UiPath stock tumbled on Wednesday after the software maker reported July-quarter earnings and sales that topped views but lowered its outlook.
For fiscal 2023, UiPath cut its revenue forecast to a range of $1.002 billion to $1.007 million, down from earlier guidance of $1.085 billion to $1.090 million.
UiPath stock fell 11.2% to close at 13.84 on the stock market today. The New York-based company reported second-quarter earnings after the market close on Tuesday.
"Guidance was lowered due to FX (currency) headwinds, macro pressures, and internal repositioning," RBC Capital analyst Matthew Hedberg said in a note to clients.
UiPath Stock: Weak Customer Growth
Further, customer growth proved weak, according to BMO Capital Markets analyst Keith Bachman.
"PATH only added 170 new customers in the July quarter, further declining from the 230 new customers added last quarter," he said in his note to clients.
For the quarter that ended July 30, UiPath reported a loss of 2 cents per share on an adjusted basis. A year earlier, UiPath had a 1-cent profit. Revenue climbed 24% to $242.2 million, said the maker of robotic process automation, known as RPA software.
UiPath stock analysts estimated an 11-cent loss per share on revenue of $231 million. UiPath said annual recurring revenue rose 64% to $653 million from a year earlier vs. estimates for $613.4 million.
Company's IPO Raised $1.3 Billion
The UiPath initial public offering in April 2021 raised $1.3 billion. Heading into the earnings report, though, UiPath stock owned a Relative Strength Rating of 7 out of a best-possible 99, according to IBD Stock Checkup.
RPA software typically automates accounting, billing and customer service. Customers use the software for manual, high volume, repetitive tasks in back-office operations.
UiPath's software scans documents, enters data into spreadsheets, opens PDF files, and performs other tasks.
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