Business Wire | Sep 7, 2021 04:10PM EDT

UiPath Reports Second Quarter Fiscal 2022 Financial Results

Sep. 07, 2021

NEW YORK--(BUSINESS WIRE)--Sep. 07, 2021--UiPath, Inc. (NYSE: PATH), a leading enterprise automation software company, today announced financial results for its second quarter fiscal 2022 ended July 31, 2021.

"We continued our very strong momentum in the second quarter of fiscal year 2022 with ARR growing 60 percent year-over-year to $726.5 million. Our results were driven by both new customer additions, ending the quarter with more than 9,100 customers, as well as robust expansion with existing customers, reflected in our best-in-class dollar-based net retention rate of 144 percent," said Daniel Dines, UiPath Co-Founder and Chief Executive Officer. "The opportunity to unlock human potential is vast and we are in the very early stages of the automation market. We believe we have a long-term opportunity to drive durable growth and build a company that will transform how organizations compete, employees experience work, and companies interact with their customers."

Ashim Gupta, UiPath Chief Financial Officer, added, "The team executed well this quarter as we continue to drive meaningful growth at scale. Our land and expand go-to-market model delivered record net new ARR, a testament to our competitive differentiation and the power of our platform to drive meaningful return on investment for our customers. Looking ahead, our priority is to continue to drive growth while exercising operational rigor, which will allow us to maintain our clear leadership position in this large and growing market."

Second Quarter Fiscal 2022 Financial Highlights

* ARR of $726.5 million as of July 31, 2021, increased 60 percent year-over-year. * Net new ARR of $73.9 million increased 33 percent year-over-year. * Revenue of $195.5 million increased 40 percent year-over-year. * GAAP gross margin was 82 percent. * Non-GAAP gross margin was 86 percent. * Net cash used in operations was $(6.0) million. * Non-GAAP adjusted free cash flow was $(3.5) million. * Cash, cash equivalents, and marketable securities of $1.9 billion as of July 31, 2021.

Recent Business Highlights

* Named a Process Mining Leader in the Technology Vendor Landscape for the second consecutive year, according to Everest Group's Process Mining Products PEAK Matrix(r) Assessment 2021. UiPath has also emerged as one of the four-Star Performers in this year's assessment, demonstrating the most year over year improvement on the PEAK Matrix(r). * Announced new integrations with Smartsheet (NYSE: SMAR), the enterprise platform for dynamic work, to make it easy for users to retrieve, update, and share data in Smartsheet. This means users are now able to automate the management of workflows in Smartsheet projects, reports, and sheets in a matter of minutes, saving hours of repetitive, manual work. * Expanded technology partner ecosystem to include SUSE, a leader in Linux and Kubernetes management, to provide additional deployment options for customers leveraging the UiPath platform. In addition, UiPath collaborated with Alteryx (NYSE: AYX), a strategic technology partner, which developed a UiPath Connector that makes it easy for users to trigger UiPath software robots directly from an Alteryx analytic automation workflow. * Completed SOC 2 Type 2 System and Organization Controls for UiPath Automation Cloud: This attestation, among the Company's extensive list of security capabilities, provides assurance to UiPath global customers in highly-regulated industries who trust UiPath with their most sensitive data. * Joined TSANet (Technical Support Alliance Network), the industry's largest vendor neutral support alliance, to fast track interactions with other vendors in resolving multi-party integration issues. As the first pure-play automation company to the TSANet ecosystem, UiPath will leverage other vendors' engineering and customer success teams to ultimately reduce the resolution time for its mutual customers. * Expanded go-to-market partner ecosystem to help customers rapidly accelerate their digital transformation efforts. With a range of technology and industry solutions, UiPath added more than 300 new go-to-market partners in the quarter bringing the total partner ecosystem to more than 4,700 worldwide. * Announced UiPath community grew to more than 1.5 million members and launched three new features: Use case repository, UiPath community job board, and Community mentorship program. The UiPath Community connects customers, partners, freelancers, enthusiasts, and beginners to UiPath.

Financial Outlook

For the fiscal third quarter 2022, UiPath expects:

* ARR in the range of $796 million and $798 million as of October 31, 2021 * Revenue in the range of $207 million and $209 million * Non-GAAP operating loss in the range of $(30) million and $(15) million

For the fiscal full year 2022, UiPath expects:

* ARR in the range of $876 million and $881 million as of January 31, 2022

Reconciliation of non-GAAP operating loss guidance to the most directly comparable GAAP measure is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and low visibility with respect to the charges excluded from this non-GAAP measure; in particular, the measures and effects of stock-based compensation expense specific to equity compensation awards that are directly impacted by unpredictable fluctuations in our stock price. We expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future GAAP financial results.

