UiPath (PATH) 5 Dec 242025 Q3 Earnings call transcript

Greetings, and welcome to the UiPath Third Quarter 2025 Earnings Conference Call. This time, all participants online. [Operator Instructions] As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Monica Gould, Investor Relations for UiPath. Please go ahead, Monica.

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

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

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

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

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

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

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

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

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

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

their to to afternoon, everything execution joining Thank do improved they for our everyone. take and make for team Thanks want UiPath for you, moment customers our partners to Monica. and thank a I us. Good successful.

a testament across of our customers. to ARR by and execution net our to driven our $XX quarter ARR the metrics, We key high of our that end increase million. delivers compelling with all exceeded the financial the Our platform of an XX%, value improving billion, ended results guidance third automation AI-powered new $X.XXX up quarter

was and quarter operating income million. Third million, delivered $XX we $XXX of non-GAAP revenue

companies. launch will harvest with As seen, unveiled map to for automation UiPath agents the most be and Automation agents of their systems corporate deploy vision expanding will many October. in and the user surface our our to coming area of build, act our They for to you UiPath platform. information be product This months, security, conference entire first-class have mark will citizens we robots significantly forward databases years. AI the on and use consequential road our access In to Agentic on. at able in community will agents maintain

operations. already Our is in of a customer embracing us with large of potential told automation a just it's customers the Agentic the revolutionary that how global our airline paradigm potential UiPath who perceive shift towards are agents this upgrade, we quote shift enthusiasm. an not I recently

and overall our by about creativity platform. and comforted governance, our are bring afforded the excited Customers our robots the the agents and agility that and compliance security, by accuracy are

number our the over history fastest We begun had private builder company and our with registrations excited registrations begin signed We've pace organizations far. so up month. has accepting of later are agent for X,XXX largest which that this in preview, will the

City in ago, New Head of York As insurance customers is at of an XX Fortune the care hosted example, our X and weeks a of headquarters AI X the health we company.

the agent our builder work. new to health Automation to agent and Agentic is new our company Agentic put moving capabilities of Following care including orchestration, demos capabilities, quickly

or to automate software is data companies that task Automation, Agentic help CRM with sure now have complex work announcements eliminating play. across I'm submit don't lock-in Business What X all in an the report. agents new on tail expense robots across and run agents that will differentiates customers. legacy, vendor single single you from believe and both for applications, our enhance our UiPath I announcing processes long system. search things: unstructured heard are First, of today a and

applications We equal will to the of systems. and third-party be Switzerland to continue providing access business agents,

models. Second will conductor or across people robots, the be is the orchestration Agentic governance. governor agents, and

already democratize will encouraging. is our for been the Agentic low-code X is automation from the test market, The year. rate, is we at and to growing that from the and IDC inclusive XXXX access by forecasting has to platform leveraging tailwinds to automation developers. Third, to automation Gen is also already known that of market labor analysts of agents feedback to by industry billion RPA IDP of AI. double-digit This disruption top on $X.X a grow last an thanks

in that autopilot everyone. deals. seen excited conversations current really our Agentic the was and largest for our quarter The the building of deal our direction case for customer I'm can via delivered be in an market use

has For XXXX. with a who since customer been us health care

Our built and solution product deliver will our easier road map. enable as such we on use cases faster to be

been has always of AI our center the platform. at

the our our Volkswagen seeing are their customer including the implement with the communication integrated we of in few cloud now Over now complaint management. will the CIO, and platform to company. standardize efforts IDP throughout IDP will we last products years, automate Services have fruits They the across platform, the on of those UiPath Financial support GI and

offers also increase for potential Autopilot over X,XXX to employees the productivity.

year XX business. portal of to its So far, and online realized well the satisfaction EUR financial savings has services per company customer over and increased million cost

autopilot also availability the At forward, for we everyone. announced of general

employee, of own and extracting getting with pasting conversational experience analyzing a from organizations ability complex to their stocks that documents, any copy running and enables improve complete information regardless agent data, answers Our technical to from to automating grounded with ranging automations productivity. apps

express recently their putting into enabling use usage leading-edge their automation customers, their consultants a as expanded to its teams. autopilot technology, partner hands earth platinum purpose and with of our and better deliver in customer value technology automation service operations long-time and of a numerous model capabilities Protiviti, the the including to including

will platform A Our automation permeate example this Agentic great our across differentiate capabilities. of our to test us. and is capabilities continue

is as Agentic In offering leader the testing positioning in thought automation fact, us our the test industry.

