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UiPath stock falls 20% after the company’s outlook falls short of Wall Street expectations.

UiPath Inc. shares fell in the extended session Wednesday after the “software robot” provider’s weaker-than-expected outlook overshadowed quarterly results beat that exceeded Wall Street’s expectations.

UiPath PATH, -7.52 percent shares fell more than 20% after hours, following a 7.5 percent drop in the regular session to close at $29.04, or 48 percent below their IPO price of $56 per share in April 2021.

For the first quarter, the company expects revenue of $223 million to $225 million and an annualized renewal run rate (ARR) of $960 million to $965 million, while FactSet analysts expect revenue of $247 million and an ARR of $968.2 million. ARR is a metric commonly used by software-as-a-service companies to demonstrate how much revenue can be expected based on subscriptions.

UiPath anticipates revenue of $1.08 billion to $1.09 billion and ARR of $1.2 billion to $1.21 billion for the fiscal year, while analysts anticipate revenue of $1.26 billion and ARR of $968.2 million.

In addition, UiPath announced that Chief Revenue Officer Thomas Hansen would be departing the company but would remain until the end of the first quarter. Chris Weber, a former Microsoft Corp. MSFT, -0.49 percent executive, has also been named Chief Business Officer.

The company reported a fourth-quarter loss of $63.1 million, or 12 cents per share, compared to a net income of $26.3 million the previous year. Adjusted earnings, which exclude stock-based compensation expenses and other items, were 5 cents per share, down from 9 cents per share the previous year.

Revenue increased to $289.7 million, up from $207.9 million in the previous quarter. The company’s ARR increased 59 percent year on year to $925.3 million.

Based on UiPath’s forecast revenue of $281 million to $283 million and ARR of $901 million to $903 million for the fourth quarter, analysts expected earnings of 3 cents per share on revenue of $283 million and an ARR of $902.5 million.

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Kathy Lewis

Kathy Lewis is an all-around geek who loves learning new stuff every day. With a background in computer science and a passion for writing, she loves writing for almost all the sections of Editorials99.

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