UiPath (PATH) 29 May 242025 Q1 Earnings call transcript

Greetings, and welcome to the UiPath First Quarter 2025 Earnings Conference Call.

[Operator Instructions]

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Ali Fani, Senior Director of Investor Relations. Thank you, Elias.

begin. may You

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

are with Chief Chief questions. Gupta, Dines, UiPath's Officer, and answer to deliver On Innovation me Founder and Officer; the Daniel call comments Ashim Financial and our prepared

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

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

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

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

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

the call Now I to over like to Daniel. would hand

I'd start quarter forward. go of and Ashim this like and path a you, Good in few quarter our by through on us. I and I'll the to a announcement for revised will the made then update then I highlights results summary more our afternoon, everyone. today an first to afternoon our financials we addressing from to Elyse. through give over joining including outlook Thank before Thanks it walk detail. quick guidance hand

into release seen the is Enslin have company I resigned in last and contribution also forward that may Rob Board. next to a say us over UiPath. our speaking growth member his excited grateful as we entire of for his profitable press company, With I'm I X step -- company the you when significant and this the back has afternoon, the for are for role of to As through CEO years, and leaving and innovation. Rob leaving played the know I'm role phase very our the look leading Rob to a

of of the especially our and the our are At path harness I companies achieve sacrificing the platform year, without and outcomes. past in efforts. innovation, efficiencies to invaluable optimize to experience gives power me our engineering privilege forward. AI looking them had costs the when drive product around actionable the During This myself immersing to enables clarity generative on time,

a and emphasize have environment. in enabling thrive and Orange combination automation, the with they automation how the the like continue to that customers their early over The significant what's redefining platform that and from breadth to about expanding through of AI USDA like of just them on AI-powered SMBC and to expanded it's provides capability. customers our grown to it's automation and combination of our our also productivity and and look the transforming we As boosting the future possible significantly generative of today's AI year, is deliver focus our our and efficiency, last isn't impact customers ACA, platform and business

a tailwind across as our and our AI moat. to generative to platform the to continuing will expand We innovate competitive our that continue catalysts view benefit were business secular

quarter to year-over-year excluding $X totaled billion, year-over-year. $XXX ARR of results. XX% $XX million, an million revenue year-over-year, FX net Turning million. of headwind the first headwind the approximately grew new new ARR $XX to FX first grew of our to of $X.XXX million grew XX% quarter driven net normalizing for ARR $X increase by XX% Revenue million,

you were While with few on factors a our our are line and like first with range, to top in satisfied results. line quarter not key impacted we generally that give our guidance more I'd results performance color

through March see First, while persisting due progressed pace in behavior, of we the into as slow the environment with of the as to a multiyear This had healthy as half macroeconomic we deals. the primarily customers impact April. change mid-market with a customer a start particularly and well quarter, we that saw second challenging we to was large

reduced closed As the several of with a quarter. result, were expansion size large opportunities pushed the out

deals saw contract compensation execution working we to are and we certain execution, included changes, sales large Second, inconsistent which challenges on rectify. which

we a behavior customer often we is improve environment, control. While something function recognize the broader to And predictability of need that can large on macroeconomic we execution is multiyear deals.

such products results. IDP producing and as automation test are positive growth our Third,

less to which And However, on is operating a needs have made and us our of rectifying. growth to are lastly, to reaccelerate agile have the short-term their products execution there strategy short reach we customer in of committed to scale full need to deeper to investments a have responding made margins, all created these expectations, fallen potential. we pressure

