UiPath (PATH) 30 Nov 232024 Q3 Earnings call transcript

Greetings and welcome to the UiPath Third Quarter Fiscal 2024 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce Kelsey Turcotte, Senior Vice President of Investor Relations for UiPath. Thank you.

You may begin.

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

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

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

We will be discussing non-GAAP metrics call. on today's

includes growth may statements from to guidance our on due reliance and therefore, forward-looking in and grow investors for ability our fiscal many the and factors, results these forward-looking differ of as quarter efficiency not XXXX. call undue well our place drive platform should statements. about Actual the materially This as financial expressed to operational afternoon's those statements fourth

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

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

by slides. to highlight that I webcast this being like would accompanied is also

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

note year-over-year indicated. all that unless In otherwise are please addition, comparisons

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

Thank for Good us. everyone. Thanks afternoon, joining you, Kelsey.

strength underscore the end-to-end model. our customers for delivers our results automation and Our our value platform of compelling the business quarter third

million, quarter $X.XXX of net For driven $XXX million, up third XX%. our to by $XX new while the quarter, revenue ARR ARR billion grew was XX%

margin continue than We basis efficiencies year-over-year operational operating points increased more while organization. Non-GAAP growth deliver XXX XX%. to driving across the to

non-GAAP $XX We adjusted delivered also cash flow million. free of

know, the year, we go-to-market automation in raise term. with that meaningful fiscal As have runway pivoted over beginning significantly at of invest to all This sizes. a of organizations helped towards the increased profile enterprise C-suite many the you has resources investment and presence our long partners of our our in this

could key our including than You hosted our conference, more annual guests, feel where customer VI, X,XXX decision-makers. visionaries, FORWARD industry practitioners, momentum we at user automation

inaugural embody platform our about the event in recognizing AIXX our also the to at customers is our work. AI position left and for super delivering program, our launched Awards UiPath means leadership I customers who the tangible be energized UiPath leader We what market. a it in value

was the more ARR FX-adjusted or customers $X dollar-based over Customers X,XXX. we and deals in XXX%, XX% quarter while number more increased closed with quarter for million to with ARR. ARR million net or a third $X XXX, in $XXX,XXX record retention to grew of in

strategic our match a downloads. some service IT among marketplace, with events software, to playbooks, now Coupa enablement and of the provisioning, teams. management priority be continues Industry popular user our with support SAP processing solution the for XX to verticalization a in available have two-way and for company accelerators We marketing invoice most

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their support with mission-impactful productivity enterprise initiative, of digital of on HR, program driving full working also is work employee to driving departments. a every citizen USDA and also approximately automations The and future of USDA Agriculture their our experiences. delivering assistant States platform, employee for XXX,XXX We're personal the desktop, Using new across employees. United era features a finance Department IT

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operational to Document into drive efficiencies harness services, cost full to and Process integrate to platform and the increase program and improve During and the their creation. they Mining they Communications as quarter, citizen saving expanded AI Understanding, look Mining automation capacity

their KIK intends adopt Tenable to entire in KIK to products which their first Consumer Products finance like efficiency robots and deployment, automation landing of Products their multiple first understanding the [ enterprise. In long-term platform across leverage new (sic) unattended drive ]. phase scaling Customer goal of with and document across department their purchase, KIK We're also logos,

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in Group and operating biscuits on food. be to and will one Australian business Key processing. platform Australia, me, order the costs. Group Arnott's selected end-to-end automating reduce for producer the of an processes optimize Australian UiPath The sales and initial snack invoice the Their legend, focus Arnott's

