Slide 1: Investor Day 2022
Investor Day 2022 Hosted at FO RWAR D5 a
Slide 2: Safe harbor disclaimer
Safe harbor disclaimer Statements we make in this presentation 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,”
Slide 3: Agenda
Agenda Time Section Speaker Kelsey Turcotte 12:30 – 12:35 pm Opening Remarks SVP Investor Relations Daniel Dines Rob Enslin 12:35 – 1:15 pm Company Update Co-founder & Co-CEO Co-CEO Ted Kummert 1:15 – 1:50 pm Product Overview EVP, Product/Engineering 1:50 – 2:05 pm Break Host: Chris Weber 2:05 – 2:4
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Slide 5: Daniel Dines
Daniel Dines Co-Founder and Co-Chief Executive Officer Company Update
Slide 6: Global Sales Kickoff
GLOBAL SALES KICKOFF U Path. Ui Path Reboot™ Work.
Slide 7: In just 7 years
$1B+ 10,500+ 100+ in ARR(1) customers customer countries(2) In just 7 years Notes: 1. See Appendix for definition of Annualized Renewal Run-rate (ARR) 2. Global location of customer base As of July 31, 2022 7
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Slide 9: Automation is no longer a tool, it is a way of operating
Automation is no longer a tool it is a way of operating and a way of innovating 9
Slide 10: Rob Enslin
Rob Enslin Co-Chief Executive Officer Company Update
Slide 11: A strong foundation to build upon
A strong foundation to build upon Undisputed leader in Customers Platform delivers meaningful enterprise automation love UiPath business outcomes Enterprise automation is at its beginning, and we will be the defining company 11
Slide 12: Secular tailwinds expanding the market
Secular tailwinds expanding the market Business Fragmented Optimization Technology Transformation Landscape of Labor Market Tightening Regulatory Macroeconomic Environment Headwinds Massive Proliferation Need to of Software Move Faster Customer and Partner Supply Chain Expectations Disruption 12
Slide 13: The UiPath Business Automation Platform
The UiPath Business Automation Platform Discover Continuously uncover opportunities for process and task improvements helping you identify the highest ROI areas. Process Task Communications Idea Capture & Mining Mining Mining Management Automate Get more done with a digital workforce that seamlessly
Slide 14: Expanding the Platform improves customer outcomes and increases TAM
Expanding the Platform improves customer outcomes and increases TAM(1) TOTAL TAM: $93.2B $13.9B iPaaS $14.4B Low-Code Application Platforms $3.8B Business Process Management $4.6B Application Testing $2.6B Process & Task Mining $3.0B Intelligent Document Processing $50.9B Core Automation Current Por
Slide 15: Significant room to grow... acquire new and expand with existing customers
Significant room to grow... acquire new and expand with existing customers Customer Size by Employee Count $ ARR Per Customer Representative illustration of UiPath customer distribution by employee size and current ARR 15
Slide 16: Build on the foundation
Build on the foundation Extend Market Position the Powerful and Drive Operating Leadership Platform Efficient Go Leverage and Free to Market Model Cash Flow(1) Build World-class Team 16 1. Non-GAAP adjusted free cash flow, see reconciliation in Appendix
Slide 17: Extend market leadership...