Conference Call and Webcast

UiPath will host a conference call today, Tuesday, September 7, 2021, at 5:00 p.m. Eastern Time, to discuss the Company's fiscal second quarter 2022 financial results and guidance. To access this call, dial 1-201-689-8057 (domestic) or 1-877-407-8309 (international). The passcode is 13721284. A replay of this conference call will be available through September 21, 2021 at 1-201-612-7415 (domestic) or 1-877-660-6853 (international). The replay passcode is 13721284. A live webcast of this conference call will be available on the "Investor Relations" page of the Company's website ( https://ir.uipath.com), and a replay will be archived on the website as well.

About UiPath

UiPath has a vision to deliver the Fully Automated Enterprise(tm), one where companies use automation to unlock their greatest potential. UiPath offers an end-to-end platform for automation, combining the leading Robotic Process Automation (RPA) solution with a full suite of capabilities that enable every organization to rapidly scale digital business operations.

Forward Looking Statements

Statements we make in this press release may include statements which are not historical facts and are considered forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995, which are usually identified by the use of words such as "anticipates," "believes," "estimates," "expects," "intends," "may," "plans," "projects," "outlook", "seeks," "should," "will," and variations of such words or similar expressions.

We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Securities Exchange Act and are making this statement for purposes of complying with those safe harbor provisions.

These forward-looking statements include, but are not limited to, statements regarding our financial guidance for the third fiscal quarter and full year fiscal 2022, our strategic plans or objectives, the estimated addressable market opportunity for our platform, the successful integration of new features into our platform, the success of our collaborations with third parties, and the ability of our platform to deliver our customers a return on investment. Accordingly, actual results could differ materially or such uncertainties could cause adverse effects on our results. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks include, but are not limited to, risks and uncertainties related to: (1) our recent rapid growth, which may not be indicative of our future growth; (2) our limited operating history; (3) our ability to successfully manage our growth; (4) our ability and the ability of our platform to satisfy and adapt to customer demands; (5) our dependency on our existing customers to renew their licenses and purchase additional licenses and products from us and our channel partners; (6) our ability to attract and retain customers; (7) the competitive markets in which we participate; (8) general market, political, economic, and business conditions; (9) our ability to maintain and expand our distribution channels; (10) our reliance on third-party providers of cloud-based infrastructure; and (11) the potential impact that the COVID-19 pandemic and any related economic downturn could have on our or our customers' businesses, financial condition and results of operations.

Further information on risks that could cause actual results to differ materially from our guidance can be found in our Quarterly Report on Form 10-Q for the quarterly period ended April 30, 2021 filed with the SEC on June 9, 2021, and in our Quarterly Report on Form 10-Q that will be filed for the quarterly period ended July 31, 2021. Any forward-looking statements contained in this press release are based on assumptions that we believe to be reasonable as of this date. Except as required by law, we assume no obligation to update these forward-looking statements.

Key Performance Metric, Dollar-Based Net Retention Rate, and Non-GAAP Financial Measures

Annualized Renewal Run-rate (ARR) is a key performance metric we use in managing our business because it illustrates our ability to acquire new subscription customers and to maintain and expand our relationships with existing subscription customers. We define ARR as annualized invoiced amounts per solution SKU from subscription licenses and maintenance obligations assuming no increases or reductions in the subscriptions. ARR does not include the costs we may incur to obtain such subscription licenses or provide such maintenance and does not reflect any actual or anticipated reductions in invoiced value due to contract non-renewals or service cancellations other than for specific bad debt or disputed amounts. Additionally, though we use ARR as a forward-looking metric in the management of our business, it does not include invoiced amounts reported as perpetual licenses or professional services revenue in our consolidated statement of operations, and is not a forecast of future revenue, which can be impacted by contract start and end dates, duration, and renewal rates.

Dollar-based net retention rate represents the rate of net expansion of our ARR from existing customers over the preceding 12 months. We calculate dollar-based net retention rate as of a period end by starting with ARR from the cohort of all customers as of 12 months prior to such period end (Prior Period ARR). We then calculate the ARR from these same customers as of the current period end (Current Period ARR). Current Period ARR includes any expansion and is net of any contraction or attrition over the preceding 12 months but does not include ARR from new customers in the current period. We then divide total Current Period ARR by total Prior Period ARR to arrive at dollar-based net retention rate. Dollar-based net retention rate may fluctuate based on the customers that qualify to be included in the cohort used for calculation and may not reflect our actual performance.