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Our an a cost-effective our to motion go-to-market element efficient customers and reach our GSIs scalable, help partners in expand are way. important and us that of

and program Task automation across adopted errors in government Mining quarter scoping business utilize their To analyze to finance accelerate further to and a where example, processes they lines Deloitte, accuracy. For has enhance built agency the Document activities. Australian reduce working processing, invoice the robust an data with HR streamline program, and automation accelerate Understanding they

announced our recently Studio platform strategic the technology Bedrock, which automation. Cloud citizen AI-powered Broadening also and developers This generative ecosystem Marketplace automations; of Web the Amazon Google includes Studio deploy on several makes automation and it We early new for to integrate customers their the AI easier developers UiPath automation to and business directly into XXXX. availability seamlessly partnerships. enables

flow. cash line results are another delivering expanding quarter point and profitability to third top adjusted commitment summary, of non-GAAP free In our growth and strong proof

employees of relentless to day value would possible your want on out. focus their and this I be in support. for thank partners our for our None unlocking without customers day and

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

Thanks, Rob. afternoon, us. Thanks Good joining everyone. for

The that automation inflection We from this believe is point for drive as organization UiPath. the at huge tool market a AI. enables market-leading an is actionable value to opportunity

business we introduced tangible of to platform seamlessly AI translate our outcomes potential latest release, At of into the and drive scores deliver our FORWARD VI, action new that XXXX.XX, capabilities for customers.

to the most platform. for a perspective, Autopilot, analysts UiPath enhance experience user announcements and at developers, set capabilities exciting my the of testers, FORWARD across one designed UiPath AI-powered workers From of new was knowledge the

AI, to document unique process expect full bring of We automation, based API end-to-end and enterprise-grade, which generative capabilities spectrum our AI understanding Autopilot, on RPA, specialized to the is in automation.

workflows. Studio natural faster intended Autopilot to levels, automation build across generate leveraging by skill help developers automation language to descriptions for

is an great increased benefit For a this less developer starter while from technical productivity. will developers, tool, advanced

testing from generation every Test for surfacing phase accelerate test results. from will the of cycle test to life of insights Autopilot

business and that the will users for fly. companion micro we AI use create intelligent for anticipate the everyone and help personalized as finally, And automations users, Autopilot on

around FORWARD, intelligent shared at by processing document our generative announcement and AI. also powered active We exciting experience learning next-generation introducing

that for for a accelerates next-gen to training scenarios, to day with anyone And to up shows models train IDP and our permits types. next-gen down week almost specialized AI time forms. internal benchmarking experience specific a complex from Our for by minutes IDP domains model XX% simpler our document to

have goal process a driving where during Suite program utility to million in metal to Test over their They have with and organization, our $XX inspection achieved the Understanding sponsorship into for products hours including Understanding value UiPath their XXX,XXX the like savings date. a With public journey, customers, their significant across expanded their Document year. is to robust saving automate a with they working quarter, automation created automation over Chicago-based AI they of Document leveraging $XX incorporate Deloitte. deployment C-level million

market broad of assessment, or IDP IDP, a and third-party was into for Processing, Document Worldwide recognition leadership Communications in platform. enterprise Document we in achievements, robust IDP vendor humbled And and named are UiPath Mining, broader XXXX-XXXX Understanding IDC UiPath Intelligent our automation our MarketScape, by including where leader integrated our capabilities

day Innovation technologies. am we energized is and teams this challenge capabilities our mindset. road I customer-first a a the quarter. automation lot next and of our product a every cornerstone our focused of market-leading on Belgium with with And by harnessing map to deliver I cutting-edge transforming time generation both ourselves AI by Romania spend in strategy, enterprise of

world-class excited engineers, this team Officer our dedicate my new winter. I to transition as with agenda time Together UiPath's more Chief am driving I Innovation into innovation with role

turn it will Ashim. over I that, to With

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

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

tailwind, totaled $XX Excluding net ARR the million. FX new

We including new Health One customers, logos quarter like MidWest New with Beacon Group. Financial Smile Relic, XX,XXX and Doctors, the ended System

of focused we macro our to As quarter, see with lower we customers market propensity remain a on continue end at higher headwinds and grow. last said acquiring the to

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

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

expenses. Turning to a gross overall third was XX%, and software gross We margin delivered quarter margin of XX%.

now we be the XXXX discipline, margins gross XX%. fiscal to As team drive year continues to cost approximately expect

quarter commitment discipline. and $XXX the million, expense our and Third to highlighting business operating in expenses operating leverage management our were

million $XX stock-based compensation. of of $XX loss operating million GAAP included

margin Non-GAAP resulting of operating $XX non-GAAP third income operating a million, in was quarter XX%.