Extend market leadership... industry leading innovation Cross Platform Support Automation Cloud and Intelligent document processing Automation Platform The Fully Discovery Human in the loop Automated Enterprise scale, Citizen development Enterprise management & governance Core RPA Platform Foundatio
Slide 18: Beyond RPA, automation platforms win
Beyond RPA, automation platforms win Benefits of adopting a holistic Enterprises are achieving increased business value by combining multiple IA technologies intelligent automation approach and adopting a holistic enterprise automation approach. Strategic impact Operational impact Cost impact Primar
Slide 19: Platforms deliver business outcomes
Platforms deliver business outcomes 19
Slide 20: Targeted GTM motion to drive focus, value and efficiency
Targeted GTM motion to drive focus, value and efficiency Key Accounts Leverage existing Emerging Enterprise Enterprise model to acquire customers Enterprise Corporate/Mid-Market Identify high propensity to invest and graduate to density coverage model Emerging Enterprise SMB and Partner Led Digital,
Slide 21: Sell the Platform and business outcomes
Sell the Platform and business outcomes $1B+ in ARR(1) Packaged Solutions 11% Banking and Financial Services 3% 23% Manufacturing 5% Government Technology Pricing 5% Healthcare & Pharmaceuticals Professional Services 7% Insurance 17% Telecommunications 9% Energy and Utilities Industry Verticalizatio
Slide 22: Focused partner ecosystem
Focused partner ecosystem Global Systems Integrators Channel Ecosystem Public Sector 22
Slide 23: Extend our reach with embedded partners
Extend our reach with embedded partners 23
Slide 24: Commitment to driving durable growth and profitability
Commitment to driving durable growth and profitability Drive Durable Growth Improve Profitability Generate Free Cash Flow(1) Align resources to greatest return through operational excellence 24 1. Non-GAAP adjusted free cash flow
Slide 25: Strategic objectives
Strategic objectives Extend Market Powerful and Efficient Drive Operating Leverage Leadership Go to Market Model and Free Cash Flow(1) Ted Kummert, Chris Weber, Ashim Gupta, EVP, Product/Engineering Chief Business Officer Chief Financial Officer 25 1. Non-GAAP adjusted free cash flow
Slide 26: Ted Kummert
Ted Kummert Executive Vice President of Products & Engineering The Business Automation Platform
Slide 27: Accelerating human achievement
Our purpose Accelerating human achievement 27
Slide 28: Our purpose: Accelerating human achievement
Our purpose Accelerating human achievement High Complexity This requires an automation platform that spans the full automation spectrum Low Complexity Enterprise automation Personal automation High ROI Low ROI 28
Slide 29: The Business Automation Platform journey: Chapter One
The Business Automation Platform journey Chapter One Build Run Manage Core RPA – Self Hosted
Slide 30: The Business Automation Platform journey: Chapter Two
The Business Automation Platform journey Chapter Two Discover Build Run Manage Engage Measure & Govern Automation Platform – Cloud First
Slide 31: The Business Automation Platform journey: Chapter Two
The Business Automation Platform journey Chapter Two Discover Build Run Manage Engage Measure & Govern Platform Expansion Continuous Discovery Semantic Automation
Slide 32: The UiPath Business Automation Platform
The UiPath Business Automation Platform Discover Continuously uncover opportunities for process and task improvements helping you identify the highest ROI areas. Process Task Communications Idea Capture & Mining Mining Mining Management Automate Get more done with a digital workforce that seamlessly
Slide 33: Expanding the Platform improves customer outcomes and increases TAM
Expanding the Platform improves customer outcomes and increases TAM1 Notes: 1. Source: Core Automation, Process & Task Mining, Intelligent Document Processing and Application Testing: Calculated from CapIQ data for number of worldwide companies >$50 million, as well as internal UiPath calculations b