Investors should not place undue reliance on ARR or dollar-based net retention rate as an indicator of future or expected results. Our presentation of ARR and dollar-based net retention rate may differ from similarly titled metrics presented by other companies and therefore comparability may be limited.

This earnings press release includes financial measures defined as non-GAAP financial measures by the SEC, including non-GAAP cost of revenue, non-GAAP gross profit and margin, non-GAAP operating expenses, non-GAAP operating income (loss) and margin, non-GAAP net income (loss) and non-GAAP net income (loss) per share, and non-GAAP adjusted free cash flow. These non-GAAP financial measures exclude:

* stock-based compensation expense; * amortization of acquired intangibles; * employer payroll tax expense related to employee equity transactions; * in the case of non-GAAP net income (loss), undistributed earnings attributable to participating securities and tax adjustments associated with the add-back items; and * in the case of non-GAAP adjusted free cash flow, purchases of property and equipment, capitalization of software development costs, cash paid for employer payroll taxes related to employee equity transactions, and net receipts of employee tax withholdings on stock option exercises.

UiPath uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating UiPath's ongoing operational performance. UiPath believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing its financial results with other companies in UiPath's industry, many of which present similar non-GAAP financial measures to investors. Non-GAAP financial measures are financial measures that are derived from the consolidated financial statements, but that are not presented in accordance with generally accepted accounting principles in the United States (GAAP). We believe these non-GAAP financial measures provide investors with useful supplementary information in evaluating our performance. Investors should consider these non-GAAP financial measures in addition to, and not as a substitute for, our financial performance measures prepared in accordance with GAAP. Further, our non-GAAP information may be different from the non-GAAP information provided by other companies. The information below provides a reconciliation of non-GAAP financial measures used in this press release to the most directly comparable GAAP financial measures. We encourage investors to consider our GAAP results alongside our supplemental non-GAAP measures, and to review the reconciliation between GAAP results and non-GAAP measures that is included at the end of this earnings press release. This earnings press release and any future releases containing such non-GAAP reconciliations can also be found on the Investor Relations page of UiPath's website at https://ir.uipath.com.

UiPath, Inc.

Condensed Consolidated Statements of Operations

in thousands, except per share data

(unaudited)



Three Months Ended Six Months Ended July 31, July 31,

2021 2020 2021 2020

Revenue:

Licenses $ 95,547 $ 79,513 $ 195,763 $ 143,272

Maintenance and 90,319 51,932 167,961 95,128 support

Services and other 9,655 7,931 18,014 14,079

Total revenue 195,521 139,376 381,738 252,479

Cost of revenue:

Licenses 2,434 1,636 4,888 3,053

Maintenance and 12,238 5,501 26,417 11,044 support

Services and other 20,922 7,561 53,299 14,239

Total cost of revenue 35,594 14,698 84,604 28,336

Gross profit 159,927 124,678 297,134 224,143

Operating expenses:

Sales and marketing 144,268 90,331 350,019 181,262

Research and 57,646 26,541 150,686 53,270 development

General and 55,834 24,834 130,249 51,510 administrative

Total operating 257,748 141,706 630,954 286,042 expenses

Operating loss (97,821 ) (17,028 ) (333,820 ) (61,899 )

Interest income 766 77 1,707 607

Other (expense) (1,225 ) 24,010 (4,443 ) 16,173 income, net

(Loss) income before (98,280 ) 7,059 (336,556 ) (45,119 )income taxes

Provision for income 1,746 2,072 3,133 2,734 taxes

Net (loss) income $ (100,026 ) $ 4,987 $ (339,689 ) $ (47,853 )

Undistributed earningsattributable to - 4,987 - - participatingsecurities

Net loss attributableto common $ (100,026 ) $ - $ (339,689 ) $ (47,853 )stockholders, basicand diluted

Net loss per shareattributable to common $ (0.19 ) $ - $ (0.91 ) $ (0.30 )stockholders, basicand diluted

Weighted-averageshares used incomputing net loss per 526,512 162,914 373,488 160,980 share attributable tocommon stockholders,basic and diluted

UiPath, Inc.