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

October XX, we securities and As cash, and billion had cash $X.X of debt. no marketable in equivalents

stock million X.X October on November Under million XXbX-X an XX. price an under XXXX. plan, million shares at our Class at our repurchased which repurchased shares of we've X, program, through A X.X we we $XX.XX an November $XX.XX common through additional average $XXX average a buyback X, XX, Since announced of of September price

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

we fourth in be to count joining fiscal year the the the XXX $X.XXX million. Thank you adjusted For shares; we finally, share with of range to free approximately we expect forward to you $XXX basic range us operating million ARR $XXX revenue fiscal of and million; approximately and look XXXX, expect of speaking $X.XXX cash more million we expect today, $XXX XXXX the quarter non-GAAP flow quarter. to and non-GAAP billion billion; in to quarter for million; many than income $XX during fourth of be

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

first of Morgan Weiss comes Instructions] the line Keith Stanley. [Operator of question Our from

Weiss. question and it few budget see AI? kind in from automation on a of dollars of and anything start Theo reallocated product still Where see of terms that's they're of on is AI fit or, spending current when is that's positioned broadly, the out getting technologies. of whether of one take for Thun that you coming of technologies, light on sort offer these AI between customers spend quick conversations growth more traditional budget Keith do you're that's your you into areas kind somewhat environment. within off, how the customer in Clearly, you Maybe uniquely of companies AI the the suppressed. sort And how generative to

of see show would able to cases, really are how business in what And looking at the connection invest. many produce say and Yes. to that AI investments are innovation. that want Good with in I AI-powered And so today spending innovation fits the and customers leader story business us is case efficiencies platform. out customers the with we What to combined question. when value an gain are innovation, in us and they to coming AI automation NorthStar invest with in well the to and as and can they our AI

don't driven feel C-level how to customers. like on industry able it's we really connected from another. solutions feel been we group one business the buying focus away drive the I suites with were to and those we've taken I how by So with case it's and to cycle

you Great. FORWARD side. up basis. It a markedly you're quick that that of year? margin had Obviously, sales you and And next in can expenses anything like And the can That's kind question your back then helpful. sales markedly? of of share would more marketing looks on your the there quarter. where investing, highlight kind pretty does great. stepped that to you in conference But force sequential on into continue Anything are be a you terms growing also

Yes. two I would just highlight points.

sales is, head also dealing into capacity, we recall, reallocation software year. our team the then is our second and And First if in are as are also to you especially we next to invest with the going -- sales continue our of we have expenses. we

through and third So marketing versus which a in caught see fourth lopsided you'll G&A quarter. be quarter, little sales and bit up will first

Our line JPMorgan. next Murphy of the question comes Mark with from

my add congrats. I'll

as company, tech the and that So a had Rob, you well. UiPath just I'm thinking over that Analyst of year every and ago, mentioned shelfware has to there Day back course, does

maybe moving into worked as I to think of level you then where forward inventory have next and just hitting you year they bit a year? faster any terms If later, a about might a had customers And need do in might we replenish start get that they have a sense quick about it down follow-up. excess have bots,

only I models. certainly earlier, as and benefits us actually customers that look, This companies broader We Mark, platform bots shelfware. good Yes, deal said efficiencies on not they into business as with today move platform dealing with feel focus marketplace the helps new our efficiencies. we're that from

So C-level to that our level take are platform customers to activity. our we the feel with next able really good and we

you ARR moderating, Okay. level a the the numbers large a law of next the should of closer teens step macro time? of for great do the we of But kind had we been trending at to when XX% of of holding XX% could trying entertain out looks around some Or and look that there? keep the mindful course, just like bit into in to down think which, a be period kind as that And quarter. are It we've arithmetically, see. deceleration it possible unknowns thought of down is it, it has it Ashim, to of is to

just at would and that. a macroeconomic putting our focused performance look our we to I get we Yes. guidance. We're prudence team's focused we're on really update execution. the next pleased good and variability closer on with the guidance, year-end fourth And and in our here, year. are really the just Mark, right say, out right quarter teams closing the And as included we'll

of the Our comes next question line from Materne with Kirk Evercore.

