What To Expect From UiPath’s (PATH) Q2 Earnings

Automation software company UiPath (NYSE:PATH) will be announcing earnings results tomorrow after market close. Here’s what to look for.

UiPath met analysts’ revenue expectations last quarter, reporting revenues of $335.1 million, up 15.7% year on year. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its gross margin.

Is UiPath a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting UiPath’s revenue to grow 5.7% year on year to $303.7 million, slowing from the 18.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.03 per share.

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 has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 4.6% on average.

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. Pegasystems delivered year-on-year revenue growth of 17.7%, beating analysts’ expectations by 8.1%, and ServiceNow reported revenues up 22.2%, in line with consensus estimates. Pegasystems traded up 12.7% following the results while ServiceNow was also up 13.2%.

Read our full analysis of Pegasystems’s results here and ServiceNow’s results here.

There has been positive sentiment among investors in the automation software segment, with share prices up 6.4% on average over the last month. UiPath is up 15.5% during the same time and is heading into earnings with an average analyst price target of $15.2 (compared to the current share price of $12.58).

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