Condensed Consolidated Balance Sheets

in thousands

(unaudited)

As of

July 31,2021

January 31,2021

Assets

Current assets

Cash and cash equivalents

$

1,826,424

$

357,690

Restricted cash, current

-

7,000

Marketable securities

70,140

102,828

Accounts receivable, net of allowance for doubtful accounts of $2,158 and $2,879, respectively

138,945

172,286

Contract assets, current

53,555

34,221

Deferred contract acquisition costs, current

18,142

10,653

Prepaid expenses and other current assets

51,886

49,752

Total current assets

2,159,092

734,430

Restricted cash, non-current

-

6,500

Contract assets, non-current

2,537

2,085

Deferred contract acquisition costs, non-current

58,289

32,553

Property and equipment, net

14,728

14,822

Operating lease right-of-use assets

16,302

17,260

Intangible assets, net

18,866

10,191

Goodwill

55,193

28,059

Deferred tax asset, non-current

7,927

8,118

Other assets, non-current

14,947

12,443

Total assets

$

2,347,881

$

866,461

Liabilities, Convertible Preferred Stock, and Stockholders' Equity (Deficit)

Current liabilities

Accounts payable

$

2,874

$

6,682

Accrued expenses and other current liabilities

60,558

36,660

Accrued compensation and employee benefits

75,628

110,736

Deferred revenues, current

235,484

211,078

Total current liabilities

374,544

365,156

Deferred revenues, non-current

54,465

61,325

Operating lease liabilities, non-current

12,328

14,152

Other liabilities, non-current

7,591

7,564

Total liabilities

448,928

448,197

Commitments and contingencies

Convertible preferred stock

-

1,221,968

Stockholders' equity (deficit)

Preferred stock

-

-

Class A common stock

4

1

Class B common stock

1

1

Additional paid-in capital

3,213,595

179,175

Accumulated other comprehensive loss

(4,598

)

(12,521

)

Accumulated deficit

(1,310,049

)

(970,360

)

Total stockholders' equity (deficit)

1,898,953

(803,704

)

Total liabilities, convertible preferred stock, and stockholders' equity (deficit)

$

2,347,881

$

866,461

UiPath, Inc.

Condensed Consolidated Balance Sheets

in thousands

(unaudited)



As of

July 31, January 31, 2021 2021

Assets

Current assets

Cash and cash equivalents $ 1,826,424 $ 357,690

Restricted cash, current - 7,000

Marketable securities 70,140 102,828

Accounts receivable, net of allowance fordoubtful accounts of $2,158 and $2,879, 138,945 172,286 respectively

Contract assets, current 53,555 34,221

Deferred contract acquisition costs, current 18,142 10,653

Prepaid expenses and other current assets 51,886 49,752

Total current assets 2,159,092 734,430

Restricted cash, non-current - 6,500

Contract assets, non-current 2,537 2,085

Deferred contract acquisition costs, non-current 58,289 32,553

Property and equipment, net 14,728 14,822

Operating lease right-of-use assets 16,302 17,260

Intangible assets, net 18,866 10,191

Goodwill 55,193 28,059

Deferred tax asset, non-current 7,927 8,118

Other assets, non-current 14,947 12,443

Total assets $ 2,347,881 $ 866,461



Liabilities, Convertible Preferred Stock, and Stockholders' Equity (Deficit)

Current liabilities

Accounts payable $ 2,874 $ 6,682

Accrued expenses and other current liabilities 60,558 36,660

Accrued compensation and employee benefits 75,628 110,736

Deferred revenues, current 235,484 211,078

Total current liabilities 374,544 365,156

Deferred revenues, non-current 54,465 61,325

Operating lease liabilities, non-current 12,328 14,152

Other liabilities, non-current 7,591 7,564

Total liabilities 448,928 448,197

Commitments and contingencies

Convertible preferred stock - 1,221,968

Stockholders' equity (deficit)

Preferred stock - -

Class A common stock 4 1

Class B common stock 1 1

Additional paid-in capital 3,213,595 179,175

Accumulated other comprehensive loss (4,598 ) (12,521 )

Accumulated deficit (1,310,049 ) (970,360 )

Total stockholders' equity (deficit) 1,898,953 (803,704 )

Total liabilities, convertible preferred stock, $ 2,347,881 $ 866,461 and stockholders' equity (deficit)

UiPath, Inc.

Condensed Consolidated Statements of Cash Flows

in thousands (unaudited)

Six Months EndedJuly 31,

2021

2020

Cash flows from operating activities

Net loss

$

(339,689

)

$

(47,853

)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization

6,966

6,264

Amortization of deferred contract acquisition costs

10,971

18,991

Amortization of deferred loan cost

133

-

Net amortization of premium on marketable securities

867

-

Stock-based compensation expense

343,448

17,030

Non-cash operating lease costs

3,580

3,708

(Benefit from) provision for bad debt

(659

)

247

Deferred income taxes

(134

)

(10

)

Changes in operating assets and liabilities:

Accounts receivable

32,961

(17,740

)

Contract assets

(20,355

)

