UiPath (PATH) 6 Sep 232024 Q2 Earnings call transcript

Greetings, and welcome to the UiPath Second Quarter Fiscal Year 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to turn it over to our host, Kelsey Turcotte, Senior Vice President, Investor Relations. you. Thank

begin. may You

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

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

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

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

a January For our XXXX, material of be to reports [Technical and the XX, filed other July [Technical XXXX XX, filed Difficulty] and year the with discussion Difficulty] for uncertainties SEC. the ended risks

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

Xth of to October user team VI, out month next relations details. Monday, Vegas Wednesday Please Forward the join conference, we for invite you evening our investor to Finally, in Las the the from reach through XXth.

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

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revenue year-over-year. $XXX XX% quarter of million, increase Second was an

XX% X% this from in in second Non-GAAP last quarter the to year second negative increased of operating margin positive year. of quarter the

million on a long-term focus and towards our growing continuing cash in margin we we of non-GAAP operating target As reflection XX% and, flow, adjusted plus our $XX progress free efficiency. delivered scale

driving are customer has transformation. Value results. line our these the the good execution end been in adoption I business am environment of is I acquisition. where and pleased platform $XXX,XXX typically continues in more be lower digital and new to with selling Given that market automation to ARR The want the or deals customers into well. cohort The role good we about of variable, particularly the and of new net feel progression. a is deal macro clear, expansions plays be call, of sight have harder we to performing

to and second nice a initiatives there execute is move into the as building we of against our half continue We strategic the year. pipeline

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opportunities value expansion of NorthStar identify to lines business. Looking leverage across they forward, additional plan model to our

is comprehensive operational a And platform, test full value only as view the the drove to Using several and deliver mining, helping the tangible pipeline, the the build quarter. in it financial result, a company. Not team automation to document communications expanded a process including and customer strategic services of to delivered NorthStar also NorthStar suite. could deals excellence mining, understanding,

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was year-over-year time named were XXXX. Leader capabilities. Everest platform XXXX and the in the named Assessment Matrix Everest only Leader Leader Process analysts Intelligent UiPath a also Group Industry been in Everest our recognized This recently Task in Products the a the Mining PEAK designated is Group Intelligent as Document advances. has Processing, Products Processing the are XXXX. Leader PEAK Assessment a the recognizing and for as Mining as We Assessment Star Matrix Group first Products UiPath Document PEAK also a biggest Performer Matrix

wallet growing our share our elevating ecosystem accounts, Our customers. to our position, leadership for is of market key key best and across partner outcomes delivering

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selected migration, their and testing SAP in suite and a their their process of the win program. in During plan integrated for competitive German regression finance to into modules. our are test They implementing processes and their quarter, all holistic also incorporate agricultural automation challenged S/X testing on They UiPath AI process in automate the company based migration platform. a on by department mining S/X of

Before and our want which the we our $XXX stock of board highlight the repurchase business, move balance million in sheet. of our on, underscores has our I ongoing program a cash I strength have to confidence flow generation, authorized directors that

starting two and changes In the investing while delivered we execution our against backdrop. leadership. solid ago, another exercise extend from of we’ll see continue discipline, to implemented benefits go-to-market to a We're to economic market expense summary, we quarters variable quarter the

With that, I’ll the turn call over Daniel. to

to more and AI Thanks, I’m I want begin, company. Rob. commitment thank and members Good AI-powered we believe an have next to team this for to a our I Platform. delivering excited to I for technology inflection advances. the important are focus customers, their unprecedented relentless our leading time our time Automation of evolution This on everyone, point afternoon is before now UiPath, serving with market at building

allows Computer entire is understand quickly part of integral original AI said see and inception, robots of software has with and are to intersection edge automation. capability, cutting platform with platform Having evolving an we which our our Today of core the starting been and at that, the our AI since AI Vision, infused screens.

