UiPath Inc. (PATH) to Cut 5% of Global Workforce, Updates Guidance

June 27, 2022 8:35 AM EDT

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UiPath Inc. (NYSE: PATH)

On June 24, 2022, the Board of Directors (the “Board”) of UiPath, Inc. (the “Company”) approved restructuring actions to manage its operating expenses. These actions are expected to include an overall reduction of approximately 5% of the Company’s global workforce of approximately 4,200 as of April 30, 2022, with most of these reductions expected to occur by the end of the second fiscal quarter 2023. Worldwide, we expect the workforce reductions to comply with applicable laws including consultation requirements. This workforce reduction is aimed at simplifying our go-to-market approach starting with an alignment that we believe will result in better market segmentation, higher sales productivity, and best-in-class customer experience and outcomes. The Company estimates it will incur approximately $15 million in restructuring expenses, predominantly related to employee severance and compensation benefits, as well as contractual charges, consisting of lease termination and other related costs. We expect related charges to be recognized by the end of fiscal year 2023. The charges that the Company expects to incur are subject to a number of assumptions, and actual expenses may differ materially from the estimates disclosed above.
Item 7.01 Regulation FD Disclosure.
The Company is updating the outlook provided on June 1, 2022 in its fiscal first quarter 2023 earnings release for the period ended April 30, 2022, reiterating its revenue, Annualized Renewal Run-rate (ARR), and non-GAAP operating loss guidance ranges for the fiscal second quarter 2023 ending July 31, 2022 and its revenue and ARR guidance ranges for the fiscal full year 2023 ending January 31, 2023. At the same time the Company is increasing its non-GAAP operating income guidance for the fiscal full year 2023 ending January 31, 2023 to reflect anticipated efficiencies going forward.

  • For the fiscal second quarter 2023, UiPath expects :
  • •Revenue in the range of $229 million to $231 million
  • •ARR in the range of $1,040 million to $1,042 million as of July 31, 2022
  • •Non-GAAP operating loss in the range of $(60) million to $(55) million
  • For the fiscal full year 2023, UiPath expects:
  • •Revenue in the range of $1,085 million to $1,090 million
  • •ARR in the range of $1,220 million to $1,225 million as of January 31, 2023
  • •Non-GAAP operating income of approximately $15 million

(Consensus sees Q2 revenue of $231 million and FY revenue of $1.09 billion)

Reconciliation of non-GAAP operating income (loss) guidance to the most directly comparable GAAP measure is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and low visibility with respect to the charges excluded from this non-GAAP measure; in particular, the effects of stock-based compensation expense specific to equity compensation awards that are directly impacted by unpredictable fluctuations in our stock price. We expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future GAAP financial results.

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