(13,955

)

Deferred contract acquisition costs

(44,946

)

(18,516

)

Prepaid expenses and other assets

(4,340

)

2,326

Accounts payable

(3,663

)

1,414

Accrued expense and other liabilities

8,484

4,127

Accrued compensation and employee benefits

(32,686

)

7,192

Operating lease liabilities, net

(3,698

)

(4,097

)

Deferred revenue

19,237

44,934

Net cash (used in) provided by operating activities

(23,523

)

4,062

Cash flows from investing activities

Purchases of marketable securities

(94,157

)

-

Sales of marketable securities

89,383

-

Maturities of marketable securities

36,605

-

Purchases of property and equipment

(3,641

)

(587

)

Capitalization of software development costs

(771

)

-

Payment related to business acquisition, net of cash acquired

(5,498

)

(1,000

)

Net cash provided by (used in) investing activities

21,921

(1,587

)

Cash flows from financing activities

Proceeds from initial public offering, net of underwriting discounts and commissions

692,369

-

Payments of initial public offering costs

(3,734

)

-

Proceeds from issuance of convertible preferred stock

750,000

225,903

Payments of issuance costs for convertible preferred stock

(164

)

(324

)

Proceeds from exercise of stock options

6,651

2,719

Payments of tax withholdings on net settlement of equity awards

(9,554

)

-

Net receipts of tax withholdings on sell-to-cover equity award transactions

9,483

-

Proceeds from employee stock purchase plan contributions

6,902

-

Proceeds from credit facility

-

78,587

Repayment of credit facility

-

(78,587

)

Net cash provided by financing activities

1,451,953

228,298

Effect of exchange rates

4,883

(14,067

)

Net increase in cash, cash equivalents, and restricted stock

1,455,234

216,706

Cash, cash equivalents and restricted cash - beginning of period

371,190

234,131

Cash, cash equivalents and restricted cash - end of period

$

1,826,424

$

450,837

UiPath, Inc.

Condensed Consolidated Statements of Cash Flows

in thousands (unaudited)

Six Months Ended July 31,

2021 2020

Cash flows from operating activities

Net loss $ (339,689 ) $ (47,853 )

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization 6,966 6,264

Amortization of deferred contract acquisition 10,971 18,991 costs

Amortization of deferred loan cost 133 -

Net amortization of premium on marketable 867 - securities

Stock-based compensation expense 343,448 17,030

Non-cash operating lease costs 3,580 3,708

(Benefit from) provision for bad debt (659 ) 247

Deferred income taxes (134 ) (10 )

Changes in operating assets and liabilities:

Accounts receivable 32,961 (17,740 )

Contract assets (20,355 ) (13,955 )

Deferred contract acquisition costs (44,946 ) (18,516 )

Prepaid expenses and other assets (4,340 ) 2,326

Accounts payable (3,663 ) 1,414

Accrued expense and other liabilities 8,484 4,127

Accrued compensation and employee benefits (32,686 ) 7,192

Operating lease liabilities, net (3,698 ) (4,097 )

Deferred revenue 19,237 44,934

Net cash (used in) provided by operating (23,523 ) 4,062 activities

Cash flows from investing activities

Purchases of marketable securities (94,157 ) -

Sales of marketable securities 89,383 -

Maturities of marketable securities 36,605 -

Purchases of property and equipment (3,641 ) (587 )

Capitalization of software development costs (771 ) -

Payment related to business acquisition, net of (5,498 ) (1,000 )cash acquired

Net cash provided by (used in) investing 21,921 (1,587 )activities

Cash flows from financing activities

Proceeds from initial public offering, net of 692,369 - underwriting discounts and commissions

Payments of initial public offering costs (3,734 ) -

Proceeds from issuance of convertible preferred 750,000 225,903 stock

Payments of issuance costs for convertible (164 ) (324 )preferred stock

Proceeds from exercise of stock options 6,651 2,719

Payments of tax withholdings on net settlement of (9,554 ) - equity awards

Net receipts of tax withholdings on sell-to-cover 9,483 - equity award transactions

Proceeds from employee stock purchase plan 6,902 - contributions

Proceeds from credit facility - 78,587

Repayment of credit facility - (78,587 )

Net cash provided by financing activities 1,451,953 228,298

Effect of exchange rates 4,883 (14,067 )

Net increase in cash, cash equivalents, and 1,455,234 216,706 restricted stock

Cash, cash equivalents and restricted cash - 371,190 234,131 beginning of period

Cash, cash equivalents and restricted cash - end $ 1,826,424 $ 450,837 of period

UiPath, Inc.