AI platform barrier finally, customers AI Specialized a of Generative significant software that the provides take with be also needs - our deliver by with from help needs information platform operationalize It our action our context, an of To today the needs to the enterprise adoption. And, set and CRM, our and which documents, governance combines integrated robots can promise AI Generative to data, effective, across gathering AI. in it overcome capabilities to ERP, beyond.

Looking customers to more better, processes. ahead, use we that the expect of automations create up opening of this automation the more helping novel GenAI a be to evolution and facilitate next even resilient business, tailwind more quickly cases

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rates non-GAAP everyone. And basis will a Thank afternoon year Unless I over are indicated you, otherwise year. growth on good discussing be and all Daniel. results

driven quarter, net ARR Turning second to of of million. $X.XXX XX%, billion, by the totaled an increase $XX new ARR

FX of and $XXX more hybrid than adopt in SaaS, total the Included customers this Cloud our million both offerings. increase new cloud continue more net in headwind, Excluding totaled $XX than as XXX%, million. is an ARR ARR, to

the who to UiPath plan automation Scotiabank, program our document understanding, capabilities, utilize scale to they Cloud move and unattended AI automation. their further example, to For global as and chose

year-over-year. FX, $X be tailwind, of Our Revenue dollar-based impact, approximately million, to was best-in-class. million XX% an retention for Normalizing net dollar-based was XX% revenue our of $XXX Dollar-based grew quarter retention the an was to increase net grew which for XXX%. Normalizing XXX%. gross rate FX continues XX%. rate for retention

million up Remaining to performance $X XX%. tailwind, to approximately RPO Current for obligations increased Normalizing was XX% million. increased grew $XXX RPO FX $XXX year-over-year. impact, million, which an

XX%. quarter margin Turning to gross of second a delivered We expenses. total

margin gross XX%. Software was

and fiscal without expenses in operating million. our organization restructurings one grow XXXX, segmentation, which were an room quarter continue efficient margins to Second ample the us with go-to-market created increasingly to announced combined sacrificing $XXX have we investments and The business. to that's scalable expand gives

million, resulting compensation stock-based of operating income was GAAP margin of a second million $XX XX%. included operating in $XXX operating of expense. loss million $XX Non-GAAP quarter

was adjusted non-GAAP quarter flow Second free million. cash $XX

program quarter mentioned, are and cash pleased debt. with in as billion a afternoon. Rob repurchase to the $XXX equivalents, $X.X And, securities marketable announce cash, no million this ended and We we stock

assumes me variable. be Now, environment the to globally let turn to guidance macroeconomic which overall continues

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

the For XXXX, than XXXX more $X.XXX translates to Non-GAAP to non-GAAP an $XXX $XXX ARR increase of or XXX free expect year to basis $X.XXX And, flow point range margin. XX% be we fiscal billion. flow in year million. free expect $X.XXX adjusted finally, approximately million the cash a billion of to of $X.XXX non-GAAP range Revenue approximately we of full fiscal cash adjusted in year-over-year. operating the billion. billion income operating margin This XX.X%,

into head foundation and do of focused everything innovation, year, second the growth team and Customer long-term shareholder half profitable value. we the success our for on at and partners. the for of we is also possible the the fiscal customers outcomes the As core best remains and driving

we Thank today for look quarter. the to you you and joining during with speaking many of us forward

the With for that, questions. please turn over now poll call Operator. the I to will Operator,

session. Thank conduct our And gentlemen, you. Instructions]. and we'll now ladies question-and-answer [Operator

Our first comes question. Raimo from your Please Barclays. Lenschow with question state

on somewhere. more from more where new of in with last in year? AI, limited important, you? conversations for the how competing Thank you to for terms of do does me. out Thank and in on this And world you needs money what sort to come know but getting Perfect. it does budgeting spend dollars you. budget more you. is to see play the question how AI where budget customer your the like And you still Congrats need from are you of this spending? One kind -- Like cycle how fit from it overall environment

positive the it's say would discussion I for Raimo, AI. Yeah, us around

I the think helps infuse it platform.

