UiPath Shares Rise After Beating Earnings and Announcing Share Buybacks
By Wallace Witkowski
UiPath Inc. shares rose in the extended session Wednesday after some initial volatility after the AI startup beat on earnings and announced share buybacks amid a conservative forecast.
Share Price Movement
- UiPath (PATH) shares initially declined as much as 2% but rallied more than 6% after hours.
- UiPath shares finished the regular session down 0.3% at $16.22.
- Year-to-date, UiPath shares are up 27.6%.
- Comparatively, the S&P 500 index has gained 16.3% and the Nasdaq Composite has risen 32.5%.
Revenue Forecast
For the third quarter, UiPath forecasts revenue between $313 million and $318 million. For the year, revenue is expected to be between $1.27 billion and $1.28 billion.
Analysts estimated revenue of $318.5 million for the third quarter and $1.27 billion for the year.
Positive Outlook
Ashim Gupta, UiPath’s CFO, stated that maintaining consensus estimates is positive in the current variable environment.
Gupta expressed confidence in the value UiPath brings to customers and highlighted the company’s focus on AI.
Share Buybacks
UiPath authorized the buyback of up to $500 million in shares, citing a strong cash balance and positive free cash flow.
Company Background
UiPath went public in April 2021, with shares priced at $56. The company reported a second-quarter loss of $60.4 million, but adjusted earnings were 9 cents a share. Revenue rose to $287.3 million.
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09-06-23 1731ET
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