UiPath Inc (PATH)

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Q3 report notes from Barron's:

UiPath Tops Earnings and Sales Expectations. The Stock Falls.

Shares of UiPath fell Thursday after the robotic-process automation software company posted fiscal third-quarter results that were better than Wall Street expectations.

The stock dropped 1.6% to $46.93 after UiPath (ticker: PATH) reported adjusted earnings at break-even on a per-share basis on revenue of $220.8 million, up from year-earlier revenue of $147.3 million. The company’s annualized renewal run rate, or ARR, was $818.4 million, up 58%.

Analysts were expecting UiPath to report a loss of 4 cents a share on sales of $208.3 million and ARR of $798 million.

The net loss in the third quarter was $122.8 million, or 23 cents a share, compared with a year-earlier loss of $70.8 million, or 41 cents.

UiPath said it expects fourth-quarter revenue of $281 million to $283 million and ARR of $901 million to $903 million. Analysts are looking for fourth-quarter revenue of $281.5 million and ARR of $880 million.

Analysts at Oppenheimer maintained their Perform rating on UiPath shares, saying that while the company posted “robust backlog growth, and healthy operating margin improvements,” the “positives are somewhat offset by signs of the business decelerating and less optimistic ARR guidance, which implies further growth moderation.”

RBC Capital Markets maintained its Sector Perform rating and $55 price target. “Overall, we believe UiPath remains well-positioned as a long-term strategic enterprise automation vendor,” the analysts wrote in a research note.

KeyBanc analysts also said they see UiPath as the leading independent enterprise automation vendor. They reiterated their Overweight rating but lowered the price target to $69 from $86 “given higher interest rate/lower valuation environment.”

UiPath went public in April with an initial public offering price of $56 a share. The stock has fallen 12% over the past three months.