specialized message has which more our the helps by are document confused valuable AI like the together announcements around we've to helps important really and how understanding, with Wingman in that through. AI of Our Customers actually approach all happened generally and come market, bolted Generative into showcasing which the actually Jarvis which be to and platform product we the actually and showed, consequences. the platform other drive solutions, more and and us actually they them

plan is to customers. world, more like automation more realizing great And how that would service. even get to I the add Generative Yeah, our they customers talking GenAI customer largest are biggest in I one in of was from one to that Actually, airline combine the they today, value mean their a to with highlight automation AI. of

adoption across I So customers. would tailwind it's for say great automation our most that a of

the we Were starting the there free of aware through? and special you, great there in Ashim. on that increase factors Okay. should quick for again. flow just or a be cash is any Perfect. follow-up better play a profitability And Thank you. Thank Like to congrats outlook.

just good Thanks, we the that about Raimo. last really changes we No, year. made feel

are continuing We through. that benefits see come of to

So that's special to organic. path we forward. no that And is There's a like feel sustainable mention. items

Thank you.

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

have Thank so you on Raimo’s. top much congrats of my and I’ll

currency to that QX in if not sure it terms. moved around. we provide the if now for what constant currency any Ashim, fiscal terms? of are year into has you converted the I'm implied able is growth guidance And/or ARR constant

Mark. -- moved it of script We the around. Yeah, the Raimo in sorry, talked headwinds, nothing really about has

forward. And there, the XX% and go not think in similar so provided that third it's normalized exchange, outlook we very like for of comparison. say is growth an in foreign FX. terms It's we of what as impact terms I'd of fourth much I year-over-year for quarter And here

some popping Capgemini's the I'm AI being Do they Accentures of be those they're formulate curious Rob, pretty it. into trying that that made the there how some think into of roadmap deal the on sense how see Generative see along involved for and a you RPA up are out part because some being I much when company pipeline And you that volume developing? customer, tapestry. Deloittes maybe world a the Got to a had discussions led and is and as large down with commonly would Okay. of sitting lines then, upbeat commentary that pipeline you and boardroom pulled that, by just UiPath

with systems It with would about RPA. I'd the systems actually communication, GenAI with see working what and more and mining not customers as document are customers them. moat that we're we and on benefits mining visual for test, Mark, understanding, only makes Yeah. the are it having that actually our difference the much together opportunities conversations them. it's significant classify where platform, about is integrators how with a the to joint integrators say which infusing I capabilities,

are That very existing mentioned So that's the is NorthStar company, automation platform. level test process a how with mining document mining all customer on and in go can went going communication process replace and large is document and a platform explaining insurance full the a I them. the is conservative about value we the -- very, out the and on where and to detailed script, mean, their NorthStar to is the understanding pretty boardroom. a benefit our I with spoke proposition having more. very mean, at in even us the level, our to we placing our customers happening able showcase strong. that lot much And I I in --

about the in that's it's -- feel needed ago customers, two said boardroom the approach to being quarters very our what like what we positive and we're fulfilling the we with and do. SIs we So that,

you Thank Rob. Excellent. so much,

you, Mark. Thank

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

Hey, guys. Good afternoon.

go-to-market just on one, the First progress.

any can down I metrics else the change share in productivity, $X heard you gaining the XX% give you the in year-over-year, force go-to-market there I would But that C-suite is anything which cohort certainly there is just additional in think encouraging. sales that through selling So can anything KPI-wise is really like? demonstrate that really that million traction? growth

then We value customers think at that Bryan, terms with. than the $X million that quarter first piece overall, million-plus our those the in way it, which $X just also feel RPO and shows we at, we continued that intangible and really deals customers because what's And it And greater among is metric I like really about commitment XX%. intimacy very Rob the monitor. is up we that's progressing feel of sales And on but and look well, the you that you the the the and our when intangible moving the some shows that platform discussions customer is deal of is of the that feel primary growing that is factor really talked look like top really We content customers. discussions happening. are look commented, we activity those well. changes. relationships very like the The from can has in force at the of balance