Now let outlook our forward. going me address

materially environment term. And saw some is guidance quarter the second believe leadership we to continue. being will not the them first guide also That fiscal improve revised into don't expect the takes create we Our and account disruption. near prudent end we are quarter we the It be. to where XXXX in at which expect assuming macro variability said, of transition, can to it the short-term

and organization efficiency execution driving orienting sales we scrutiny, growth products. As we strategy including our future, linearity on are for the laser deeper our higher look across broader execution to the and focused a driving sales improved more and deal enhancing and

tailored are engage shifting customers the approach. reinvigorate We way industry to with of also with business line our an we engagement

plan roots, we back we everything and long that will building with our partners go over market our better and work We drive our the co-innovating customers to truly of position accelerate customer-centric this we and of foundational heart are do. term. us help to the address platform us organization, believe is to gains share adoption at a needs, medium Lastly, customer

features about I core in are foundation want strategic and continuing with Autopilot of a which strong, optimistic partners the business making long-term our of our business transformation. our progress plays automation we and innovative to developers. we our like The relationships like clear, deepen digital remains plan, on to includes products role and meaningful building SAP new platform be are of community releasing strong

some full flow challenges, we XXXX. top fiscal despite year expecting for of non-GAAP Lastly, are to free still cash million the the generate line $XXX adjusted of

context, registered by in key and they or and understand our specialized the vast family attendees. the box focus, embed Gen from highlights quarter. again significantly land. new and available huge few types document are great customers energized by the a annual specialized X,XXX trust. the hosted, of message the We of to combine for success Summit, we of of program, out introduced These AI automation be leaders Turning actionability currently innovations output innovations focused the power with AI AI, AI but variety looking model flexibility, which the AI business the LLM at business proved am which models, narrowing retaining to over a once incredible [indiscernible], generative large included events our factors to any outperformed process their a the to language around of I empower our our LLMs, AI accuracy the when best of including that

from introduced a AI UiPath company-specific the models helps new the by of AI also that extracting grounding We context data accuracy sets. layer Gen trust businesses within improve feature information

exciting And Autopilot, in including the for developers and new lastly, release announced Autopilots for general availability testers of we into June. updates

customers of world, and and advertising pharmaceuticals We in [indiscernible] such from technology automotive our largest including from companies the tremendous ranging diverse have industries [indiscernible]. across as the some to seen and and interest

still days, entry value. application stacks accelerating generative and to has take its action to use positive in among AI customers already and for to Autopilot While lowering barriers garnered across excitement its time early innovative feedback of

on and engagement in modernize their energy leaders attendance. our go-to-market sector partners was continued with our AI infrastructure sector firsthand the momentum implementation front, The confidence. in palpable cloud and over gave the were and with platform UiPath event, to at with tour witness agencies to room work first the On empowering nothing inspiring is how in IT It D.C. public Washington, public X,XXX sector public truly

the first leverage through opportunities the are customer interest creates achieved including We transformative authorization. sector closing and drive while the organizations automation, in to to our we to expanded of milestone also to purchasing their organization. to had the already fed recently quarter, ramp cloud their elevate customer, efficiencies move an operations as to Fabron opportunity document for several understanding public throughout existing they power seeing we highlight deals plan This

continue Moving core building to strategy our partner with our businesses long-term be on a to ecosystem. go-to-market of and us. Partners are pillar differentiated GSIs

driving had now additional enhancing WEC our at and our onto Accenture's productivity we operational document the driving continued Partners customer platform planning the insights. quarter, with also including support, private understanding, leverage aimed end-to-end new Ireland. they Energy consolidating partner logo agent insurer in wins, including to supported health with expansion are great capabilities, and efforts Group, their VHI care the strategic automation During largest with are AI-enabled Group, efficiencies and

an across digitalization They buying journey to provides are of strategy, large and develop machine. to sales our we the important their transformation strategic budgets, the transformation with of process EY, elements of core to the automation centers and SAP, relationship plan us we our document long-term new help across the leveraging continue organization. with to strengthen enterprise claims which in their automate SAP drive are organization, digital drive With the a partnerships access understanding element and of to

Italian migration expanding be optimize who also leveraging in their an capabilities During we invoice are continued and to eyewear usage Understanding will of Document to S/XHANA. their SAP the to within process our platform success, They processing. quarter, conglomerate, including of the saw expansion payments support

