UiPath reported second-quarter revenue of $410 million, a 13% increase, exceeding analyst expectations of $397.8 million. Earnings before certain costs, including stock compensation, were 15 cents per share, matching Wall Street's target. Net income for the quarter rose to $36.1 million, compared to $1.6 million in the previous year.
The company raised its full-year revenue forecast for fiscal 2027, increasing the range from $1.776 billion to $1.781 billion to a new range of $1.789 billion and $1.794 billion. For the current quarter, the company targets revenue between $440 million and $445 million, with the midpoint exceeding the Street's guidance of $441.2 million.
Annual recurring revenue reached $1.94 billion, marking a 12% increase from the previous year. The dollar-based net retention rate increased to 109%, indicating that existing customers are spending more on the company's tools.
To address concerns about AI disruption, UiPath is developing agentic automations and AI agents capable of autonomous reasoning and adaptation. CEO Daniel Dines stated that AI is expanding automation possibilities while increasing the need for orchestration and governance provided by traditional deterministic automation.
The company announced executive changes in sales and delivery teams, including the promotion of Hitesh Ramani from Chief Accounting Officer to Chief Financial Officer. CEO Daniel Dines described these changes as a measure to increase speed and accountability within the executive team.
