UiPath (PATH -0.23%), a provider of automation software, delivered its financial results for the third quarter of fiscal 2025 on December 5, 2024. The earnings showed significant wins with EPS at $0.11, beating the analyst estimate of $0.073. Revenue stood at $355 million, surpassing both analyst expectations of $347 million and management guidance. This marks a 9% year-over-year rise from $325.9 million. Overall, the quarter reflected robust performance in key metrics, despite hurdles in boosting profitability amidst a fluctuating economic environment.
| Metric | Q3 2025 | Q3 Estimate | Q3 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS | $0.11 | $0.073 | $0.12 | -8.3% |
| Revenue (in millions) | $355 | $347 | $325.921 | +9.0% |
| ARR (in billions) | $1.607 | — | $1.371 | +17.2% |
| Non-GAAP Operating Income (in millions) | $50 | — | $43.679 | +14.5% |
| Non-GAAP Gross Margin | 85% | — | 87% | -2 pp |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in 2024-09-05 earnings report.
Overview of UiPath's Business
UiPath delivers an AI-integrated automation platform that blends Robotic Process Automation (RPA) with advanced artificial intelligence. Its platform aims to automate diverse and complex tasks through machine learning and natural language processing. In recent quarters, UiPath has emphasized expanding its platform with enhancements in AI capabilities and new initiatives like "agentic automation," which integrates AI agents with human intelligence. Key success factors include strong product innovation and a diversified market approach, focusing on large enterprises.
Quarterly Performance in Focus
The third quarter of fiscal 2025 was marked by UiPath's successes and ongoing challenges. Earnings per share (EPS) of $0.11 significantly outpaced the $0.073 estimation. Revenue rose 9% from the previous year to $355 million, beating the previous guidance range of $345 million to $350 million. Non-GAAP Operating Income stood at $50 million, strongly outperforming the guidance of $27 million, underscoring UiPath's cost management advances.
In strategic initiatives, UiPath launched "agentic automation," a new strategic direction poised to enhance market reach by combining AI tools with human operators. Collaborations with SAP and partnerships with Anthropic to employ AI language models signal UiPath's commitment to broadening its technology ecosystem. Its product innovation efforts were also evident with the introduction of the Agent Builder tool, catering to expanded use cases across industries.
Nonetheless, challenges linger. The company experienced a GAAP operating loss of $43 million and a net loss of $10.7 million, translating to ongoing difficulties in achieving steady profitability.
Looking Ahead
For the fourth quarter of fiscal 2025, UiPath estimates revenue in the range of $422 million to $427 million. It expects ARR to hit between $1.669 billion and $1.674 billion, with a projected Non-GAAP operating income of around $100 million. The projections showcase continued confidence in advancing technological capabilities and expanding customer applications.
Investors should monitor UiPath's forward guidance adjustments closely, particularly how it navigates competitive pressures and macroeconomic challenges. Management's focus on strengthening product offerings and fortifying partnerships points to promising growth channels ahead. Continued emphasis on AI and automation solutions positions UiPath to leverage advancements and capture emerging market opportunities.