offering ability Autopilot With automation year, momentum the the cases, testing look we unlock customer suite eliminating earlier addition for test capabilities selected companies testing in in to power employee to enhanced era. B. automatically test test Braun, case significant this since XXXX AI of X key improvements of suite with creation we for for the migration. their technology testing of market us the generate additional with to upon test for engagement cost our S/XHANA the world's a our our leading experience. manual Agentic as from will greatly build in to expect medical and the see savings They and aid SAP

partner I'd the Our Agentic partnership have the to SAP business to ability increasingly again our platform's our remains ecosystem. factor the on my manual become convinced integrate differentiating overall other automation sizable testing few over vendors. next with testing I key a that comments over competitive agility. for remainder roadblock and and of with focus months, real automation launch and of like the

our a for the It plan be robotic will In experience UiPath core part February, our of and customers offering we public launched unveil as in seamless Agentic Studio, to preview. agent the both builder Automation. with Agent agent scratch environment robots. work our development tandem from allows that in in to the in agents of users from prebuilt builder build catalog low-code either template where UiPath

choose. UiPath To agents Customers robots will well complex with of governance to build across other also Agentic in agents agent able be workflows humans, can workforce build systems the across if maximize scale which value of either include and will launch third-party orchestration agents also of empowers agents operate using and organizations enterprise record. them to builder AI as their Agentic platform their long-running using that processes orchestrate and as they and orchestrate platforms. Customers engagement Agentic systems the

process monitor, through orchestration cycle. the entire can business Using our implement, new optimize processes Agentic design, and capabilities, operate customers life complex

a are the We quarter public XXXX. Agentic fiscal planning orchestration in preview first of of

is everything As throughout Agentic see, compliance and you security, control focus governance, on our do. run enterprise-grade where we can Automation

X existing and in jumping pool be building, processes. developers building of expect For Agentic I deploying business-critical we straightforward. community million users managing agents will and through a across large getting started workflows will of our have quickly

excited investing We our I'm in market of AI aware our driving have are today's cornerstone reach also are of less of cases remain this our of and SAP. a customer that capabilities quickly that will committed are our about scale with to us stream in our customers our Partners to awareness differentiation. reach elevating we and we our marketing. growing use end, will and initiatives. capabilities To a success continued progress go-to-market particularly platform CF-Agentic And strategy, enabling underscore

and In integrated from This the supportable process governable long-term October, for single the X solution delivering sold by IT users true SAP a It across prebuilt to within the layer now also SAP as productivity or total build of to non-SAP solution seamless execute a our being create, was monitor automation automation implementation extensions a end-to-end a improved custom solution diverse workloads. faster integrated platform efficiency experience and SAP approach and moves into SolEx, across and automation is solution platform. enables of automation reduces SAP and cost landscapes, ownership code leveraging that accelerators.

the While the us as be SAP, based data their together, chain in new transformation. partnerships build functions. within as has SAP supply needed processes takes S/XHANA support to such U.S., storage They and logos automate already following partnership finance to helped a will UiPath time which now leading win pipeline implementing our such company to

partners with has automations operations by and helping have the highlight their companies. currently to chosen also UiPath deal largest finance is U.S. and S/XHANA environment. with with expansion. logos, to over company gas the the and further to in SAP automate downstream that oil The In now expand secure addition like within place to our facilitated One would new X,XXX X I support of

the while an per mining, of continue expanded services and the human program shared growth adopting document ROI X expectations in customer They such Our additional cancellation of market GSI suite as They partners Sonic over the also of have products service, our mining the cost their with warranty processes car will invoice and groups departments for process savings improvement. to usage communication $XX for EY new as testing. expanding resources. with also U.S., for largest factory in million to of Automotive, be drive automation and automation support year dealership in such their impressive test understanding seen further