From processes a partnership automate joint a just integration end-to-end powerful Microsoft, announced launching and end enhance XXX. enables for UiPath. we user business technical Microsoft to expanded week, experience Copilot customers perspective, with the partnership with This integration our with last

innovation by analysts. received months, last focus And is over recognized we awards. consistently industry third-party research several the on multiple Our

intelligent included has Group's market Everest in Processing vision our we for year were second and named impact. for capabilities a leader recognition the a assessment recognized products, This row Peak being Matrix in Document where a XXXX

driving across is in position leadership Our demand customer our base.

shipping document in to customers expanded Mining look quality Document Technologies, and they records. XXXX processing, Communications document, maintenance since to as [indiscernible] example, invoice For quarter Understanding control automate the

this had also action. been largest in as Our continuous products, logo recently a are also in a recognize not one them we automation process that quarter mining the leader that research Customers using [indiscernible], outcomes our capabilities a identifies Gartner they they including recognized were can of give momentum, discovery our customer for the capabilities North and needed pharmaceutical fueling ability they bottlenecks, transformational achieve combine tool report. new when companies The only realized platform but take Quadrant our the discovery with America. with but to Magic

Our platform resulting by generation see recent investment to the action and of leading vision experience We commercially our in customer, share outcome-focused artificial displacement. the as this with includes AI general innovative they owned intelligence, scientists technology X opportunity full their is models. an resonated and fostering the company competitive to next capabilities foundational and for messaging deploy and passion reach researchers, our of in solutions,

on agents agentic dynamically AI of with their business collaborate am workers with process the helpful company new are journey. founding them exceptional investment, such with drive an our what reinvent I to goes believe era we each capabilities we of and processes. to partnership. a as be automation building will Personally, working addition thrilled a beyond In LLMs to collaborating on We commercial is be where team

teams. to welcome us Before with I Ashim, of to appointed comes and warm to forward experience to like a and collaborative I'd new turn engineering Malani, thinking, guiding Raghu extend Chief our Ragu wealth Technology in Officer. fostering customer-focused it over a

We best-in-class solutions while our on him and are are incredibly customers. delivering elevate our confident to expertise his further board we excited will innovative team have to that

P&E in product advancements we confidence we've proud year me am the over to the their including to the long-term I our great transitioning am of it role. last ability have gives strategy talent to I CEO and while made back drive added team, the our great

are results we and with times, several outlook. not said I our As satisfied

energized customers am With committed Ashim. I UiPath, maintaining while partners. of We the and to growth founder step that, driving to strong refocus the back company and role our As turn CEO durable remain execution improve call to the into on I'll the over profitability.

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

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

Excluding the million, logos the XX,XXX quarter $X Zen Consulting totaled million. business, ARR FX headwind approximately $XX like Flexjet, new ended Boomi, and of net new True customers, Calix. with including We

overall of be vast smaller last mentioned several customers, the quarters, in represents attrition immaterial our aggregate portion our the As we of in continues over majority which business. to customer an

or while in totaled increased more with XXX. ARR million $X on $XXX,XXX to in customers or Customers customer more with X,XXX, Moving to metrics. ARR

also record or They Our gross expanded and are XX% while the in across our to a leverage and in utilizing retention Bull, who platform continues capabilities Document with continues S/XHANA platform, platform customers be best-in-class as this plan AI number functions. Dollar-based added on cases full to various quarter to ARR. and continuing operational to largest more drive with automations Test and expand $X finance base, core Understanding. automate use understanding across and was migration quarter, operations of to Etihad to retention our leverage Suite their to expanded dollar-based Red Test we rate platform quarter support customers our the and our million XXX%. across document began to and HR of for customer automation accelerate Suite breadth including The our expansion net purchasing of to plan more who they and commercial build departments Airways, their the

$X.XXX year-over-year. to year-over-year. Normalizing $XXX XX% increased FX increased XX% to performance the RPO Current an approximately of for billion, million, Remaining $X obligations Revenue revenue grew to XX%. increase million, of headwind grew million. $XXX up