Reconciliation of GAAP Cost of Revenue, Gross Profit and Margin to Non-GAAP Cost of Revenue, Gross Profit and Margin

in thousands, except percentages

(unaudited)

Three Months EndedJuly 31,

Six Months EndedJuly 31,

2021

2020

2021

2020

Licenses

GAAP cost of licenses

$

2,434

$

1,636

$

4,888

$

3,053

Less: Stock-based compensation expense

-

-

-

-

Less: Amortization of acquired intangible assets

636

617

1,282

1,203

Less: Employer payroll tax expense related to employee equity transactions

-

-

-

-

Non-GAAP cost of licenses

$

1,798

$

1,019

$

3,606

$

1,850

Maintenance and Support

GAAP cost of maintenance and support

$

12,238

$

5,501

$

26,417

$

11,044

Less: Stock-based compensation expense

1,657

141

7,871

226

Less: Amortization of acquired intangible assets

330

-

440

-

Less: Employer payroll tax expense related to employee equity transactions

186

-

186

-

Non-GAAP cost of maintenance and support

$

10,065

$

5,360

$

17,920

$

10,818

Services and Other

GAAP cost of services and other

$

20,922

$

7,561

$

53,299

$

14,239

Less: Stock-based compensation expense

3,904

499

22,835

797

Less: Amortization of acquired intangible assets

-

-

-

-

Less: Employer payroll tax expense related to employee equity transactions

1,079

-

1,079

-

Non-GAAP cost of services and other

$

15,939

$

7,062

$

29,385

$

13,442

Gross Profit and Margin

GAAP gross profit

$

159,927

$

124,678

$

297,134

$

224,143

GAAP gross margin

82

%

89

%

78

%

89

%

Plus: Stock-based compensation expense

5,561

640

30,706

1,023

Plus: Amortization of acquired intangible assets

966

617

1,722

1,203

Plus: Employer payroll tax expense related to employee equity transactions

1,265

-

1,265

-

Non-GAAP gross profit

$

167,719

$

125,935

$

330,827

$

226,369

Non-GAAP gross margin

86

%

90

%

87

%

90

%

UiPath, Inc.

Reconciliation of GAAP Cost of Revenue, Gross Profit and Margin to Non-GAAPCost of Revenue, Gross Profit and Margin

in thousands, except percentages

(unaudited)



Three Months Ended Six Months Ended July 31, July 31,

2021 2020 2021 2020

Licenses

GAAP cost of licenses $ 2,434 $ 1,636 $ 4,888 $ 3,053

Less: Stock-based - - - - compensation expense

Less: Amortization ofacquired intangible 636 617 1,282 1,203 assets

Less: Employer payrolltax expense related to - - - - employee equitytransactions

Non-GAAP cost of $ 1,798 $ 1,019 $ 3,606 $ 1,850 licenses



Maintenance and Support

GAAP cost of $ 12,238 $ 5,501 $ 26,417 $ 11,044 maintenance and support

Less: Stock-based 1,657 141 7,871 226 compensation expense

Less: Amortization ofacquired intangible 330 - 440 - assets

Less: Employer payrolltax expense related to 186 - 186 - employee equitytransactions

Non-GAAP cost of $ 10,065 $ 5,360 $ 17,920 $ 10,818 maintenance and support



Services and Other

GAAP cost of services $ 20,922 $ 7,561 $ 53,299 $ 14,239 and other

Less: Stock-based 3,904 499 22,835 797 compensation expense

Less: Amortization ofacquired intangible - - - - assets

Less: Employer payrolltax expense related to 1,079 - 1,079 - employee equitytransactions

Non-GAAP cost of $ 15,939 $ 7,062 $ 29,385 $ 13,442 services and other



Gross Profit and Margin

GAAP gross profit $ 159,927 $ 124,678 $ 297,134 $ 224,143

GAAP gross margin 82 % 89 % 78 % 89 %

Plus: Stock-based 5,561 640 30,706 1,023 compensation expense

Plus: Amortization ofacquired intangible 966 617 1,722 1,203 assets

Plus: Employer payrolltax expense related to 1,265 - 1,265 - employee equitytransactions

Non-GAAP gross profit $ 167,719 $ 125,935 $ 330,827 $ 226,369

Non-GAAP gross margin 86 % 90 % 87 % 90 %

UiPath, Inc.

