UiPath (PATH) 24 May 232024 Q1 Earnings call transcript

Good afternoon, and welcome to the UiPath First Quarter 2024 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.

I will now turn the conference over to our host Kelsey Turcotte, Senior Vice President, Investor Relations. you. Thank

begin. may You

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

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

Our Relations materials website: supplemental earnings to are Investor materials These the include GAAP UiPath and press ir.uipath.com release non-GAAP posted financial reconciliations. on

factors, afternoon's in growth not forward-looking to those the will quarter statements our due and ability materially operational these about on and differ full fiscal call many from includes therefore, financial may statements. year We Actual forward-looking the undue non-GAAP second call. results discussing be reliance guidance drive statements and and investors metrics expressed efficiency, XXXX. our on for to place This should today's

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

to of We this made undertake on as no statements obligation them. call update today. reflect views our Forward-looking

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

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

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

trust in customers and at our increasing our results their the us. reflecting everything year driving to quarter make to a good profitability commitment take and want successful, our thank scale, to to cash was moment for to partners start UiPath with I and team for flow. fiscal a first coupled placing do, you with It growth

environment our and gives in While to automation transformation. customers to will the us with in the momentum broader continues play level be in prospects large strategic engagement confidence, of the role variable, continue digital

billion, numbers. the of to XX%, the Turning ARR ended by $XX with an a driven $X.XXX quarter million. of ARR We of net-new increase

net-new ARR Excluding million, million. totaled FX headwind of $X $XX

$XXX revenue million. First quarter was

operating X% XX% foreign last the out Excluding significant positive revenue A was Non-GAAP at Day. in million we increased from plus path our the year. operating year-over-year. first long-term to $XXX the of negative quarter the grew this quarter of impact target, Investor XX% margin exchange, of of first laid in XX% and acceleration to year,

very the making of efficiency Non-GAAP am I the cash better align record requirements million. pleased, quarter adjusted team to are progress to the customer flow, resulting improvements. we a with first was $XX free and

XX,XXX customers, the We of approximately our on with the The free reflecting first delivered the positive highest flow, adjusted time outset quarter invest non-GAAP customers the in propensity cash focus acquiring year. ended to at automation. with we

increased seeing included million or Hospitals, Union XXX. $X Solutions. in with Bank, XX% in and Credit and customers customers to Health good New customers, Navia we Federal City year-over-year, large New Vermont And Liberty Benefit our are more York ARR momentum

ARR, $XXX,XXX X,XXX. more approximately or in to with increased customers While

ROI. experiences. rationalization and and choose stock accelerate consolidation, our Customers Helping technology allows while UiPath, platform speed and market-leading of of and which agility, employee achieve them and customer vendor capabilities, improving driving because to efficiency breadth

capabilities. vendor they XX they than Consolidate first our spend platform migrate to integrated Palmolive, quarter, automation Colgate expanded governance across broader departments, an example, as the platform. various to capabilities and For more utilize with in

UiPath And improve expanded employee additional cost customer which with productivity saving, platform look experiences. they with and Suite, to and started journey capabilities, Silica, the as to Test

start busy year, added complement annual a management number number to a fiscal AI strengthened participants, our our platform solution partnership, been Summit our accelerators SAP has several And partnerships a the hosted to solution we announced model, this strategic It record of launched accelerators, Board next nearly new doubled release XXXX.X. our and introduced segmentation and team. for of

our sector events, recently two clear UiPath in our exclusive incredible Washington. for event UiPath There event customers forward-thinking Together C-Suite most hosted takeaways. first-ever digital also and two an public Summit We were our and

leverage the understand platform at Our UiPath's to ROI of meaningful deliver they scale. Platform, AI, and can the want they and generative how power is driving to customers for our responsibly

require inception, understand documents their customers make infused re-communications, AI, important, of governance customers as guarantees, to this AI interfaces. our generative accessible, Equally and platform cases. platform our models, the automation expand can even been next AI. use has and customers guardrails with and and help more across employees deliver offer wave significantly best-in-class safely. provides generative with our Since screens our we Coupled see We automation

will new We Which, a are UiPath. moving talk to are Daniel the we few in minutes. investing market, AI about fast. like is not