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

operating of of XX%. income quarter income million. or non-GAAP Non-GAAP was compensation million stock-based first million, headwind non-GAAP First GAAP $XX quarter XX%. $XX in included of $XX were operating loss $XXX operating expense. non-GAAP Including $XX was of operating operating million operating a million of resulting the expenses FX margin million, a $X margin

making products adoption. our costs in new We are pleased and such to drive we plan with and as AI with to the and development Autopilot progress to we LLMs our are continue invest hosting the product necessary

view feel overall investments The our market future. year. the That said, the rapidly, we is half unlocking is budgeted timing evolving as and appropriately spend as to for in opportunities related we first key these growth

We expect cost to discipline to organization. continue across drive the strong

million. adjusted was non-GAAP $XXX cash quarter First free flow

Class committed XXXX. X, at As an February marketable April of average of $XX.XX XXXX, our April our XX, We price shares as and common A debt. billion we to $X.X repurchased no of through we million cash, from remain cash had XX, in $XXX buyback program equivalents and XXX,XXX securities stock

Turning around I'd provide for the our to to fiscal context quarter year. guidance. outlook updated and second remainder the like of

mid-March, As scrutiny Daniel mentioned, cycle large deals. we began longer increased our and seeing in sales multiyear with deal

we updated and into take of the improved of run the most leadership underlying Our both is operating our of business ASC business. to guidance XXX, which will of manage time transition which complexities macroeconomic discipline, ARR, takes environment, performance the on Because our implement. consideration representative our and

prudent We on taking the deals. large are view of multiyear contribution a

remainder and main pillar Profitability margins strategy, non-GAAP and business for adjusted our to to non-GAAP an our is a operating year. there outsized driver we guidance revenue outsized cash reduction result, This the is to due in non-GAAP will ASC flow. of our go-forward revenue our across operating remains of flow the free to XXX a of the revenue efficiencies and core continue free recognition. as cash income adjusted drive meaningful strong impact impact And generate

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

revenue joining billion, year in please billion, we expect to expect operating For questions. cash with call over of us the forward now today, And we income of XXXX now look XXXX, flow range range for free adjusted speaking billion to poll the you billion turn ARR the to $X.XXX non-GAAP for fiscal of Operator, now million. million. $XXX $X.XXX approximately $XXX of I to in Thank With full during you the the we $X.XXX $X.XXX fiscal many year approximately the finally, operator. of that, quarter. will non-GAAP and

[Operator Instructions]

line from Roberge question first William Blair. Our of comes the Jake with

for us months? could what's environment you understand the But has deals? that help if kind those start competitive just the issues I churn drop multiyear Just when of of the pressures could completely customers are the over seeing deals, or Are off changed off, more you that causing of scrutiny pipeline. deployments referenced just we you on large few is better to last out gotten worse. understand certain

the you if curious some flesh seeing that of issues out you're Just large with deals. those could

thank Jake, question. for the Yes. you

around starting were to ago, weeks especially think large on we the pressure, I some deals. see X that X, multiyear

shrank. Some of them got

got them postponed. of Some

and are more cautious, We a -- it's competitive it's the and customers environment being a more the have scrutiny seeing Macroeconomical think not factors. of variable as do they from I cause combination bit But deals. a into standpoint. is

-- the less issue. multiyear you sales some were some for one that kind it us of, to that some execution us, And an in the at in this little incentivized deal, was beginning give And retrospect, quarter. execution year. of change the it examples, in deals, a I error We late was fiscal factor happened bit identified. late-stage Another deal say, the was procurement some also, had for happened a into comp challenges would we which

reprioritization Another deal, a quarter. we was that the got, too budget were in little it late bit a

issues pronounced rates, just then have customers the they that why that use the in there? And overbought to renewing are lower there it those other cases? for that are churn Or in how has into customers off it, visibility been extent Is play Helpful. what at you And Okay. contracts? contracts? digesting partial any turning are those prior that

would I you we've percentage as rates, renewable relatively at this I you churn our actually, it -- look a when is is our don't churn our having this at Ashim. at expectations. versus an outsized right? look something that When of they're look So historically, said impact base, constant, as

Of benefits, to with harder speak, so productivity numbers a to have better actually -- want or we to course, drive year-over-year it respect driver. work down-sells, those more not have those always to be to to is but

use off don't so we [indiscernible]. customers turning So cases, speak, to be see to

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

is Murphy. This Vula for Arti Mark

during First that's question love towards of you that's is, I towards if shift approach kind more correctly, why the I what hear think right a to happen. think like making you motion and sales the verticalized. prepared now I'd the remarks, is understood that and mentioned timeline why

Yes.