And our mindset customers than making a success ability our finally, our serve ever. to is crucial rooted in customer-centric deeply more

working are customer-centric we and co-innovation deeper rapidly, to a trusted centricity To diligently core pillar and customer for today, applying us, While road a map means culture. our innovating partnership. being our infuse remain listening it us building into feedback,

the from All for spirit the in of offerings UiPath. which of maximizing growth we our translate customers our to realize believe value will this

vision To And our clear our on we and summarize, vision. I'm customers in on enthusiasm become and a powerful believe going the it's to impact of about Automation the workplace. support deliver have to the products excited rapidly will the sophisticated. more that We that only it from is really Agentic major deck on have

that We force in life transformative automation. is to bring enterprise are the to the AI throughout positioned UiPath confident well of

into I'll will Ashim? dive call who Ashim, more and the turn that, over financials, our to operational priorities With

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

billion, approximately We increase of Turning Surgery for logos to as we our focus the third by $XX are such quarter Special net Ventura of XX,XXX million. the $X.XXX customers are driven acquiring the pleased quality new Dermatology, XX%, on totaled with an and Amplitude, Aqua and of ARR Foods. Hospital quarter. ARR the with new ended

gross retention ARR retention more Moving to $X customers to XXX%. to $X,XXX -- net moving in $XXX. with totaled more with rate while quarter of in dollar-based was for or our or XX% ARR $XXX,XXX million continues third metrics. increased best-in-class and Dollar-based be on Customers the to customer

expand mining drive to Our A platform's Technology, to recently implemented meaningful customers communications great ability and And to understanding help processes. automation continues implementation, their to request and document will after example customer XXXX. is automate business moving new They value to policy they now opportunities. obtain cloud successful a a automate processes enterprise-wide. with since be and expansion usage renewal Allianz the their AI-powered these

productivity strategic XX% their automation units Additionally, all where implemented. with now UiPath gains standardized reductions automation the of expected will vendor as platform of XX% across AI cost Allianz is AI-powered be and business and

processes. health started be with capabilities customers us in is their automation Another our XXX to to now They support control begin in fund automate for processes. will by platform with full expanding end-to-end They implementing first Europe. insurance XXXX further a uncover the from their mining national and health CIO And support example process the to expanding of will backlog working insurance to automations over of platform.

Following to support their autopilot environment. scale program testers health for to providing IT secure being in claims. key orchestration capabilities this, and they will them They deploying highlighted for be factor IDP and our the automation a their ability developers governed insurance a in

$XXX increased to performance to our $XXX year-over-year. obligations Revenue billion, up XX% increased XX% Current results. to year-over-year. up RPO to an Remaining back grew $X.XXX Turning X% million, of million, increase year-over-year.

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

full be approximately margin expect the year continue fiscal we to XXXX gross XX%. For to

operating million. compensation operating quarter of previously our income to $XX $XX $XXX restructuring, further were of included operational from efficiencies XX%, and expenses million margin benefited third of business. operating announced loss was Non-GAAP streamline which a drive expense. with million combined efforts GAAP continued $XX operating Third quarter non-GAAP the our resulting million in stock-based

from net was allowance Non-GAAP income noncash $XX tax nonrecurring of of $XX $XX which tax the million, on assets. a million was deferred million certain valuation benefit -- release excludes

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

million. be non-GAAP to cash XXXX expect free approximately year continue $XXX flow We fiscal adjusted to

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

plan, quarter, of an the December additional price XX, October X, XX.X at price XXXX. A through XXbX-X million through million average at repurchased shares an our of $XX.XX an of X.X XXXX, XX, XXXX. $XX.XX common Class from we we During average August stock shares X, October under repurchased Since a

to on of an Before moving since update priorities to role like my few guidance, would share additional a I on COO. the taking of

relationship support customer strongest adoption. And functions with to help alignment focusing retooling and deepened streamline also efficiency our discipline we services First, our customers, focus and with with to partner while ecosystem professional areas and better are we our the while enhancing have working return our to drive on further to on connect organization operational engagement to on certain the better go-to-market improve investment. strategy