Reconciliation of GAAP Operating Expenses, Loss, and Margin to Non-GAAP Operating Expenses, Income (Loss) and Margin

in thousands, except percentages

(unaudited)

Three Months EndedJuly 31,

Six Months EndedJuly 31,

2021

2020

2021

2020

Sales and Marketing

GAAP sales and marketing

$

144,268

$

90,331

$

350,019

$

181,262

Less: Stock-based compensation expense

41,006

3,775

160,299

5,628

Less: Amortization of acquired intangible assets

427

18

588

53

Less: Employer payroll tax expense related to employee equity transactions

8,364

-

8,679

-

Non-GAAP sales and marketing

$

94,471

$

86,538

$

180,453

$

175,581

Research and Development

GAAP research and development

$

57,646

$

26,541

$

150,686

$

53,270

Less: Stock-based compensation expense

23,978

2,811

89,594

4,627

Less: Amortization of acquired intangible assets

-

-

-

-

Less: Employer payroll tax expense related to employee equity transactions

325

-

325

-

Non-GAAP research and development

$

33,343

$

23,730

$

60,767

$

48,643

General and Administrative

GAAP general and administrative

$

55,834

$

24,834

$

130,249

$

51,510

Less: Stock-based compensation expense

22,068

1,603

62,849

5,752

Less: Amortization of acquired intangible assets

-

-

-

-

Less: Employer payroll tax expense related to employee equity transactions

590

-

590

-

Non-GAAP general and administrative

$

33,176

$

23,231

$

66,810

$

45,758

Operating Loss

GAAP operating loss

$

(97,821

)

$

(17,028

)

$

(333,820

)

$

(61,899

)

GAAP operating margin

(50

)%

(12

)%

(87

)%

(25

)%

Plus: Stock-based compensation expense

92,613

8,829

343,448

17,030

Plus: Amortization of acquired intangible assets

1,393

635

2,310

1,256

Plus: Employer payroll tax expense related to employee equity transactions

10,544

-

10,859

-

Non-GAAP operating income (loss)

$

6,729

$

(7,564

)

$

22,797

$

(43,613

)

Non-GAAP operating margin

3

%

(5

)%

6

%

(17

)%

UiPath, Inc.

Reconciliation of GAAP Operating Expenses, Loss, and Margin to Non-GAAPOperating Expenses, Income (Loss) and Margin

in thousands, except percentages

(unaudited)



Three Months Ended Six Months Ended July 31, July 31,

2021 2020 2021 2020

Sales and Marketing

GAAP sales and $ 144,268 $ 90,331 $ 350,019 $ 181,262 marketing

Less: Stock-based 41,006 3,775 160,299 5,628 compensation expense

Less: Amortization ofacquired intangible 427 18 588 53 assets

Less: Employer payrolltax expense related to 8,364 - 8,679 - employee equitytransactions

Non-GAAP sales and $ 94,471 $ 86,538 $ 180,453 $ 175,581 marketing



Research and Development

GAAP research and $ 57,646 $ 26,541 $ 150,686 $ 53,270 development

Less: Stock-based 23,978 2,811 89,594 4,627 compensation expense

Less: Amortization ofacquired intangible - - - - assets

Less: Employer payrolltax expense related to 325 - 325 - employee equitytransactions

Non-GAAP research and $ 33,343 $ 23,730 $ 60,767 $ 48,643 development



General and Administrative

GAAP general and $ 55,834 $ 24,834 $ 130,249 $ 51,510 administrative

Less: Stock-based 22,068 1,603 62,849 5,752 compensation expense

Less: Amortization ofacquired intangible - - - - assets

Less: Employer payrolltax expense related to 590 - 590 - employee equitytransactions

Non-GAAP general and $ 33,176 $ 23,231 $ 66,810 $ 45,758 administrative



Operating Loss

GAAP operating loss $ (97,821 ) $ (17,028 ) $ (333,820 ) $ (61,899 )

GAAP operating margin (50 ) (12 ) (87 ) (25 ) % % % %

Plus: Stock-based 92,613 8,829 343,448 17,030 compensation expense

Plus: Amortization ofacquired intangible 1,393 635 2,310 1,256 assets

Plus: Employer payrolltax expense related to 10,544 - 10,859 - employee equitytransactions

Non-GAAP operating $ 6,729 $ (7,564 ) $ 22,797 $ (43,613 )income (loss)

Non-GAAP operating 3 % (5 ) 6 % (17 )margin % %

UiPath, Inc.