I the to that today. Mark. quite world, the approach we verticalize better time our -- some announced all in go-to-market AI And it's So for in strategy our happened think a even with time,

they of than with care, in it largely particularly financial health industry more seeing helping go-to-market our investments by we really And sector. public dedicated models best -- investments AI, models, return were built are IDP. our some effort. XX in in on was in in are that driven like And our we in instance, For our sales services,

what some know to is just headwinds of way of together more challenge to versus get I help macro called kind trying kind then macro, you any internal it improve there things Great. that of internal the more you proportion us And out qualitative a is. Is understand, you on. the can sense some described, of of than kind

macroeconomic you of is environment and think is understand combination give going It be said, distinction the It's accurate really an a two. we That Yes. the to very to hard variable. both. between quantify I

what can on the alignment our customer. in for our control we and those in both across as Daniel closer execution term. are We're long market talked about, the Those strategy. deal just if teams our improving driving our And confident So and increased leadership nail items that to things. terms control. well we the we're focused in being execution, and of positions are And us overall

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

Raimo. for This is Shell McNee on

it large seems change and lengthening issue the large incentivized is the to to change sales it cycles land smaller? current incentivize the sales deals you see So the less part in more? from given comp deals, you macro, is need a multiyear of there? the deals these discussed around solution these break down do And is deals and like larger messaging Or to

are that the there a to as last back our rectify I comp, think year. need to going of sales some Well, -- not we level is but same the

I bit I We we incentivizing right the kind and little regard would direction a deals. that to we opposite went -- Shell, of are in think sales now much our So too say in multiyear tuning comp.

So will I positive next help year. in can and that our year ground rates us we really that am I growth for in middle this land a think into

that then and do in performing and And what's your play into on Is automation HAI follow-up. you any are And speak success do around reasoning expected relationship complex does developing market? that the these potential And investment -- Can change color the more you to how overall to that Understood. commercial how expect you quick tasks. models see and capable that there? a strategy? of maybe the AI

the right task and know to ability ability execute our in build combine common They the researchers. of our I'm a investment of AI pretty HAI our on task to kind into of we excited of a about call the to top from great And the company. directly this of now, it get agenda team knowledge I a platform. have goal of we previous into side. have I It's them and a with knowledge experience well. was to me, Actually, very advance got to driving what genetic process particular our it's the automation. model And relevant

where we -- we in position clear, are advanced lot of tasks people pay A of if a To very space that developers automate agentic have, are a the not unstructured today. processes with times, varied with and of to it's the what types be personal the this but I And lot is model are these the lot [indiscernible] this their tougher the I of most have steps complexity, most combine economically build facing think feel in extremely one go assets dedicated our prowess diverse. in model research, applicability in our in still the itself to good data, to diverse. a we very has to tasks. understanding that they go the feasible productivity of tasks have of

it cars it's going it be, And my especially same where, first like So that getting be automation, I genetic trajectory autonomous significantly in If assisted for this sweet into would It's phase. driving. technology. a the to more agent in of going spot model. self-driving my can process this today, cell requires into is really say the opinion, think in more to opinion, the is I of an

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

Kirk. for on Chirag This is Ved

positioning on strategies? UiPath's their Following time? do see asked, how up reevaluating the sidelines on as cycles, you customers their about was them that when first stay within And large these strategies Gen are you're AI seeing thinking they're over mature AI extending the companies as evolve question you their

creating AI particular, I we have significantly want year over Gen overall by In to we excitement first of of And and going what our task to customers. to are the And a saying to actually lot sense that many our with our confusion using customers. before, GA. automation, makes This brain of and in June, cities is reduce and AI bit is of to whichs time about and over that the are said the And of the adoption makes better there Autopilot invested it's little a body, the in between reduce AI better are for using of Gen AI. the something of our the I and tailwind We years ownership. drive cost the that and are start to for launch said, in AI is more customers of them. being total think autopilots us. to around last a is is it's It's human of arms tasks a customers. with what the from I combination lot a the lot evaluating suitable combination they our And value our it's our But AI, our platform. kind like Gen -- it hear AI but platform sense legs. the and automate most