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

for year the from report the like Finally, first But results. would I net to we guidance XXXX we highlight we in fourth expect full enterprise will first that ARR. the quarter when quarter quarter fiscal to seasonality typical new fourth provide quarter and our

product adjusted new and focus accelerate. XXXX, centricity our our and rate will for stabilize, we that efficiency, with Lastly, net flow believe on customer growth dollars free innovation will fiscal cash ARR

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

Instructions] [Operator from coming from Mark question Murphy is JPMorgan. Our first

might to drive take this agents any My because companies. I as want and look congratulations to to the some comment see Daniel, are and around usage just Salesforce, HubSpot the of I'm activity being quarter. on the Agentic rolled ask models think think there could be you that out whether applications. other get as wondering, several might you, handle involvement execution be call Microsoft, by have on that Can successful they begin might third-party UiPath can wanted Do that's do and that a some it it? follow-up. you be with where they API-based going process Or want UI-based quick some then command there other -- and might to UiPath? -- and a -- might on control to action want you they And I we

the to is this script, a we into And said in question. aim Switzerland as think great I our Mark, of agents. goes a we it be strength

So the access that And offer improve building as agents have tools good will actually with to built them that our the other said be orchestrate but by of companies the like that want agents can the will also as to And tools also, companies. agents, our means they to to. take. agents would actions we agents we we actually quality own other that collaborate

and in we in think security agents, for increased I creating the bring and that we want governance. short, So to focus -- on can agents, orchestration layer call robots humans this loop companies, our our Agentic other

Okay.

revenue understand largest the like of the at accelerated Ashim, support I to It it which to I and I of both think trajectory. that. It rate is on a wanted to vision. noticed you, looking your year-over-year. maintenance stream, type mid-XXs broad growth and holding And sounds very I'm be seems sequentially ask revenue. I

could if of help is wonder a I just mechanics. is the the and duration of a you lot ask in a it maybe I I'm line, growth enabling just separate with bit if that? case item license wondering what that's Can So a you, and than impacting the can help is just of mechanically, us showing stronger any the line just that you little little line. ARR some bit actually out answer of resiliency really us

year and maintenance net new license line, line XXX recognition revenue Yes. The that see you What through. go obviously, the also line, you just help as benefit is ARR that of this from impacts duration on recovery of does XXX Mark. the the the building cumulative earlier

that contracts, support helps they're the and growing are continuing customers largest maintenance well. Our as the extend stream really to and

has most this recent the that might Okay. since changed quarter? to how Or comment able -- are on you in much in earlier how And recovered have duration year? the

of about first Mark, you somewhat to good change execution misses this earlier refocus in plans year, about sales we and feel team. the quarter, from we It's incentive where we normal some progress as recovered really the the compensation back talked . the

coming from Lenschow Barclays. Raimo today question is Next from

wanted vendors that to that they're going have broad the based -- think And should back SAP. agent going Dan, about of big we Salesforce like actually the to be orchestration. I or there's or data in like that to I terms to wanted an to the the Workday Like model. go how domain like be very

banks, specific on So be do playing the but actually you you guys kind of kind yourself more the with right working moment of like Is push knowledge just already think to I'm those, et of way see insurance it? a that for the there's at out with of where kind like -- real there. will cetera. you're companies, about Or confusion domain lot

that So X be Ashim. have could if you would follow-up helpful. us And there, help I for

have and that X EPIC of you I way you they way. for this the the Salesforce within you agent and to Raimo, build real that Salesforce, the what They is a more companies discussion recently have intimate access is care will put right like U.S. application your Yes. about build Are to into to that EPIC. take force? both will it are was an top the But think sales touch think ecosystem. that no CIO will to the of that health They processes has say and Agentic I I agents instance, think our having Salesforce And our approach in agents. with going if Salesforce to in provider data

this an where sweet is to our our I was spot have shining. will actually agent think automation multiple robotic systems. when So with is And interact

sweet systems, multiple We require interaction similarly be those think to our modern multiple and that that legacy for I legacy. for data are agents and building both will spend modern complex moderate known automate processes agents with to and spot systems,

rate a ARR next then, on new bit growth just aren't us Ashim, with Like confidence like message on get give the And maybe help you ] Like [ the stabilizing year us net the Perfect. handholding that? some I gives side. Okay. here. what the for -- little

