UiPath (PATH:NYE) posted solid results for the fourth quarter of the fiscal year 2023, with revenues of $308.5 million and adjusted earnings per share of $0.15, exceeding Wall Street’s expectations. The 30% year-over-year growth in the company’s annualized renewal run rate (ARR) to $1.2 billion indicates the company’s optimistic subscription-based sales projections.
Rob Enslin, Co-CEO of UiPath, stated that the company closed agreements for over $1 million in the preceding quarter and has 229 customers who contribute over $1 million to ARR. In addition, UiPath’s management is confident about the company’s future performance, with Q1 sales expected between $270 million and $272 million and FY2024 revenue anticipated between $1.253 billion and $1.258 billion.
The increasing need for business automation, together with UiPath’s continuing product quality and capacity for innovation, provides compelling evidence for the company’s promising future. Concerns remain, however, over the possible influence of AI language models such as ChatGPT on UiPath’s business.
Notwithstanding these issues, the consensus rating for PATH stock on Wall Street is Buy, based on two Buy ratings and two Hold ratings. The average price estimate for PATH stock is $17.68 which indicates a 29% increase from the present price.