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

postponements, scrutiny goes, more been it so regions? sizes, that as industries business? the particular the ask, smaller to across the has deal or is deal the broad-based far Wanted Or as in

Brian, zoned on it's it's in we're area. not that -- broad-based. I don't think one particular

a we've historically. and that's and perspective, the see as about pronounced customers deal we environment on definitely macroeconomic the broad. multiyear more seen talking a mid-market talk impact from smaller about When variability, So the been we

could were the take? you sales execution there may of on how then Are the And here, initiatives you issues the or Okay. talk dynamic. identified you've the examples as not strategic changes some And other time which notable comp intended about that over about? the thinking you that working intended frame mentioned are

focusing quickly. it's the having we fixable second part impact think see pretty as that And initiatives we on. Well, comp, of year. the into an sales the other I are There are

change a come of now big to is right one the to to UiPath fanatical For I and customer-centric that want instance, company. bring become back

went about care business of our is the really increase our to it. to CIO and is distance segmentation a suite, work of Other to C-level, traditional customers business the which adoption think reverted think, will to pitch have positive actually within taking which But I we think that and great. a our lot things I by for customer-centric go line working, we that I more reality feel new benefit where approach. was a we

in a the lot business. do of We partnership the have side to

also are process. some slowing global in have We our our structures created some decision-making down ways, of I that, think,

I'm year I both can and strong what So regions. a to am overall, of the into But global subsequent into changes we go-to-market. in considering we and years. teams And execute this bring into pretty bullish our some on foundation, have product and into

line RBC Capital question Hedberg next the of from Our comes Matthew Markets. with

maybe Daniel, be make what kind back off you're the bringing Richards going It's strategy role are you into away more there, color CEO? especially just stepping more changes on would going broader going talk some love Raghu, that. to last side, product answer your with of coming Mike Matt. from on for you And your Maybe could to in as more to

doing Thank I'm to in the the for and be Mike UiPath. you, past best, can think right on the big in have or what back teams reflect together time in I the how CEO engineering had quite happy year role. I I functional impact? would now, I biggest like that more am the to bring actually Yes. And doing I so to product

pitch -- intangible because well and together. side go product say bring also, I don't And even market. and to company. I to automation I on is, that customer this I -- joy something HR mean, divisions I finance there when we we go-to-market maybe for is the more more the have our back how think only mean instance, I think spends and that it to in it's want I marketing on internal in UiPath. don't centricity, customers multiple our working is program of enough And

mentality big maybe a of the of too that and we've become bit company, I have having feeling a a little bit we've [indiscernible]. a become

won to the how I grew in collaborated And company we how want more other. our forward business. in was functions to Everyone was help, I ethos back willing bring each to So this of see fluidity. communicate was -- it we It well. all business, the we our really when more

that important want another is drive. this So I change to

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

being in strategy about with solid promote partnership ecosystem. ones to Castro to This especially continued dig kind you the just you driving kind Terry. of partners some kind is execution the just to, you the partners mentioned I are of SAP, want how of a key on of pillar of Deloitte, for Microsoft, go-to-market curious your strategy, Conor to into one, go-to-market through working guess, the Daniel, shift I bigger talked start, wanted what's

Yes.