Slide 34: Expanding the Platform improves customer outcomes and increases TAM
Expanding the Platform improves customer outcomes and increases TAM1 TAM Automate Automate Automate Discover Operate Platform Focus Area Notes: 1. Source: Core Automation, Process & Task Mining, Intelligent Document Processing and Application Testing: Calculated from CapIQ data for number of worldwi
Slide 35: Momentum for key new offerings across the Platform
Momentum for key new offerings across the Platform Adoption (Year over Year) 6x UiPath Process Mining(3) 2x UiPath Test Suite(3) 4x UiPath Document Understanding(1) 5x UiPath Apps(2) Automation Cloud™ Momentum 281 Million automations executed by Automation Cloud™ and counting. Notes: Data sources ar
Slide 36: Bringing the Platform to life
Bringing the Platform to life Discover Automate Operate See new Process Mining and See new developer experiences and learn See UiPath Test Suite Assisted Task Mining more about Re:infer – a UiPath company Visit the team in the demo area
Slide 37: Communications auto triage for insurance underwriters
BEFORE AFTER 100% Communications human effort 5% human effort auto triage for 95% robot insurance underwriters Insurance Underwriter Insurance Underwriter 3 days to process 3 hours to process HUMAN ROBOT HUMAN Monitors shared inbox to understand Time taken for work to enter workflow Underwriter rece
Slide 38: Demo
Demo Re:infer A UiPath company 38
Slide 39: Customer driven and sustainable platform differentiation
Customer driven and sustainable platform differentiation Best-in-class UI & API Data enables the Infused with automation enterprise work graph automation relevant AI Complete end-to-end Cloud-native, automation platform flexible delivery Setting us up to win in enterprise automation 39
Slide 40: The UiPath Business Automation Platform moves forward with 2022.10
The UiPath Business Automation Platform moves forward with 2022.10 Discover Modernized Process Mining Platform Assisted Task Mining Automate A UiPath company Introducing Studio Web Re:infer joins the family Operate Automation Cloud gains FEDRAMP in- Automation Suite adds Process process status and d
Slide 41: Customer panel
Customer panel Hosted by: Chris Weber, Chief Business Officer Ati Ngubevana Shiva Vannavada Gautam Oza Chad Aronson Group Executive Global Chief Product & Head of Process Global Head of Vodacom Technology Officer Transformation & Intelligent Automation Dentsu Intelligent Automation Uber Wells Fargo
Slide 42: Chris Weber: GTM Overview
Chris Weber Chief Business Officer GTM Overview 42
Slide 43: Significant room to grow... expansion and acquisition
Significant room to grow... expansion and acquisition Focus Build targeted Customer Size by Employee Count 01 go-to-market motion, cloud first Value 02 Deliver business outcomes Scale 03 Platform and Partners $ ARR Per Customer Representative illustration of UiPath customer distribution by employee
Slide 44: Focus on propensity
Focus on propensity Enterprise Enterprise Corporate/Mid-Market Corporate/Mid-Market/SMB SMB 44
Slide 45: At the top: Highest propensity, high density
At the top: Highest propensity, high density Customers with greatest adoption potential and largest available budget Dense coverage ratio to drive customer intimacy and identify expansion opportunities Sells business outcomes to C-level Leverages largest partners for enablement Accelerates dollar ba
Slide 46: Leverage existing emerging enterprise
Leverage existing emerging enterprise Customers in the early stages of their automation journey Aligns customer acquisition and early expansion motion with most efficient and cost-effective GTM resources One to many coverage ratio Drives scale and velocity Foundation for platform sales Accelerates A
Slide 47: Digital, Distribution and Partner led
Digital, Distribution and Partner led Customers beginning their automation journey Focused on new logo Drives hyper-scale and velocity Empowers our partners to develop and deliver services capabilities Improved cost of acquisition Keeps the Acquisition Engine Running 47
