UiPath, Inc. (NYSE: PATH), a leading Romanian enterprise automation software company, announced last week financial results for its third quarter fiscal 2023 ended October 31, 2022 that were better than expected, with revenue up 19% yoy while loss per share was 10 cents vs consensus of $-0.18/share.

Annual recurring revenue (ARR) of $1.110 billion increased 36 percent year-over-year and net new ARR of $66.8 million. The company reported a GAAP operating loss of $(67.0) million while net loss was $57.7 mln vs $122.7 mln same period of last year.

Financial highlights third quarter 2023:

• Revenue of $262.7 million increased 19 percent year-over-year.
• ARR of $1.110 billion increased 36 percent year-over-year.
• Net new ARR of $66.8 million.
• Dollar based net retention rate of 126 percent.
• GAAP gross margin was 84 percent.
• Non-GAAP gross margin was 86 percent.
• GAAP operating loss was $(67.0) million.
• Non-GAAP operating income was $18.0 million.
• Net cash used in operations was $27.3 million.
• Non-GAAP adjusted free cash flow was negative $24.1 million.
• Cash, cash equivalents, and marketable securities were $1.7 billion as of October 31, 2022.

“UiPath continues to be differentiated by our platform approach, which is at the core of our success,” said Daniel Dines, UiPath Co-Founder and Co-Chief Executive Officer.

“Our latest release, further expands our competitive advantage with market-leading capabilities at every stage in the automation lifecycle, from discover to automate to operate. This cohesive approach makes it easier and faster for organizations to efficiently scale their automation programs and drive meaningful business outcomes.”

Financial Outlook – For the fourth quarter fiscal 2023, UiPath expects:

• Revenue in the range of $277 million to $279 million.
• ARR in the range of $1,174 million to $1,176 million as of January 31, 2023.
• Non-GAAP operating income of approximately $35 million.

UiPath shares lost more than 80% since their peak in May 2021, soon after listing on NYSE.