I think to in you is, one the biggest them. our to as we of continue partner, Accenture it, with is GSIs. emphasized going have that our focus we drive deal past, large on and with name

named also earnings into transcripts they deals. us help into our have sizable lending and We

with partnership our on bullish particularly I'm SAP. partnership, Our

relationship. of great provide bit with starting a our And actually between customer. announced CoPilot, of I next see the the Sacha their -- important context We to my value Scott to and in year together I of I'm cooperation [indiscernible] is necessary worth to us to us. a point a delivering mentioned and from that interacting This have and our how impact our the can to Microsoft, good talk especially the the the both SAP automation positive quite signs example to And [indiscernible] and relationship Microsoft copilot improved seeing out we Microsoft and recent is about course, in Microsoft little leadership pipe. keynote also also, think where are AI into And teams. just is relationship action. taking recently build it's would the show to about the previous partnership It's automation and point mentioning. a

guide cash in free as million Maybe remains it. helpful. the Got That's just year. pretty follow-up, sheet for healthy. $XXX a flow, Balance

continued of how you're the be to and continue appetite there. also doing still allocation kind might the buying of M&A? kind Curious balance, I Just Just about curious some what year. the capital maybe shares. know back the strategy flow that on about you're on and focus cash for curious on free the cash thinking

you that mentioned, have to optionality. here. within Yes. we we're free -- think cash efficiency we're Look, flow us Like committed to provide a drive balance happy the of lot which strong that able very a the with to company. sheet, driving I gives generation We're continuing

every think we're have discussions just us. and opportunistic every those that going we week, to do have we'll a And and in the best for continue interest make I And what's opportunistic to become as that's be and day company. so discussion and decisions of they the

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

free the Ashim, flow guide. is cash if down Maybe less may. guide The I X-parter than by operating just a for income

and recasting driving versus that other as AI just is could is this we're there given shifting trade-offs part help growth. tangential what's associated investing challenged First picture, color helpful you're Any just adjacent catalyze bigger the the towards about closely if difference? opportunities And more then more which with, into our models? margin more you in how areas think interest persistent between product remains environment

take you X questions. Great off address right that the and the I'll top. it first mentioned

remind ASC The that first XXX follow everybody want to I we is accounting.

and is -- the our deals a rate, revenue impact are when growth accounting. revenue so talking impacted, growth as differential has right? that can ARR revenue. deployment we're rate rate, that rate between better that a our of multiyear reasons both our complexities ARR for significantly which growth to more the And well as growth have our you impacts that guidance, the even Within an or about that outsized the you duration And see XXX, XX% than

conversely, revenue not So operating flows obviously margin. free that does on when flow. an impact down through impact through you have revenue, cash And

our variability of items level we've So as Daniel execution We that well do collections. about, as highlighted. macroeconomic talked are some pressure, see volume as between the billings the

to front run continue and you impact operating center. lesser cash volume And when with run equation. -- a free a just the has obviously flow that we at So very look which discipline, pure stays means we

don't and able I that phrase fundamental there would being of question, to second that I'd invest cash it forces we generate are flow. to your there's -- -- able being believe free to opposed regard With a

our we've stay invest like We're company. margins to AI committed in great invest our got customers able from that continue we're within in response committed So our long-term in yet talked talked to launch. to We're the to we that able able to of invest strategy. continue to and our offer great about. we're capabilities to [indiscernible] platform we opportunities investing And about Daniel that and in historically, terms of breadth the

and a believe continuing to that's focus within sales across believe there we do discussion that our And company. that to operating the G&A can have had, efficiencies while are still we that an be lot we that and rhythm we and and So company. marketing, efficiencies particularly drive of in a with

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

circle Krieger remarks. to you Ryan something said is want on the to prepared I This just in Alex. for back

for that of some the contract about close more you of are XQ? than some deals particularly you maybe Have they lost smaller And still talked them any pushed getting originally have some the started out large XQ? in completely? saw around in be deals super helpful. pipeline? Are they also quarter, see Or anticipated been customers. You context of like those to Just in closing would

We continues very Yes. our color rate be didn't what it's on, we've would I don't only we the strong consistent the losses. are would a to I The give mixed bag. -- win customers deals say seen at see look with we that that is thing decisions is and historically. really making When

will a and -- are view deals which the continuing to just year. guidance macroeconomic of we through given and closure path that the being of in we're the regarding are closing, That us. work have are overall, some that the through timing said, a continue that guidance quarter, yes, we've in items there execution In prudent within some numbers to contemplated work front have we that our all more second to we've terms of there that taken the deals overall variability