next that we're expect a renewals your on additional logos with have you this and you these and macro environment? stabilized both for is looking more you choppiness around prepared a out there? still deals you trend you continue and remarks, all broader strong to extremely do and how year? spending what large Kirk. some in very Chirag ahead of seeing new all, are on commentary close to next terms to In Or you're Essentially, quarter. quarter in believe Do large mentioned seeing deals any Congratulations landed strong. that This

how the the we're the market, all and having mean, then, conversations And The and in driving where changes as teams NorthStar allows said that's our earlier look in customers. at how connecting to ways, really how really the can and platform processes I through driven customers. look, meaningful understand we've is us we I with growth quite adopting really, see value all is with why that feel bit automation tasks communication drive products. many showing relevant. about platform. customers it With in have customers been relationships and the a AI expansion made They with happening Yes. we've to our they're are the good on, with

acquired with and our companies digital happy and we've new So -- the net Relic, these, the our digital that good connect. is that really expand with do of kind the pretty base over customers. if last that some look we at companies over AI-powered transformation quality about are talk transformation time New And of them, the of customer We stuff. you will folks we're these right automation with believe helping us larger

we good how feel And us change about environment. good We in helping industry so our feel game is the focus about this that.

Our of with Brad next question from America. Bank comes line the of Sills

question a ask to around some expansions the of you've wanted I departmental seen.

talked You here. about industries

now, here other you're HR, finance good. sector some are getting NRR, uplift and use IT, of I outside that with accounting think banking these and in the public that finding cases expansion But you the of into sounded with activity you're departments? seeing in

Yes.

I with hard say activity broad manufacturing, with we fashion broad grocery, retail, have goods retail. So with retail, -- industry we've seen would with

we see and we in a public feel public office significant IT really As procurement in the we organization. of and said, sector finance activity the about outside also globally. amount of sector positive And

really broad-based, we're more So and where about good it's that. feel much on we focused

could, if FORWARD conference, the Great. please. one And then I on

If just terms lead years this conference for how momentum? in us coming out you do versus important pipeline. year of the through the feel you past and deals that how And moving of event remind could is management

customers was the experience. super And the the quality Brad, you, we of years' of to I've discussions of event quality the what got tell and would X had. quality I the excited and see that I only

had you with at look really us were they us, If are onstage the these doing what and companies we with transformational.

was at we're that XXX look We you with strategy. partners this and onstage with Deloitte transformational. spoke SAP the partnerships about aligning the If channel around us,

in it actually pipeline we that branding, certainly our -- catalyst is and good move as help feel well. FORWARD a position to our make we a does the us And UiPath, C-suite help difference. event actually So

line Our the question Lenschow comes Raimo next from with of Barclays.

me well. as from Congrats

getting what bit First, of hearing on like a about think drop? especially as from where, test please. enough lot more the you our different a areas a the about quarter, specifically that then seems this you strength bigger-picture And we're Ashim, ecosystem, had question, saw follow-up little be speak for you I'm like if checks SAP Because to can saw of going what the you like there. that's And a quite not areas one there you're on I credit. in sure

Yes.

at on, not look to other I at picture, a you I for broader ways customers growth. if activity. as of driving efficiencies new today, that So And the earlier to business looking said amount look if market models are are there's significant the drive fund

SAP sales helps allows but program. obviously, with So has in moved one which which risk discussions program, incredible challenges automation a value needle customers actually proposition, our biggest And excellent that the between job to the is testing that their that. Test focused associated different And SAP do transformation we are helping are necessarily more see that test an in partners, really and environment. mitigate And part that an And of fits involved savings which time I well SAP not organizations. go-live. achieve us SAP, because transformation we with is significantly. activity many any feel of obviously of customers of And SAP a really, we drive and help have key it believe big with where RISE is results, a their an with customers significantly benefits. significant with into the ongoing will objectives, we've we GSI the

Yes.