Yes.

of look that feels very we've rigor good. around momentum aspects progress at with business, forward improving customers commented The we're to the So some our see. just just have we've all execution pleased visibility the on we Agentic, honestly, front. I with we Fortune think pipeline executing, that addition XX Raimo, leaving really with the the made we and We're we the as on in have company-wide, management the is that from that when sales

progress. statement we as that confident So making business feel just to the continues

Next from from Jake is coming Roberge Blair. William question

improving has execution the do America within just you we to like recently. the feel to in of used talk been Sounds Can left what been back that see. order is changes kind to able about far? things thus to get go that to make then go-to-market execution you've steady And you

Look, evolving. Jake. that pleased we the Yes. are driven in improvement how are go-to-market were with the we

bringing lot we in calls, functions eliminating focused last As customers. go-to-market into the to the regions we and said into a more the closer model into our simplifications silos into

the created office our closer customer-centricity to have We executive helps that customer. top the recently being

still things we have So look, it's for the pleased -- a are -- am to do, into now. at how we continue lot I are but things of evolving

and cases feedback customers so partners platform, that helpful. And talk just had customers the and your the maybe then use building given hearing were Very there on to that from generate customers many coming you their able that of what conference might Agentic out pipeline recently? the forward you're that they just and around Okay. be you you there gotten about just you've board from can

Yes.

world. I interest on generation. the pipe it from have the -- start I on when platform there It's customers across extreme let announced more forward us. comment sentiment was Look, is forward me think Ashim very most offering. FORWARD been on an Agentic it's It's offering. And the Let III consequential our for and our since the -- it's transformational a we

almost start a pitch. basically banks various like and I start hearing in world. they huge FORWARD, customers, Middle to the And want it's when are across big weeks the tested prior said, listen they are in companies care interested. Like about health and Agentic even customers East, -- it's you -- such Japan Monday, I doing health They Europe. the we in what Actually, we we messaging with and the with the U.S. Frankly, was X to script, said traveling our guys. POC they next And care very in

So attention this clear easier automating And messaging. -- of C-level cases We it's get I our are far. that the messaging, are new of think, we to reinvigorating discussions executives a way expand to into this so seeing with the capable -- and it's customers. the with use we

Yes. qualitatively, of in obviously, more just interest the opportunities of in in our don't what really But about And terms then us. minds customers of ahead terms pipeline, quantification. of has we us pipeline of talked on Daniel comment the bolsters from terms giving the in the that a terms the in conviction lot of

heard script those and in The you building number registrants of for that's second are our very all us. piece, the or previews the encouraging excitement on private if the registrations is preview, on public just Daniel's

Next Bergin question is coming from from Bryan Cowen. TD

like make have return you're to with do? to those pleased entrepreneurial left you want the internally what still so have But as aiming It to question far. sounds follow-up that else specifically, do you first on I do changes to the you're routes. a execution

like we're next the of think have highest on now streamlining especially the really the is dollars complete. where majority where for our I planning to What prioritize actually, focused as we're are the changes, year. really Brian, on investment, return you

the and are and That customers very from customer So away find efficiencies to field, the are the functions invest to we our that the the continue spend further in that is for that in view to invest good. the feels us combination continue within is away. further closest functions --

a of second the out is a it function a making of that have The just sales on Agentic the sales enablement positive enabling will team good messaging a is and and messaging priority that energy also coming Ford. sales note, that us. for enablement really sure and There's for we team piece actually lot drive the with around

Okay.

U.S., you is U.S. opportunity efficiency the government about notable thinking customer forward? improved Okay. that. just that are I given how agencies, many in appreciate And talk a government for across market you then going about all

Yes.

us. look, we think in I the of opportunity is as said, great front

positive are We long of of from have engineering our seeing energy think I of a the company. innovation we've such in am we of product I seen company. the pace kind and seen the in term fastest internally in beginning the that the the not seeing that inception

Bryan, And very specifically, federal, the to well they respond on innovation. I think

the think functions there. good et momentum IRS, We see I we like cetera. about talked

an election is feel uncertainty far cycle response a an so there sign, But that to there's government is from us area We right, there. the with actually, very been obviously we've going making and for more keeps efficiency. that think I we can government, that's automation, efficiency positive driving sure well partner that and and like the continue gotten is our customers. higher