Slide 48: Verticals and solutions
Verticals and solutions Prioritizing 01 Financial Services 02 Healthcare 03 Manufacturing 04 Public Sector 48
Slide 49: Value selling: Reaching the CXO
Value selling: Reaching the CXO We’ve developed NorthStar - our Art-of-the-Possible Value Tool We belong in Automation is a pillar of Built with Compels CXO Office transformation customer action Value/ROI Projection - ILLUSTRATIVE Savings and Investment Operational Impact $279.5M 353% 5 year total n
Slide 50: Platform sales model
Platform sales model Today: a la Carte Tomorrow: Platform Action Center (user) STANDARD TIER: ENTERPRISE TIER: Software Robots • ACTION CENTER • ACTION CENTER • SOFTWARE ROBOTS • SOFTWARE ROBOTS Test Manager • TEST MANAGER • TEST MANAGER • INSIGHTS • INSIGHTS Insights • DU / RE:INFER • PROCESS MININ
Slide 51: Energizing partners
Energizing partners Our Strategy Partner Ecosystem by the Numbers Global Partner Community of 5 Distributors 5,000+ Value Added Resellers, of which 5,000+ UiPath Business 3,200+ are also Business Process Partners in 114+ countries Outsourcing/ Managed Services Partners 1 Quality over quantity world-
Slide 52: Building a world class team
Building a world class team Experienced in Large Enterprise Deep Partner and Channel Background Diverse Experiences 52
Slide 53: Focus, Value & Scale
Focus, Value & Scale Efficient and Selling Outcomes Empowered and Targeted and Solutions Energized partner Go-To-Market ecosystem 53
Slide 54: Ashim Gupta: Financial Update
Ashim Gupta Chief Financial Officer Financial Update 54
Slide 55: Crossing $1B in ARR
Crossing $1B in ARR(1)… (1) ARR Growth Trajectory $1,043 Technology Leadership $925 Global Presence $ in millions $580 Scalable Foundation $351 Customer Expansion 4Q'2020 4Q'2021 4Q'2022 2Q'2023 Sticky Customer Base 1. See Appendix for definition of Annualized Renewal Run-rate (ARR) and dollar based
Slide 56: Innovation led company
Innovation led company Platform Investments Investment ROI Largest global team of automation and AI experts Cloud ARR(1,2) $215 783 patents assets from inventors in 18 locations 4 Tuck-in acquisitions $80 Cloud releases 2X per month, Major platform releases 2X year $10 2Q 2021 2Q 2022 2Q 2023 Long-t
Slide 57: Global presence is a competitive advantage
Global presence is a competitive advantage Employees in 47 countries Europe, Middle East, Asia Pacific Americas and Africa and Japan ~25% of total customers ~40% of total customers ~35% of total customers ~1,300 employees ~1,600 employees (2) ~1,100 employees(2) Americas International ~45% Total ARR
Slide 58: A strong foundation to support global scale
A strong foundation to support global scale Building basics Automation launch Attended / unattended AI / ML Scaling platform $1B+ $925M ARR(1) $580M $351M $169M Digital Workforce in 5% 8% 13% 19% 23% Finance & Accounting 2019(2) 2020(2) 2021(2) 2022(2) 2023(3) Long-term we expect G&A to be 7% – 9% o
Slide 59: Large customers growing meaningfully
Large customers growing meaningfully Customers ≥ $100K ARR(1, 2) Customers ≥ $100K ARR(1, 2) $ in millions 1660 $821 1247 $537 785 $311 430 $157 2Q 2020 2Q 2021 2Q 2022 2Q 2023 2Q 2020 2Q 2021 2Q 2022 2Q 2023 1. See Appendix for definition of Annualized Renewal Run-rate (ARR) 2. Customers ≥ $100k AR
Slide 60: Lifetime value to date: Top customers
Lifetime value(1) to date: Top 25 customers FY15- FY16- FY16- FY16- FY16- FY17- FY17- FY17- FY17- FY18- FY18- FY18- FY18- FY19- FY19- FY19- FY19- FY20- FY20- FY20- FY20- FY21- FY21- FY21- FY21- FY22- FY22- FY22- FY22- FY23- FY23- Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 61: Lifetime value to date: Continued wallet expansion
Lifetime value(1) to date: Continued wallet expansion 10,100+ 7,900+ 6,000+ 2,600+ 650+ 150+ customers customers customers customers customers customers 27.0x 26.2x 18.3x 10.5x 9.6x 6.8x 7.1x 6.1x 4.0x 3.0x 3.2x 1.9x 2.1x 2.0x 1.2x 1.3x 1.2x 0.0x FY 2022 FY 2021 FY 2020 FY 2019 FY 2018 FY 2017 Times
