Slide 1: Hello, we're UiPath. 3Q'2022 Earnings Supplemental Slides
Hello, we’re UiPath. We make software robots so people don’t have to be robots. 3Q’2022 Earnings Supplemental Slides
Slide 2: Safe Harbor
Safe Harbor 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,” “believes,”
Slide 3: UiPath at a glance
UiPath at a glance $818M 58% 9,630+ 1,363 ARR1,2 ARR1,2 growth rate Global customer base2 Customers ≥ year-over-year $100k ARR1,2 Notes: 1.. See Appendix for definition of Annualized Renewal Run-rate (ARR) 2. ARR, YoY ARR growth rate, customer metrics as of October 31, 2021 The Leader of Enterprise
Slide 4: Strong industry tailwinds
Strong industry tailwinds The Next Supply Chain Disruption: To Solve Labor Shortage, Skilled Labor Companies Turn to Automation Businesses Shortage WSJ Are Increasingly Forbes Relying on “ Automation is emerging out Automation to of the back office to become a potent Compensate for Rise of the Robot
Slide 5: Strong customer momentum
Strong customer momentum Scaling large customers Becoming C-Suite priority Total customers (Customers ≥ $100k ARR1, 2) (Customers ≥ $1 million ARR1) 1,363 135 9,630 + 7,830 + 899 74 3Q 2021 3Q 2022 3Q 2021 3Q 2022 3Q 2021 3Q 2022 Notes: 1. See Appendix for definition of Annualized Renewal Run-rate (
Slide 6: Platform Release, New Platform Features, Automation Practitioners
2021.10 Platform Release 100+ New Platform Features 2,000+ Automation Practitioners 6
Slide 7: Automation Suite
Automation Cloud Platform Products The Cloud Native UiPath UiPath Platform products can be Platform delivered from UiPath individually installed and managed on prem 3,250 Cloud customers Automation Suite The Cloud Native UiPath Platform delivered as a single, containerized suite “Start Instantly, Sc
Slide 8: A vibrant community with a deep commitment to workforce readiness and education
A vibrant community with a deep commitment to workforce readiness and education Business Partners Technology Partners UiPath Marketplace 4,900+ Business Partners 400+ Technology Partners 1,300+ RPA listings Extend the UiPath platform Investing for growth 100,000 Marketplace users to their customers
Slide 9: Financials
Financials [Ui]Path B22"
Slide 10: UiPath at a glance
UiPath at a glance $221M $818M $92M Revenue2 ARR1,2 Net new ARR1,2 50% 58% 9,630+ Revenue2 growth rate ARR1,2 growth rate Global customer year-over-year year-over-year base2 Notes: 1. See Appendix for definition of Annualized Renewal Run-rate (ARR) 2. Revenue, ARR, YoY ARR growth rate, YoY Revenue g
Slide 11: ARR is our key operating metric
ARR is our key operating metric ARR1 $ in millions 62% $818.4 CAGR2 $726.5 $652.6 Our business model $580.5 $518.4 $453.5 • Highly-recurring subscription-based $397.9 model predominantly billed annually $351.4 in advance • ARR grows when customers: deploy more robots, adopt more platform products, a
Slide 12: Annualized Renewal Run-rate (ARR)
Annualized Renewal Run-rate (ARR1) ARR is annualized invoiced amounts2 from subscription licenses and maintenance obligations assuming no increases or reductions in their subscriptions. ARR Invoice amount Subscription term 365 Notes: 1. See Appendix for a detailed definition of Annualized Renewal Ru
Slide 13: We run and manage our business to ARR because…
We run and manage our business to ARR1 because… ARR1 is invoice based Revenue is Total Contract Value1 based • ARR most closely correlates to long-term cash flow • Revenue recognition is driven by contract duration, and customer commitment deployment model, and the timing of license delivery as requ
Slide 14: Example 1: one-year duration
