UiPath Inc. announced robust first-quarter earnings, but its stock price plummeted significantly in after-hours trading on Wednesday due to weaker future performance forecasts.
UiPath's earnings per share for the quarter were $0.13, slightly above analysts' expectations of $0.12.
The company's revenue for the quarter also exceeded market expectations, reaching $335.1 million, compared to the market forecast of $333.88 million.
Looking ahead, UiPath expects its second-quarter revenue to be between $300 million and $305 million, which is below the market consensus of $342.4 million.
For the full fiscal year 2025, UiPath anticipates revenue to be between $1.405 billion and $1.41 billion, well below the market consensus of $1.56 billion.
Additionally, the company unexpectedly announced that Rob Enslin will resign from his positions as CEO and board member on June 1st. Company founder, former CEO, and current Chief Innovation Officer Daniel Dines will return to the CEO role.
As a result of this news, UiPath's stock price plunged over 31%.
Company officials stated, "Although our revenue and operating profit guidance were impacted by contract timing and duration, we remain confident in achieving scalable sustained ARR growth and meaningful non-GAAP adjusted free cash flow."
The company also predicts that its ARR will reach between $1.66 billion and $1.665 billion by January 31, 2025.
Regarding the situation on Wednesday, RBC Capital Markets analysts described the earnings report as "mixed" and the CEO transition as "unexpected."