is that as actually (ph) existing see the in that they how And then differential the would well. partners just not trying we implemented to that in utilize [SI] I coming on benefiting the we to platform can space more understand one would feel, also not And their Asia it UiPath Pacific Yeah. typically We -- are not speaking and can in in the are last partners us, that and space, more business. in we're activity now item through. from Europe add, globally Bryan,

really all So strong we activity. the feel about

relates renewals? then that. pricing as relates just deals average can you seeing Appreciate last quarters on across to about Okay. as you're to pricing seeing talk well as just it dynamics, over what several as market competitive the you're And what it in really

the stable. value see relatively and we We see that ROIs people it nothing Yeah. There's -- provide. the

in that You some stories the good moat ROI the in Brian, has and given even and that a of many studies the demos, pricing. I us around think can of see case and

a try the really price steady as here, been And factor it, so that's really competition. a as but to not regardless discounting our can't platform competitive environment. will ROI they set And especially able much pretty metrics undercut pricing with why for deliver delivers. conditions we've is of economic and the and of that of to People deals us, maintain

Thank Very you. good.

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

taking of around guys on the little environment AI. sort A Thank Generative you the for question. competitive bit

you your care application in do a what clarity Like these of anything “Hey, us understand for get expect like take help and to you that in about make to you?” from around lot their listening versus portfolios within the AIs at the and marketplace? benefit these and ensure do automation messaging all companies help to you for their do are guys is that to a muddy AI going how lot more going of UiPath customers accrue us have all? seems trying automations sure big is they All it is all casts talk infuse you to and a Generative solutions. they're And to going vendors that road Does to waters Generative automation of a to there to sort of saying,

we of for to AI Generative I clear it would most AI cases creator doesn't change dynamic of first in space. believe that end, comes platform. like make the automation use all, Generative the competitive when the Well, are to the In

create that the So on Generative AI use artifacts you platform. to deployed are

that into plays think our I advantage.

customers. Generative that to automation that there secret the security more even more we to But platform. runs to helps our for increase automation. both other any much less create everyone reliable, think broader I AI technical appeal audience, us platform, have governance can enterprise-grade it than because best can the is much automation most complete the and offer platform people a our platform no secure adoption better

to also is exclusivity there point I an technology. that's particular a company me, to that clearly, no out an want advantage. to GenAI And has that So

Open in AI, Vertex, for are We market. instance, Google Amazon Lambda, everything that the using, is

that think term, be in chances mid- to basically market And that win the platform term I even essence will adoption be going commoditized. GenAI better democratized. the would the long is -- be So because the to will best with long also the creator

my Keith, you, from is tell this side. I'll

an it's tailwind showcase given at of AI come. amount platform first, that's think us far of I New think articulate, UiPath to us and customers incredible space. I in we AI where our in In story are to give a we how we've year, a and lot summit really the last the announced the And surprised I Summit can I -- was, we was York person. since announced tell March, take we in it the think with And they far far excited room Asia I've Pacific, can you it. that standing and were events actually and and in you comment we bring C-level at spoken how opportunity about back so of attended that automation from those how executives are. are surprised to only. discussions, number City, And had you a super the XX We're can AI

see I So at to people how to VI September go-to-market bring as our last think the decisions from think will out. of Forward And we incredible it's to opportunity come perspective, an and perspective, platform far made showcase we've excited it well. very in a UiPath, been the be year team's I from

you, guys. Thank Excellent.

question. comes question state Matt next Please RBC Our Capital from with your Hedberg Markets.

you're from you guys. the to good of I'm a continuing questioning. in be And of couple well. or success to going you to just questions expect kind monetarily? Congrats the year, benefit content Do growth actual today. my articulate tailwind a to taking a GenAI? call lot quarters able for out curious, Yeah, or GenAI think Rob, specifically Maybe of as how Thanks Great. do