real to customers our We today. value delivering are

us, [indiscernible] During replace on AI, work migrate with they to a and deliver automation the UiPath decided since development entire the competitor program governance. quarter, a to customers as strategic better a XXXX, and accelerate to focus

out Understanding for roll to other Document across process invoices We it and cases. plan use purchased also

loan, sponsorship. customer. And is both fund to dealership Capital, by and for and And lease a Hyundai great Another experience customers takes process. dealerships. which Reducing translates example the experience the for loan Understanding time see level Genesis, into the the innovating Document Kia is we car and the leveraging streamline the better to buying a Hyundai it

drive and to additional to streamline organization bottom using efficiencies further exploring opportunities are their and They automation. AI the line, UiPath

role partner continues in Our play critical our also success. a ecosystem to

These ability integrate using integrations applications. partnership During quarter, launching Data seamlessly processes with technical code. connect our our business solution pre-built the complex Manufacturing instantly customers' the Cloud a Snowflake, across to for expanded we enhance to data without to

partners UiPath working across XXXX, scalable reach in is a Suite with our German to Test to the example PwC, customers, organization to KION addition, cost-effective since market and expand In they to as A the into customer scale continues manner. and AI multinational automation look incorporate great KION, program. the go and

T-Systems, scale across Trusted and enterprises We partnership announced by as deliver Ministry Cloud Provider Austria Affairs our recently the a to a and with and at Energy Economic organizations classified also German sector end-to-end Federal Switzerland. platform large to Germany, public for

we partnership, to this joint with T-Systems industry-specific to offerings of work part As customers. to develop plan

the fold jointly automation, Germany. help them and One SAP, customers. Cloud, enabling efficiency a this clean our across to improve of flat we for an enterprises helping automation the and and anticipate demand core, UiPath organizations This expansion of to finally, with first manage offer capabilities of S/XHANA complements announced rate SAP new non-SAP with Deutschlandticket, to partnership partnership ticket in SAP on And T-Systems transport which productivity will workloads. process build

We tomorrow, be now for team Sapphire, Orlando. will stage are in-place. in all I Paulo. join Barcelona Barcelona SAPPHIRE we Sao sponsor the have pleased the to ASAP SAP the And underscore premium and three of partnership, events, on to at

UiPath investment, E&Y's drive a makes platform ecosystem about strategic partner that Our very two having the more automation clients the excited lot value that sense. told to of strength has EY of us also the within Americas announcements. help the [indiscernible] Vice-Chair SAP even the alliances leverage is from

not that we In raising with significant with help progress game-changing our achieve only a I'm summary, of amount is have inbound relevancy interest I and together can the customers profile initiatives, convinced and partners. we with on our go-to-market our are technical am but There also strategic results. pleased and customers made which

mindful are our helping get execution. to we our out ongoing we said, of work to most automation, and of variability and do, customers improve have more being That market macroeconomic extending continuing leadership, the

that, the call Daniel. with turn And I'll to over

afternoon Good Rob. Thanks, everyone.

customers' This We release earlier accelerates our at excited AI ability automation. automate very further to leadership and expand operate in and are newest introduced scale, our have and to to discover, month. XXXX.X, API UI, release this continues position our platform

AI Our platform. use release further about new increase excited plans adoption and this customers to our our very are of generative to

our that manner, be a will of limited powerful, with can specific important to a not deliver of foundation, the enterprise AI very action. us is take in by scope We part capabilities enterprise, and that allow generative AI believe it platform has our a that tax, domain in And automation. AI very AI, it's along itself require. it governed but customers and secure Generative but read Enterprise and generate will

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use However, when automation customers. with combined new a and it enterprise of cases set for opportunities opens is AI whole platform, an

respond Our software documents they can AI, and documents customer complex robots summaries and screens now to create with already support questions. of answer generative and emails, read can

in generative Customers skills can to and service such areas customer ones. new automation, imagine as entirely use existing new these extend

create and upskill employee. descriptions. access democratize will both AI generative natural automation using making that language just easier every workers our believe to for will knowledge AI it also We to platform, developers, Generative

computer One of grow than With power our service in and with computer from in and AI applications our in UiPath long-term computer vision AI understand advantages vision. vision to the to of exponentially leveraging investment day knowledge of continues generative we legacy AI, X cloud. biggest modular our is competitive every the screens, screens to automation our million more calls

