when point metrics? or I Or within some think would for that flow a FY that income you and year at Is you to free non-GAAP the that path cash -- positive. all hit be 'XX? the EBIT those full of year

We're more just begin that going Investor at definitely terms clear at talk fiscal Day. Look, of more emphasize term, script get and I this talk to to more said want committed to want us, going to the we're about we XXXX information Day. sustainable in to to profitable provide but Yes. we insights we're short the pretty is with. profitability. for in in specific What is and Investor and

next Please with Our is with question from your Turits question. KeyBanc. Michael proceed

A I of question couple think, Raimo's to some had seen Kind going best questions. coming back, of back negativity. when QX Ashim, maybe you about to

pretty Europe. the in said then macro much were us pipeline, you board you walk And across just seeing where through just QX, particularly So in get starting this last I things if handle you you the think seem impacting customers things. would, sales now cycle not that from macro. to said on quarter, in and a again worse were And a perspective, that trajectory,

geos. So in -- excuse me, certain

if you could be would bad that walk helpful. bad, again, through just and So why us been better

Yes.

in the from we we way sure, like right? want that, really like, we sure have can is make front feel a we want environment. beginning. I very I from dynamic attest So in of That I which that is consistent -- and to to It's just think all and -- I we -- make guide it. a to one to us, guide very what's

quarter, guiding of that. particular, has see coming expected that felt than more it's optimism also more in in ground give he discussions we last color with EMEA, when we were challenging much as we more terms now, in there. out can of the the on on So Right really, it, Rob customers.

front well EMEA, parts guide challenged what's the when look as feel for So the dynamics our are in of all same we of just Europe engage. the Asia, really At as of -- we Japan, here see like time, automation us. opportunity they customers more all is they We some right and like feel today, kind at big. we

we guidance, year durability want more retention proposition shows Rob dynamic dollar-based let the et given in derisk we that and to to me And that we net we Our about are have. responsible our of and color Europe prudent as rate the make the value give model on and the half in. I'll the which environment talk cetera. just of second we're sure

said just and I of where say on optimism the we energy those in months, the be The and I had to more we I'm I couple having certainly, will an what's and of the thinking war time of the got the in companies regional. slight message I that word No, focus last now -- mean more Europe is make spent is to companies having in But it's decisions. and that with Europe, to for on level companies, -- think pretty think think more consistent. are that helping happening would inflation automation the happening taking significant to used so time invest become companies we what the in that what in about amount invest, successful we delivering convinced and impact, and a they're sure. to I

code maybe whether if ways alternative some with potential or products, someone I like people for offerings in you it seeing my companies whether but competition, and of strictly problem? what where we just then sure but think think more not RPA, like of the maybe do So it have environment, something RPA with it's think other competitive are is also? solving doing then follow-up, competition low you answered asked And but substitute there I in would maybe -- typical of the Microsoft as competition missed or about it, any else not you change

competitors. the past not of more In since And are change with months. the limited but to -- three are to landscape Microsoft automation, our in seeing traditional we We any continue material we competitive see personal automation. enterprise we competing have -- in

they opportunities. anyone in We customers, differentiated confident it's clear entrants -- new our our by moment, we the by our attested X% seeing leader a less automation not into this that platform a ServiceNow, like At pretty Salesforce are I'm probably are them We basically. as we various very in than opportunities. seeing are -- have by of analysts,

next with question. Wells proceed your is with Our from question Michael Fargo Securities. Please Turrin

saw know I to there the year. earlier go-to-market Chris and the but want have We go back several do I topic. been Rob changes, joined that to on in

there the importance off automation space? of sounds the go-to-market you? upcoming you're quarter. clear on make you And core We new this able user just of things the period is changes you team regional announcements changes do eye how shore you conference changes big aren't the the in of that of conference, in given up have a kind But QX automation sure your in that opportunity. a taking the macro, fiscal ball few in to are terms and customer still the Commentary front ahead those the of backdrop in have

to to attendance that in business And in automation and brought environment. leaders then confident see the many And experienced the have Day, as is in leaders honest, you would outcomes to the to FORWARD digital We amazing. that look ROI when drive understand expand. you that showed we as true the RPA terms faster you will Yes. And be their also to of core more that, But this, the actually have well will we that platform we we Investor X continues the of and at environment. bring feel be we but for many drive piece. broader enterprise at reposition, -- and that play that or is automation, sales automation of -- I in that add up, a

have we one, very is it very, So convinced, I'm out the you. We right for strategy. layed absolutely clearly

automation up, proposition value get X, FORWARD a at And and across aspects we level. enterprise for are see are we leader, board all right the of of focused at we You'll have ensuring that clearly the the automation that folks unique amount we showing it on with automation. that are the that shows will

with Research. Our Please Zukin with next Alex Wolfe proceed from question your is question.