Reconciliation of GAAP Net Loss and GAAP Net Loss Per Share to Non-GAAP Net Income (Loss) and Non-GAAP Net Income (Loss) Per Share

in thousands, except per share data

(unaudited)

Three Months EndedJuly 31,

Six Months EndedJuly 31,

2021

2020

2021

2020

GAAP net loss attributable to common stockholders

$

(100,026

)

$

-

$

(339,689

)

$

(47,853

)

Plus: Undistributed earnings attributable to participating securities

-

4,987

-

-

Plus: Stock-based compensation expense

92,613

8,829

343,448

17,030

Plus: Amortization of acquired intangible assets

1,393

635

2,310

1,256

Plus: Employer payroll tax expense related to employee equity transactions

10,544

-

10,859

-

Tax adjustments to add-backs (1)

(338

)

-

(1,083

)

-

Non-GAAP net income (loss)

$

4,186

$

14,451

$

15,845

$

(29,567

)

GAAP net loss per share, basic and diluted

$

(0.19

)

$

-

$

(0.91

)

$

(0.30

)

GAAP weighted average common shares outstanding, basic and diluted

526,512

162,914

373,488

160,980

Plus: Unweighted adjustment for conversion of preferred to common stock in connection with IPO

-

306,300

137,073

306,300

Plus: Unweighted adjustment for common stock issued in connection with IPO

-

13,000

5,818

13,000

Non-GAAP weighted average common shares outstanding, basic

526,512

482,214

516,379

480,280

Plus: Dilutive potential common shares from outstanding equity awards

33,619

59,090

42,692

-

Non-GAAP weighted average common shares outstanding, diluted

560,131

541,304

559,071

480,280

Non-GAAP net income (loss) per share, basic

$

0.01

$

0.03

$

0.03

$

(0.06

)

Non-GAAP net income (loss) per share, diluted

$

0.01

$

0.03

$

0.03

$

(0.06

)

(1) Estimated using blended annual effective tax rate and net operating losses available to offset.

UiPath, Inc.

Reconciliation of GAAP Net Loss and GAAP Net Loss Per Share to Non-GAAP NetIncome (Loss) and Non-GAAP Net Income (Loss) Per Share

in thousands, except per share data

(unaudited)



Three Months Ended Six Months Ended July 31, July 31,

2021 2020 2021 2020

GAAP net lossattributable to common $ (100,026 ) $ - $ (339,689 ) $ (47,853 )stockholders

Plus: Undistributedearnings attributable - 4,987 - - to participatingsecurities

Plus: Stock-based 92,613 8,829 343,448 17,030 compensation expense

Plus: Amortization ofacquired intangible 1,393 635 2,310 1,256 assets

Plus: Employer payrolltax expense related to 10,544 - 10,859 - employee equitytransactions

Tax adjustments to (338 ) - (1,083 ) - add-backs (1)

Non-GAAP net income $ 4,186 $ 14,451 $ 15,845 $ (29,567 )(loss)



GAAP net loss pershare, basic and $ (0.19 ) $ - $ (0.91 ) $ (0.30 )diluted

GAAP weighted averagecommon shares 526,512 162,914 373,488 160,980 outstanding, basic anddiluted

Plus: Unweightedadjustment forconversion of - 306,300 137,073 306,300 preferred to commonstock in connectionwith IPO

Plus: Unweightedadjustment for common - 13,000 5,818 13,000 stock issued inconnection with IPO

Non-GAAP weightedaverage common shares 526,512 482,214 516,379 480,280 outstanding, basic

Plus: Dilutivepotential commonshares from 33,619 59,090 42,692 - outstanding equityawards

Non-GAAP weightedaverage common shares 560,131 541,304 559,071 480,280 outstanding, diluted

Non-GAAP net income(loss) per share, $ 0.01 $ 0.03 $ 0.03 $ (0.06 )basic

Non-GAAP net income(loss) per share, $ 0.01 $ 0.03 $ 0.03 $ (0.06 )diluted

(1) Estimated using blended annual effective tax rate and net operating lossesavailable to offset.

UiPath, Inc.

Reconciliation of GAAP Operating Cash Flow to Non-GAAP Adjusted Free Cash Flow

in thousands

(unaudited)

Six Months EndedJuly 31,

2021

2020

GAAP net cash (used in) provided by operating activities

$

(23,523

)

$

4,062

Purchases of property and equipment

(3,641

)

(587

)

Capitalization of software development costs

(771

)

-

Cash paid for employer payroll taxes related to employee equity transactions

9,064

-

Net receipts of employee tax withholdings on stock option exercises

(4,726

)

-

Non-GAAP adjusted free cash flow

$

(23,597

)

$

3,475

View source version on businesswire.com: https://www.businesswire.com/news/home/20210907005791/en/

CONTACT: Investor Relations Kelsey Turcotte Investor.relations@uipath.com UiPath

CONTACT: Media Toni Iafrate PR@uipath.com UiPath