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and close that our on quarter Ashim, has over We your Rule who I company to another hand are remain on like enduring an everyone to pleased would I thank UiPath's Before that the journey. and XX focused contributed step of success. call to first represents building

will I that, Ashim. it turn With over to

Thank afternoon, you, everyone. Daniel, and good

be results. results I indicated are also rates growth local currency, will and sell note otherwise to Unless all year-over-year. a on since FX in want impact and fluctuations discussing rates we I price that non-GAAP in basis

free margin to and execute quarter operating balanced resulted well as quarter and revenue flow. growth outperformance, non-GAAP in imperatives which of first record first revenue continued as -- adjusted our non-GAAP We strategic cash against profitability,

As both cash afternoon. we flow year non-GAAP increasing income outlook, meaningfully free a and adjusted result, this operating our full non-GAAP are

Turning million, billion, FX increase net-new first a headwind the by Driven million. of the an of $X $X.XXX net-new totaled to ARR quarter, $XX ARR $XX ARR totaled million, of excluding XX%.

new Asda, the Corporation, quarter We ended great Sciences, including XX,XXX logos Robert TaskRabbit TNL. customers, and with Life Jubilant approximately Weed like

and they to strength they adding their quarter TetraPack, platform in Automation products as continued with to expand Document cloud. and increase Action a As Understanding, as Rob this UiPath our customer footprint, A example XXXX, the adoption we saw Hub great who on broader mentioned, customers like, to Center platform migrate increased continues is additional consumption. since large

is focus our with Green A -- propensity central is AI customers is strategy to Canon, channel. with on higher a working infused as accounts example Canon our great also is strategy a we transition and of invest across and of is USA their manual Understanding our for GreenLake to Our to in platform. a working part smaller work saving an automation, to and and hours Canon less X,XXX with USA, customized Document month. program invoices built need X,XXX has interaction, Automation, them employees over automation Consulting gives each leverages greater process models machine-learning accuracy annually. human requires that over far efficiency, distribution

revenue FX, Current rate quarter for RPO best-in-class. our was million. million. of Our Normalizing Normalizing $XXX performance million, Dollar-based dollar-based grew to dollar-based the retention headwind gross Remaining Revenue retention for XX% the up XXX%. FX FX-adjusted, RPO was continues be for of net rate $XXX to to XXX%. increased year-over-year. approximately $XXX retention million. percent obligations XX% grew $X increased million, to $XXX was XX%. net

we software XX%. XX%. margin The expenses, a total margin gross of to delivered Turning was first strong gross quarter

operating quarter reflecting First control. were expenses disciplined $XXX million, cost

We both increase profitability. find reinvest which continue optimize business, opportunities allows to to to in and the growth, us

have operational a and excellence, business grow strong to continue foundation company, to scale to automation improve we'll the We and built the efficiently. leverage

of expenses operating of reallocation year-over-year reflects $XX stock-based the Before well decrease I in line please on, GAAP items. cost both million as of efficiencies, $XX the other million included compensation to loss G&A as move software expense. note

cash income million, expense of outperformance cash quarter operating positive, flow million. free of at remainder every the year. operating first combination in record of flow quarter margin resulted expect the am this I a disciplined achievement, we was in and pleased and adjusted to XX%. with resulting non-GAAP quarter be $XX very record free The first non-GAAP for management, Non-GAAP adjusted revenue $XX

We important cash with operating $X.X current debt. an and balance a asset the also which cash, strong in in environment, equivalents billion securities is marketable and no have sheet,

of are partners. our me new transition Now including segmentation of assumes the America midst macroeconomic strategy, overall environment we the which that guidance, to North turn continues distribution be account smaller which executing in go-to-market includes variable let and to to customers and in the

we billion. For range the operating $X.XXX be be ARR to to $XXX range count approximately the And fiscal shares. $XX basic in approximately expect dollars million million in of quarter second second $XXX quarter XXXX, we the million. to Revenue million. the to of income XXX $X.XXX billion expect share Non-GAAP

the be to approximately the XX%, of of million. in increase range billion in full to margin non-GAAP the a For billion. expect translates billion operating operating fiscal ARR $X.XXX of year to Non-GAAP year-over-year. XXX range Revenue XXXX, billion. $X.XXXX $X.XXX we to income, $XXX a basis-point $X.XXX This

leave I to you I Before final -- close, I few want want a details.