like clarifying just first in incremental business changes A but U.S. in Europe, it putting repositioning lot on at that And but topics. the and around, two have here macro more the year's in confidence that incremental point, interval macro of you're then terms reflected deterioration the as been of Maybe of follow-up, in mine in deterioration the just one, kind the have previously the extent, impact for outsized actually the been guidance the -- QX. anything an on just discussed place derisked guidance? closing execution to questions sounds some just a end to has have Michael's asked, don't of the you this

So I'll the start with guidance.

we So Americas one I from that guide is the and our think front what's standpoint, in us. of

As of this point, we Americas. don't forecast in deterioration further

feel came was still retention about Company. I leader and -- the has that the like recently From strong macro place good with that to been a we have the our dollar-based to indicators, said, net have Japan. And sales Europe standpoint, pipeline announcement we the We promoted, rate. relative in out

not FX are exposed in Americas. We

today. we guiding So, I where think we are appropriately are for

And this change moment. repositioning again, year, then we've macroeconomic the front what's Of course, anything the the of for guide macro, for could -- from Company. terms of for at environment, but in we accounted like but just in the also of us a not overall

a guidance. of about impact excited as part create. short-term could that we long very As we've that beginning, change change, Raimo and acknowledge kind -- comes that The the and the for of we risk that derisked positive some talked our about even any our with term, feel but in the in of

and -- forecasting a when deals, pretty see opportunity the in we say implemented pipeline. we we're We've look And positive actually policy. larger strict North coming America, seeing signs we -- of -- we see we Yes. have derisked, the into deals we very

North So, derisking in America. the we and in of front feel good about the opportunity really us

is Our with from Fred Macquarie. proceed question question. with your next Please Havemeyer

a hotter sales to across going be check or running are to bit many platform, any Mining that demand kind are Clearly, PA more bit an areas with UiPath seeing additional might Task of segments of between just scrutiny, asked, is I little you my understand Process different platform? just market have but seeing think the of platform. been that are particular say, a or I wanted we versus some about softer likewise, in versus your automation but various questions receiving aspects Mining, that or end-to-end

areas. showed to I and when is the than actually $X buy the momentum the So think to customer platform. greater than positive we get automation what's which the that platform, from RPA do discussed that the full the additional our is is ELA we in greater capabilities reflects we the to to our customers for as million, that customers I look core $XXX,XXX, continued in And both see full for offerings of past well. those really they abilities We've are best have attractive that across Discover the platform wanting and we And -- there of our breadth want metric customers.

we really can Day. in that there going And So Rob those more we're that from two metrics well is is some about that of I the show script. his as at add opportunity? And believe Do Rob Investor about Yes. areas think with that. talking the comments customers. be to some talked

answered it. think I you

is automation in product significant it to testing Test inside clearly the It opportunity. automate Test test -- platform. opportunity. opportunity. There's automate -- the This there's to all constrained. automation after automation think across allows you market. We market and -- platforms, not that Suite an is I go Suite the connects need that to amazing

So unique And discovery big getting customers are in and just started. I the space. that we on think a side, a opportunity have

one And more if I can in. get

today SAP, read Workday. work clear it's more opportunity players on that we you looks seeing ERP-related have focusing Is Mark there either been or or some at hire the with that in the integration to there? announcement hiring background You announced in also automation. just rather in HCM of you're today Because Gibbs, space his like anything here certainly

drive into would services their higher you, opportunity products customers. clear, will value I for in I Yes. maybe but phrase it products And technology way. maybe a where we those haven't see different I significant I'd tell been automation embedding -- a see

technology think number we are space. a talking of that, in providers great example I to is and a this of iCIMS

I that is runway we for. drive So think that a can

provider we other Our when product transaction And being look is on different in or ERP to sets. solution clearly, you really well focus sub-processes. the markets, at markets embedded suited

are customers is or would we where that migration, any or that's additive or forward. automation additive, into SAP customer Oracle transformation an or digital how the it'd be Workday And so transformation transformation terms see a And going will And in CIOs whether see we value. automation including through of Salesforce, opportunity. or see going incredible that's

end the closing call now Rob the remarks. the Enslin and reached of question-and-answer for to We over turn have session, I'll

much, Thank forward we to it, for We Day. today. you everybody, very at seeing and look everyone Investor appreciate attending really

time. disconnect for This may concludes participation. at today's your conference, and you lines this you Thank your