I We'll think drive to value it's think reference as value that And I that believe drive say impacting to are think benefit customers we'll and we customers our execute at that will continue our how continue how to to continue -- get again. strategy. we look continue look, think receiving continue We'll And of part results I you from the I NorthStar more GenAI. and are will we be we'll more as in all we that. be already document to scale able we we these and showcasing for and our more strategy that creation as to as and that are And the game doing boardroom our in will what's receive. that's look ASIs of of And space, next showcase we'll get that's in in we those the of and what mining, when in will we you the they customers floor, quarters honestly, changers the the next to bring years. what understanding at showcase speak the going return favor. the we're terms communication,

one that think closer as to second of sort Thank a we little think more Realizing tick NRR a of you number you. the it. bottom that quick of year? towards Got we're Maybe just is It trailing a Do Ashim. this in metric. did for sequentially. down half a bit here

mean rate think is as the changes and year. dividends, that I that going pay I look year we've to the And progress earlier made see those you'll benefit, good see Yeah. this we've go-to-market area. our benefit is to expansion articulated the this continue come I about last I at that feel way you're the through that really in on area that

two we changes that a So navigating -- we're quarter from made, it, quarters stabilization. we done we environment, having from variable but just are one still the

to really our continue So execute. we forward the here that of I come through metrics as benefits to look seeing

guys. Appreciate Got Thanks, color. the it.

Matt. Thanks,

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

we this towards list cases? manufacturing, use you're seeing Are you're here any that to seeing coming you pivot with Any so in to commentary new new where some I business color about the that certain And banking, solutions solution strength? Thank on might a expanding then ask strength perhaps tech. much. start Great. like are that vertical on wanted those customers verticals? verticals. as it that with seeing selling the more It you're in sounds that to there see strong Is in quarters?

process mining, around to question. automation driving NorthStar. document into to want able a Yes, as of full lot pure from that We platform Brad. definitely we're an where RPA expand platform integrated customers understanding Great categories and communication see as broader use the

team in in see in go-to-market, across providers. pretty banking, also Remember, services, and it that sure, industry our implemented we've payers has space. particular, Europe and You of got which both that North strong. America, in financial and industry solutions skills, insurance part in for is

sector So we in forgot federal seeing that's industries. the would also in mention in I that well government. really some -- sector, it strength we're those to public and public driving as

multiple And gas I in as seeing well, areas. energy we're including other well. opportunities of mentioned So as areas and oil

And [plan I Thanks. we you even on here expand] see versus that land but some in to maybe if with going of the Wonderful. medium more (ph). enterprise, accounts where or You balance? some progress in see are enterprise softness Could top forward? big could may, just guess I mentioned Atlanta? more more, just funnel we one start

mean, we've treat work that in ARR the and -- see distribution and we like in are this $XXX,XXX on see working and Yeah, above, above of the ARR we're we $X on some space, the we continue I in million those had to we'll previously models we that continue space. -- to obviously, -- and we model

Ashim?

talk various When logos so feel meaningful of connections, that we're say think better. what about I our we kind like much enterprise, mid-market, there. presence have we're or is in enterprise seen episodes. the of at the the and We enterprise acquiring, smaller progress I Yeah. we've we looking emerging quality customers that

more particular impacted the that is segment that think variability to by macroeconomic of I the be conditions. going

better to we going Brad, quality quantity and then think, get to churn the us better expansion. That's better better specialists even want measuring that's is customers play to sales then where quality of and down. and it. area our a how I So we not for it advancing up are and increase those and up look is necessarily through kind how to It's we

much. you Thank hear. to Great so

Terry with Securities. Our next state your Tillman question question. Truist from Please comes

on questions. for Thanks Joe This Terry. Meares the everyone. Hi, is taking for

from the briefly partnership? you SAP is on just You early helping quantify go-to-market you mentioned curious any way And that they're the I'm relationship benefits remarks. your can the prepared there how side? in

to common that ASIs. joint year. going working accounts. of We're Yeah. on enablement joint And working the multiple continue architecture is we through teams One We've both the to through aspects. a to busy created customers. They -- will also with have organizations. our expand present

in discussions companies, really multiple partnership And as 'XX. the the incorporate around sure we and go well. they will and right customers And it's -- enablement in to all now, and for had So feel significant automation enablement. both about benefits the SAP to we've ASIs with we see with market the of FY that 'XX how working between in positive positioning