quarter gross fiscal gross XX%. First, we outperformance, for given now first our margin be XXXX year expect to margin

$XXX margin. flow cash or flow, And adjusted XX% of expect finally, free we fiscal more non-GAAP than a adjusted year XXXX, free cash million

us at Looking while forward, the extending team manner, disciplined free both our scale market adjusted remains cash focused increasing on to in invest in expanding a delivering allows which flow. growth leadership operating margin and

today with for the and the you will I turn now Thank us of the over during operator. speaking please joining we to questions. look-forward you that. many call poll Operator, With for to quarter.

Terry Instructions] Truist question. with [Operator Our state question Tillman Securities. first from Please your comes

for the on it. Hi, taking this Thanks Meares for appreciate is Joe questions Terry. I

integration deal the make the automation opportunity this what and a So, what is It to you big platform you like us. think your here? recently announced drove business Can explain just new with decision sounds to SAP. you

question. for a customers Barcelona in event with Thank I'm of SAP's truly with us. and this many Terry, for you is it's Robert Look, exciting the Hi here. here

and sponsors Orlando, partnership is We both are I of global mentioned a key morning Barcelona the important. apparel, in Paulo. Sao footwear customer, in think them the company why basically terms in this Well, for large the Barcelona

that system core, clean transformation, want which with actually accelerate transformation significant our some to Signavio, together apparel with of with move ability drive they're and to and modelling, UiPath that. working whether of believe existing together And SAP's process company benefit, to on X,XXX mining, combining is footwear, technologies not see around actually environment, of automation UiPath the their S/XHANA, customers it's to their global a where task robots driving of top a the digital around customers or to couple a over faster, connected how seeing wanting migrate basically going go SAP hours, a we digital platform is through

organizations able the go-to-market these much, customers, much faster. to Our to both will on be deliver value sides

And us a with systems of been positive, Suite of had So mentioned of we interest feedback today partnership as Test SAP. in exceptionally this it's integrators a couple To them. The from customers partnership. got significant benefit get global also we've we've positive a we've got has inbound the you utilize with the capabilities mentioned it. have in previously, can out it, Orica and we we see they've that have, already lot

significant mission-critical ERP So, systems, at benefits acquired systems, the we customers think day, end systems. connecting see to the the world-class are with ERP together world-class automation going by of

Super it much. just for augments to ChatGPT Thanks We demonstration high-level ChatGPT a that does how scenarios Suite, platform. product cannot explain, that with just what then follow-up. up come very then the UiPath product And the your test to helpful. at and recently additive you saw Can do? used as ChatGPT the seems product a so Test

We're very excited platform. to going is bring about the opportunities to that generative our AI

good We sense access implement opportunity use the the to platform. making to platform it. easier by users our that cases adoption are use democratizing technical can less existing the seeing the and to more-and-more of increase even In

as We this codename of part are project, building Wingman.

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mentioned don't pause they this precise the business they they risks. advantage has model that domain-specific very you And don't testing. and So are

automation automate, lot, through quite usually but for a to of an you vision description computer a and interface the like and and see building a and test the fast was will generated opportunity pure more user. traditionally a very to now like for changed testing would manual simply that do very if then because will by our Understanding English, human a capable employs, the of application user in be testing and we application difficult user platform tests Explorative explore interface, have people

large actually often. people an much will of That application, a in result test, more implementing will acceleration because

will development So shorten. cycles,

it we believe execution really applications our and that the computerization and the highlights So platform can to opportunity into for can is power only that an once again, amazing puts of power want that platform I through stress manner. of power the of of our this end-to-end deliver execute screens, and reads enterprise power in screens orchestrate great that our our platforms the automation the

Thanks so much.

from Lenschow question. Please next comes your with Raymond Our question state Barclays.

