Automation software company UiPath (NYSE: PATH) will be reporting earnings this Thursday afternoon. Here’s what to look for.
UiPath beat analysts’ revenue expectations last quarter, reporting revenues of $481.1 million, up 13.6% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA estimates but a significant miss of analysts’ billings estimates.
Is UiPath a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting UiPath’s revenue to grow 11.5% year on year, improving from the 6.4% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. UiPath rarely misses Wall Street’s revenue estimates.
Looking at UiPath’s peers in the automation software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Appian delivered year-on-year revenue growth of 21.5%, beating analysts’ expectations by 5.6%, and ServiceNow reported revenues up 22.1%, topping estimates by 0.6%. Appian traded down 5.4% following the results while ServiceNow was also down 17.7%.
Read our full analysis of Appian’s results here and ServiceNow’s results here.
There has been positive sentiment among investors in the automation software segment, with share prices up 10.1% on average over the last month. UiPath is up 6.8% during the same time and is heading into earnings with an average analyst price target of $13.50 (compared to the current share price of $11.16).
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