Slide 62: Financial priorities
Financial priorities Drive Durable Growth Improve Profitability Generate Free Cash Flow(1) Align resources to greatest return through operational excellence 62 1. Non-GAAP adjusted free cash flow
Slide 63: Universe of potential customers is large
Universe of potential customers is large # of Companies by Employee Size(1) UiPath’s Customer base by employee size >5k employees 15% 25% 94% 300,000+ 6% 70% 10,500+ 30% 30% 3,250+ 30% <5K >5K <5K >5K 5-10K 10-25K 25-50K >50K 1. Source: CapIQ data for number of worldwide companies >$50 million as of
Slide 64: Untapped expansion opportunity in customer base
Untapped expansion opportunity in customer base Customer Size by Employee Count $ ARR Per Customer Representative illustration of UiPath customer distribution by employee size and current ARR 64
Slide 65: ARR per customer by employee size
…by identifying propensity to invest... Banking & Financial Services IT $3,000,000 $2,000,000 $1,800,000 $2,500,000 $1,600,000 ARR(1) per customer ARR(1) per customer $1,400,000 $2,000,000 $1,200,000 $1,500,000 $1,000,000 $800,000 $1,000,000 $600,000 $400,000 $500,000 $200,000 $0 $0 5-10K 10-25K 25-
Slide 66: ... and aligning resources to increase focus and productivity
… and aligning resources to increase focus and productivity Customer ROI/Business Outcomes UiPath ASP UiPath Speed to Revenue UiPath Cost of Acquisition Long-term we expect Sales & Marketing to be 30% – 35% of total revenue 66
Slide 67: Modeling
Modeling [Ui]Path weet
Slide 68: Fiscal year 2024 preview
Fiscal year 2024 preview(1) FY’24 Normalized Growth Rate2 25% Y/Y Growth 20% Y/Y Growth ~5% SaaS Headwind(2) ~2% FX Headwind(2) ~2% FY’24: 300 – 400 bps 18% Y/Y 18% Y/Y Growth ANCHOR Growth year-over-year ----------- POINT ----------- non-GAAP operating $1,185M(5) $1,360M(5) margin expansion(4) FY'2
Slide 69: Long-term margin profile
(1,2) Long-term margin profile (3) Opportunity to Expense Category Long-term profile Expand Drivers (2) Non-GAAP gross margin 80%+ Long-term gross margin 80%+ (2) Non-GAAP sales & marketing 30% − 35% % of Total Revenue Segmentation, centralization Sales and globalization, leveraging partners Marketi
Slide 70: FY 2024 model notes
FY 2024 model notes • Flex pricing SKU introduced in 22.4 platform release • On prem and hybrid revenue recognition under ASC 606 is now 45% License revenue upon license Revenue Recognition delivery, 55% Subscription Service ratable over the contract term....no material impact to financial model • S
Slide 71: FY 2024 model notes
FY 2024 model notes • ~200bps decrease in FY 2024 Gross Margin • Long-term gross margin 80%+ • ~200 bps operating margin headwind in FY'24 vs FY'23 from amortization of prior period commissions Commissions Accounting • Headwind will continue through FY 2026 • We are going to use targeted grants to r
Slide 72: Driving growth and profitability at scale
Driving growth and profitability at scale Considerable runway to drive growth Segmentation model make sense at our scale and level of maturity Committed to running the business efficiently with smart capital deployment 72
Slide 73: Summary
Summary UiPath owns the automation market We are driving the evolution from automation as a tool to a way of operating and innovating Platform delivers meaningful business outcomes We are committed to sustained growth, expanding operating margin, and positive free cash flow 73
Slide 74: Questions?
Questions? [Ui]Path weet
Slide 75: Thank you!
Thank you! [Ui]Path weet
Slide 76: Definitions and Calculations
Definitions and Calculations Annualized Renewal Run-rate (ARR): We define ARR as annualized invoiced amounts per solution SKU from term subscription licenses and maintenance obligations assuming no increases or reductions in their subscriptions. ARR does not include the costs we may incur to obtain
Slide 77: The automation software company
The automation software company HUMBLE BOLD IMMERSED FAST 77