Thank on we a as guys first the and you do customers about on I opportunity And to et have migration of SAP there up, to that dreaming you work congrats actually I numbers stay significant Ashim. be S/XHANA in think environment that need you be cetera, Am go question. SAP what's to have to follow for guys. from a around one and. see theme for a for or like done I theme and there? quarter the question testing because customizations, lot customers opportunity the wanted the of there and I'm lot testing And and the should testing and that thinking

S/XHANA and S/XHANA it that that doing mentioned on On is so they in announcement an top automation that of Yes, with [Arcata was Robert migration, also when suite] combination are of migration, of integral here. earlier, you the migration. top -- part When we

platforms. the opportunity BTP actually actually also parts together ties utilizing we a migration. that significant in with it the is have because customers of significant today slow SAP's platform both And So

confident So about why that's really feel it. we

the significant process customers We of also also and ICT of as solution to it efficiency help front move migration fact. maps even the discussion drives in in heat a changes amount well. accelerators motion We've deliver that and like feel it

a our opportunity So that as SAP. see we do partner with significant

for of how of sense. are Ashim better cost run makes the the costs, control terms in controlling do kind great business then for your XXXX, view there. and but what remainder And in think here on case like moment. getting at do on things second how kind of cadence Yes, in you also investment results the Many year we about of half How with looking the of the of thanks. do okay, ready kind year you're perfect, a the kind cadence of you doing

Yes.

consistently roadmap, we And results investment you our Raimo, of the areas and the that talked that first opportunity, I is, we see go-to-market the know that the excitement invest SAP think that are in and and. that in through Deals Daniel that that the in well like happens as see is side in-product things have of like the we of about world you there. time resources. both as the product in can partnership

So with our people talked the scale of chunk We've globally. big think base I focused scalable now. have highest we in about enough We're we it, return. the places right a is really

You at G&A look our structure.

to on we've of in across investments, and customers customers the are well. terms side. the put every of propensity for ROI's a And constantly of to built brings today. leadership foundation expertise and better focusing Rob place country the think automatically so highest single we looking support it with on to-market really scale strategy teams invest, and go the I leads best and to the the the ton opportunity go-to-market the the that's in

we we operate to investing in that us great areas think that efficiently and the formula. continue don't opportunities I company for and efficiently, will where means that de-emphasizing

results. of for raising shown not free-cash-flow, to XX% buy, positive you the operating our has But think could but see, overall remainder us the guidance generation you margin the can I year. of just also here

Yes, done. sense. okay, you. makes Well Thank

question. question next state RBC. from Hedberg Matthew with Please Our comes your

there a Rob, moving I'll to at questions. customer? And that like RPA it you my there. large talk success air customers little is the up Upselling you ARR what opportunity seems taking do start beyond with per the customers, for platform. to growth you're when it's Can beyond bit your we more does for showing seeing broader about RPA the big in maybe a you. clearly look And platform thanks guys, Great guys.

our you Yes, but around can this that's I and our above the ARR can we're we Matt, can time. when on how today maybe really the per improving using the can efficiency it's Ashim customers discussions drive having all comment help say, them at certainly look how customer, that would million, with help It's Northstar customers with we're environment working businesses, deal how in significant, we help model. and today. one

lots So we we see see that. opportunity of

think with and I Daniel more-and-more Understanding, Document customers results Understanding, institutions, today have expand. financial the customers on return we Document see mentioned is the and in providers we healthcare, healthcare significant absolutely

And and that at they. version areas focus would we partnerships sales with technical we're enterprise then enterprise in to difference. where as now space. when we've platform, and the so. clearly automation these big that see The of big it's the is customers the because seeing full UiPath Test part say, headed look customers' looked with going the in of in is leader of and that a partnerships. I'm at started our place provides companies if more-and-more RPA say, I industries GSIs big We're And Suite I engaged and very platform. Today would on confident the the opportunity and select we way with the it cycle I us a automation. making

year, we about Beyond think dramatic progression. on X.X% should question cadence? longer-term for margins, year margin Ashim that think just curious Maybe Raimo's when this about the you following-on which to is XX% year the super impressive now we from sort this so-far. just thanks. obviously, pretty been obviously How of Great,

Yes.

what XX% of of a together. Working update terms we're a serve pleased at every our I the we feel operating but and being need that long-term really employee progress and time halfway about the more is the find think to on. We're than to, execution see good We've We both will really we're focused of customers by that progress Rule think UiPath, there. and single progress. pace and in I company, as committed continuing frankly. efficiencies goal, continuing about with we just talked XX appropriate we're margin, margin the to of that

