UiPath Forecasts 9.7% Q4 Revenue Growth After 15.9% Q3 Beat
UiPath generated $411.1 million in Q3 revenue, a 15.9% year-on-year increase, beating EBITDA estimates but missing billings forecasts. Analysts project 9.7% revenue growth in Q4 versus last year’s 4.5%, while peers Appian and Microsoft posted 21.7% and 16.7% gains and UiPath shares trade 7.9% lower.
1. Q3 Financial Results
UiPath reported Q3 revenue of $411.1 million, up 15.9% year-on-year, surpassing analysts’ EBITDA estimates but falling short of billings forecasts, highlighting mixed execution between profit metrics and deferred revenue.
2. Q4 Revenue Forecast
The market expects UiPath’s Q4 revenue to grow 9.7% year-on-year, up from 4.5% in the same quarter last year, and analysts have generally maintained estimates over the past month.
3. Peer Performance
Automation peers Appian and Microsoft delivered revenue growth of 21.7% and 16.7% respectively in their latest quarters, with Appian shares rising 4.5% post-results and Microsoft shares falling 10%, setting the bar for UiPath.
4. Stock Reaction and Price Target
UiPath shares have declined 7.9% over the past month versus a 2.3% average gain for peers, and trade below an average analyst price target of $15.93, reflecting investor caution ahead of Q4 results.