RBC coming Capital question is Next Hedberg from Matthew Markets. from

also agent before? tap changed since quarter? you've flush you seeing is wondering that do This demand with Richards see dollars vision, then weren't AI on has post could the was was a election, last It I but maybe budget those how if of Gen and difference buying project maybe And about like the Mike for new maybe Matt. environment year-end in noted at hear guys great and patterns kind to usually you you any the into improved execution,

or that demand kind it quarters, the X I'd environment and -- degrading say stable. be in improvement. seen sign of seeing past is of we the are continues It's no as to we've

quick that. budget And we've always to for working then look executing don't the are terms way our out the provided guidance of flush, in the and teams we -- see ones. We think I

would look advantage for opportunity to from course, that of arise us. But for long-term of sales growth continue any our sustainable our team to take We customers. is equipped well

Sanjit from Stanley. Morgan Your coming Singh question next today is from

least on love you to when at of providing for get on better of you much sort dollars what of so added do basis. stabilizing mean you thank fiscal Ashim, year I'd of color by stabilized 'XX. a understanding some think a that

you new think had that million $XX ARR year-over-year growth from on a that front. net guys Are it clarification Just in I year. around perspective? this thinking a of you

Yes.

We've it. modeling, very we ARR. were as intentional a the at about how out point looking pointed we net we looking think were One, questions at seasonality on gotten the think for basis. X as new were I just lot of we to particularly

just the been very if the The kind in a improved the the driving we the stabilization the trend, piece, that of the changes you team positive signal, at on is though, of questions the a very of changes Daniel second and good trajectory so made. execution lot and is there's that Sanjit, that business. reflecting look company we've with feel the are

that row those you've say, point where on improved to targets. like with so a guidance. now you got, Yes. much set And if Not in guide better about or that X But that the quarters and a execution, execution, online, it's necessarily the think spending exceeded ARR to overall? to that much be your how the commercial back of starts -- tailwind would do how a market you let's better that to much come environment growth extent

we on Daniel to being environment the of of guide macroeconomic commented stable last what's versus and the quarters couple front in us.

like it's So of that, in movements market, are advantage environment. a but we feel the variable take could any out positive that there we

as innovation how us So the excited tailwinds. I as we is where environment, think following also it confidence in here. allows to What execution market we're would years to well. about has the those product on we I are -- we our addition have move have Sanjit, Agentic positioned wave our on balance the into say, also to And and though,

Tillman is Truist coming Securities. question Terry Next from from

parts. X It's question. X It's

the about a the that you with not to thing But opportunity. and is capture company ISV, SolEx closeness SolEx. have common the curious for suggests just so I'm So

I Because them. making First, on in in enablement Ashim be working you've this. distribution terms about the of could And terms talked their kind go ecosystem? sales to enablement, there's with very how heard, know But earlier way you channel. around through going SolEx I sales this of think, its through that I been timing of vast

on is just can Second wanted predictable opposed though different This a all How then assume I of I is question it And ask impactful upgrade them if a thing, paper. is third quarter? don't down, each rev I rec Suite. starting as kind your bit deals, write multiyear repeat with and to was that you Test be and to to it's the if SolEx on little these cycle. S/XHANA

deals anything could So about look? share you those how would

Yes.

the me on in comment of excited to of a time to is are and taking we the SolEx deal. rev a X, Look, effort. ask it put product rec. about then lot I'll lot Let It take place, first him

of as by influenced am of the improvements creation. We And -- bullish enterprise reach are we just really all credibility pipe the with this new our a I increasing. in much happen. this. innings, but mentioned were that the But our deals I seeing years it partnership, bigger. the we part it's But is can any an We really more quite partnership, even but now are what have customers, And integral SAP it's think some solution. the is of over

really of for a I test the of seeing application suite, the terms at this huge really other bringing going momentum automating testing. And a X not eventually In SAP into more and for testing, step manual be thought it's only migration, as think, business capable Agentic can are, large which tremendous automating even platforms, leader we to really Gen as testing are AI into into but of exploratory time. far we be testing,

on good -- testing momentum overall So seeing I'm really side. really it's the

and We've I has think started with on point because SAP for the while to deepen. just a X continues the working been now And partnership enablement.