Then Ashim. for Okay. Perfect. one

for also about et better balance ARR But been for you sales, ready this very are as to times are getting How some cetera, times quarters look about you the think like going kind potentially you now but et of forward? like disciplined net around well. gains you and ahead. better terms few you cost the we does you for and moment? think do could that guys -- have to you you you Obviously, it guys of look think where like trends -- demand point, And best -- at do What for As addition margins. stable. example, have versus are seeing How of lead for the cetera. or times about need drive at salespeople, for kind in productivity eventually a

I that margins. strong mean I have model, would allows powerful margins, while we with very gross a to start invest us business Raimo, and still generate cash

And product returns right At the for see Rob team do looks at we also and right we're to the same so time, in we as are that efficiencies. in the basis been sales whether our we'll sales areas have we mentioned continue ongoing investing, I as investments. team within we and a as well our team is and capacity, that our the and an on sales team. team. invest investing And leadership earlier, frontline our where and looking

that, positive with in cash and our we we're generate constantly offering. both that We while feel investment can drive And I very together value margins. So mode. still about feel like think investment we

question comes Truist. Terry Our next of the from with Tillman line

Congrats results. from the on quarterly me

at move customer maybe simple here, pretty actually First And I the maps road least of of unleashed road your the your larger or you base map a first maybe enterprises with no-brainer. to And you like have seem on? is a first adoption. question, NorthStar packaging anything how Like guess, my lot I'm much all, but with Rob, NorthStar I'm all full of I follow-up hearing product or from part done in for question create Have about less had then you platform? the Ashim. platform the inertia a second to

questions. Great Sure.

mix actually a and for solutions. And doing of and sets value-based it's be units you solution less of it the combination say say actually to packaging expand and would lot really would that. NorthStar packaging that, I you constant in be also around AI it purchase more and customers so of very great that very careful match and a got a they we're making how about I simple to that simplifying simple significantly we're the market. bots a upgrade, has SKUs are And very with for on bring simple connected with And into pricing So focused to that's making pricing we to a and can friction. doing obviously, C-suite. way to or that tool is so customers but

And have are get and have organization. to enable more communicate. scale to organization sellers to to we more as and we we're our the able You that continue references, able more scale

continue still work there's So plenty that the continue with and for to opportunity organization. NorthStar on us of to driving

side. of kind see it's work the I'm all in just the Ashim, terms on here? work it That's of you harvesting a Could in best of further curious But potentially already NRR? I go-to-market mean drift how the guess, this great. class. And all the on could actually from NRR is trends side in go-to-market with this year, of I more there potentially improve

provide be fourth we're I'd with we're out to closing year. just executing, forward we'll to quarter. and to next going are where say look updates more continue pleased how we we and And

Our Havemeyer Macquarie. line question from the comes of with Fred next

on throughout the with congratulate for like agent generative I there. longer-term GPT-X, time unattended look vision wanted looking do you about text, I strong considering you to with agents market companies agent-like the products functionality your using and been and a RPA, considering now? autonomous to curious, to to like once But has we've focus But et and AI. forward attended think cetera. I'm blending wanted how UiPath or with suite, being generative take, bigger-picture the original guess, looking using, also what really seen your again you I'm impressive it results seeing one of on market, autonomous really your do the can seeing your the at quarter. evolution AI a example, agent-based I'd at portfolio very being firstly, and integrated over built of I the

are bit the help I that initial drives always Well, customers. thing that around automation this the around a the our foundational the bit of power the customers, positions me we is that harness and A a one screens agents type approach in lot longer-term platform are need how tasks, are seeing automation, is we biggest outcomes to market Actually, to understand realize is built on our right going after of in AI. And with now what of a basis, in going next-generation in, prove said where my AI automation. direction best to forward order that that documents, that of the autonomous and the drive UiPath to is think processes, our in pause little for build that seeing. automation AI plus multimodal, of they powerful order the that they model