Thank you very much.

our you. question Mark your And state JPMorgan. Murphy Please Thank comes question. from next with

question. I thing. taking feel LLM these Arti is wanted this AI Thanks products. products? portion to clear, any of there with in and generative have material for Murphy. Any LLM look your you're AI external pipeline where your Hi, the I with at on you if it, being But ask, involved Mark kind incremental of kind you of is LLM. like you pipeline emerging guys understand and of To specifically adoption be own for Thanks.

their us AI I at platform. interest vein. Rob we through understanding and and the our and in we fit their our look the makes pipeline customer customer's When that go-around think customer reflects long-term So talk every the don't we and -- really pipeline portion continued right of automation for hand-in-hand can the go stories in and the power generative AI

that of our deals throughput of the deals the pipeline in and terms our with largest the just we strategy. reflecting the in So see continued customers

our around I way pipeline set AI, the So customers a at we of it, don't that's we look it believe do that don't either. have or specific just way do and. see deals we

Yes.

add me that, just because. to Let

it's important think I really and.

in When Daniel well. customers. you amount with I getting are Daniel's at think look prepared we - came across remarks, I discussions significant really AI, it look our of the thought and at way a enterprise, we

domain-specific years, And our as be Document our that AI vision technology. work-in go to task and to understanding space Communications well. it whether forget years Mining had. mining back computer domain-specific don't we've customers, have AI this of You

well. a in to UiPath the to are Daniel, hand-in-hand. in that generative seen comments future leader believe benefit two these how thought that's that really-really want years next got them we the with I this that? understanding we on that going in And I clipboard continue understand we've will automation go we mean, as can fast to be you spoke of month. AI AI about a in as So space previously some I and something think leader how would do evolve want to in customers make really on

from our a that a strategic will Yes, brain really as development believe I standpoint, said, development. like it's. follow I human bit AI

very have do cognitive We can us help powerful I of specialized. But lot those, to autopilot. have engine. so task we on many if a so say

resources at I For I more game, I it look it's autopilot to then less instance, the terms in much because but it's on Deniz am intensive if much more effective, initially. play my requires. cognitive will try training precise, of it's understanding actually using of that

we So computer ability in with the hard a on this have be is based module that technology our do, to thing going world I screens, the and extensive here actually vision our which is This to actions will a. very is why obviously, to enterprise believe reliably. prevail and execute on an mode

So the a IP exactly to last way in the really the to part next missing years adoption. generative that I it's our of RPA level really go of it's XX for believe I. piece, way

insightful was you. a That it. Got very of answer thoughtful from all

leave just you. with Thank that. I'll So

Thank your comes our state you. question. next with And Please from Morgan Stanley. Weiss question Keith

this with. Yes, is for Keith Sanjit wanted Singh Weiss. start to I first

sustained last scrutiny, similar you the in quarter. to of guys about environment, Ashim deal terms talked demand

you've the shaping of how sort you year. like, the changes As rest is the QX? May what you see QX the customer May for trends what seen into How look is in sort that in in what are versus in pipeline up. behavior, Any you of look into buying and saw of and the

No.

it's it, reflects which environment. it variability the way it macroeconomic of That. the is, the think that we've I reflects just described

that every but from with no there change changes that to day is consistent goes major see in we're that it think a difference single perspective. customers, we and our attuned I

there. Is sort variation? there of any regional This

is the across various Some inkling still might or U.S. volatile than Europe be doing geographies. Asia, pretty that it better the and

I'll I what So we're but of a with He Rob pipeline just within teams. perspective, really and pleased and has execution comment from then let terms see the on. customers, across in with our the

think I the really word variable global a phenomenon. is

terms of In overall the environment.

think I well.