it. sales think we've the piece, good feel very we enablement that just I -- about had experience the So on

accounting nothing There's and it. we'll our XXX. ARR SolEx, that It's is software about In go our accounting policies recognition revenue normal through recognition, sell it the terms to practices. through of of revenue going XXX normal unique under portion the follow really normal we

from from ISI. coming Kirk is today Evercore Materne question Next

for on Kirk. Chirag is This

before? quarters you're that through and expansion might your when you couple renewals the greater traction last greater a highlight I to of net over next part looking thinking are customer new think, be to there that or and products contributing and any recurring themes different from So our recently ahead would of ARR quarter,

of of Agentic as had different it's what is before. growth a autopilot, cetera. piece it. the and like products had quarter would say deal adoption of in see autopilot say But et like IDP flavors for The products a it continued wouldn't to our Chirag, I I everyone very IDP largest AI we our

well, that So you expansions be overall really happening priority and continues positioned the our is company. see a platform where to for

Dan testing. talked about The second is piece,

factors attractiveness automation continued on the our and our test of seeing momentum We expansion. are into platform

the X Got financial on it. more And front.

this You delivered quarter. past beat margin strong a

strongest but out in the quarter. drive what historically restructuring, QX believe you margin these do called You given that upside has drove beat? the And factors been help same QX, your could

guide, streamline the about -- results and around the everything are feel guide at I free the good like talked rate. we we QX driving for which and that very Look, what execution able reaccelerating about what efficiency we teams quarter. also we're to we as factored talked cash is about QX putting our -- showed And next the our growth and for in is company, discipline flow -- pace in the third year, those my

feel good very in for all the So we the and profitability trajectory about company. all,

Kingsley Your Genuity. next question today from Canaccord Crane is from coming

your hybrid the of SaaS? a pure comments cloud within So provide cloud business, and on directional could you mix

on basis don't this. We of terms provide that a routine in

as We normal is are that said, cloud and are on do, as use level of usually becoming that more What's cloud. is and That way. capabilities our follow they encouraging and adopted have our majority being been of a on-prem that in we cloud other of forthright we will we some the very basis, installations attractive matures customers cloud-first it quarter to hybrid the that and level and a is disclosures discuss on that. meaning every our some our launched on more

Great.

they're are SaaS, some follow-up, customer's if guess, I to capabilities as so AI, leverage ability newer Agentic the just thinking how depending of you pure like on-premise. or deployed hybrid And about quick like these a

to robots contribute further and to those what actually, on offering differentiator it's still data. that systems. here is stress a very hybrid I'd systems like deployed to our be the think going precise that differentiator, I secure is systems will they of and to And going to agents. helpful And robots our our to have provide on-prem to customers the to way access can provide -- access have on-prem many very a because

exactly this cannot be in decision. can they other need the informed really And to an access achieved order data to way. agent to an in You give make any

is question coming next Your Brian from from Oppenheimer. Schwartz

in to for terms early these real the ASPs it the it's But it's you're know of that deals. even getting Agentic maybe I other hard compare trying when Automation type on they And possible products -- these deals Daniel, to of ASPs parse out. I'm And if being than if they I in scale, end suite? early, could deals it's core suite? but the they up to versus larger know the in products see the is the

Yes.

we like I larger deals mentioned script. X can the think that that the really they in drive

largest everyone. deal delivered up models. Agentic for pricing or quarter even an it -- deal, that Our autopilot different And was opened this our

Agentic, can use -- customers. basically. And the can You case that with it even can you can get unlock we value closer for per price to

So I'm can by really -- driven that by ASP be positive the increased agents.

end We've of like back for our floor the further reached I'd any comments. the turn question-and-answer over session. closing or to

guys. much, so you thank Yes,

weeks. further the here questions coming are and days in taking for We

Thank does teleconference you. That and conclude today's webcast.

this at thank for time, your line and wonderful your We disconnect may day. have participation a today. you You