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

sensitive is the of terms give question of at us think, you everyone's a additional expectations. a ask a to, in current go because on it maybe I any Rob's kind to sudden kind here. change. I know departure Daniel, view relative short endeavor this longer-term is product, your as is and back and I take term X-parter is you're just know And pivot kind little first because obviously, and everyone how can Starting do in focus because that more to of slightly of it, clarity term going this I least then, excited but Is or you CEO? something guess

decisions really. is be were our step role. that Well, No reasons. Look, into partners strategic I separated I me am, makes the to again, personal way fairness. they Rob he really part good a in continue will a I We on I and leaving are company. an all to operational it's important are good to in who day-to-day in -- terms, from the many was such and -- a myself from for offense adviser and had questions, Scott. taken Rob that to life it reflect UiPath me of see company for back And and in [indiscernible] I am time easier what bit cannot of

X I IPO. the to foreseeable I'm I'm job. its to company to fully is company CEO intention like this look the my And I -- of I if So back successful XX inception fully the for a drove CEO in. happy from for back, future. for take years, to since was you $X the plus committed be through billion

this to we about all the And XXX on continued just follow-up, our recognize of in this the from leverage brief then impact unique just certainly forward Is short of the going term. a track look couple Daniel. conversation the structure appreciate really software think look Or Ashim, I amongst But and how those to I commentary most Excellent. forward? and with some you margin getting kind opportunities it's sales I year a companies. because your guess there's do late -- model maybe year, is function of this the year? this or adjust hopefully, next maybe back maybe as next over all? or moderates cost for when early of further year the into kind next improves next late and of on quarters environment you

Yes. Thanks question. for the

cash rate I there. is margin continuing to and for $XXX that overall said, in or have think given customer great That continues platform. is be feedback just continues customer It's say We've standard We very which we're from expanded to see and excited we're flow cash response invest and that start had think our we about margin very the company, follow, of great right? we've a free had the robust the opportunity more be -- appropriate million, and The -- the to to investing we us. still being the the first it high at comes new I flow both ways. rate that free great I measure journey USDA, accounting logos HCA That to recognize margin customers thing AI we a excited our a that is have feel new customers market is would why our fit like with within see. that

we us growth So that to a that like continue go is we leverage as lever we forward. for be will something -- feel

strategic talked to we about earlier and continue we that efficiencies we're areas thoughtful about the in like smartly. feel there drive we're and able think and overall for both to I do don't the sales said, being marketing within And that ample That have We we like -- to abrupt that make investing strategic in. decisions. is the be us to G&A Q&A, opportunity

mentioned. I margins, in So as while invest the to moderate, to company environment continues the can think continuing drive while we both you

the Markets. comes Celino KeyBanc of Jason from with question Capital next line Our

but management Great. Maybe the the looks the extra about talked you've It for conservatism, is Ashim. challenges X and to then macro about by the just coming execution impact year like down it is from way the And baking the there guide some sounds changes? you're for points. unpack ARR any one like degradation, in

factors I and obviously earlier I hard think to all model hard as really disaggregate being of reinforcing unpacking said, quantitatively them items, holds. That our There's the I when discussed. it's commentary think very to to distinctly. it's

there's we're variability the actions to which the that macroeconomic the about, some pressure deals. with impacts that think larger on opportunity execution of I committed talked think multiyear that to offset those And correcting Daniel I front.

I So it. disaggregate wouldn't

good what is moderate help to continue guidance. can a is think execution where the a opportunity that I I environment, assumed impact that macroeconomic of there is we've -- the our which think in there

floor There questions comments. to turn I time. like closing would for back further this over management you. the Thank at are to no

meeting many you the Thank forward days you everyone, forward. looking much, going taking for of and to over time. so I'm And few next the

teleconference. today's concludes This

participation. may your at Thank you for You disconnect this your lines time.