UiPath stock tumbled on its first earnings report as a public company on Tuesday even though earnings topped analyst estimates and its revenue outlook edged by Wall Street targets.
New York-based UiPath (PATH) said adjusted earnings for the quarter ending April 30 were 2 cents. Revenue climbed 65% to $186.2 million, said the maker of robotic process automation, known as RPA or bot software.
Analysts estimated a 5-cent loss per share on revenue of $168.6 million. UiPath said annual recurring revenue rose 64% to $653 million from a year earlier vs. estimates for $613.4 million.
For the current quarter ending in July, UiPath said it expects revenue in a range of $180 million to $185 million. Analysts had projected revenue of $177.3 million.
UiPath stock tumbled nearly 8% to 69.92 in after-hours trading on the stock market today.
For the July quarter, UiPath forecast annual recurring revenue of $703 million at the midpoint of guidance vs. estimates of $662 million.
UiPath Stock: IPO Raised $1.3 Billion
The UiPath initial public offering in April raised $1.3 billion. Heading into the UiPath earnings report, the software stock owned a Relative Strength Rating of 38 out of a best-possible 99, according to IBD Stock Checkup.
Software growth stocks have pulled back in 2021 after three years of outperformance.
RPA software typically automates accounting, billing and customer service. Bot software is best suited for manual, high volume, repetitive tasks in back-office operations.
The bot programs use artificial intelligence to scan documents, enter data into spreadsheets, open PDF files, and perform other tasks.
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