UiPath NYSE: PATH Chief Operating Officer Ashim Gupta said the company is focused on stabilizing growth and positioning its automation platform for reacceleration as enterprises expand their use of artificial intelligence, orchestration and process automation.
Speaking at the Citi Global TMT Conference, Gupta discussed his transition away from the chief financial officer role, recent financial results, the company’s platform strategy and its approach to pricing and deployment options. Hitesh Ramani, UiPath’s former chief accounting officer and deputy CFO, recently succeeded Gupta as CFO.
Gupta, who joined UiPath in 2018 and has held roles including customer success, CFO and COO, said the leadership transition is intended to support long-term stability and allow him to concentrate more fully on operations. He said the company’s broader product portfolio and global deal activity require greater coordination across product, sales and operational functions.
Financial performance and growth outlook
Gupta said UiPath delivered its sixth consecutive quarter of beating and raising against consensus expectations. He cited annual recurring revenue of $1.938 billion, up 12.5%, while revenue rose 13%. Stock-based compensation declined 42%, and the company reported GAAP profitability for a third consecutive quarter, he said.
He added that UiPath expects to be GAAP profitable for the full year and is generating more than $400 million in free cash flow.
“A stable quarter in an unstable time is a good quarter,” Gupta said, arguing that the company had countered expectations of continued deceleration. He noted that net dollar retention increased to 109% from 106% at the end of the prior year.
Gupta said UiPath’s larger customers remain the primary engine of growth. Customers contributing more than $1 million rose 21%, he said, while expansion among customers generating more than $100,000 was also improving. The company has more than 2,000 customers above the $100,000 threshold and is approaching 400 customers with more than $1 million in annual spending, according to Gupta.
While he said UiPath is not satisfied with 12.5% ARR growth, Gupta said the company believes it has “stemmed the deceleration” and is planning to reaccelerate growth through its platform strategy, vertical products and testing offerings.
Broadening from RPA to business process orchestration
Gupta described UiPath’s evolution from a robotic process automation company into a broader business automation and transformation provider. He said 18 of the company’s 20 largest deals during the latest quarter included broader platform capabilities involving AI, and that such deals were four to six times larger than the company’s historical typical deal values.
He said customers increasingly recognize a need for both deterministic and probabilistic AI capabilities. UiPath aims to manage long-running enterprise workflows rather than simply automate isolated tasks, Gupta said.
A key element of that strategy is UiPath Maestro, which Gupta described as a business process orchestration offering. He differentiated UiPath’s approach from agentic orchestration platforms designed primarily to manage groups of AI agents.
“We’re not just a governance layer for agents,” Gupta said. “We really look at orchestration as a way to govern and drive the end-to-end workflow for enterprise processes.”
For processes such as invoice-to-cash, Gupta said enterprises may need to coordinate robots, AI agents, employees, APIs, applications and third-party systems. He said UiPath believes its combination of robotic automation, agent-building capabilities and orchestration distinguishes its platform.
Vertical opportunities and AI model choice
Gupta said UiPath is building vertical expertise alongside its horizontal automation platform. He pointed to the company’s WorkFusion investment and efforts in financial crime as an example, saying regulated industry workflows require specific compliance knowledge and relationships with regulatory bodies.
He also cited healthcare applications, including revenue cycle management, prior authorization and claims denials, and said these represent multibillion-dollar problems for healthcare customers.
Rather than competing directly with frontier AI model providers, Gupta said UiPath intends to remain model-agnostic and enable customers to use different models within enterprise workflows. He said the company’s platform can incorporate third-party models and customer-selected models through its Agent Builder and other capabilities.
Gupta said advances in large language models could commoditize simpler automations, but argued that they do not eliminate the need to orchestrate complex, multi-system processes. He characterized RPA as “tokenless automation” that can be useful when customers need predictable results at lower cost and risk.
Pricing, deployment and capital allocation
UiPath is pursuing subscription and consumption pricing while also evaluating outcome-based arrangements for certain large transformation projects, Gupta said. He said some senior executives are asking UiPath to help reduce finance or operations costs by 20%, creating opportunities to structure engagements around defined objectives and shared rewards.
The company is using forward-deployed engineers on projects that it would not have been positioned to pursue one-and-a-half to three years ago, Gupta said. He did not provide specific metrics for potential pricing uplift but said the opportunity could be meaningful as UiPath lands and executes those projects.
Gupta reiterated that ARR, rather than revenue, is the company’s primary operating metric because revenue recognition can vary depending on factors such as on-premise deployments, contract duration and accounting treatment. He said UiPath’s multi-deployment strategy, including cloud, hybrid and on-premise options, is an advantage for customers such as banks, government entities and healthcare organizations that may not be ready for full cloud deployment.
On mergers and acquisitions, Gupta said UiPath expects to emphasize internal development while remaining open to opportunistic tuck-in acquisitions. He said acquisitions can add vertical expertise as well as technology, while product quality remains a central priority for Chief Executive Officer Daniel Dines.
About UiPath (NYSE:PATH)
UiPath Inc NYSE: PATH develops enterprise automation software designed to help organizations automate repetitive, rules-based and increasingly complex business processes. Its platform combines robotic process automation (RPA), artificial intelligence, workflow orchestration and process intelligence to support automation across areas such as finance, customer service, human resources, information technology and operations.
The UiPath Platform includes tools for discovering and analyzing business processes, building and managing software robots, processing documents, testing applications and coordinating automated workflows.
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