So it's world a clear advantage position take of really that is we are me, direction. in And very going it. to good that to the again, into

forward useful. consistently out way to Also within help be a just in looking difficulty Intern the feedback to topic and an having a data organizing enterprise able Service heard here that's autonomously as of everything, I've related hope. generative the own one's to I'm to AI, I of about

automation customers the able across their they're AI board so from attempting and curious And generative and to platform beginning strategies customers how own hearing to AI. whether help generative you're more your really holistically with UiPath's what I'm is about to approach

lens We leverage partners cases is to of in are where Japan companies around Accenture discussion in had order the frankly, of Deloitte data interested Actually, with accelerate or very specialized a even one and lens into like automation how and training major better to specialized can our world. AI. custom that with right in U.S. And and train, they it's, hot AI. to used use the of cleanse interesting the discussions with Yes. this points is the the one automation customer now find,

next comes line Siti Mizuho. Our with Panigrahi the question of from

this new So net see to it's good bounce-back. ARR

speak spending customer, think enterprise you as in So spending? be do what to next your automation you the would year of priority for terms trend

And how at to they markets. earlier, deeper I'll customers, the many mean tell levels gen you spending cyber and the comes that and to automation way look think and they when and I and how they're us AI significant to connecting in But a they analysts customers see with look approach well. where their drive drive efficiency and our benefits of going that see which to we spend, our on as different it next focused process, deep a as this in a and us want looked to and can how would meaningful companies order different communication, different customers, I of e-mails models journeys process organization way, in and in how spend in in Yes. very say we've analysts and at going are and spending. helping I in year. do key trends drive are see are customers. I to caution data thoughtful customers, at help different also fund approach as a documents don't terms they customers to orchestration with that level. said how benefits social in and efficiency them cloud inputs that into we customers AI outputs And customer in actually around change more automation communicate they real and it, AI want

enterprise I count, follow-up. your pretty your also customer been on quarter. down good a like seems If it total it guys come Ashim, had you And has segment this spending. capture But

So was wondering like you different segment? small mid- large saw to in anything segments there versus different like,

with has of We're Rob executing way teams see we of customers, that define with where on we've variability segment smaller Look, and earlier. our our to of is a macroeconomic that's had about to how buy. performing. Yes. enterprise quality against we're talked lower the the market The the the businesses. impact And majority pronounced also very end the Overall, more churn focused I strategy pleased customers, consistent. with we strategy. like the propensity quality as customers which we that a on are high remains our mentioned think And

comes question Michael from next line Our with KeyBanc. Turits of the

solid on execution. Congrats

does we for Ashim it the have in So follow-up average shorten improved. And time of Autopilot the of further? like One, two for time a It questions. purchasing. seems help I then terms shortening where that And on of the rollout even has the are deployment already bot?

of preview customers. are family few is of how is hundreds Autopilot private some This initial seeing adoption the product. shorten in good already that set our for can with we focus always And testing curve our one customers the our are of product really major on results, we the that

going also adoption specialized significant production for that to the they increased productivity, say been and is I it get developers, Understanding quite Communication and that get to actually has will would it bit. mention for a be like yes, this really has in AI, to proven This I a advanced deployment proven. is already that started both our So would already, to driver accelerate for And using Mining will citizen Document training gen models developers also, faster.

on down points Daniel. Thanks, did X an it's as-reported But an stabilized go on the it see to last And basis. FX-adjusted basis. it Ashim, another on great quarter as it NRR, having then, did

there? So actually what are You're the comps. and puts slightly takes easier getting

point? are that trying working in what's the pulling what down that And and increase actually So are at to NRR? this things

our Yes. Adjusted continues and pleased very pleased overall, every will for a strategy. quarter's change. our There scale of law course, territory. bit mix be of I mean, numbers. deal little a always to best-in-class But with we're at be retention. of which dollar-based really I with net look FX, will the in And XXX%, in it's large we're a

progress very I quarter. think really we a marquee of particularly make segment, continue sale the penetration platform, several the we're and enterprise North we've America. see Rob strong the in had mentioned, in The in the as -- on. performance And good to we good making deals

feel on deal executing headwinds We and the the is the lower see, our whatever we pronounced -- -- in market. overall, the like in But a results more quality we the higher strategy of of do quality end see we're in in we're propensity strategy, that customers against quarter. seeing lot to really customer that A the pronounced buy. with the and

comes line Berg Needham the Scott with of & Company. question from next Our

Nice quarter here.

