Automation software company UiPath (NYSE: PATH) will be reporting results this Thursday afternoon. Here’s what to look for.
UiPath beat analysts’ revenue expectations last quarter, reporting revenues of $418.4 million, up 17.3% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ adjusted operating income 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 10% year on year, slowing from the 14.4% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will 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 Q2 results, giving us a hint as to what we can expect. SoundHound AI delivered year-on-year revenue growth of 45%, beating analysts’ expectations by 18.1%, and Microsoft reported revenues up 17.7%, topping estimates by 2.6%. SoundHound AI traded up 10.1% following the results while Microsoft was also up 15.5%.
Read our full analysis of SoundHound AI’s results here and Microsoft’s results here.
There has been positive sentiment among investors in the automation software segment, with share prices up 11.1% on average over the last month. UiPath is up 38.3% during the same time and is heading into earnings with an average analyst price target of $13.87 (compared to the current share price of $18.08).
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