You of time. know period for longer a

Just last and. since year

I earnings on. in something think is America North call. the commented last In we

on. I pretty highlight, those know that's I'd So consistent, you from to dynamics would just Rob. add nothing if that, and that. are say the want don't I else

automation the say that them same speak the I much the our I when to it's broader one. discussions taking pause think EMEA. would we both I with about talk and consistently he variable. very progressing about place on that is into and model per customers in in the customers you highlight. would nicely I Americas platform U.S. don't Northstar say where to there's

with We continue and conditions. the the I work progress consistently. are there all say APJ, on progress. will to we variable In pleased pretty but. Market would

one lever, deliver service. Understood. the interesting making the seems as generative more about you last What guys Daniel, potential on about if I a one call may a extract debt for as testing, help very pricing maybe you've been on for AI on RPA you the use-case, does sneak So clear able And productivity given of mean just like customer be you well from pretty this this to to then perspective? useful pricing feel as customers. to press potential you'd incorporate that the do technology, like hands may,

ultimately areas we of our of is a for our this platform, Yes, will impacts generative basically because across going AI - all And. positively increased to platform. infuse This will with technology. our big the adoption tailwind it's And us.

will pave will more way we And we itself. the documents sell the generative AI for will I more sell processing. think robots,

We AI units, more will so. sell

I think.

our pretty model. it's existing think reflect price going into nicely I

I thought Thank much. so appreciate the you Daniel.

next with comes Cowen. question state question Please TD from Bergin your Our Bryan

to-market and stand contrast reorg you compare a you can but afternoon. sales Hi to touched briefly, in the bit regions. Rob, across and Really little wanted three on APAC. Thanks. EMEA the operating America versus guys, just refresh. where good on you take it I more follow-up North it on-the-go versus go-to-market

Yes, mean. look I

go-to-market the executed we've think changes. I

we As would consistently. Those we changes. said

settled. some and of but I good we than In we about right have feel now, really then say would It's where longer a little segments. well, taken mostly. all the would hoped, the Really So rhythm.

We have second-quarter and are in the focused. teams now the

So, of said absolutely Bryan. couple you as the decision. right right the times, execution. And Absolutely a

second see we've think to Neil, of year the half in the acceleration due I the implemented. changes the

any right. the kind feedback partners. all Okay, service channel partnership And from here, the just ecosystem, just question of then on same

plan. long-tail are and thus to on you As this them some far shifting any the of over learnings

would say the the board. I across Yes. partners

partners. look to the got at You

If GSI's. big you look at the

discussions I big involved very NorthStar our think digital having and around we are projects. with of in many them, discussions transformation, paid way much more

fits So then well. really model that

get is say really partners partners come Understanding areas are like of it through. got position the driving they even we wouldn't bigger to local seeing some, those actually to showcase fundamentally it. understand distribution I then still Document where the partners, still do, but To platform they we existing the And where work Our in to see got and see we opportunities some actually as platform how channel continue the it.

the because that's one The And reaction. that don't I probably mentioned look. maybe. we mean

with ticket Germany, sector the large as Germany, partnership Bahn, Germany. rate and in Austria, public of and with Switzerland, in flat which whole right? Deutschlandticket, We is working for system the far but on global, significant, T-System's with is As the already Deutsche the companies

significant big So that SAP of well. as being then the will out their in-full for execution team of UiPath we the in difference being partnership. The tomorrow partnership Coming here customers, fundamental opportunity leadership really well. SAP Barcelona showcase we'll confident be that. with of as And senior and mode on that's stage, the the Sapphire and

Okay, good hear. Thank you. to

comes question next Wells question. Michael your state Fargo. Our with Turrin from Please

in sizes This Michael as new additional Thanks are year net-new Is there Williams] And for ARR taking any It looks or down you lands? you [Austin on follow-up, is any new like Turrin. that quarter. the deal versus my for average seeing it's impacting whether can was last logos expansions in add the on are color that? change question. for a

and there's million quarter. first Yes, million logos in the impact so at say $X Really had to expansion. thing you FX, a it. just is I FX driver normalizing $X look between wouldn't a new for when

broader go-to-market we commented And the of the start the variability changes we macroeconomic it's have on So, the of first a terms that we that's transition just that's that piece. at I the second we've of the the think in and see and that quarter. a general more made is, that appropriate,

of the So is. a drivers versus pointing out it in where those specific terms really motion are

Rob what from our And land of with that higher continue this with execution. pleased really $X terms grow. propensity million in has done large pleased standpoint. segmentation we're sizes, we In deal terms our the plus see. of mentioned to We're customers customers on focusing

being feeling a as higher. involves platform I well of the of larger us think price both course as that's which from positioning in terms average deal good execution, selling