Great. cycles customers? And accelerators on impact is the again. as the that implementation that for of can way have or there follow-up, just you any the there ROI they're having then a quantify out you XX solution Thanks

metrics quantitative this We don't we product cycle tell What the or the we monitor sales individual pleased provide solutions time. lines applicability don't and around I uptake, can continue to and feedback, disclose disclose at but metrics we're customer you or is them. with in the really

you. Thank

comes state question Fred Our from Macquarie. Havemeyer with question. your Please next

some Hey, how being getting more different I for now. Generative many me lot Ashim, are more questions, think this being on working right Daniel. these thinking, AI have one had models set I've AI training deployed And single various efficient, of and hardware. models we smaller workstation for of a Dan, two thank up and here. of what deployed I parts the but one especially experience since of smaller on struck through with working in One space a fun convolutional of sufficiently a last sets is I'm a of you. spoke,

So parts two here. of curious kind I'm

phase the using, offered Daniel, there Edge is they're this Generative right shifted for and in as are hyperscalers in impact towards say, workloads? at of we're the rather like the primarily APIs some line available more out from hosted there AI future being opportunity is while the run through these Generative any perhaps through of of than perhaps for centralized an Thank of on there? We the to secondly, margin And for some products AI then Ashim, having APIs? gross hyperscalers, Firstly, you. that the now all

future think a GenAI. perspective about the of I what interesting very and that's question

would value, if quite we bandwidth it's at the the can point think certainly, for run We point. But the this I forward. understand and an use at look be significantly a really way And edge premature we'll in cost, to it's love we the with time on parameters reduce I some required, eventually, like, to Llama because of kind capable bit this model to II large Edge. XX [Migma] significantly the don't this interesting billion know, the a (ph), are on of deploying one like cases, experiencing to of

are I then done XX% And about talked These our of there. at than XX%. margin greater look We that when model it, XX%. Fred, long-term is and gross like, numbers we've

in think we with in are. where we factored us are those I both of and and the terms of on consider capabilities and in cloud of there, AI see to early the areas, factors of uptick us, days pricing workloads for right in the and they to be we're going what front now these

look we So at value. tremendous this developing as

right a margins going perspective we way it's so from that good our modeled really And that we've the not forward. about to feel now, and threat very

to data you. with especially I the want about leave how suites I privacy broader AI? respect Generative conversations if Rob, with all. don't like, could addressing don't you're then I a want one as considering considering that ask concerns governance just are having solutions, And with I to I'd of ask you AI UiPath you adoption here question love third and concerns, you at of fret more, because Thank unquestioned. executives to to guess, are

to with detailed with have in and them maps CISA data folks how will testing discussions, in normally road deal through we we our -- explain very that say, far, and we Probably kind and would take, a a we're around but takes ease, security generally, team would of them the But it, I will But CISA go go through sales. so will take handling place how in the our tell that multi-tenants any security, take lands detailed question not had way well. data privacy, through it where we in would that Daniel. security you I as for

to a service. even gene offer request a very to way public automation actually, And anonymize good

better then translate if then can algorithm to to apply and For want use understand back anonymized you and it OCR then GenAI digitize an document, you the to we to if send user. our the [PI] on-prem want it and instance, to services and document document -- to (ph) about answer questions

well privacy enterprise-grade think offer to we GenAI. really to are I are of platform leverage this different use And there approaches and to our positioned security.

very all you Thank much.

you. Thank

next Kirk Evercore Please question comes with Instructions] Our ISI. from Materne question. your [Operator state

for This Hi. Congratulations strong Maybe for quarter, one Kirk. Ved taking and for is Chirag on question. just on me. thanks the the

that's the same deal customers you a scrutiny trends of changes September, are Thank into do As August constructive seeing flag? you the more starting or more prevalent conversations general continuation year willing the through any seem and to you'd there that through deal more and of in look to Are been you. invest. get

everybody from Like respect. standpoint, really can in-quarter to don't want Kirk, our don't updates, No. know one, I we give I which --

