UiPath Inc. (NYSE:PATH) Q4 2023 Earnings Call Transcript

Daniel Dines: Yeah. Raimo, I would like to add that, having Rob here and Rob is known to everyone that he is one of the best go-to-market leader on this planet. Having the opportunity to have Rob leading directly go-to-market in his — as part of his day-to-day responsibilities, it’s actually a great news for us. I think we continue to streamline this company, I think this is the right size of the company right now, and we are really poised to more efficiency and to even accelerate our growth profile.

Operator: Thank you. and our next question comes from Keith Weiss with Morgan Stanley. Please state your question.

Dion Hu: Great. Thank you. This is Dion on for Keith. I want to ask on your Q1 guide. I mean it looks really healthy entering the year and so I was curious, since we already have mid-March now. Is there any color you can sort of provide on what you are seeing a few weeks into the quarter here? How is the demand environment shaping up and how are you executing out there?

Ashim Gupta: So, Dion, thanks for the question. We see the environment very much the way we saw it in October. And in our Q1 guide, we have actually accounted for foreign exchange, the continuing — the continuation of foreign exchange pressure particularly in Q1. But also just assume the same variability in the macroeconomic environment, including North America having the macro pressures as well. When we look at our pipeline, we are pleased with the continued progress on the execution of our sale — of our positioning that Rob and Daniel talked about. And overall, we have given an extra actual buffer of conservatism in there or a little extra buffer to account for the environment that’s there. So our philosophy has been the same. We have guided to what’s in front of us with — while still accounting for a little buffer for the variability in the macroeconomic environment.

Dion Hu: That’s great to hear. And then maybe one more question on the net retention rate, obviously, it’s come down slightly from last quarter, but the magnitude is, obviously, way less than it was in the previous quarters. So any way you can sort of frame what you are seeing with customers, particularly among your large customers and how should we think about the net retention rate on a go-forward basis, are there any levels where we could see that stabilize?

Ashim Gupta: Yeah. Let me start and I will turn it over to Rob. So reported net dollar retention rate of 13%. Again, foreign exchange has pressure on that number, when you normalize for foreign exchange is actually at 128%. And we see that our value or our incremental ARR continues to be driven by the highest propensity to — customers with the highest propensity to invest in automation and especially in the Global 2000, Fortune 500, we have had a record number of million-dollar-plus deals, which I think is great momentum. Rob?

Rob Enslin: And I would just add, I spent a lot of time in Europe and Asia in January, and I would tell you that the customer discussions are at a significant sea level discussion, the platform is resonating with customers, the brand around foundation for innovation is resonating with customers, and in this environment, I feel really good about where our product is positioned within our customer base.

Dion Hu: Excellent. Thank you.

Operator: Our next question comes from Kirk Materne with Evercore ISI. Please state your question.

Chirag Ved: Hey. This is Chirag Ved on for Kirk. Thanks for taking the question and congratulations on the strong finish to the year. Going off the prior question, are you noticing any differences in the growth and expansion of different customer cohorts. Meaning are newer customers perhaps slower at growing on the platform when compared to early adopters or vice versa, are there any trends that you might note here?