the change quarter fiscal positive the 'XX, new there ARR believe, nice I for of since net on is up first side. fourth Your time, so year-over-year

within most of Because and customers Are mid-market quarter. how the I think changes end the the you execution questions the have from But around about demand whether couple But upward are it's there. macro you or the down positive seeing of you a net the change the more environment market been of impact or new? on seeing commentary market? and existing of times mentioned from any enterprise? your in any different demand customers sort

see taking with positive Yes. discussion kind ChatGPT AI, us C-level platform feel And OpenAI that's like significant table the I we at have demand, to seat of I mean having has the definitely conversations the plus, positive and market. We place. been the have in a do allowed conversations.

XXXX, We of not that RPA to using all they've core to are expand They're the out those place. -- to they actually they're could as conversations are And on able points like have actually an opportunity feel there's where us really since we're showcase value it, as taking not now customers believe and much been this. getting they calling again to they get do and how XXXX, of have proof discussions it.

the more and definitely So business we are the how definitely of good discussion. more we yes, to how feel customers relevant discussion about positive help can and

impacted current clean pretty early RPO quarter-over-quarter. there in or Got something, metrics know, any calculation? a quarter? it. Or that growth And then, was meaningfully don't onetime accelerated Helpful. abnormally renewals anomalies, the Ashim, rate I that that pretty Was your

like abnormalities major No et early renewals, cetera.

mentioned quarter. several had and think record marquee quarter a in a of for number third deals I deals above we I've the $X million

metric. deal quality that's that and really execution it's good So driving

Michael comes Fargo. Our next line question with from of Turrin Wells the

currently? I'll ask A us year Rob, mentioned two-part C-suite, that. as upside have perspective And on can with a you terms provide you factors any the reaching into swing around of budget there? your approaching for wondering of automation how and you investments part, then second to part you the IT if us enterprise in And in for visibility next consider as customers potential can a upfront. are Ashim, given into comment growth just XQ forecast

Yes, more cycle Because previously. much Ashim customer conversations Michael. I the than much earlier we're previously having boardroom, and a in I'll and we've suite. we've believe than much I'll C-level these budget important it, in at let been, more cycle the is been we're take conversation in go actually later. We're budget the

key really a that there's the the in really allowing is in think what's the I how made industry, of participate. right? of million to industry platform $XXX savings us, systems value support out, integrators and couple points relevant and that we've messaging the around proposition well the had earnings I we and there, in along stand you how how come proof script. This around points they've global industries and believe do I Our driven that ourselves SAP customer do particular the my driven us has -- announced

of we are And so where going next a like meaningful part budgets are we feel year. the

looking we the everybody budgets think move to tight I definitely one to are side their how to are and out pocket on is innovation at from and thinking. another how trying of the customers' innovation find side, pocket on

Ashim. it hand to And then I'll over

Yes.

mix. to our on focused year. are guidance, talked close of comment variability in focused a And executing, we're the what view current we've our teams executing that's factored about, the deal and on would includes what That's good And that So terms it the macroeconomic we've year-end just on. that. look the in of at just I

