UiPath, Inc. (NYSE: PATH), a leading enterprise automation software company, yesterday announced financial results for its fourth quarter and full year fiscal 2023 that were in line with analysts’ expectations.

The company delivered a very strong close to fiscal year 2023, fourth quarter fiscal 2023 ARR (annual recurring revenue) grew 30 percent year-over-year while revenue increased 7%.

On the bottom line, a record fourth quarter non-GAAP operating margin of 22% drove full-year 2023 non-GAAP operating margin to 6%, accelerating the path to profitability and serves as the baseline for fiscal year 2024 non-GAAP operating margin outlook of 9.5%, an approximately 350 basis point expansion year-over-year.

UiPath stock YTD evolution

During the fourth quarter UiPath closed a record number of deals over $1 million, increasing the cohort of customers with $1 million or more in ARR to 229 while customers with $100,000 or more in ARR, increased to 1,785.

Fourth quarter total gross margin was 87% reflecting ongoing investments in support and cloud infrastructure with software gross margin at 93%.

Despite business growth, both fourth quarter and full fiscal year brought operational losses of $45.1 mln respectively $348.3 mln. Loss per share $0.05 quarterly and $0.60 annually.

Fourth Quarter Fiscal 2023 Financial Highlights

• Revenue of $308.5 million increased 7 percent year-over-year.
• ARR of $1.204 billion increased 30 percent year-over-year.
• Net new ARR of $93.8 million.
• Dollar based net retention rate of 123 percent.
• GAAP gross margin was 85 percent.
• Non-GAAP gross margin was 87 percent.
• GAAP operating loss was $(45.1) million.
• Non-GAAP operating income was $69.2 million.
• Net cash flow from operations was $94.0 million.
• Non-GAAP adjusted free cash flow was $101.2 million.

Full Year Fiscal 2023 Financial Highlights

• Revenue of $1.059 billion increased 19 percent year-over-year.
• Net new ARR of $278.6 million.
• GAAP gross margin was 83 percent.
• Non-GAAP gross margin was 86 percent.
• GAAP operating loss was $(348.3) million.
• Non-GAAP operating income was $65.2 million.

“I am pleased with our results and how the team brought the fiscal year to a close despite foreign exchange and macroeconomic headwinds in the fourth quarter of fiscal 2023,” said Ashim Gupta, UiPath Chief Financial Officer.

“Our commitment to driving growth at scale, expanding operating margin, and generating positive non-GAAP adjusted free cash flow is reflected in our full year fiscal 2024 outlook which implies a 350 basis point increase in non-GAAP operating margin and positive non-GAAP adjusted free cash flow for the fiscal year.”

Financial Outlook

For the first quarter fiscal 2024, UiPath expects:

• Revenue in the range of $270 million to $272 million
• ARR in the range of $1.245 billion to $1.250 billion as of April 30, 2023
• Non-GAAP operating income of approximately $5 million

For the fiscal full year 2024, UiPath expects:

• Revenue in the range of $1.253 billion to $1.258 billion
• ARR in the range of $1.425 billion to $1.430 billion as of January 31, 2024
• Non-GAAP operating income of approximately $120 million