Example1, 3: one-year duration $ in thousands $1,000 $1,000 $500 $500 ARR Revenue Year 1 Subscription Services Revenue Licenses Revenue ARR2 would equal TTM4 Software Revenue if all contracts were 1-year in duration Notes: 1. For illustrative purposes only 2. See Appendix for definition of Annualize
Slide 15: Example 1: multi-year duration
Example1, 3: multi-year duration $ in thousands ARR2 Remains Constant Revenue is impacted by ASC 606 0% growth Year 3 Year 3 $4,000 $2,000 $1,000 $2,000 $2,000 $2,000 (75)% growth Year 2 $3,000 $2,000 0% growth Year 1 $2,000 $1,000 $1,000 $1,000 Year 1 Year 2 Year 3 Year 1 Year 2 Year 3 Subscription
Slide 16: ARR and Revenue correlation over the long-term
ARR1 and Revenue correlation over the long-term Annualized Renewal Run-rate (ARR) vs. Trailing Twelve Months (TTM) Revenue ARR TTM Revenue $ in millions $ in millions 62% 65% $810.4 CAGR2 $818.4 CAGR2 $736.9 $726.5 $680.8 $652.6 $607.6 $580.5 $518.4 $514.6 $453.5 $451.2 $397.9 $388.9 $351.4 $336.2 4
Slide 17: Fiscal third quarter 2022 results
Fiscal third quarter 2022 results ($M) 3Q 2022 3Q 2021 Investing for growth Revenue $220.8 $147.3 Driving efficient operations Non-GAAP Gross Margin 85% 89% while investing in the business. Investments include: Non-GAAP Operating expenses: • Engineering talent to drive innovation Sales and marketing
Slide 18: Guidance
Guidance1 ARR2 Guidance 4Q’2022 ARR2 $901 million - $903 million Financial Modeling Guidance 4Q’2022 Revenue $281 million - $283 million 4Q’2022 Non-GAAP Operating Income3 $10 million - $20 million Notes: 1. Guidance inherently is forward-looking and is subject to the risks and uncertainties noted e
Slide 19: Questions?
Questions? [Ui]Path se"
Slide 20: Thank You!
Thank You! [Ui]Path sx”
Slide 21: Appendix
Appendix [Ui]Path B22"
Slide 22: Definitions and Calculations
Definitions and Calculations Annualized Renewal Run-rate (ARR): We define ARR as annualized invoiced amounts per solution SKU from term subscription licenses and maintenance obligations assuming no increases or reductions in their subscriptions. ARR does not include the costs we may incur to obtain
Slide 23: GAAP to Non-GAAP reconciliation
GAAP to Non-GAAP reconciliation Total gross margin ($M) 3Q 2022 3Q 2021 GAAP Revenue $220.8 $147.3 GAAP gross profit $177.7 $129.9 GAAP gross margin % 80% 88% Add: Stock-based compensation expenses $6.4 $0.7 Amortization of acquired intangible assets $1.0 $0.6 Employer payroll tax expense related to
Slide 24: GAAP to Non-GAAP reconciliation (cont'd)
GAAP to Non-GAAP reconciliation (cont’d) Sales and marketing ($M) 3Q 2022 3Q 2021 GAAP sales and marketing $172.9 $99.5 Less: Stock-based compensation expenses $41.8 $5.1 Amortization of acquired intangible assets $0.4 $0.0 Employer payroll tax expense related to employee equity $23.8 -- transaction
Slide 25: GAAP to Non-GAAP reconciliation (cont'd)
GAAP to Non-GAAP reconciliation (cont’d) Total operating margin ($M) 3Q 2022 3Q 2021 GAAP Revenue $220.8 $147.3 GAAP operating loss $(116.2) $(63.0) GAAP operating margin % (53%) (43%) Add: Stock-based compensation expenses $95.1 $48.8 Amortization of acquired intangible assets $1.4 $0.7 Employer pa
Slide 26: GAAP to Non-GAAP reconciliation (cont'd)
GAAP to Non-GAAP reconciliation (cont’d) Non-GAAP adjusted free cash flow ($M) 3Q 2022 3Q 2021 GAAP Revenue $220.8 $147.3 GAAP Net cash flows (used in) provided by operating $(25.4) $6.9 activities Purchases of property and equipment $(2.1) $(0.4) Capitalized software development costs $(2.2) -- Cas
Slide 27: The automation software company
The automation software company HUMBLE BOLD IMMERSED FAST 27