Got it, you. thank

Bank Sills America Our Brad state question. next your question comes Securities. of with from Please

I approach the ask you. wanted thank to solution-selling a to vertical Great, question here. around the and transition

quarter out relative I think some strength last the financials in you called vertical.

be you Thank approach. some across if traction the curious you get with might that you. on Just where verticals update an seeing

still continue announced still Brad. of the we see benefits Yes, the health-care financial sector banking, see to mean, with we to I a see we couple continue providers, that names.

like generic other say with So a In especially strength, solution and in being it's I the driven. that continues products you communication, Suite Document Understanding. would see Test But. of industries. to mining be source manufacturing, variable

an from of So industry point view.

focus first to as with uptake so. we expand which are the as any I seen think areas areas going the significant say in over in significant -- produce you're industry. solution global specific which to see as particular industry. the where still, work actually as but that on going services, to we big specifically, financial we industry In in accelerators we and more-and-more you're the see wouldn't still The healthcare, the focus we expansion system to integrators, have well, I months quarter, start the that get progress. coming as time well solutions saw by potent at is see more-and-more industries PCA

do relevance one may, partnerships you about of much. partnerships, the data of from bring you The Snowflake ML and Amazon as impacting business, so blending this envision partnership, the box. we AI, you these how I here business, SageMaker Thank Snowflake are the from and of SageMaker? you in do these a if accuracy AI just And increase To impacting more from and Thank you. AWS ML on more. datasets talking see libraries. I just dataset the of the by library velocity more couple deployment mean, Wonderful. how

can those make you like. take Daniel, one-off a the

understand just But at deploy I faster sector see manufacturing quite in automate space. more event, significant and Sapphire that much, significant declared faster. to the think manufacturing we the connect. a the that they how Brad deploy bots, Snowflake Boston it's. Manufacturing. Wanted a help Actually, logistics much see actually Cricket Snowflake of supply-chain partnership, faster. amount about we customers Data much and amount in customers, can

see that opportunity as So as a we well. significant

obviously. Yes,

and AI course great SageMaker we and analytics hosting it I we of platform Snowflake in use all mining in we've of on for use of platform is The there our in-process think the. kind our it's has opportunity power models standardized the our accelerate to analytics, actually strategy. and foundation the

really one, us. it's all-in a So for event positive

much. so you Thank

comes from Genuity. Please question next with Our Crane Canaccord question. Kingsley state your

leverage [Gabriel can. generative questioning this is quarter. the guys, Congratulations the very Kingsley. We the automation platform. for AI Hi rest of I being gateway it find Roth] a about the on great to

AI the What impact So overall in Taking put platform. into thanks the the of account, for guidance you of are the increase to adoption in respect. generative year that do it. guys? The and longer-term this for

Well.

have real The think is. be. impacted more of in year, current Start probably the year. I AI, a adoption the estimation than longer like would rather to a fiscal guiding this my it's shot generative bit We enterprise for this next year.

Thank you.

comes from question Scott question. with your Berg state next Needham. Our Please

questions a the have I out little them asked wanted think market But traditional in you. to plane spot, good been than you on see you more wanted license Thank term on here. and I question more of for they've and everyone, sell maybe versus been traction if one just just my a have a an to quarter. native there. back ask apologize the for the the year on background update bit for congrats now. your had absent Hi, I noise my is Most on cloud the but on to

really feel our in We progress hybrid offering. overall good

I think is really good.

strategies. will There our and the work the to feel be full our positioned with continue and our having Their coupled released it's I from to that. enterprise that the be roadmap, good market, on well in on it's very cloud but the the platform. well We very about capabilities that a think cloud continues automation. across ACR customers, still strategies interest our of customers cloud early, is lot feedback still developing their are like. But

you. I'll the we remarks. floor question-and-answer reached for to And closing hand end-of-the now have Thank session, Robert the Enslin back

today. We forward you Thank you. appreciate we the weeks us. you many Thank to look us you of joining Yes. in connecting everybody joining with for coming all and

parties This disconnect. concludes today's Thank conference. may you. All day. great a Have