I feel think -- Rob we've environment, just the on we it. think I commented

at down. earlier. depending environment is being about think said, I or look I on conversations talked stable, up the move That industry, think the we Rob it And variable. relatively

a for something are been I it's are I across been. And we've a think there's having customer can the where think our -- you demonstrated very customer have ROI, an constructive. that customer, They constructive. I base And just conversations now. tell while conversations that's

you. Thank

from next question. Company. with Terjanian Research state comes Cleveland Please Our question your Ari

are you on Ari, mute. Hey,

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comes Turits with question state Please from next Michael your KeyBanc. Our question.

of you of users, and guys. the a for opportunity context trends bit you're users Michael. business maybe Generative AI in Hi, seeing on business the talk of for to versus to taking within the automation? especially adoption IT and for that This Billy about Thanks the Can question. just is selling democratize IT line the

get would the Yeah. allows software, on able actually What level, that to the two tell needed them the into ASIs. always the take we And relevant to we infused showcase focus is would And And we're in helps they CEO like now be or platform with the launched you platform, get AI. how from the when C we of said feel need with or actually in bring I consolidate to we needed that bring the IT, more why to and into also value boardroom articulate the then the and and together, we're to head automation. the the that we CIO. can them using NorthStar discovery platform, areas able CFO that automation, HR

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Thank you.

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

I shift work one deals everyone. see of the deals around. the thoughts of slowing the one same that. our in Hi, up maybe I within quarter was are almost in deals specifically the enhanced interest quarter Thank interest about to making accelerator. some quarter. the that It the on deals generating opportunities versus little deals more explosion made question was the Wanted nice it that in thought there, automation in is, you. of solutions But have more guess all interest in RPA. versus kind kind Congrats complex GenAI of a in and at an and in some some out items certainly helped came larger customer second of of balance bit kind how that on down time, maybe you maybe and complex half some the

the kind of see movement at engineering customers the AI it NorthStar, customers level, of whole secondary how does, I we that's spoke why ability creation know environment, an the they where one them. we in have we with, GenAI, actually us that know gone that's the on feel in to is Yeah. around incredibly value given they've opportunity, the mean organizations what's like There's an that can a that to we're showcase we've with best the that's value to our the been understand view that we deals are I Once about also through from many They detailed don't technical automation going they to want actually and differentiation we see has And want focused you our and what and them. been this we that and customers create would benefits stunned. They announcements. automation. real market. can our a stage see working showcase showcase of they actually what how goes. product that want words, are that can other in In to it through happened tell

that. So really we about feel good

you. Thank

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

Michael. Hey,

great. Hey, XXXs. stabilized rate the retention the be metric looks question. Thanks. Appreciate to in The taking net

The more stronger than guide adjusting. muted ARR looks from generally a period expect from of AI-related that for good cadence we're product the QX seasonally business. have announcements we You what a all

some of And some so any the you deal and you have maybe, into of visibility just can just how changes, progression just help macro Ashim, frame you're if go-to-market incorporating the compare commentary how of between all end stacks year [indiscernible]. the prior into there's it -- all to at of rest any guidance up and now that your to the that and if way

pleased the We're about word it. actually the in We variability and just our We've say environment but guiding of transition. the consistency. the the progress the of I of also factoring would just guidance. the in what's pretty would consistent about us, thanks, good I been go-to-market with thinking say word, is about feel front

at back to floor the hand further no I'll questions remarks. time. Thank there you. for closing And management this are

time. Yeah. I for appreciate evening. at good thank Forward I'd questions. to would a VI. you for Thank us joining the you. just to like your all look Have forward everybody And seeing I

parties Thank good you. today's a concludes All call. day. may This Have disconnect.