Bryan line with comes Our TD of Bergin from next the Cowen. question

Bryan on actually is tonight. for Jared This

changes of Microsoft terms from environment, In Automation the you're or Anywhere? competitive what seeing from any ServiceNow

anymore. a Yes. And and continues many And connector offering. We If of RPA with with where I be And don't discussions Copilot ServiceNow, our in see -- the the now tell having I we've often I ServiceNow what skill that one our you, we're and is most look robust. most broadened What don't of UiPath, opportunities. Connect lot partnership with and will partnership. traditional our and to happy at going as feel we're Microsoft them that to for continue partner to the very vendors, with it set we around see the we downloaded we're them. we're Autopilot, with them them Microsoft is popular the our

uplift reduction data then sales points of refresh? the Got is the you on increasing have do how part anything it. bundled or the uplift client revenue any from of pricing as SKUs packages around And per new revenue

with say, our customers they I units simply them easier use cases they're able mean to that looking their as the But It's we too AI use do where the now. to bit point can across advance little to us well. we're probably understand, them good think easier we definitely just to of would come business that. that products to They for and specific move. at kind I we like interchange for for results. how as new signs a multiple feel early on no of are of are early out There -- to

Our comes next with from question Zukin Alex Research. Wolfe of the line

This be this I one Backe next results. Rob, you. for Alex the for Zukin. might Strecker guess, on is Congrats

Just demand, more of -- terms And compared how saw if then a a conversation like like what in unpack XQ in stuff like steady just of mentioned color at saw but verticals kind the were if just to more last renewal some of buying know the variable from I you the to comparing kind on a vertical the you've in where the more versus just few parts, renewal licenses, little saw a of the something you or like the you by bit little is beginning either terms improved we of got in bit around you macro, just whether quarter behavior maybe seen? basis, year? more in has like quarters just it's of certain kind

very focusing U.K. the are federal capabilities to document States. improve. we citizens offer quarter federal platform understanding, really really in because business unique the on United strong incredible in in and looking can actually for automation, for a around a our And how last and businesses way, connecting attended sector, at that the was Look, quarter the Yes. the was public that some

to some in sector, marked more brought now at all based in seen you help how services, and traditional up we a are how CPG in issues significant so points on. telcos, at role. it's companies, valid sector. you make price retailers: really talent my And we've markets stores So driven our -- and driving in public we going activity on and significant markets, revenue that have And between really the I any activity can fast efficiencies environment when that move capabilities in I how all driving employees in talent efficiencies and DoD, in to actually manufacturing, price point and sure open is get my stores, price do fast traditional how have don't on, some really look retail that sector companies, in industry-based look globally. When also we've of into they're play Customs, USDA, points going real automation and actually, and where talent. That drives good public we are make actually a that us public it's

and subscribers about at look it's are provider space, And competitive mature are to we you my and because capital-intensive how provider. in all telcos, from I efficiencies efficiencies that playing by advantage another can If competition and is one growth get only my well. beating get pretty I markets the moving way actually

in So the they're they see that's it's theme growth where and one investing. industries there's board, common It's which how of efficiencies. variable across and you're terms in. But variable in

I platform, help "Let's the or platform, quarters why get SAP can of transformation. let's We NorthStar that value, on years moved to work "We've drive to platform the of With in renewals, months a it gives us an many to start discussions earlier, with many well. the in," you or got with customers with terms opportunity you, an having actually earlier as to drive

the really big got. It's a renewals. one the bring just of It's helps future us I add that in with that global at to and not about what do the Let about right cadence And SIs renewing want different future. And transformation." value to drive renewing our you've more in showcase already good business incredibly we're how think you to want what you now.

around quarter, in the That's margin the if kind And keep can margins the how in remind think incremental early should just, you. of we profile they good. of to I quick for puts takes about really a guess, clear. as super mind They've us been the then in some the Ashim, one you really just year. and mean I in were out-years.

pitch -- we just with really ahead execution back We're for terms been of year Look, Day the Investor model discipline about long-term our in margin curve while and talked where the that We've pleased our the operating ability good I there. with long-term still would refer operating you to we last on of really operate execution, just to feel company. front. efficiency and in growth investing our about

for the to That remarks. call I'd is turn closing questions. for to time all we back have management like the

all you your all your Happy say of today. you ho. thank support. you to you and to family. all want enjoy to call great time. just the have ho, a Thank holidays Ho, you to It's May I for great Yes. on you.

gentlemen, this conclude participation. does Thank teleconference. today's you and your Ladies for

lines at wonderful have time, You may disconnect and day. a your this