UiPath Q3 Earnings: Key Expectations and Insights

The automation software company UiPath (PATH) will announce its Q3 earnings this Wednesday after market close. Investors are keen to see how the company performs compared to analysts’ expectations.

Q3 Earnings Expectations for UiPath

In the previous quarter, UiPath surpassed revenue expectations, reporting $361.7 million. This figure represented a 14.4% increase year on year and a 4.1% beat over analysts’ forecasts. However, the company missed billing estimates significantly, raising questions about its short-term growth trajectory.

Projected Growth

Analysts forecast a revenue increase of 10.7% for this quarter, anticipating revenues to reach $392.8 million. This marks an improvement from last year’s growth rate of 8.8%. Adjusted earnings per share are expected to be around $0.15.

• Last Quarter Performance: $361.7 million revenue, up 14.4% year on year.
• Analysts’ Q3 Expectations: $392.8 million revenue, a 10.7% increase.
• Expected Adjusted Earnings: $0.15 per share.

Analyst Confidence

In the past month, analysts have reaffirmed their estimates for UiPath. The consistency of these projections indicates a strong confidence in the company’s ability to maintain its performance leading into the earnings announcement. Over the last two years, UiPath has surprised the market by exceeding revenue estimates four out of five times, achieving an average outperformance of 3.5%.

Comparative Performance with Peers

UiPath isn’t the only company in the automation software sector reporting this quarter. Competitors have also released their Q3 results, providing helpful insights into market trends.

• Pegasystems: Achieved 17.3% year-on-year revenue growth, beating expectations by 8.5%.
• Jamf: Reported a revenue increase of 15.2%, surpassing estimates by 3.4%.

The stock price for Pegasystems surged by 15% post-results, while Jamf remained stable following its announcement. These results may influence investor sentiment toward UiPath’s upcoming earnings.

Market Environment

The broader market has faced volatility, with share prices of major automation software firms down an average of 4.8% over the past month. UiPath specifically has seen a 10.2% decline during this period, despite analysts setting an average price target of $13.86, above its current trading price of $14.27.

As investors brace for UiPath’s earnings, focus remains on how the company will navigate these market conditions and meet its expectations amidst growing competition.